Thursday, January 19, 2017

Commercial Bridge Loan - Commercial Lending Commercial Hard Money Lenders in California and Arizona

Commercial Bridge Loan, Commercial Lenders, Hard Money Lenders

Dreaming of an Investment Property? Well, find out if a commercial bridge loan is your dream come true or a nightmare.

In any industry things can move quickly, commercial real estate or investment properties are no different. Sometimes, it is your best interest to move quickly with a purchase. For instance, say you are interested in a foreclosed property time is usually of the essence i.e. you need to move quickly in order to purchase said property before someone else does. This particular scenario is when most commercial buyers consider applying for a commercial bridge loans. Other instances where many companies looking into bridge financing is when their current mortgage is due and they have yet to find or rather secure a replacement mortgage or if a company needs to cover shortfalls in regards to general capital say for an upcoming balloon payment.

Commercial Mortgages– Know Your Eligibility

Before you consider a commercial mortgage, it is important to know what you need to qualify for one. Lender requirements are often just the beginning.

Commercial Lending i.e. commercial real estate loans. are nothing to sneeze at. In other words, you’d be surprised how much of an impact commercial bridge loans have on the overall financial future of companies. Consequently, when it comes time to enter the vast world of non-residential mortgages, it is extremely important to your eligibility. Of course, you may be asking yourself, aren’t non-residential mortgages loans similar to most mortgage loans? Well, obviously the answer to that question is no.

Commercial Real Estate Loans– Which Loan is Right for You?

There are a multitude of commercial real estate lenders. Are you sure you found the right loan for your business venture?)

If you haven’t done your research yet, it may behoove you to know that there are several different types of commercial real estate lenders. However, our focus will be on joint venture loans, participating mortgages and your standard real estate purchase loans. These particular commercial loans tend to be the most common choice when it comes to business ventures. Thus, with that being said, let’s go over what each of these loans can do for you and your next business venture.

For starters, a joint venture loan is what you want when all parties (generally two partners) are willing to share equally in the losses and profits of the property. Moreover, this particular commercial loan is extremely beneficial to those parties that cannot or may not be able to qualify for financing separately. A real estate purchase loan, on the other hand, requires one party or rather one borrower with excellent to near perfect credit along with the saving to back it up. Additionally, when it comes to collateral, in general, lenders tend to expect more with these purchase loans.

Lastly, participating mortgages, in essence, are when your joint partner is actually your lender. In other words, the lender receives the standard monthly payment plus interest, but because the lender is also a partner they ultimately share in the commercial property’s proceeds or income. This third option is definitely something to look into if you have potential tenants with financial stability and long-term goals.

Who are Commercial Hard Money Lenders and What do They Offer

You may be new to the commercial investment property business or you may be a seasoned vet. Regardless of which category you fall under it never hurt to consider all your lending options and be clear on what they all have to offer.

Commercial hard money lenders are generally non-banking institutions i.e. private individuals or small groups that solely provide fast financing for such individuals as house flippers, developers and so on. Typically, most people that venture into the world of commercial real estate and investment properties are familiar with the term hard money. But, more than likely do not know exactly what a hard money loan is. This may sound strange, but the fact is unless you are in the business of flipping houses or a developer, hard money is a hard concept to follow.

In other words, you are not alone when asking the question just who exactly needs hard money? Moreover, how does hard money differ from standard financing? Well, the obvious answers are listed above. But, the in-depth answers are that hard money is for individuals who for a variety of reason cannot qualify or obtain conventional or rather standard loans/ financing and hard money differs from standard financing because there is simply less red tape.

All in all, this may sound like these particular individuals have bad credit or are just from a bank standpoint a bad investment, but the truth is this isn’t always the case. Nine times out of ten, the people that need hard money are those that need to move quickly on a property and often times need to borrow the full purchase price. Consequently, these people are often far from a “bad investment” as most commercial hard money lender require their borrowers to back up hard money with real assets i.e. the collateral and credit are often more than there. In reality, it is often the banks that simply cannot move at the required speed necessary to allow the borrower to make a profit

Private Money Lenders vs. Commercial Hard Money Lenders

We know that commercial hard money lenders aren’t banks or other traditional institutions that are in the business of loans, but are they private money lenders? Moreover, if hard money lenders are not private money lenders, then you may just be asking yourself, well who are they?)

There are often so many interchangeable terms when it comes to the world of commercial lending that it is easy to forget that not all interchangeable terms always mean the same thing. For instance, it is not uncommon to hear the phrase private money lenders and naturally think non-bank lenders. Moreover, when people think of commercial hard money lender, they are also inclined to think non-bank lenders. Are you confused yet? Well, it is okay if you are because you are definitely not alone.

The reality is both private money lenders and commercial hard money lenders are traditionally not banks. But, that doesn’t mean that both of these non-bank lenders are the same nor do they offer the same loan options. So, now that that’s a little clearer, let’s go over just how these two particular commercial money lenders are different.

For starters, you will learn very quickly that hard money loans meet a very specific need. For example, let’s say you are a house flipper or a commercial developer and you need quick, short-term financing without a lot of red tape. These two instances are generally when you want a hard money loan. In fact, these instances really make up the bulk of hard money loans. Moreover, it is because of this fact that hard money lenders appeal to a certain niche market. Private money lenders, on the other hand, are more relationship-based and offer loans for real estate transactions—plain and simple. In other words, there really are not any specific scenarios where you absolutely need to contact a private money lender to provide financing rather private money lenders are basically just another non-bank financing outlet.

Pitfalls to Avoid with a Commercial Bridge Loan

In the fast pace world of commercial real estate and investment properties, a commercial bridge loan can be just the type of funding you need to keep your investment plan running smoothly and many loan scammers are aware of that fact. So, in order to avoid being scammed let’s go over a few red flags.)

If this is your first time applying for a commercial bridge loans, you may be surprised to know that you are actually not alone. Up until recently, many people simply did not use bridge loans due to the fact credit was once upon a time much easier to get. But, unfortunately, we no longer live in a world where that is the case i.e. it is much harder to obtain financing and even harder to maintain good credit.

Since bridge loans were somewhat of a foreign concept until recently, many people simply do not understand how they work, which means many do not know when they are actually getting scammed. Clearly, this is one of the main reasons to do your homework when it comes to applying for a commercial bridge loan. If you are like most businesses, much of your financial future depends on not being a party to a loan scam.

Typically, with a commercial bridge loan, the most common pitfalls and scams are the bait-and-switch loan scam, the upfront fee loan scam and of course the old-fashion identify theft loan scam. Out of all three of these particular loan scams, the one you time and time again is actually the upfront fee scam since actual lenders generally charge an upfront fee. So, you may be asking yourself, if actual lenders charge upfront fees how will you know if you are being scammed or not? Well, the answer, of course, lies in the details—the actual details i.e. pay attention to email addresses being spelled correctly and lender addresses.

Commercial Hard Money Lenders—Who are they for?

You hear it all the time—commercial hard money lenders are here to help when traditional funding lenders can’t. In many ways they do help, but generally, it’s the seasoned real estate investors that benefit most.)

Commercial hard money lender are a great option when looking for short-term financing and when you do not have the picture perfect requirements (stellar business credit scores, excellent financial conditions and so on) for traditional lending institutions such as banks or credit unions. But, what nobody tells you is that commercial hard money lenders are not for the timid or for the unseasoned real estate investors that are new to the commercial investment game. Of course, this fact doesn’t mean hard money itself is any more complicated than private money or traditional funding (soft money); rather it just means that those who have been in the business for a minute know the tricks that commercial lenders like to play.

For instance, commercial lenders are still in the business of making the most on their investment. Thus, with hard money, these particular lenders aren’t afraid to charge a higher interest rate. For those individuals that know hard money is for moving quickly on a lucrative investment, these higher rates are not really an issue. In other words, they see a great investment, they find a reputable commercial investor and in less than a few business days the deal is done. With unseasoned real estate investors, you need time to get your feet wet as well as time to weigh all the pros and cons—this is, of course, perfectly okay and generally just the nature of the beast. But, nevertheless, if you need extra time to make your move that’s still extra time you are essentially sitting on a lucrative investment, which in the long run generally means more costs and higher fees.

Similarly, if this is your first or second time utilizing a commercial lender for a hard money loan, you need to make sure that you have enough capital to pay back the loan and that you are working with a reputable lender i.e. check their credentials. These are generally things that a seasoned real estate investor can do seamlessly. So, remember if you are new to the game, that’s okay, just make sure you find the right lender, the best rate and move quickly on your investment.

Why A Commercial Hard Money Lender May Be Right For You

Ready to move on with business, but your traditional bank loan officer may not be? A Commercial Lenders may just be the right solution for you. Find out why this is the real deal.

So, you’re ready to move on with business, but in need of a timely loan? Let’s go as far as to say that you’re ready to make your move and acquire that piece of commercial real estate, and are hard-up for funding? The good news is that you don’t have to be hard-up for hard money. A Commercial Lender is a very viable, attainable option for you and here is why.

1) Commercial Lenders are able to provide commercial hard money loans in a timely and efficient manner. They have the depth of understanding that the time to act on your piece of potential real estate is now, while others like yourself are competing with dueling bids. You simply may not have time for the traditional bank loan application approval process and funding that can sometimes take up to several weeks.

2) If you’re concerned about being denied a traditional bank loan or have currently been denied one, Commercial Lenders are likely more willing to work with you than other banking institutions. While there are many reasons why you may have been denied a bank loan, a Commercial Lender will often let your history of denial be just that, history. They deal with you in the “here and now”–meaning, equity invested and will the loan be repaid.

What Are Other Things To Consider When Contemplating Using A Commercial Lending?

You understand that the commercial real estate opportunity of a lifetime could be passing you by as you wait and wait for a potential bank loan approval and related funding. In addition, you should know that Commercial Lending aren’t what they used to be. They are on the up-and-up, helping folks like you on a daily basis. Long gone are the days of risky loan practices and extraordinary interest rates. Today’s Commercial Lending wants to work with you and see that you succeed! Your success is their success!

For A Successful Loan And Funding Process,

Commercial Lending Is Something For You To Research And Consider

At the end of the day, your goal to secure a potential commercial real estate property is a loan. Because Commercial Lenders are willing to work with you, focusing on the value of the property and not on your history and credentials, researching and considering this type of lender may be just right for you. You will stand a much better chance of reaching your goal, so get started now!

The Real Deal Residential Hard Money Lenders

Consequently, here is something you should definitely keep in mind when determining what kind of lender you should be working with. Above all else, it is important to note that residential hard money financing is appropriate in a variety of scenarios such as impaired credit, liens or judgments, time constraints, pending foreclosures and Foreign Nationals—just to name a few. Thus, if you are still interested in your residential hard money options, it helps to focus your lender search on niche lenders that can meet your needs (whatever they may be) and vice versus.

About the Author: 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

Residential Hard Money Lenders—Advice on to Look

By now, you know that if you are searching for a few reputable Residential Hard Money lenders then you needed look any further than California. But, of course, if finding your next lender were as easy as picking the right state, there would not be much left to discuss—so let’s get down to your lender search basics.

When looking for residential hard money lender, especially in such key states as California, you will begin to see you have more than several options to choose from. Thus, it is at that moment, you need to be able to limit your options or rather narrow your focus. Sure, this may not be revolutionary advice, but there are still a few tips and pointers to go over for your search.

For instance, during your search for the best residential hard money lenders, you may feel like a pro when you pull up your Scotsman’s Hard Money Search Engine, but do you have your search criteria lined up and ready to go? In other words, it helps to truly think about what you are trying to accomplish with your hard money financing. In doing so, you will be able to definitively click on those advance search options. Moreover, in order to do so, you need to look at your borrowing situations. This means are you an owner-occupied borrower, a builder, an investor or a legal entity—just to name a few. You also need to be clear on your potential property type—not only does this matter in general; it will also help you find the right lender for your needs.

Furthermore, you need to clear on your loan characteristic, ideal loan terms, and potential LTV percentage. Your loan characteristic matter, here, because as you know hard money can be used for a few things such as bridge loans, standard purchases, refinancing, blanket loans and for business purposes. Therefore, in order to maximize your chances of finding the right lender and eventually securing that financing, it definitely helps to hammer all these things out before you start your cursory lender search.

How to Evaluate Potential Residential Hard Money Lenders

Now that you have mastered the necessary search criteria and compiled a list of your possible lenders, it is time to evaluate your top five. The good news is that hard money lenders of any kind still need to meet your own personal criteria. This means you should be comfortable with your potential lender’s expertise, their level of transparency and the speed at which they work. It also helps to double-check licenses (especially if you choose to find your top five lenders via Google) and look for niche lenders.

Your Eligibility

Ultimately, once you have decided firmly on your future hard money lender that offers residential financing, your focus needs to shift. In other words, it may be tempting to keep looking or have one foot out your lenders door, but you are only doing yourself a disservice. Remember, finding a lender is only half of the battle—the next step is working on your eligibility.

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 the author: 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.

Wednesday, January 18, 2017

Hard Money Lenders—California Lender Basics

There is all this talk of private money and hard money lenders, California based lenders—the list goes on. However, if you are like most people you are probably a little unsure about the basics, which is perfectly okay because you came to the right the place.
If you are just starting your investment project or commercial venture, then most likely you are looking for a quick and affordable loan. But, before you become all gung ho and commit to the first lender you find, it helps to know the difference between private and hard money lenders. California lenders offer a wide range of private and hard money loan options, thus you need not look far for a reputable and accommodating lender. Instead, all you need to do is figure out which kind of financing is right for you.
Hard money, then, is typically the best option for resales and rehab investments. The reason being that hard money is at its cores is financing for asset-based endeavors. In other words, hard money is for commercial, industrial, residential (single-family and multi-family), and land. Private money, on the other hand, in essence, can be used for any purchase or investment project as a private money lender can be an individual or a company. Thus, you should ask yourself, what exactly you are trying to accomplish with this financing, especially when dealing with hard money lenders. California lenders that offer hard money financing are more than willing to lend a helping hand – pun intended. Therefore, it also helps to know what to look for in a hard money lender—if, in fact, you do decide to go with hard money financing.
With that being said, let us go over a few important things you should look for in a hard money lender. For instance, it almost goes without saying that, you should be looking at lenders that have a clear understanding of your particular business plan. This means doing a search for reputable lenders in your area and then doing some investigating to see if they offer niche programs that are applicable to you.

The Right Helping Hand Money Lenders California

Once you have narrowed your list of lenders, who understand your needs, the next step is to make sure your chosen few operate with a high level of transparency. This means that you, your lender and any other involved party should have access to your loan data, etc. Thus, if you come across a lender that is unwilling to be forthcoming with loan data or details—you should cross them off your list. Besides, a high level of transparency, it is also important to make sure your potential lender is licensed.
Things to Consider
Other things to consider include your hard money needs (project, budget, unforeseen expenses, etc.) and each lender’s loan-to-value ratio/guidelines. Remember, not every hard money lender has the same ratio or guidelines. Moreover, it is imperative that you know what terms you are signing up for. Ultimately, once you have tackled all of these things, you will pretty much be on your way to securing that financing.

Residential Hard Money Lenders and Financing

Residential Hard Money lenders are often the helping hand that first time home buyers or first time developers need. Yet, many first time borrowers seem to be a little uneasy about what happens after they receive their hard money financing when they should not be; therefore, let us go over what happens after your lender approves you.

Despite, what most people think most residential hard money lenders want their borrowers to get approved and succeed. Thus, many residential hard money lender are often shocked when potential borrowers approach the situation in an adversarial manner. Your lender, in fact, is actually someone to keep in touch with throughout the entire approval process—so do not be shy.

After receiving your financing, you really do not have any time to waste wondering what your lender is or is not up to—you need to act quickly and move forward with your investment. Remember, you more than likely spent weeks doing your due diligence and research before deciding on a lender. Moreover, you took the time to go over everything in your loan agreement and spoke with an attorney, so now it is time to make your purchase. Of course, your purchase will include covering any closing costs or additional fees, but once again, you were clear on all of this because you choose a reputable lender who operates with a high level of transparency.

Therefore, you are on to the next step, which is insuring your property. Property insurance is often a must-have for hard money lenders, so if you do not know where to get the best deal then ask your lender for some assistance. If you do know where to get a decent deal on property insurance then secure your insurance. In other words, you do not have to wait for approval from your hard money lender on this—but they are here to help should you need it. After you are insured, really all that is left to do is follow your business plan and/or construction timeline.

How to Manage your Residental Hard Money Loan

So now that you know, your lender is truly here to help, let us go over how to manage your hard money loan. Unsurprisingly, any lender of hard money financing has an expectation of repayment. Moreover, lenders will expect you pay off your loan sooner rather than later (they also expect you make a lump sum payment with interest if you are flipping the property). This means having projections on when your residential property will become profitable so you and your lender have a better understanding of repayment timeframe. Clearly, with higher interest rates, you should also expect to pay off your loan quickly. This is why it is so important to review your loan terms and repayment options.

A True Helping Hand

Ultimately, residential hard money financing is always a viable option if you are prepared and are willing to work with your lender not against them. Thus, to recap, there is no need to look at your lender as the enemy if you have done your due diligence in selecting them. Lastly, the more prepared you for the lending process, the more streamlined the repayment process will be.

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.

Tuesday, January 17, 2017

Private Money Lenders in California—Approval Basics

Now that you have decided to work with private money lenders in California, it may be helpful to know what you need to do in order to get approved or to have a better understanding of what happens after you choose one lender in particular.
Private money lenders in California are not shy when it comes to the approval process. In other words, private money lenders in California typically will lay out what they need from you and the rest is really up to. Consequently, once you have found a few good private money lenders, the next thing you need to do is find the right loan. Of course, this may sound pretty straightforward, but the reality is that no two lenders are alike. Thus, you need to go over long terms, interest rates and repayment options with a few lenders.
You will be doing yourself a favor by going over everything with a fine-tooth comb because just as no two private lenders are alike, no two private loans are alike. This means you really need to take some time getting to know your potential lenders and take even more time discerning if the terms of your potential loan truly meet your project needs and requirements.
Besides doing everything you can to find the right lender and right loan for you, you have a few other things to consider before you can even begin the approval process. For instance, you should ask yourself if your potential lender does not have a high rate of foreclosures. Sure, it is never any fun to think about what will happen if your project goes south or if you cannot meet your loan payment, but it is a necessary evil. Therefore, let us get back to discussing that high rate of foreclosures if your potential lender has a significant number of foreclosures underneath their belt you should be concerned. Generally, when a lender has a high rate of foreclosures, more than likely your potential lack flexibility or the willingness to work with their borrowers when it comes to loan terms. Thus, if the lender you find seems too good to be true, such out-of-box questions should come to mind.

Eager to Understand the Process from a Private Money Lenders in California

After you have asked the hard questions (if you like the answers you get), then it is time to start the approval process. As you know, just like any other kind of financing, you need to submit ab application. With private lenders, it helps have an in-depth picture of your financial and credit situation to increase your chances of approval as well as to decrease your wait time. Once you submitted your application, next comes the real waiting game. But, the good news is that private lenders tend to move quickly, therefore you will most likely get an answer in a few days.
Regulations and Eligibility of a California Private Hard Money
Once you qualify, it is time to choose a loan program that meets your needs, order a title report, get an appraisal and set an escrow account with a neutral third party. All the meanwhile, your lender will be reviewing the necessary documentation you provided in order to approve your loan. Upon approval, you can sign closing package and get your loan funded (you will also need to record your documents and eventually make payments

Saturday, January 14, 2017

Private Money Lenders in California—Are there when you need them

There is no shortage of private money lenders in California. The reason that there is no shortage is because private money lenders in California are not afraid to offer investors what they need when they need it.

It is no secret that private money lenders in California have the market cornered. But, if you are new to the world of investing and borrowing, you are probably wondering why? Well, private money lenders, in general, offer three major upsides that definitely outweigh the downsides. Nevertheless, before going over those three major upsides, it is still important to know what the downsides actually are.

For starters, one of the main downsides or drawbacks to working with private money lenders is the substantially higher interest rates. However, this downside should not deter you from working with these particular kinds of lenders. The reality is that you will have to deal with interest rates regardless of the type of financing you choose. When you using private money, it helps to just remember your interest is higher because your need is greater. In other words, you use private money when time is of the essence.

With that being said, private financing lenders, especially in California, typically offer the quickest funding. Besides, besides being the best way to secure quick financing, these lenders’ qualification requirements are more relaxed. Of course, this is not to say that there are less adherence state regulations. Instead, California lenders who offer private money loans are accustomed to approving loans against virtually any properties (no occupancy or low occupancy, etc.). This means that any non-traditional purchases are not off the table with California lenders. Moreover, any previous bad credit problems or history tend do not affect your chances of approval and there is a lot less red tape involved. What’s more, there are still additional benefits that come from choosing to work with California lenders in order to secure private money.

Other Benefits from Private Money Lenders in California

In addition to quick approval time and easy-to-meet qualifications, another major benefit you will see with this particular kind of funding is an opportunity cost. If you are unfamiliar with the phrase, opportunity cost is essentially having the ability to make one’s money go further. This means that not all of your assets are tied up in any specific property when you use private money. Furthermore, California lenders are open to negotiating loan terms when dealing with private money. Therefore, despite the higher interest you still may come out ahead.

A Win-Win Solution

Ultimately, choosing to work with California lenders who offer private money financing is practically a no-brainer. As you can see for yourself, all the benefits clearly outweigh the disadvantages. Nevertheless, if you are still unsure about working with a new California-based lender for your private loan, it always helps to do your research—no two lenders will be the same, of course. Thus, you should do a cursory search in your particular area as well as outside of your location—you will instantly see the difference in what non-California lenders and California lenders offer.

Deed of Trust Definition - What is a Deed of Trust

What is a Deed of Trust? Deed of Trust Definition

Definition of 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’.

Deeds of Trust Definition

Equity – our long-term Mortgage program is brokered at 60% of the after repaired value (ARV or LTV) where the goal is to have a fixed and rented home that more than covers the monthly payment..

Money Down – All of our professional real estate investors will have either personal funds or a spread of equity in the transaction serving as their personal guarantee and commitment that the Deeds of Trust payment is a priority

1st Deeds of Trust Only – Our investors are the only holder of the note and in first position

No Pooling of Funds – The Level 4 Funding does not pool funds (also called fractionalized Deeds of Trust). This gives the Deeds of Trust investor more control over the investment

Non-Owner Occupied Properties Only – The Level 4 Funding only brokers Mortgages for non-owner occupied, single family homes and units (1-4) to a very unique client, the professional Arizona real estate investor.

Appraisal – An estimated value placed on a property at a particular point in time. Also known as appraised value.

Beneficiary – The beneficiary is the lender that can be an individual or a legal entity. Also known in a Deeds of Trust investment as a private money lender.

Deed of Trust – A document signed by the borrower that, once recorded, acts as proof that a Mortgage has been made on a property.

First Deeds of Trust – The first in line of Deeds of Trust recorded on a property.

Hard Money Mortgages – given at a higher interest to reflect perceived risk and added convenience of speed.

Interest Only – No payments being made on a Mortgage are being applied to principal. The balance due stays the same.

Simple Interest – Its calculated using the following: (Balance Amount * Interest Rate) divided by 12. This gives you the monthly payment for interest only payments.

Mortgage to Value (LTV) – Is a ration is used to determine risk and equity position in a property. If the property us currently valued as it stands now at $100,0000 a Mortgage of $70,000 gives a LTV of 70% ($70,000 divided by $100,000). This should not be confused with ARV – After Repair Value.

Points – A percentage fee charged for origination of a Mortgage. One point is equal to one percent.

Promissory Note – The Promissory Note is signed by the borrower and shows the terms of the Mortgage.

Trustee – An individual or organization authorized to hold a trustee sale.

Trustor – The trustor is the borrower.

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.

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