Category Archives: arizona home mortgage for bad credit

Benefits of Non-Recourse Commercial Loans


There are many options to explore when seeking commercial loans. One of the factors which can reduce personal liability and risk of assets is a non-recourse loan.

As you begin to explore the options for commercial loans you will quickly find that there are two main categories for these loans, recourse and non-recourse. The more common of the two is the recourse loan which requires the borrower or borrowers to personally sign as the guarantor of the loan. This simply means that in the event of business failure or inability of the business to make the loan payments for any reason, then the guarantor is personally responsible to make the payments. Obviously, this presents a significant personal financial risk to the guarantor.

Non-recourse commercial loans do not require the borrowers to become personal guarantors of the loan. Therefore, these loans do not require the risk of the personal assets of the borrowers. This is one of the biggest advantages for any borrower. Knowing that a business failure means the loss of income is bad enough but to also be faced with the responsibility of personal liability on a commercial loan can be devastating. No business owner ever chooses to take out a loan which they believe the business will default on but there is always that rare possibility, and the added stress of personal liability. But a non-recourse loan eliminates that stress and potential issue.

An additional benefit is that non-recourse loans are assumable. This can be a huge advantage if you plan to sell the property in a few years or if a situation changes and you need to sell the property quickly. Currently, commercial lending rates are very favorable, but they are expected to increase. So the current loan rate is likely to be much lower than a rate which will be offered on a loan in a few years. So when you do decide to sell the property, you have the ability to offer to have the buyer assume your loan. This will be a great incentive for the buyers as the interest rate could be significantly lower than the current rate.

The Perfect Non-Recourse Loan Candidate

Non-recourse loans are most often used to purchase properties which provide a strong cash flow as the property is the only collateral. This means that even if the property is not the more visually appealing or if it needs a face lift, it could still be a candidate for a non-recourse loan. The critical factor is the cash flow. As long as the property is generating 1.25 times the proposed payment of the loan then lenders will be eager to offer this financing solution.

Great Benefits if the Fit is Right

Non-recourse commercial loans can offer a huge benefit for the right borrower and the right commercial property. Knowing that the property does generate a strong and steady cash flow allows the borrower to get a great loan and rate without having to personally guarantee the loan in the event of a business failure. It also provides added benefits to the borrower when it is time to sell the building by allowing the buyer to take advantage of a lower interest rate on the assumed loan.

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
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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: commercial loans,commercial lending,commercial mortgage

Tips to Obtaining Hard Money Loans Fast


Hard money loans are used for short-term projects, usually ranging from as little as 30 days to 5 years. But these loans also come with higher interest rates. But if you need to get extra finances quickly, this type of funding is the right choice for you.

Fast approvals are usually quite easy when it comes to hard money loans. On top of quick approvals, these loans also come with high flexibility and less documentation is required for approval. Usually they are used as a last resort when unable to get a mortgage, but it can be well worth it.

If you are looking to finance a real estate investment, this type of funding is very beneficial in its own ways. The application process is much shorter compared to other loans. Financial history of course does play a role, but other factors come into play as well. Many lenders aren’t concerned with the present value. Their main concern is to see that in a short time, they will be able to make their money back on the investment, including interest.

Since lenders are looking more at the final project, making plans for the property plays a big part and can help you get hard money loans even faster. Most of the time, funding is provided in just a couple of weeks. But if need be, you sometimes can get the funds as little as just a few days, all depending on the lender and certain circumstances.

The first thing to do to obtain a loan quickly is to gather all of the important documentation.

Gathering all of the important documentation and information needed for lenders is one of the most basic factors for a speedy process. Things that lenders are looking for include: what kind of property you are looking to invest in (residential, commercial, industrial or land), the estimated value of the property, the requested loan amount and how the loan with be paid back (this includes the terms of loan, the length and monthly payments).

Not only is the process of getting funds quick, so is the application.

Unlike other loans, hard money loans come with much easier applications. In fact, the application is only 5 pages long. The entire process will even go quicker if you are able to present all of the information that the lender needs sooner rather than later. This is why organization of all of your documents and plans come in handy.

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
clip_image002clip_image004clip_image006clip_image008

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: commercial loans,commercial lending,commercial mortgage

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Arizona mortgages for bad credit score: Adjustable Rate Mortgages

With growing rates of interest it’s turning into more durable for many People to qualify for residence loans. Consequently, many debtors could discover themselves looking out for Arizona home mortgages for bad credit debtors. Many of those loan sorts will help each prime and sub-prime debtors qualify for the house they want.
When rates of interest on residence mortgages rise, it has a huge impact on the mortgage loan market. In late 2014, charges on custom 40 12 months mortgages rose from about three.5% to 4.5% or extra. This vital enhance had a dramatic impact on month-to-month mortgage funds for residence patrons and made it more durable for many debtors to qualify for residence loans. Nevertheless, there’s one kind of loan that charges didn’t enhance for and that’s an adjustable charge mortgage or ARM. An ARM is usually think about an Arizona home mortgages for bad credit or sub-prime debtors program, however within the case of rising rates of interest it may be a very good possibility for prime debtors as effectively.
An adjustable charge mortgage is a mortgage with an rate of interest that adjusts after a set interval. The mounted interval is wherever from 1 to 7 years, with the most typical phrases being three or 5 years. Throughout the preliminary mounted interval, the rate of interest on the loan could be very low, often decrease than prime. Which means your month-to-month mortgage funds might be low. After the mounted time period, the speed will regulate to a better rate of interest. This can enhance your month-to-month fee quantity as a result of increased curiosity funds. When your rate of interest does reset, it is going to be to a better than prime charge.
Till just lately, it solely made sense for people wanting for Arizona mortgages for bad credit score to look into adjustable charge mortgages. With conventional mortgage charges low, prime debtors might simply qualify for and afford the house they wanted with a 30 12 months mounted charge. Nevertheless, as soon as rates of interest rose, month-to-month fee quantities elevated by a whole bunch of every month and lots of debtors had been unable to qualify for the loan quantity they wanted. Consequently, many prime debtors benefited from an adjustable charge mortgage.

Advantages and Dangers of an Adjustable Rate Mortgage

The advantages of an adjustable charge mortgage for each prime and sub-prime debtors are simple to see. When the rate of interest on a standard mortgage is excessive, the funds on an ARM could be a lot decrease. For instance, when you had been to qualify for an adjustable charge mortgage with a charge of three% (present charges are between 2.5 and three.1%) with a $200,000 buy worth, your month-to-month fee can be roughly $850 a month. If conventional charges had been at 4%, that may enhance your month-to-month fee to over $950 a month (for principal and curiosity solely). In the event you had been unable to qualify for that month-to-month fee, you would wish to look for a less expensive residence. In truth, to get a fee equal to $850 a month, you would wish to lower your price range by virtually $25,000. In some situations that will imply you’d be unable to purchase the house you need within the neighborhood you need to stay in. For a lot of bad credit score debtors, and adjustable charge mortgage is a perfect Arizona home mortgages for bad credit program as a result of it permits them to qualify for a costlier home with decrease month-to-month funds.
The primary threat with ARMs is that the rate of interest is topic to vary all through the lifetime of the loan. The rate of interest is locked for solely a set period of time. After that it’ll reset yearly and your month-to-month fee will go up. In some circumstances it might probably even skyrocket. The rise in month-to-month funds mixed with plummeting actual property values is a part of what brought about the housing collapse within the mid-2000s.
Earlier than you think about an ARM, be sure to perceive the phrases of your loan and what that will imply for your funds sooner or later. Have a look at the annual curiosity will increase in addition to the doable will increase for the lifetime of the loan. The brief time period rates of interest for ARMs are nonetheless low however there’s a risk they’ll enhance. Ensure that to take a look at real looking situations for how your charge could or could not enhance and what impact that may have in your month-to-month fee. One of many important issues with ARMs is that some debtors could overextend themselves and never be capable to afford their residence as soon as the speed resets. Top-of-the-line methods to look at the entire potentialities is to speak with a licensed broker who will help you’re employed out the numbers and resolve if an ARM is the fitting possibility for you.

Dennis Dahlberg
Dealer/RI/CEO/MLO

Stage 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917

www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027



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