How to get a Commercial Loan when you are Self-Employed

In today’s era of rules and regulations, it can be difficult for the self-employed to obtain a commercial loan. Fortunately, there are options available for those that are fortunate enough to work for themselves.

One of the main reasons self-employed borrowers have difficulty obtaining a commercial loan is because of their reported income on annual tax returns. This is one of the many perks of being self-employed—all those write-offs including lunch with clients and travel expenses associated with training and business prospects. Unfortunately, all those write-offs are also the reason that individuals find it difficult to get the commercial loans they need to get started or increase their real estate investment portfolio.

One of the requirements that commercial lending institutions utilize is the debt-to-income (DTI) ratio. This is the ratio of monthly payments or liabilities such as car, credit cards, insurance, mortgage, etc. to monthly income. The requirements generally range anywhere from 38 to 50 percent. Lenders further break it up into two categories: front and back-end. Your front-end relates to housing payments while the back-end is your total recurring debt payments. These numbers will be determined by your bills and your tax returns, making it difficult for those that have lessened their tax burden through numerous business deductions. In addition to your past two years of tax returns, you will require other documentation.

Most traditional commercial lenders will require the following from a self-employed business owner: A copy of your business license, most recent 2 months of bank and asset statements, year-to-date profit and loss statement, and current property’s insurance. If you are a corporation, you will also need the last two paystubs with year-to-date earnings. If you are not “paperwork” minded and diligent in keeping business records, providing the needed documentation that gets you approved can be nothing short of a nightmare. Fortunately, there are alternatives.

Acquiring a Loan through a Private Hard Money Lender

If you are looking to develop or expand your real estate portfolio, a hard money lender may be the funding you are looking for. Most private lenders in this category look to collateral as a means of securing the loan and pay less attention to credit scores and DTI. One option is obtaining a bridge loan—a short-term loan that investors use in order to purchase a property quickly and make the necessary renovations before reselling.

One of the loans we offer at Level 4 Funding is the bridge loan. This loan is generally used as a bridge from one asset to the next—allowing you to keep one property while purchasing the next.
At Level 4 Funding we specialize in commercial loans for the self-employed. We offer a fast and easy approval process using either 12 months of bank statements or the last two years tax returns. Your credit score can be as low as 620 and the DTI up to 50 percent. We also offer 5/1 ARM or 30 year fixed with rates starting at 4.99 percent APR with no prepayment penalty. Call us to discuss your many options.

mark-gowlovech-150x150Dennis 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

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   

     Linked In Active Rain     You TubeFace Book         

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.

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Different Way To Finance Your Fix and Flip Loan

Arizona Home Loan Staff Level 4 Funding Mortgage Brokers

A lot of people dream of getting into the business of fixing and flipping homes, but funding is the number one obstacle. You need capital to purchase homes and cover the cost of renovations before you can flip them for a profit. In this article, we’ll share with you the 4 best fix and flip loan options:

· Online Mortgage Lenders

· Hard Money Loans / Private Money Loans

· Bank Loans

· Additional Fix & Flip Resources

What makes a good candidate for a fix and flip loan?

· Successfully Completed One Prior Fix & Flip Project

· Have a Credit Score of 650+ (check your score for free here)

· Max Loan Size of 90% Loan-to-Value (LTV)

· Minimum Loan Size of $75,000

We would like to highlight one specific company for fix and flip loans: Level 4 Funding. They’re an online mortgage lender that offer real estate investors 12-month mortgages with interest rates between average 8-14.9% and no prepayments penalties. You can get prequalified in minutes, see your exact rates, and be funded in as little as 5 days. 

To get some additional insight into fix and flip loans, we spoke at length with Than Merrill, star of the A&E show “Flip This House” and author of The Real Estate Wholesaling Bible. He’s also CEO of FortuneBuilders and CT Homes, a multi-million dollar real estate businesses. A coach and mentor, he has helped many people who want to fix and flip properties professionally.

 

Fix and Flip Loans: The 4 Best Financing Options

It costs a lot of money to fix and flip houses. In addition to buying the home, you will need to pay for repairs, contractor fees, listing and broker fees, holding costs until you sell the home, and more. Merrill says there are three main kinds of financing for flipping houses. There’s also a newer fourth option–Online Mortgage Lending–that is increasing in popularity. Here’s when to consider each option:

1. Online mortgage lending – Best for flippers with some experience who need money quickly. Visit Level 4 Funding to learn more about funding your next fix and flip.

2. Hard money lenders – Best for novices or borrowers with a bad credit score

3. Private money lenders – Best for novices or borrowers with a bad credit score

4. Bank financing – Best for experienced flippers who have a great credit score, capital on hand, and significant collateral.

Out of these four options, the best one for you depends on the type and condition of the property, your experience with real estate investment, and your personal financial situation. Below, we discuss each of these fix and flip loan options in more detail.

 

Option 1: The Fastest Option: Online Mortgage Lenders for Real Estate Investors

Online Mortgage Lenders Summary
  • Amount of financing available 90% of the Loan-to-Value (LTV) or 75% of After Repair Value (ARV)
  • Minimum qualification criteria Debt-to-Income Ratio under 50 %, 650+ personal credit score, no bankruptcy or foreclosures in past 2 years, and at least 1 profitable house flip.
  • Paperwork you have to submit Purchase contract, estimated sales price, preliminary title report, repair estimate, personal financial statement, past projects
  • Interest rates 8-14.9%
  • Time to get approved 1-5 business days for approval, funding in 5 days
What are Online Mortgage Lenders?

A relatively new fix and flip loan option that real estate investors and property flippers are turning to are online mortgage lenders. While online mortgage lenders haven’t yet acquired a lot of market share that may change in the near future. Online mortgage lenders are direct lenders that have leveraged technology to be able to make quick, accurate credit decisions with completely online applications.

Most online mortgage lenders, including Level 4 Funding can lend nationwide and have developed special products for real estate investors who need to obtain funding quickly and don’t need long-term loan. They can often have applicant prequalified in minutes and funded within 15 days.

Online Mortgage Lenders Qualification Requirements

Online mortgage lenders are generally available to those real estate investors who have profitably flipped at least one house.

· Credit score 650+ (check yours for free here)

· No recent bankruptcies, foreclosures, or tax liens

· Debt to income ratio under 50%

Online Mortgage Lenders Loan Terms, Interest Rates, & Fees

Online mortgage lenders loan rates span from approximately 7-12%, and the loans are typically for 12-month terms. With Level 4 Funding, the loans are fixed rate, interest only loans and there is no prepayment penalty, so you can save big money if you flip the property quickly. In most cases there is also an origination fee. With Level 4 Funding this fee will not exceed 2.5%. The

Online Mortgage Lenders Financing Limits

With Level 4 Funding you can get financing for up to 90% LTV or 75% ARV. The remaining balance of the purchase price and renovations will need to be funded out of pocket. Many investors look for business credit cards with good rewards programs to cover renovation expenses.

Where to Find Online Mortgage Lenders

Level 4 Funding offers online mortgage loans in for fix and flip investors in Arizona, California, Texas. Other lenders in this space are RealtyShares and Realty Mogul which are crowdfunding sites for real estate investors.

 

Option 2: Best for New Flippers: Hard Money and Private Money Loans

Hard Money and Private Money Loans Summary
  • Amount of financing available Typically up to 85% of After Repair Value
  • Minimum qualification criteria 620+ credit score, Debt-to-Income Ratio under 35%, and no recent foreclosures or bankruptcies
  • Paperwork you have to submit Contract of sale, property appraisal, past settlement sheets, repair estimate, recent tax returns, recent bank statements
  • Interest rates 8-18%
  • Fees 1-5% of the sale price of the home is paid at closing
  • Time to get approved 2-3 weeks
What Are Hard Money and Private Money Loans?

Hard money or private money lending is the principal form of financing for new house flippers. A hard money lender is a small group of private lenders who loan money to real estate investors and house flippers. They are generally costlier than bank financing but are often the only option for new house flippers or those with lower credit scores. They also might be the ideal lender if you’re buying a foreclosed home, especially if repairs are needed. A private money lender is similar, but is usually just a single investor who funds smaller projects at slightly lower interest rates.

Hard money and private money loans are ideal for novice home flippers, says Merrill, because these lenders care more about the property you’re flipping and its potential value than about the borrower’s experience or financial qualifications.

Hard Money Qualification Requirements

In general, hard money and private money loans are easier to qualify for than crowdfunding and bank financing. While requirements will vary from lender to lender, here is a good baseline:

· Credit score 620+ (check your score for free here)

· Debt-to-income ratio under 35%

· No recent bankruptcies, foreclosures, or tax liens

· No prior completed project required (but related experience preferred)

Individual  private money lenders will have their own qualification requirements and credit score cutoffs. They may have less stringent guidelines than a larger hard money lender.

Hard Money Loan Terms, Interest Rates, & Fees

Hard money and private money loans are usually 1-12 month loans. The reason why the term is so short is because the process of buying a house, renovating it, and selling it typically takes less than 12 months. The loan is paid back with the proceeds from the sale of the home. Until the home is sold, you pay only monthly interest payments.

Interest rates for hard money loans are typically in the range of 8-16%. On top of that, you will have to pay 1-5% of the sale price of the home to the lender at closing. The longer you take the sell the home, the higher the fee you will have to pay. If you are working with an individual private financier, you may have some leverage to negotiate the rates and fees with him or her.

When you consider the fee along with the interest rates, it’s obvious that hard money loans don’t come cheap. However, Merrill points out that flippers can and should factor this increased cost into the specifics of the project — perhaps bid less for the home or increase the listing price when you sell the home to make up for the high cost of financing. Also keep in mind that you’re not paying the interest for very long, since you can usually flip a home in less than 1 year.

Hard Money Financing Limits

Most hard money lenders provide financing for up to 65% of the After Repair Value (ARV) of the house. In order for flipping to be a profitable endeavor for you, you need to make enough profit from the sale of the home after paying for renovations, interest and fees, and closing costs. Ideally, the loan should cover the full purchase price of the home, and you should have some funds left over for the renovation. First time flippers may receive even less than 65% ARV since they don’t have a track record yet. Essentially, the lender is making you assume more of the risk by asking you put up more of your own money.

Example: Suppose you want to buy a $250K home that requires $50K worth of renovations, and you estimate it will sell for $400K after the renovations. Most hard money lenders would loan you $260K at most (65% of the $400K ARV). You would have to put up the remaining $40K for renovations yourself. The $100K that you’re left with after selling the home ($400K sale price minus $250K purchase price minus $50K for renovations) should be enough to cover taxes, interest and fees on the hard money loan, closing costs, and any other expenses.

With only 65% ARV funded, the remaining balance of the purchase price and renovations will need to be funded out of pocket. Many investors look for business credit cards with good rewards programs to cover renovation expenses.

Where To Find Hard Money and Private Money Lenders

There are thousands of hard money and private money lenders. Often, the best way to find a private money lender is through local real estate meetups or through word-of-mouth exchanges with contractors and real estate agents and brokers. Hard money lenders can be found online.

We recommend South End Capital for hard money loans. To learn why, read our guide to hard money lenders.

 

Option 4: Best for Experienced Flippers: Bank Financing

Bank Financing Summary
  • Amount of financing available Typically up to 65% of the purchase price of the home
  • Minimum qualification criteria A registered business of flipping homes, at least 2 years of successful fix and flips, 700 + credit score, and a Debt Service Coverage Ratio over 1.25
  • Paperwork you have to submit Repair estimate, purchase contract, property appraisal, past settlement sheets, recent tax returns, recent bank statements
  • Interest rates 5-6%
  • Time to get approved 1-3 months
Is Bank Financing Available for House Flippers?

Banks typically don’t offer fix and flip loans to people who are just starting out. However, once you have at least 2 years of experience in profitably flipping homes, bank financing is more readily available. The financing usually comes in the form of a line of credit which you can draw from as needed.

Bank financing is the cheapest source of capital, but it also takes the longest to secure. Expect to wait 1-3 months before securing bank financing. A bank won’t lend as much money as a hard money or private money lender so you need to have some capital from other sources before relying on bank financing.

Bank Financing Qualification Requirements

To qualify for bank financing for fix and flip projects, you would typically need:

· 2 years of profitable track record flipping houses

· Credit score 700+ (check your score here for free)

· Debt Service Coverage Ratio of 1.25+

· No recent bankruptcies, foreclosures, or tax liens

· Registered business

Note: Debt Service Coverage Ratio (DSCR) is your business’s annual net operating income divided by your total annual debt payments. For example, if you have $180,000 in annual net income and debt payments of $90,000, your DSCR is equal to 2.

Bank Financing Loan Terms, Interest Rates, & Fees

Bank lines of credit are the cheapest form of capital for flipping houses, with interest rates in the 5-6% range. There may also be small upfront fees and draw fees on a line of credit. The bank will tell you how much time you have to pay back your balances. In most cases, a minimum amount will be due each month (like a credit card).

Lines of credit are more flexible than a loan because you don’t have to pay interest on unused funds. With a hard money loan or private money loan, you will to pay interest on the entire loan amount even if you end up needing less.

Bank Financing Limits

The most common form of bank financing, says Than Merrill, is a secured line of credit to help you purchase the home. Once you find a home that you’re interested in buying, the bank may issue you a line of credit for up to 65% of its purchase price. This leaves you to put up the remaining 35% and to fund the renovation.

Some banks will also offer an unsecured business line of credit which can be used to finance the renovation. For example, before you even find a home that you’re interested in purchasing, you may be able to receive a $100,000 line of credit from a bank. You can then draw on this line as needed to buy supplies, pay your contractor, etc.

Planning to rent out the home after renovations? In this case, try to get a conventional mortgage. Or if you start out with a hard money loan, you can refinance to a conventional mortgage after the renovations are completed.

Where To Find Bank Financing

There are literally thousands of banks in the United States, and each of them offers different products. Merrill recommends that house flippers go to a smaller local bank because they are more likely than a national bank to support local real estate investment and community redevelopment efforts.

Bank of the West and Wells Fargo are two of the larger banks we spoke to which offer lines of credit for house flippers.

Additional Fix and Flip Resources

We covered the four financing options for those looking to fix and flip houses. But finding the appropriate financing for your fix and flip project is just one piece of the puzzle. Below are a few more resources to arm you with the knowledge and sources you’ll need.

Get An Edge: Learn from the Fix and Flip Pros

Ask anybody who invests in real estate or has flipped homes and they’ll agree: you will save yourself lots of time, money, and frustration by learning from the pros. Here are a few essential reads:    

Find Opportunities: Where to Find Short Sales and Foreclosures

US Government Agencies
A number of government agencies (HUD, FDIC, IRS, US Marshals Service, etc) have properties for sale. Navigating the various sites can be a little tricky. You can access those listings for free here.

MLS.com
MLS.com is a free multiple listing service. You can search real estate listings (including foreclosures) and also scan their real estate news and Q&A section.

Auction.com
Find and bid on bank owned and foreclosed properties in your area. With an easy to use website, this is a great place to research markets and find properties.

Note: The laws concerning flipping houses vary from state to state and county to county. This means that the licenses, permits, and certifications needed to flip properties can differ depending on the market. For example, some states require house flipping businesses to have general contractor licenses or, if the home is being sold through a subsidiary, require a real estate license.

Join the conversation: If there are resources you’ve found valuable, let us know in the Fit Small Business forum.

The Bottom Line

House flipping can be a rewarding business to enter, and there are a variety of financing options. Most first timers have to rely on private or hard money loans, which can be expensive. Fortunately, as you find your way around the business, less expensive bank financing becomes more of an option. Online mortgage lenders are also available to professional flippers who need money fast.

There are other resources to finance fix n’ flips that we didn’t discuss in this article. For example, you can use a credit card to finance renovations or take out a personal loan. As a house flipper, you sometimes have to be creative and combine financing from multiple sources to get the capital you need to be successful.

If you are looking for a 12-month mortgage with a fixed interest rate of between average 7-12%, interest only payments, and no prepayments penalties, consider Level 4 Funding Private Hard Money Lender. You can get prequalified in minutes and see your exact rates. Plus, get funded in as little as 15 days.

Happy senior business man making his notes at workDennis 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
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

 You TubeFace Book Active Rain Linked In 

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.

Cyber Threats Are A Real Danger For Commercial Lenders

level 4 funding teamJust like a job application, it is only natural that you may want only to tell your commercial lender what you think they want to hear, but proper and honest communication can go a long way towards making the relationship a good one.

It sounds like such an easy thing, yet it is one of the most common reasons problems arise in so many aspects of our lives—communication. More often than not, if we just talked about something, answered a question honestly, or responded in a prompt manner, we could avoid all kinds of unpleasantness.

In many cases, proper communication can get a relationship off on the right track and make it even better than you thought it was. For example, communication is a vital part of getting a commercial lender to approve a loan.

So—what do you need to do to make sure you communicate whatever needs to be delivered to your lender?

We Could Have Done Something, Had We Known

If you have ever gotten so behind on a bill that the company was calling your house daily to ask you about it, then you have probably heard someone tell you, “If we only knew…” If you had only told them a number of days ago why you couldn’t pay the bill, something could have been worked out—but not now.

We may not want to talk to them or be completely honest, but often if we just communicate, problems don’t have to be as harsh as we think they are. So, when it comes to working with a commercial lender, keep these four things in mind:

– Talk To Your Lender: Get to know who your lender is before engaging the loan approval process. Get to know their strengths and weaknesses, what sort of loans they like to approve, and how much experience they have with what you want their money for. Go with someone that understands you better, and it will be easier to work with them.

– Respond to questions, queries, and requests in a prompt fashion. Chances are they are asking whatever it is for a good reason so the sooner they know your answer, the better. That way, if a problem arises, it can be dealt with.

– Communication is a two-way street. The commercial lender needs to be as upfront as possible with the borrower and address whatever concerns they may have. Failure to do will foster an environment of distrust and make doing business more challenging than it needs to be.

– Be honest. There is no reason to sugar coat, talk down, or fabricate information about anything. If you do, chances are when the truth asserts itself—and it always will—the consequences will be much more dire than they would have been.

It Can Only Help

Being honest about things is not always easy. We hate to put a bad foot forward in any regard. That’s why people lie on their resumes and leave facts out in their loan applications. But just like in the workplace, the truth will eventually come out with your commercial lender. When it does, the consequences will likely make you wonder why you ever thought proper communication was a bad idea.

 

Level-4-Funding-Dennis-Dahlberg-Mort[1]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
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

 You TubeFace Book Active Rain Linked In 

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






          

 

Understanding Commercial Lending Basics

How can I help you?

Commercial lending can be tricky if you are first starting out—whether or not you are a borrower or investor. This is why it is so important to understand the basic of commercial lending before you start looking for a lender or filling out the necessary paperwork.

There are a few things to remember when going over the commercial lending basics. For starters, the lender you choose matters, of course, but the real focus when it comes to this particular kind of lending is you. For instance, your business needs to be a good position to consider lending/borrowing for commercial reasons. This means you need to have good business character. An example of “good business character” is proof of previously paid debts or other loans. When you are able to prove this kind of proof (business credit reports as well as personal) this demonstrates that you are a trustworthy borrower, which means you are that much closer to getting approved for your commercial loan.

Another example of good business character is readily having all the necessary documentation in order. This means you need to the following items: personal financial statement, resume of owners, bank statements, business plan, and current information on monies borrowed. Ultimately, having these documents handy will make the lending process go much quicker and will show that you are serious about your future endeavor.

In addition, to good business character, you must possess the capacity to repay your loan. In other words, you need to have the cash flow or at least the access to the necessary cash flow for repayment. In order to figure out if you have the cash flow, it helps to look at the last three years of your business and personal financials as well as the last three years of your business tax returns. You will also want to assess what kind of collateral you are working with (though it is important to note that your collateral is not the same thing as cash flow).

 

Other Things to Consider for Commercial Lending

Yet, another thing to consider when braving the lending world for commercial ventures is capital. Capital, not to be confused with cash flow, is, in essence, the ability to sustain a turbulent economy. It is important to establish for yourself and your future lender that you have capital whether it is the owner’s capital, the company’s earnings or some other source such as from an investor. A final note regarding capital, you may also be able to use grants or other government funds as a means of having the necessary capital.

 

Condition Advice

Lastly, when considering commercial financing, do yourself a favor and take into account the current state of economic conditions. This means ensuring that no outside factors can impact your approve or your future ability for repayment. Ultimately, if you are not sure what the current state of economic conditions is or even where to begin looking, that is perfectly okay. There are dozens of reputable commercial lenders in your area that can help you figure out if now is the best time to move forward with your venture.

 

Level-4-Funding-Dennis-Dahlberg-Mort[1]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
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

 You TubeFace Book Active Rain Linked In 

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






          

 

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

Thing are going to happen..

2page_img1Something 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”. Brandon Abney Arizona Home Mortgage FHA Specialists

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. “

image

 

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. 

 

 

 

 

 

 

Level-4-Funding-Dennis-Dahlberg-Mort[1]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

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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







          

The Benefits of Working with Private Money Lenders in California

 

2page_img1If you are like most borrowers and investors, you have probably asked yourself at least once, what the big deal is when it comes to private money lenders in California? Well, the big deal is really about the benefits that come from working with private money lenders in California.

Private money lenders in California are more than just great local lenders. The reasoning being that you do not have to necessarily live in California in order to take advantage of all the benefits they have to offer. Nevertheless, one of the major benefits of these particular California lenders is that they are local, which means they are not some worldwide or national financial institution. Instead, they are reputable lenders that value their potential borrowers as well as their investors just as a family-owned and operated business would.

Of course, that is not to say that all private money lenders that are based out of California are small or have humble beginnings. In fact, many reputable private lenders are well-seasoned individual and large financial institution with deep roots in the community. Therefore, the point here is simple, local California lenders care about your success and do not look at you or your business venture as just another number.

In addition to being able to put a face to a name when dealing with your California-based lender, there are several other benefits that are well worth the trip if you are not native to California. For starters, your chances of getting approved are much greater and here is why. Number one, you are more than likely dealing with a niche lender who understands your particular vision and specific circumstances. This goes back to the idea or rather reality that there are dozens of California-based lenders, but they make it a point to specialize, which is why you have a better chance of being approved.

Additional Benefits Private Hard Money Lenders in California

Moreover, when dealing with California lenders, you also allow for faster processing and quicker financing. Think about it, if you are dealing with an individual, he or she can quickly approve and fund your loan—sometimes on the same day or at least within a few days. Other benefits include a lower risk associated with your investment and as briefly mentioned a lender that has experience in your particular market. You have a lower risk on your investment because California-based lenders of private money tend to be more involved in the process (appraisal, assessments and so on), thus they make it a point to ensure everyone’s success as much as allowed. Lastly, these lenders’ niche-mentality is what keeps California lenders of private money thriving—they know your market plain and simple.

Private Hard Money Lender in California – The Real Deal

Thus, as you can see, there are a few substantial benefits that come from working with California-based lenders. Therefore, if you have considered working with these particular lenders already, what exactly are you waiting for? Remember, there is no time like the present and it never hurts to step outside your comfort zone to try something new.

Level-4-Funding-Dennis-Dahlberg-Mort[1]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

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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







          

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.

 image

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:

  1. People (consumers) have stopped spending money.   They are sitting on a boat load of cash and they are in a wait and see mode. 
  2. 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.

iStock_000002302749XSmallIt 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!


Level-4-Funding-Dennis-Dahlberg-Mort[1]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

 You TubeFace Book Active Rain Linked In


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







          

Level 4 Funding LLC Arizona Private Hard Money Lender

Level-4-Funding-Dennis-Dahlberg-Mort[1]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

 You TubeFace Book Active Rain Linked In


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







          

What makes trust deed investing appealing and scary to most individuals?

There are few investments that provide the feeling of uncertainty together with pleasure. Trust deed investing offers you that all through the whole course of. Sure, a majority of these investments will be very dangerous, however the payoff could be very worthwhile if all events had been in a position to comply with by way of. The article will clarify why some are reluctant and some are keen to tackle trust deed investing.

house moneyOver the previous few years, the true property enterprise has made a resurgence all through america. Whereas there are lots of new properties and developments which are being made, one should surprise, are there any ventures that appear very dangerous from the skin.

You don’t have to look any additional, trust deed investing has taken on that dangerous function to many individuals which are in the true property discipline. The truth is, many banks and different monetary establishments could be a little apprehensive when it comes to investing in trust deed partnerships. However, why is that this? There are dangers with different properties and initiatives, proper?

Nicely, for a lot of banks, the largest factor that turns them off is the quick lifespan of the loan itself. Normally, debtors which are wanting into trust deed investing desire a quick time period loan. Typically these loans, judging by the reliability of the borrower, might be paid off a 12 months or two after being financed. Most banks need to discover investments that can have longevity. Many of the loans which are lender by banks have a 30-year cost plan.

So what attracts individuals to trust deed investing?

Time is the principle issue that draws individuals to trust deed investing. Usually, banks will take an prolonged time period to do a radical test in your credit score and prior investments. More often than not when buyers are wanting to flip properties they need to do it pretty rapidly. More often than not the funding interval solely lasts one to two weeks earlier than the property is positioned again available on the market. Within the flipping enterprise, the competitors will be fairly steep so you have to transfer as quickly as doable while you discover a potential purchase.

So how do you fight this? You go to hard money lenders which are keen to minimize out numerous the time-consuming components. You don’t want to have the perfect credit score rating to get a loan from a lender on your funding.

On prime of time administration, you’ll get a pleasant return with trust deed investing.

That’s proper most buyers, after they have taken the suitable precautions will on common give you the chance to get a 10% return. You’ll not all the time get that, however for the most half, you can be profitable if the market is forgiving.

This kind of investing can be extremely popular amongst those that have artistic or unpredictable sources of earnings. With all these components, trust deed investing is a good choice for many who need the liberty to transfer from funding to funding with a level of security.

Level-4-Funding-Dennis-Dahlberg-Mort[1]Dennis Dahlberg Dealer/RI/CEO/MLO
Stage 4 Funding LLC
Arizona Tel:  (623) 582-4444
Arizona Tel:      (512) 516-1177
Dennis@SETABAY.COM
http://www.SETABAY.COM
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Arizona | 78701

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Concerning the creator: Dennis has been working in the true property trade in some capability for the final 40 years. He bought his first property when he was simply 18 years outdated. He rapidly discovered concerning the superb funding alternatives offered by trust deed investing and hard money loans. His need to assist others make money in actual property investing led him to specialise in different funding for actual property buyers who could have hassle getting a conventional financial institution loan. Dennis is keen about different funding sources and sharing his data with others to assist make their goals come true.

Dennis has been married to his great spouse for 42 years. They’ve 2 stunning daughters 5 superb grandchildren. Dennis has been an Arizona resident for the previous 40 years.

What are the parties involved with trust deed investing?

Trust deed investing includes a number of folks to make an funding work seamlessly. With regular actual property investments, you might tackle the enterprise by your self when you really feel as much as it. Generally you might want a associate that’s prepared to take a position the time and money with you. Nevertheless, with trust deeds there are a number of parties that you need to be conscious of.

img_16-150x150The very first thing that you will need to understand while you resolve to tackle trust deed investing is that you can be dealing with folks whether or not you prefer it or not. Sure processes or plans might take longer than anticipated or you’ll have to leap via a number of extra hoops earlier than you are capable of attain your end line.

The large three that you’ll most definitely fall into will both be; trustee, borrower or lender. The borrower and lender needs to be pretty easy to differentiate for the novice investor. The lender palms out the loan. This may often be a hard money lender or a monetary establishment. Debtors are the folks or companions that want funding. The place some folks get confused is the trustee. In Arizona, by definition, this particular person holds the deed of trust for the safety of the loan. In the occasion of a foreclosures, they are additionally giving the authority to promote the property to recoup money misplaced from defaulting.

In trust deed investing, the trustee has plenty of significance.

As acknowledged earlier than common business actual property ventures solely contain two parties. When a trustee is included you are capable of have a mediator that is ready to keep the property title. This additionally means the trustee is the sole proprietor of the precise property except the borrower was to default on their loan. The legislation requires the trustee not be affiliated with both the borrower or the lender. That being stated, the trustee and be a single particular person, group or perhaps a enterprise.

Neutrality is one among the largest issues a trustee must be anxious about. All through the total the settlement it’s the trustee’s, job to guarantee that they don’t favor one celebration over the different. This could trigger friction between everybody if the trustee have been to favor the borrower’s state of affairs and vice versa. The trustee can also be answerable for ensuring the title of the property is transferred to the borrower after the fee interval is accomplished.

In trust deed investing the trust additionally handles the foreclosures.

After all, the trustee can’t officiate the listening to if there was a trial that was to happen. It’s the job of the trustee to deal with the Discover of Default. Many individuals suppose that this responsibility is given to the lender, not true on this case. It’s the job of the trustee to maintain the foreclosures from starting to the finish. Most of the time it’s the trustee’s obligation to get as a lot income from the sale of the property to verify the lender’s loss is roofed.

Level-4-Funding-Dennis-Dahlberg-Mort[1]Dennis Dahlberg Dealer/RI/CEO/MLO
Stage 4 Funding LLC
Arizona Tel:  (623) 582-4444
Arizona Tel:      (512) 516-1177
Dennis@SETABAY.COM
http://www.SETABAY.COM
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Arizona | 78701

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About the writer: Dennis has been working in the actual property business in some capability for the final 40 years. He bought his first property when he was simply 18 years previous. He shortly realized about the superb funding alternatives offered by trust deed investing and hard money loans. His want to assist others make money in actual property investing led him to specialise in various funding for actual property buyers who might have hassle getting a standard financial institution loan. Dennis is obsessed with various funding sources and sharing his information with others to assist make their desires come true.

Dennis has been married to his fantastic spouse for 42 years. They’ve 2 lovely daughters 5 superb grandchildren. Dennis has been an Arizona resident for the previous 40 years.