Texas Hard Money Lender

Wednesday, August 28, 2019

Top 4 Things You Didn’t Know About Arizona Private Money Lenders

Unless you’re in the industry or personally know some Arizona private money lenders, it’s hard to know what they’re really like. They’re actually just like people you meet every day, but they’ve built up wealth and like to lend their personal money out.

1. They usually fund projects they have expertise in. It’s only natural that private money lenders in Arizona, would gravitate back to the areas they know well. For example, those who have personally done fix-and-flips or rentals will often fund those deals for others once they’ve accumulated wealth. The logic behind this is simple: because they know the industry, they can assess the risk of lending on any given project fairly easily.

2. They’ve been where you are. More often than not, they funded their initial projects with hard money and had great experiences with it. It’s quite common for someone who’s really adept within a certain niche to build up their wealth and then turn around and lend to people doing what they once did.

3. They’re living the dream. Most don’t live wild lives, but by the time they’re ready to invest in the projects of others, they’re usually living pretty comfortable lives and spending their days doing what they enjoy instead of the daily grind.

4. They prefer working with brokers. Scoping out deals, examining the details, and overseeing all the paperwork is a ton of work. Many investors don’t want to bother with it or it’s outside the scope of their expertise. Life is easier for them when they have brokers find their deals and get things hammered out for them, and so you’ll often have more luck getting a loan from one if you connect with a broker first.

They Want You to Be Successful

Many people wonder what motivates private money lenders in Arizona to offer up their own cash. The short version is, they want you to generate more cash with it. They’ve likely already done the job you’re doing now and have accumulated enough wealth to be able to lend it out, which frankly, is a whole lot easier than being in the trenches of a rehab project or new build. They’re excited to see you grow and, at the same time, your success is theirs too. If you run a successful project, they want to be first in line to fund your next one too. It’s a win-win situation.

They’ve got cash in hand and are eager to lend.

Most private money lenders in Arizona continue reinvesting their money. Oftentimes, they’re already looking for a new deal to fund before their last one is totally paid back. It’s the nature of the business—they can’t continue to grow if their money is just sitting around, so if their money isn’t actively being used, it’s burning a hole in their pocket and making them uncomfortable. Now that we’ve recovered from the recession, investors are hungrily looking for the next deal they can fund, so if you’ve got a solid business plan in mind, it’s the ideal time to bring it to life with their help.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC
Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Tuesday, August 27, 2019

Can You Really Apply for New construction loans in Arizona from Two Companies at Once?

You can apply for new construction loans in Arizona from two lenders at once. However, you should be aware of the benefits and drawbacks before you do.

Most people building homes or businesses won’t qualify for traditional funding. Instead, they’ll take out new construction loans, which are short-term options sometimes referred to as self-build loans. They’re commonly leveraged by individuals who are having a custom home built as well as by the builders themselves. Once construction is complete, a new loan, often called an end loan, is taken out to pay off the initial one.

However, getting the initial round of funding can be a little tricky, simply because banks consider construction-related ventures to be a bit risky. After all, if the project isn’t completed or something goes wrong, the bank is left with a property it may not be able to sell and a mess to clean up. This in mind, interest rates and costs associated with closing tend to be a bit higher than with traditional mortgages, so eager would-be borrowers often want to consider all the options before committing to one.

Because of this, it may make sense to apply to two or more lenders at once. You’ll be able to compare the options and choose the one which makes the most fiscal sense or let your lenders know about other offers you’ve received to see if they’re able to sweeten the deal enough to sway you.

Beware: Too Many Checks Harms Your Credit

“Most Credit Scores are not affected by multiple inquiries from auto, mortgage or student loan lenders within a short period of time,” says Fair Isaac Corporation creator of the FICO score. The organization says it takes special care to account for rate shoppers and that people are not typically dinged for multiple checks within 30 days for things which people typically rate shop for. The catch: new construction loans in Arizona are technically not mortgages, which means if you’re applying to multiple lenders and they’re all pulling your credit score, you could get nailed. Although the average is less than five points per check, FICO cautions that those with fewer accounts or a short history may be hit even harder.

Avoid the pitfalls of multiple checks and find a broker who will go to work for you.

One of the best ways to get new construction loans in Arizona is to find a broker who specializes in hard money loans. Oftentimes, private lenders with a background in the industry specialize in this type of financing because they know it well, which allows them to analyze it with more confidence than a bank might. Going this route, it won’t matter if your credit is bad to begin with and your broker will put in the work to find you the best possible deal. That’s it. No more endless shopping around and you get the financing you need. If you’re an avid builder and have a great experience, try to work with the same team for future projects as well. In doing so, you’ll not only get a fantastic deal, but will streamline the process too.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

Why It’s So Hard to Get Arizona mobile home loans (& What You Can Do About It)

If you’ve had a look around for Arizona mobile home loans, you’ve probably come to realize that the options are incredibly narrow and the terms are often confusing. There’s an easy way to get qualified if you know where to look though.

The trouble with Arizona mobile home loans starts with the very definition of the phrase. A “mobile home” is often considered the same thing as a trailer house, manufactured house, or even a modular house, but these are really distinct things.

In modern times, people sometimes put up modular houses. These are fabricated in pieces at a production plant or facility and then carried to a building site as-is. Once there, a traditional foundation is usually poured and the house goes up. It is permanent and some are done so well you can’t tell at a glance that the building wasn’t constructed where it stands. However, because it isn’t built on site, many erroneously refer to it as a manufactured house.

Manufactured houses are different because they’re constructed at a facility or plant, but are brought to the property in just one or two pieces. The phrase, “trailer house” has a certain connotation, so it gets used less often, though it is accurate. They’ve earned the name because they’re transported on trailers, but many people take this to mean they can be picked up and moved at any point as well. Generally speaking, that’s not true. Most are affixed to the land they sit on.

This brings us to mobile homes, which is actually an outdated term. Technically speaking, it refers to a manufactured variety built prior to the Federal Manufactured Home Construction and Safety Standard Act of 1976. The federal law increased standards significantly across a broad range of areas, such as fire resistance, strength, and energy efficiency.

Manufactured Homes are the Real Deal, But It’s Still Hard to Get Financing

Once you get past the terms, manufactured or Arizona mobile home loans are still hard to come by. Some still think they can be picked up and moved at a moment’s notice, while others are hooked on the quality of models built prior to 1976. There are also depreciation concerns. Whereas traditional houses that are well taken care of will rise in value, the manufactured variety tends to lose value over time.

You need to learn the differences in lending terms too.

More often than not, Arizona mobile home loans are not referred to by that name at all. Instead, people get “chattel mortgages,” with “chattel” referencing a piece of personal property rather than real estate. Historically, these have much higher rates than traditional mortgages though. As an alternative, many Arizona hard money lenders are now offering financing for manufactured homes as well. This may be more ideal for those who wish to purchase one for commercial use, be it to start a business or as part of a real estate venture, like fix-and-flips or for use as a rental.

Monday, August 26, 2019

How to Score Arizona investment property loans with Rotten Credit

If you’re worried you won’t qualify for Arizona investment property loans because of your rotten credit, you’ve still got options. However, you won’t find them at the local bank.

FICO credit scores can make or break your eligibility for investment property loans, mortgages, and other financial products, but the bar has been rising, which makes it difficult for mere mortals to qualify. The scale goes from 300 to 850, with scores over 750 considered “excellent,” those in the 700-749 range being “good,” a 650-700 being “fair,” and anything under 650 giving you the big fat label of “poor” credit.

The problem is, new research from CNBC says that banks have been tightening up on credit offerings lately, with 75% of mortgages going to people with FICO scores over 700. The median score is 759, meaning you really do have to have “excellent” credit to qualify now. Not even “good” will suffice anymore. Perhaps what’s more alarming is that the average person now has a credit score of 704. That’s actually pretty awesome, all things considered, but it’s not enough to get most people qualified anymore.

The experts at CNBC say it’s “easy” to improve your credit. Just pay all your bills in full and on time, since payment history accounts for 35% of your FICO score, and get those credit cards paid down. Credit utilization accounts for 30% of your overall score as well, and it should be at 30% or less. For example, if you’ve got $1,000 available across all your credit cards, you shouldn’t owe more than $300 combined. Did you just do the math and realize it will take you years to improve your FICO score enough to start qualifying for traditional loans? So much for “easy,” CNBC “experts.”

Hard Money Can Help You Even if You Have Rotten Credit

One of the most popular tools for those seeking Arizona investment property loans is hard money. Instead of borrowing from the bank, you’ll borrow from a private individual who likes to invest in projects like yours. More often than not, these individuals are people just like you who earned money through fix-and-holds and fix-and-flips, but now have enough of a nest egg that they can finance the work you do. Because this type of financing is structured differently than traditional options and doesn’t come from the bank, the traditional requirements like a top-notch credit score are thrown out the window.

If you’ve got a solid business plan, get a helping hand from private investors.

Because so many of the people now finding Arizona investment property loans were once doing what you are now, they know the ins and outs of the industry. They’re going to expect you to have a solid business plan, have accurate valuations, and have previous experience successfully rehabbing real estate. If the numbers make sense, you’re going to find someone to fund the deal with hard money, even if your credit score isn’t as big as your dreams just yet.

Why Savvy Millennials are Turning to Hard Money Lenders

Millennials have struggles prior generations didn’t. However, many are now making their dreams come true with the help of Arizona hard money lenders anyway.

Millennials often get a bad rap for their tendency to stay at home with their parents longer than prior generations have, plus this is the same generation that popularized ridesharing and home-sharing. Necessity is the mother of invention and, undeniably, has caused people in this age group to adapt in ways their parents and grandparents didn’t.

Research from Business Insider indicates that wages are up 67% since 1970, which sounds great until you realize that rent costs have risen nearly 100% in the same time period and tuition at public colleges have jumped more than 200% since 1982. Not surprisingly, the credit bureau Experian now reports millennials have more than $80,000 in debt on average. A staggering amount of this is student loan debts, but credit card debt accounts for a large portion of it too. Credit scores are suffering as well, with the average millennial only managing to obtain a “Fair” FICO score, sitting a significant number of points behind national averages for all age groups. This makes it hard to cover daily living expenses and get loans, which makes it all but impossible to get ahead.

These are some big challenges which have caused younger Americans to delay milestones such as homeownership and starting a family. It has also led to a rise in sharing apps, like Uber and Airbnb. The savviest millennials, however, are eschewing the norms altogether though. They’re working with Arizona hard money lenders in a number of areas to improve their lives today and get a head start on growing their long-term wealth.

Side Hustles Funded by Alternative Lending Give Millennials a Helping Hand

One of the key components for millennials who get ahead in today’s economy is having a side hustle, which can often be financed by hard money lenders. The ideal side hustle can be carried out without quitting one’s day job and involves skills which coincide with skills the individual already has. Current trends include house flipping and home rehabs, running an Airbnb or other vacation home, and starting up grow operations.

A broker can help you even if you’ve got rotten credit!

Banks turn people down when they’ve got bad credit or are getting into certain types of businesses, but Arizona hard money lenders don’t. Instead, they look at the overall business plan, it’s potential profitability, the risk involved, and the skill of the entrepreneur. This makes it easy to get approval even if you haven’t been in business long, are struggling with student loan debt, or have rotten credit. If you’ve got a great idea for a side hustle, but can’t find the funding you need to get it off the ground, speak with a broker who specializes in alternative lending and can match you with a private individual who has the cash to help you get started, knows the industry you’re getting into, and wants to help you succeed.

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Flexible Terms From 3 to 60 Months
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Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Private Hard Money Lender

Tel: 623 582 4444 level4funding.com

NMLS 1057378 | AZMB 0923961 | MLO 105737
22601 N 19th Ave Suite 112 Phoenix AZ 85027

What do borrowers say about us?

“Top notch loan broker. who was awesome, quick, prompt, and most importantly, delivered. I would say don't even waste your time with another broker - these folks get the deal done, period. As a lawyer, they have helped me and many of my clients with a can-do attitude, and professionalism that is unmatched. A definite recommendation.” Paul Nordini

“I was working with a hard money lender (OF) for the past ten days. 24 hours before my loan was supposed to close they called me and told me they were lowering my loan amount by 15%. I called Mark G at Level 4 Funding and told him the situation. If you want work with someone honest and professional call Level 4 Funding today.” Roger Johanson

“After hearing, the good things about this company, I think they are on top of their game. I will keep recommending people I know in Arizona to level 4 Funding.” Rick Carrol

"I was scared and not certain about the deals, but when I talked to my attorney I realized the investment was safe and secured, I was ready to go” David F.

What is Private Hard Money?

It is usually a loan from a private person/individual not a bank for financial institution. Yes, there are people with a boat load of money in the bank and they want to lend it to you. This is legal, and it happens all the time. It’s their money and they will make a deal with you. Its easier and faster because the person making the decision is the person who has the money in their possession. It’s called hard money loan because when the loan is made, the collateral backing up the promise to pay by the borrowers is a hard asset. Typically, a piece of real estate or something of value. It’s a promise to pay, backed up by the borrower’s hard asset. So, its private money from an individual backed up by a hard asset. Which means if the borrowers do not pay, the lender goes and “grabs the hard asset” and the borrower loses the asset (home).

Things to Consider When Obtaining Hard Money Loans

Are you wondering what Arizona hard money loans are and where they fit into your investment strategy? Here are the basics of these types of loans and what they can do for you as an investor.
This type of loan is an asset-based loan. The borrower wishes to secure a loan backed by real property. Private investors and companies are typical issuers of these loans. Unlike banks, Arizona hard money loans can carry higher interest rates. These interest rates are higher than a convention real estate loan because of the higher risk and the duration of the loan which is shorter than conventional real estate loans.

People using Arizona hard money loans are usually looking for funding for projects lasting from a few months to a few years. The criteria for lending and borrower costs are similar to bridge loans. In fact, many hard money lenders specialize in bridge loans. Bridge loans are used for properties that are in transition and may not be able to qualify for traditional financing. An example of a bridge loan is when a home buyer finds a new home they’d like to buy before their old home, which is on the market, sells.

Many hard money lenders will lend 65% to 75% of the current property value. The amount of the loan is determined by the loan to value or LTV. It is figured by the ratio of the loan amount divided by the value of the property. Arizona hard money loans are mainly used for commercial property. These types of loans first started in the 1950s and have been growing in popularity.

Although mostly unregulated by state and federal laws, some restrictions on interest rates by states, commonly known as usury laws, prohibit hard money loans. Two of these states are Tennessee and Arkansas.

Federal Guidelines

Since the 2009 mortgage crisis and the passing of the Dodd-Frank Act, these loan programs have greatly expanded. This is in part due to the strict regulations that were put on banks and lenders after the passing of this act. Truth in Lending and Dodd-Frank set out Federal guidelines for lenders, mortgage originators, and mortgage brokers requiring them to evaluate the borrower’s ability to repay the loan. The ability to repay the loan is on the borrower’s primary residences. If the lender does not conduct the proper due diligence, they are faced with high fines for non-compliance. Hard money lenders mostly lend on commercial loans or business purposes so that they can avoid non-compliance with TILA, HOEPA and Dodd-Frank guidelines.

Before any offer of financing, the lender will want to determine the LTV (loan to value). The basis for the loan is the liquidation value of the collateral.

A BPO (Broker Price Opinion) or an independent appraisal by a licensed appraiser in the state that the property is located in, will value the property. Typical hard money loan interest rates range from 5% to 18%. Despite these rates, investors often turn to them due to quick loan approvals, high flexibility, less documentation than conventional lenders, and offering the ability to put a bid on a property that may go quickly after hitting the market.

Monday, July 29, 2019

Top 11 Takeaways from a Chat with a Level 4 Investor

Ever wonder what it’s like to be an investor with Level 4 Funding? Or, maybe you’re an entrepreneur who’s curious to know what the person financing your deal is really like and what he or she is looking for. John Evans, a current investor and former flipper, was kind enough to let us pick his brain, and he shared some candid details with us us, including what goes on behind the scenes and tips for success.

John’s Tapped into the Market, Even When Off the Grid

When we caught up with John, he was at a remote campsite with limited cell phone access. This is his life these days—going where he pleases when he pleases—and without worry of the daily grind. Of course, it wasn’t always this way. A series of savvy decisions brought him to where he is today. Read More………

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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