Friday, January 13, 2017

Does Our Government Really Hate US? Really?

What's wrong with our economy?

One of the technical terms used when evaluating a healthy economy is a term called velocity of capital. What this means is how fast money is moving around from one person to another, or defined as "The velocity of money is the rate at which money is exchanged from one transaction to another and how much a unit of currency is used in a given period of time. Velocity of money is usually measured as a ratio of GNP to a country's total supply of money.”

As you can see from the above graph the Velocity is on a steady decline. So what causes the drop? My opinion is that there are two main reasons:

People (consumers) have stopped spending money. They are sitting on a boat load of cash and they are in a wait and see mode.
The second reason why there is a decline is that the government has put up road blocks to keep spending money. One of the biggest road blocks enacted are the Dodd-Frank Regulations that are making it extremely difficult for individuals to purchase homes.

When someone purchases a home it's not just the seller and buyer who are happy. There are those downstream of this closing that are going to be happy when the home closes. Typically the listing and selling agents are happy, but there are others who also benefit from this happiness and make a living off of the sale. Sure the buyer is happy, they have their dream home they always wanted, and the seller is happy since the can move to their next home, or maybe get rid of the current home. It's going to be a Happy, Happy, Happy fest. The agents who listed/sold the home can't wait till they receive the final HUD 1 is completed and the title company sends out the checks to the brokers. Most agents keep a list of the transactions in their pipeline and like most agents, their spouse is quizzing them on the transactions. My wife usually says, 'got anything closing this week'? She says this specially during the holiday season. I'm happy to say that yes!. This is going to be a good Christmas. However there are many others who will benefit from this transaction and will have a happy Christmas.

Title company and the title agent are getting something from this transaction, like title insurance & escrow fees.
The loan company, Loan Officers, Loan Brokers, Underwriters, support staff, company sales rep also benefit.
Home Inspectors, and termite inspectors are getting some of the money.
Handyman who will fix the conditional items from the homeb inspection also get a piece of the deal, and don't forget all the hardware stores will get a piece of this pie when the handyman buys a new faucet or other item to be fixed.
Tax payers benefit when home taxes are being paid in full with collections of future taxes.
Insurance companies are writing a new policy.
HOA's are going to receive a transfer fee and maybe impact fees.
Neighbors are going to be happy to see a new neighbor.
Disabled Vets are going to receive all of the stuff the new home owners are going to give away before they move.
Utility companies are going to get a change notice and if the account is past due, they are going to get paid.
Appraisal companies will get their piece of the pie also.

It is amazing when you think of all the people who will touch this transaction to complete the deal at all. BUT what's really startling is how many people will be able to keep their job, put food on the table and survive.

With all of this occurring, we should sell homes all the time, but I'm shocked by the road blocks our government has put in place to stop this from occurring. In an effort to fix the last collapse of the housing industry, the administration has generated a mountain of mind numbing regulations to stop consumers from purchasing a home. It's like passing through gates of hell to get a loan. We have gone too far in the wrong direction to fix the problem. The incoming administration has indicated that they are aware of this problem and is promising to fix the regulations ASAP. Let's get money flowing again!

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Trumps Economy Is Going To Take Off! Get Ready Now!

Thing are going to happen..

Something is going on out there. Recently I've opened a new checking account at BofA for a small business venture, but I had one major problem to overcome. Something that I would have never expected. When I got to the bank they said "you will have to stand in line to open an account. " I asked my personal banker 'what's going on'? She said " did not understand what was happening, but since this morning there has been a steady stream of new customers coming into the bank and opening business checking accounts. I have never seen this much activity before".
Based on a recent Bloomberg report, Optimism among America’s small businesses soared in December by the most since 1980 as expectations about the economy’s prospects improved dramatically in the aftermath of the presidential election.
Being in business for 40 Plus years I hear this from my personal business associates. The consensus is that their feeling is '2017 is going to be a good year'. The share of business owners who say now is a good time to expand is three times the average of the current expansion, according to the NFIB’s data. More companies also said they plan to increase investment and keep hiring, which reflects optimism surrounding President-elect Donald Trump’s plans of spurring the economy through deregulation, tax reform and infrastructure spending.
Fifty percent of respondents, the biggest share since March 2002, said they expect better business conditions in the next six months. That was 38 percentage points higher than in November. The net share of firms projecting higher sales jumped by 20 points to 31 percent. Some 29 percent say they will boost capital outlays within six months.
The National Federation of Independent Business’s index jumped 7.4 points last month to 105.8, the highest since the end of 2004, from 98.4. While seven of the 10 components increased in December, 73 percent of the monthly advance was due to more upbeat views about the outlook for sales and the economy, the Washington-based group said. “

Rising confidence adds to the economy’s upward momentum,” Jim O’Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, New York, said in a note. At the same time, the “NFIB membership appears to be disproportionately Republican, so it is possible that the data will start overstating strength, opposite the pattern during the Obama administration.”
The NFIB report was based on a survey of 619 small-business owners through Dec. 28. Small companies represent more than 99 percent of all U.S employers, according to the U.S. Small Business Administration. A small business is defined as an independent enterprise with no more than 500 employees.
“We haven’t seen numbers like this in a long time,” Juanita Duggan, president and chief executive of the NFIB, said in a statement. “Small business is ready for a breakout, and that can only mean very good things for the U.S. economy. Business owners are feeling better about taking risks and making investments.”
So now what do you do? What is your plan for the next 1-2 years? Should you invest in the stock market, hold cash, purchase real estate? Personally, I'm jumping back into the real estate rental market. But I'm being very cautious on what and where I purchase. I'm still licking my wounds from 2008.
Dodd-Frank will be changed. Only 3 new banks have been started since the 2008 crash. I remember when it would have been hundreds! Lending has been stagnant as local and regional banks are handcuffed to lend. What we have is constipation of the money pipeline due in large part to Dodd-Frank.

About Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Free Report The 8 Things You Must Do To Be A Successful Home Flipper

Wednesday, January 11, 2017

Level 4 Funding LLC Arizona Private Hard Money Lender

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Tuesday, January 10, 2017

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Wednesday, January 4, 2017

What is a Deed of Trust - Deed of Trust Definition

What is a Deed of Trust?

A deed of trust (also know as trust deed) is a deed (piece of paper usually recorded at the county) that gives legal title to real estate to a trustee. It secures the note (Mortgage).

There are three parties to this type of title. They are:

The Trustor (Borrower),
Beneficiary (Lender) and a
Neutral 3rd part called the Trustee.

They are written so that the lender gives money to the borrower to purchase a real property (home) and the borrower signs a deed of trust giving the power of sale for property to the natural 3rd party trustee to be held in trust for the lender. (I like to think the trustee takes the Deed of Trust and puts it in the top drawer of their desk and waits.) The borrower owns the property, but the title is held by the trustee.

This is noted in the Deed of Trust and is called the ‘power of sale clause’ for example:

Deed of Trust Definition - What is a Deed of Trust

What is a Deed of Trust?

A deed of trust (also know as trust deed) is a deed (piece of paper usually recorded at the county) that gives legal title to real estate to a trustee. It secures the note (Mortgage).

There are three parties to this type of title. They are:

The Trustor (Borrower),
Beneficiary (Lender) and a
Neutral 3rd part called the Trustee.

This is noted in the Deed of Trust and is called the ‘power of sale clause’ for example:

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Tuesday, January 3, 2017

Private Hard Money Lender In Arizona

Setabay LLC

22601 N 19th Ave Suite 112

Phoenix AZ 85027

Private Hard Money Arizona

Hard Money Lender Arizona

Trust Deed Investing Arizona

Trust Deed Investing - How to Invest - Risks and Rewards

By Dennis Baranowski, Esq.

Geraci Law Firm

Investing in trust deeds is nothing new. Investors have often sought investment in either fractional or entire trust deeds because of the better than average rate of return and the security that comes in the form of pledged real property.

Unlike stocks or bonds, where the investor is relying on market conditions to dictate returns, investing in a trust deed typically offers a fixed rate of return in the form of monthly payments and in most cases a return of capital at maturity. This type of investment generally provides higher yields on capital with less risk than other market offerings.

The basic components of a trust deed investment are

1) a promissory note signed by the borrower and

2) a deed of trust which secures payment of the promissory note by establishing a lien
against real property upon the recording of the deed of trust in the county where the real property is located.

The trust deed holder is the lender, just like a bank, credit union or other financial institution. Trust deed investment allows an investor to participate in a loan secured by real property by purchasing all or a portion of the note and trust deed attached to a particular property and borrower.

The investor can either purchase the entire loan or a just fractional share. An investor that has adequate capital will often finance all of a trust deed loan. An investor that is the sole holder of a trust deed loan will enjoy more control over their investment in that the investor will be the sole decision maker with respect to collection of late payments, foreclosure, modifications and forbearances. Fractional participation in a trust deed loan will result in less control over the investment than owning the entire trust deed loan, but it provides an excellent vehicle to introduce investors to investing in trust deed loans. With a fractional trust deed loan, the total investment required is often less than owning 100% of the trust deed loan and the risk of the trust deed loan is shared by two or more investors. The fractional trust deed investor trades off the decreased exposure to loss with the sharing of control over the oversight and management of the investment with the other investors.
Investors that prefer fractional trust deed investments often will participate in multiple fractional trust deed loans in order to spread the risk of loss rather than placing all of their eggs in a single basket.

Investment in trust deed loans offers an array of variables for each investment, including varying returns, property types, length of the loans, and risk profile. In most instances, a greater yield will be realized by investing in higher risk trust deed loans, such as second or third position deeds of trust and loans where the total amount of loans secured by the property represent a larger percentage of the value of the property, as opposed to investment in loans that are secured by first trust deeds with low loan to value ratios. Investing in multiple trust deed loans provides an excellent opportunity for consistent cash flow, since the chances that all borrowers will stop making payments is not likely, especially if the loans are properly underwritten.

Whether there is a single investor or multiple investors, a trust deed loan needs a loan servicer to manage the loan, including the collection of monthly payments on behalf of the investors and to disburse such payments, less fees and costs, to the investors pro rata. The loan servicer is often the broker who arranged the trust deed loan for the investors, but could also be a third party provider. The arrangement with the loan servicer is governed by a loan servicing agreement between the investors and the loan servicer. Typically the loan servicing agreement delegates authority to the servicing agent to receive payments, pay distributions to the individual investors, and communicate with and provide documentation to the borrower. The loan servicing agreement also provides instructions about the collection and deposit of funds, instructions on handling delinquent accounts, and limited power of attorney to enforce the deed of trust contract. The primary job of the servicer is to manage the trust deed investment account and protect the interests of all investors. This responsibility may include managing accounts that are not performing or are in default, and initiating collection activities. When investing in trust deed loans, emphasis should be on engaging a servicing agent who is experienced, competent, and lends confidence that he or she is looking out for your interest.

Most established servicing agents are good at what they do. They already have established systems in place to support the investors' interests actively. Part of that system is online tracking software that allows investors to view payment activity, confirm trust deed loan details, and determine the status of their investments at any given time.

By working with a broker that understands the private trust deed market, and contracting with an experienced and highly competent servicing agent, trust deed investments can be a lucrative endeavor. These types of investment typically demand an 8% to 14% annual interest rate, with loan terms ranging from 1 to 20 years. Investment returns will vary based on the type of property, the condition of the asset, location, type of loan, and qualifying factors of the borrower.

With the right team in place and a proper amount of due diligence on each deal, a qualified investor can participate in the trust deed marketplace with confidence that they will achieve positive results.

Learn To Be A Fix & Flip Investor

Featured Post

The Big Show is Coming to Town.

Friday, January 13, 2017

Does Our Government Really Hate US? Really?

What's wrong with our economy?

Trumps Economy Is Going To Take Off! Get Ready Now!

Thing are going to happen..

Wednesday, January 11, 2017

Level 4 Funding LLC Arizona Private Hard Money Lender

Tuesday, January 10, 2017

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Wednesday, January 4, 2017

What is a Deed of Trust - Deed of Trust Definition

What is a Deed of Trust?

Deed of Trust Definition - What is a Deed of Trust

What is a Deed of Trust?

Tuesday, January 3, 2017

Private Hard Money Lender In Arizona

Trust Deed Investing - How to Invest - Risks and Rewards

The basic components of a trust deed investment are

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