Texas Hard Money Lender

Friday, August 24, 2018

What Hard Money Lenders Are Looking For

Most borrowers assume that all loans hinge in having good credit. But understanding the criteria used by hard money lender can be life altering.

Traditional lenders are not the only game in town when it comes to securing a loan, which is good because not everyone can meet the criteria for those loans. One of the best features of hard money is that hard money lenders are using a different set of criteria and are making it possible for many more people to obtain a legitimate loan.

Credit history and credit score are always going to be reviewed when there is any type of loan application or request being made. But hard money lender are looking at a lot of other information as well. The approval is based more on the value of the property and the potential for the property than it is on the creditworthiness of the borrower. Other points of interest will include the borrower’s history in real estate investing, business background and the borrower’s willingness to invest his or her own money into the project. All of these are good indicators of how hard the borrower is willing to work to make the project a success and how much potential the borrower has as a smart real estate investor.

In addition, lenders in the hard money sector are trained to look at the potential of a property as well as its current condition and value. Investors are buying a property to improve it and increase its value and a smart lender will see the value in that as well. Taking the potential of a property into consideration often times means that the lender is willing to loan more on the property than the standard 70% of the loan to value ratio.

Tips For Landing Hard Money

Lenders are all interested in making money and the hard money sector is no different. So providing as much information to the lender as possible is always going to increase your chances of getting approved. Complete your due diligence of the property and be honest with the lender about your findings and your plans to increase the property value and make the money to pay back your loan. This includes providing a detailed exit strategy as well as a backup plan. Also detailing past experience in the real estate investment industry will help to demonstrate that you have the ability to complete the project in a timely and professional manner.

Be Honest

Lenders have a sense of who is being honest and who is trying to pull off a fast one. If you have credit issues or have no credit, then be honest and explain that. Even though the lender is not a bank, he or she will research you and your credit history. Issues that you think are hidden will likely pop up and can crush your credibility. But if you explain the past and map out your plan for the future, you have a much better chance of getting approval from hard money lender.

Dennis Dahlberg Broker RI/Level 4 Funding LLC Privatae hard Money loans 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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: owner occupied home loans,private hard money lender

Thursday, August 23, 2018

Tips for Finding a Hard Money Lender Austin Texas

Sadly, not every hard money lender Austin Texas is legitimate. But following a few simple tips can ensure that you are making the right selection for your hard money needs.

There are many reasons to consider using a hard money lender Austin Texas even though this is not as conventional an approach as using a bank or lending institution. But a borrower should follow a very similar process when selecting a lender to work with on a hard money loan. Borrowers need to complete their due diligence to make sure that the lender is legitimate and is truly offering a service and not just trying to take advantage of borrowers who need to seek alternative lending sources.

One of the first important pieces of information to verify is that the hard money lender Austin Texas is licensed, bonded and insured. In other words, make sure that your potential lender is really a business person who provides hard money loans austin or represents a group who provides loans. In some cases, a less than homes person will represent himself or herself as a lender simply to take advantage of honest borrowers. In these cases, the lender will ask for upfront fees for processing or to consider a loan application, only to disappear with your money. They have no intention of making any loans, they are just running a scam to collect fees.

Other fraudulent lenders are just placing ads to attract potential borrowers who all too eagerly supply the fake lender with financial information, personal information and even sometimes processing fees. Then the borrower’s information is sold to create fake identities or to commit other types of fraud or identity theft. And again, they are no closer to getting the loan that they need.

Verify Past Client Experiences

In addition to researching the legitimacy of the lender, it is a good idea to ask for references to speak to. Clearly, the lender will only provide you with contact information to satisfied clients, but it is a clear sign of trouble if a hard money lender Austin Texas will not provide references. This is a sign that they have a bad reputation, do not follow through with promises or might not even be legitimate. Proceed with caution is no references are available, or even better, find a different lender to work with.

Verify the Terms Being Offered

As with any loan, when seeking a hard money loan, you need to be sure to verify all of the terms of the loan. In most cases, hard money is offered at a rate of about 10% - 15% as the total cost of the loan. Some lenders might break the fees into different categories or have a different name for some fees but the total cost should not be more than that. In addition, reputable lenders are not going to ask for huge upfront fees. There could be a very small administrative fee or fee for an appraisal but large processing fees are a sign of a potentially dishonest lender. Following these few guidelines will ensure that you are able to work with a reputable and reliable lender for your hard money needs.

Technorati Tags: owner occupied home loans,private hard money lender

Wednesday, August 22, 2018

Tips for Finding a Hard Money Lender Austin Texas

The term hard money loans Austin is very often misunderstood by borrowers. Their thought that these are less than legitimate loans is a misunderstanding that could be costing them money.

Hard money loans Austin are loans that are not funded by a traditional bank or credit union. Instead, these loans are funded by an investor or a group of investors. But the loan is still a legal and legitimate loan with a legally binding loan agreement in place. But the main difference between hard money and a traditional loan in that hard money loans Austin are secured through the equity in the property and not the credit-worthiness of the borrower. This fact alone makes hard money a great option for many people who cannot secure a loan from a bank or credit union.

There are many people who choose to use hard money even though the interest rate is higher than that of a traditional loan. But even at a higher interest rate, hard money is great for a buyer with poor credit or no credit, an investor who is carrying multiple loans or property flippers who need to move quickly on purchases and cannot wait for a bank loan application to be approved. Having no other option is fairly self-explanatory and it is easy to understand why those folks are happy to use hard money. But the reasons that investors choose hard money is usually more related to the faster funding and the much easier application requirements.

Rather than a long process of completing application forms, proving debt and income numbers and then waiting for an approval, hard money loans Austin are almost always based solely on what is called the loan to value rate. In these loans, the lender uses an appraisal of the property to determine its current market value. Then the lender determines how much he or she is willing to loan the borrower against the property. Each lender can select his or her own actual percentage, but most will not exceed 70% of the current market value. This is to protect the lender in the event of the borrower defaulting on the loan. The lender can then sell the property to recover the original investment.

Understanding the Terms

Another important difference when borrowing from a private lender is that the terms are not as strictly regulated. This means that private lenders have the ability to negotiate the terms of the loan with the borrower to create a custom loan that works for both parties. This can mean that the length of the loan is customized or that there is a single balloon payment at the end of the loan or even that there is a flat penalty imposed if the borrower pays the loan off early.

Different Can Be Good

Using a hard money lender Austin Texas is not some shady back alley deal, it is simply a loan that is funded by someone other than a bank or credit union. And though the terms of the loan can be different, they can actually work to benefit both the lender and the borrower.

Technorati Tags: owner occupied home loans,private hard money lender

The Pros Of Hard money loans Austin Texas

Even with higher interest rates than traditional loans, hard money loans austin offer some great benefits that are opening doors for many investors in the real estate industry.

Hard money is not some less than legit lending resource that is found in dark alleys and the dark web. In reality, hard money loans Austin are simple loans that are funded by individuals rather than traditional banks or credit unions and that is why they are referred to as non-traditional loans. And because borrowers are not dealing with huge companies and corporations, these non-traditional lenders can offer some great benefits and advantages.

The most commonly known benefit to hard money loans Austin is the unique criteria that the lenders use to determine whom they find and whom they deny. Unlike traditional lenders who require a great credit score and credit history, hard money lenders are mainly focused on the current market value of the property that is being purchased. So even if a borrower has less than perfect credit, he or she has an excellent chance of securing hard money.

Another great benefit of hard money is that the funding is coming from a person or a small group of people who operate under their own guidelines. They are not entrenched by rules and criteria set up by a large corporation which means that they can be much more flexible on all aspects of the loan. This means that borrowers can negotiate for terms such as the length of the loan, the fee structure and even an option to extend the term of the current loan. Having the ability to customize loans can be a huge benefit to many borrowers.

Speed Is Good

Being that hard money lenders are individuals or small groups; the processing of loans is extremely fast in comparison to a traditional loan. Hard money is often approved within just a few days and can be funded in just a few more. At its best, the process can be completed in about a week as compared to traditional lenders who sometimes take months to process an application only to turn down the borrower’s request. This fast approval and funding mean that borrowers can take possession of their new property much faster. In the case of an investment property, this fast action means that investors can process more properties and make greater profits.

Best Uses Of Hard Money

Hard money loans Austin are not the solution to every borrower’s needs but there are certain applications that they are perfect for. If a borrower needs the funding quickly for a great deal then hard money is likely to be the only option. And for a fix and flip where the loan only needs to extend for a short period of time, then hard money is perfect. And even for the consumer who is rebuilding his or her credit but is not quite able to secure traditional funding, hard money will work as a short-term solution until the loan can be refinanced. When used properly, the benefits of hard money are hard to beat.

Happy senior business man making his notes at work 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

Technorati Tags: owner occupied home loans,private hard money lender

Friday, August 17, 2018

Why Choose Owner Occupied Hard Money Loans

There are a lot of reasons why a consumer is unable to qualify for a residential mortgage. But owner occupied hard money loans offer them a great option.

There can be a great many reasons for a traditional lender such as a bank or credit union to deny a loan application. And after that happens many potential homeowners simply give up on their dream of homeownership. But what they don’t understand is that there is a non-traditional option available that might be a perfect fit for their lending needs. Owner occupied hard money loans are great for consumers who have certain financial issues which are precluding them from using a traditional loan.

Poor credit can be the result of many different issues. Sometimes it is simply due to poor financial choices but on other occasions, it is not due to a consumer’s mistakes. The loss of a major income is sometimes unforeseeable and can result in falling behind in household expenses. An accident or sudden illness can also be to blame as the consumer is buried under huge medical bills and is unable to make the required payments. Other times financial issues arise after a death in the family or divorce, but in all of these cases, the consumer’s credit becomes so bad that it is not possible to obtain a home loan even after years of work to correct credit issue. But hard money is an option for someone who is recovering from credit issues.

Another common issue for would be home buyers is erratic or short employment history. Banks want to see a long employment history and at least two years with the current employer. But not everyone works in an industry where that is possible. And who wouldn’t leave a job for better pay and benefits, just to maintain a longer work history to get a mortgage? That seems counterintuitive because the higher paying job would make it easier to pay a mortgage. But this can happen and a bank will deny a loan application. The solution for these borrowers is to seek owner occupied hard money loans.

The Self-Employment Drawback

Owning your own business is part of the American Dream. You work hard and achieve your goals as you create a business and even provide more jobs for hardworking people in your area. But banks are not fond of loan applications from the self-employed. Instead of just scrutinizing your personal financials now the bank wants to examine your business financials as well. And if you are not making a ton of money they are going to consider you a poor risk and deny your loan request. Again, the solution is simple, hard money.

Hard Money Offers Great Opportunities for Many

There are a lot of hardworking people out there who are reliable and can afford to pay a mortgage. But if they don’t fit into the bank’s idea of a perfect borrower, they are not going to get funding on a traditional loan. But owner occupied hard money loans are the perfect solution for those who are outside the box but still responsible and successful.

Happy senior business man making his notes at work 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

Technorati Tags: private hard money lender,owner occupied home loans,hard money loans,hard money loan

Monday, August 13, 2018

How to Select a Hard Money Lender

Because many borrowers are unfamiliar with the concept of a hard money lender, they are unsure how to select a good lender. But a few tips on the selection process can make the process much less stressful.

For most borrowers, hard money lending is not as well known a resource as a traditional lender. But there are a great many choices for a legitimate and honest hard money lender. All borrowers need to do is follow a few tips and guidelines when checking out potential lenders to ensure that they make a great choice and are satisfied with their hard money borrowing experience.

Especially for a first experience in hard money lending, it is always a good idea to select a firm who specializes in hard money. The terms and processes for a hard money loan vary a bit from a more traditional loan so having an experienced lender can make your first borrowing experience must less stressful. In addition, an experienced lender will be in a much better position to answer your questions and provide you with a detailed explanation of the process and fee structure of your loan.

Having an experienced hard money lender is important but will also want to focus your search in your local area. Being able to work through the loan process in person, ask questions face to face and talk about any questions or concerns that you might have about the loan agreement at the signing can be very reassuring. Taking out a large loan can be a bit unnerving and having a local contact is a great way to help eliminate some of the added stress and uncertainty.

Understand the Loan to Value Principal

Conventional loans are secured mostly on the borrower’s credit rating, credit history and their perceived ability to repay the loan that is being requested. But hard money loans are based on what is called the loan to value ratio. This is a comparison between the amount of the loan and the actual current sale value of the property. In most cases, a hard money loan will never exceed 70% of the current market value of the property that is being used as collateral. This protects the lender in the event that you default on the loan and he or she needs to sell the property to recover the loan amount.

Understand All of the Loan Terms

Traditional loans have very few terms and can include a down payment, interest rate, late fee penalty and length of the payment schedule. But there are additional terms that can be included in a hard money loan that you need to understand. These terms can include fees prior to the approval of the loan, finding fees once the loan is approved and terms regarding the lenders right to the property if you fail to make a payment. The terms will also outline the interest rate, which is always higher than a traditional loan and the length of time that you have to pay off the loan. Once catch that many borrowers do not expect or look for is the option to pay the loan off early. You will want to know if your hard money lender will not allow an early pay-off. This is because he or she is not willing to forfeit the added interest that you are paying. Be sure to carefully research any potential lenders and the terms that they are offering prior to signing documents for a hard money loan. This investment of time will ensure a good loan experience.

Technorati Tags: private hard money lender,owner occupied home loans,hard money loans,hard money loan

Saturday, August 11, 2018

Why Choose Owner Occupied Hard Money Loans

There are a lot of reasons why a consumer is unable to qualify for a residential mortgage. But owner occupied hard money loans offer them a great option.

The Self-Employment Drawback

Hard Money Offers Great Opportunities for Many

Technorati Tags: owner occupied home loans,private hard money lender

Friday, August 10, 2018

Guide to Successfully Selecting a Hard Money Lender

Not everyone can qualify for a traditional home loan. But in some cases, hard money loans can be a solution for a new home purchase.

Not everyone can meet the standards of a traditional bank mortgage. The reason for the application denial can range from past credit issues to not enough time at your current employer. But if you are determined to purchase a new home and are willing to make a good-sized down payment, then hard money loans can make your dream come true.

Before jumping into hard money, you need to understand that these are loans funded by a private individual or a small group. And also know that the documents that you will sign for a hard money loan are as legally binding as any loan documents from a bank. The main difference in hard money loans and traditional loans is that the hard money lender is interested in the current market value of the property more than the borrower’s creditworthiness. The property is being used as collateral, so the lenders need to know that if the borrower default then he or she can sell the property to recover the initial investment.

Because the collateral is the lender’s safety net, he or she must be certain that the property always holds some equity. This is where your sizeable down payment comes into play. The lender will only loan up to about 70% of the cost of the property and you must pay for the other 30%. This creates that instant equity and makes the lender feel more secure about loaning you the money.

Good Will Is Not Free

The other important piece of information about hard money is that it is more costly to use than money from a traditional loan. The increased risk factor means that the lender is going to want to increase his or her earnings on the loan. In most cases, a borrower can expect to pay 10% to 15% roughly interest on hard money loans. In addition, there can be points and other fees for processing and funding the loan. But the benefit of the higher cost is that those with bad credit can get a loan.

Smart Uses Of Hard Money

Loans on hard money are for a shorter term than traditional loans and most people can’t pay off a mortgage in three to five years. But these non-traditional loans serve as a short-term solution while borrowers improve credit or establish a stronger employment history. Once that is accomplished, most borrowers refinance to a traditional loan after the term of the hard money is over. Non-traditional loans are also good for borrowers who are self-employed and need a few years to get their business established and profitable so as to qualify for a traditional loan. Short term hard money loans are not the perfect solution or even a solution for every borrower. But there are some specific cases where using hard money is the best solution for meeting your long-term goals.

Technorati Tags: private hard money lender,owner occupied home loans,hard money loans,hard money loan

Thursday, August 9, 2018

What are the Differences between Private Money (Hard Money Loans) and a Bank?

As an investor, why would you consider Hard Money Loans instead of a conventional bank loan? Take a look at the reasons why many a real estate investor is using this type of funding.

You finally narrow down the property that you want to invest in. You make an offer and it is accepted. Now, time is of the essence and you need to secure financing quickly. You contact your local bank and find out that the time to close a loan is 30 to 60 days at best. Not to mention the loads of paper work that you must produce in order to support the loan. Hard money loans can move quickly, in some cases it can take as little as 3 days to get funded.

Another advantage to hard money lenders is that they are not concerned with the borrower’s credit history or income, but rather the equity in the project itself. If you have had a challenged background, bankruptcies, or tax liens which would get you turned down by a conventional lender, you may very well get financing through a hard money lender.

If you are a new investor or a seasoned pro, the benefits of hard money loans include the speed to funding, low documentation, and not looking at a borrower’s past credit history. The lender will want to know how the loan will be repaid because they prefer not to get the property back. This finance option provides the borrower with speed of transaction, less paper work, and the ability to do multiple projects.

Hard Money Loans vs Traditional Bank Loans: The Difference Between the Two

· Delivery of funds and fast approval – An experienced hard money lender can approve your loan in hours and fund your project in as little as 3-5 days. The typical time for banks is 30 to 60 days.

· Equity and not credit or income is needed for approval – Regardless of your past credit history, your project funds will be based on 70 to 90% of the equity in your investment property.

· Terms are short – These types of loans run shorter than conventional banks. Residential loans can run from 6 months to 1 year while commercial loans can run up to 5 years.

· Interest rates are higher – Unlike traditional bank loans, hard money lender’s interest rates run from 7.5% to 15%. This depends on the term, loan to value ratio, and the location of the property.

· Paperwork is less than traditional banks- Hard money lenders are funded by private lenders, and the loan is based on the equity of the property. This results in less paperwork than traditional bank loans.

· Distressed or below market property financing – These types of loans are in high use for investors looking to fix and flip distressed properties or below market-value investments.

While many hard money lenders are reputable, as with any industry, not all companies are created equal. As an investor, you will need to do your homework and research each company that you are thinking about doing business with.

You will want to find a lender who has experience, a good reputation, and is licensed. Take careful notes of those lenders who are honest and upfront about the costs and interest rates. At Level 4 Funding, we work with hundreds of private investors whose reputations are solid. We guarantee the lowest possible rates and often approve loans within 24 hours. Call us for a no-obligation quote.

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