Category Archives: Arizona hard money lender

No Money Down Arizona Fix and Flip Loans: Advice for New Investors

If you are new to be flipping business, you may have heard the prospect of no money down Arizona Fix and Flip Loans. You may be thinking “hmmm,  I can get into the flipping business without spending any of my own money, well sign me up!” 

You can use three methods to pay nothing out of pocket for your next flipping project, wholesaling, private money and hard money.

Let’s talk about wholesaling first. The Easiest way to explain the process is you sell the option to purchase the house to another investor. You don’t spend any money; you secure a purchase contract with a buyer  and before the date on the purchase contract comes around you sell off the option to purchase the home to another investor.

Wholesaling is not a good option for someone who is new to the rehab business.  A good wholesaler knows how to find the most attractive houses to flip, can compete with full cash offers to secure a bid and above all, they are in contact with a network of other real estate investors who are willing and eager to purchase their contracts.

As a new investor, it is doubtful you have any of these qualities. So what are your other no-money-down financing options?

Few new house flippers can qualify for no-money-down Arizona Fix and Flip Loans from private investors.

The situation with private money involves you seeking out a cash buyer to finance the full cost of your flipping project upfront. In this situation, you have to prove your value to an investor, and have an answer for him when he asks “why should I pay for the full cost of your project?” The investor needs believe that you can carry out the work,  and all he has to do is sit back and let the money roll in.

However, if you’re new to the flipping business, you don’t have the requisite demonstrable proven track record when it comes to rehabbing distressed properties. Given this lack of experience, you probably wont get an investor on board. What are your options when it comes to getting no money down financing, for your first flip?

Hard money can be a route for new investors to get no money down Arizona Fix and Flip Loans but carefully consider the risks.

If you have enough collateral on offer, even if you’re new to the flipping business you can still get a zero down hard money deal.

A hard money provider is a lender who offers you a loan based on the value of your collateral.  You need to find a hard money provider who is “creative,” when it comes to collateral. If you pledge enough of your assets, some hard money providers might not require you to make a down payment. To truly pay nothing out of pocket, you also need to find a lender who is willing to defer the payment of fees until your project resells. But, are you willing to pledge your primary residence,  401(k) or any other assets to avoid out of pocket expenses?

You need to consider this question carefully. If you are new to the flipping business, it might be better to make a steep down payment than to risk losing your house. The more experience you get with house flips, the more financing options you’ll have. You can get into wholesaling, partner with other investors and you’ll have a bit more confidence to get a no-money-down hard money loan.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Private Money Lenders: Finding the Help that’s Right for You

shutterstock_144470392 smallPrivate money lenders can help take your real estate investment business to the next level. Learn what private money is the most basic sense, how these deal might work and some questions to ask yourself so you can find the help that’s right for your specific situation.

When compared to other types of financing, private money can offer you speed and flexibility. These lenders aren’t tangled in a web of bureaucratic guidelines like traditional banks. As private individuals they set their own rules about who qualifies for financing, how quickly a deal can close and how much a borrower needs to pay in terms of interest and fees. But what is private money exactly?

The simplest way to explain private money is that it’s anyone with the funds on hand to finance your project. There are three levels in the hierarchy of private lenders. The first level includes your friends and family and those closest to you. The next level might consist of your fellow real estate investors, coworkers or colleagues. The third level of private lenders includes accredited investors and hard money providers.

It is important to note that in the case of private money, some financiers might act more as investors instead of actual lenders and it is important to understand the implications.

When it comes to Private Money Lenders you need to know the differences between investors and actual lenders.

When it comes to private money, the first two levels in the hierarchy act more like individual investors rather than actual lenders. Basically, in these deals, the investor finances the purchase of your property upfront and then receives a percentage of the returns.

When it comes to the third level, hard money, these financiers act as lenders, in that they offer loans with preset interest rates and fixed terms. So how can you determine which type of private money provider is best for your specific situation?

With private money lenders ask yourself some questions to find the help thats right for you.

To determine which type of private money provider might be right for your next real estate investment deal ask yourself a few questions.

Does your real estate development project require more flexibility?  If so, then a direct private equity investor might offer you a better arrangement. If your worried that your next deal might suffer due to high vacancy rates or that it might sit awhile on the market, a private investor can offer you a bit of deference. An institutional lender will pretty much always expect you to make payments on your loan, regardless of your situation.

Or do you need a reliable source of financing immediately? Individual investors usually don’t have the funds on hand to fully finance your deal. If there is especially attractive investment property up for grabs, you can’t wait around on your rich uncle to liquidate his various assets in an effort to fund your loan. In these cases you’ll likely want funding right away so a hard money provider is likely your best bet.

Whichever type of lender you opt for, private money offers you flexibility and convenience when compared to more conventional financing.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Grow Your Financial Future with Hard Money Lenders Arizona

4page_img3-bigStart your career in real estate investment and grow your income exponentially with the help of a loan specialized in house flipping. The art of flipping houses in Arizona can quickly triple your income if you follow some of the helpful strategies presented in this guide.

The fact is that it is very important for your financial goals and your financial planning that you know and are well are of the pros and cons that can come with flipping a property or purchasing properties purposely for flipping purposes before you begin diving into the real estate game. Purchasing properties is a risky investment. However, with all risks you should know that bigger risks can lead to greater rewards. Diving into the world of real estate can help you quickly achieve your financial goals and expand your financial future to new heights.

Hard money and finding the right hard money lenders to work with gives you a way to begin to borrow money without having to go through the lengthy process of using a more traditional mortgage lender approach or reaching out to a broker that works in a traditional bank setting. The loans that you will acquire from hard money are loans that come from individuals or private investors who are able to lend money based on the property you’re investing in as collateral. This is high risk and high reward even though it starts off with a very minimal investment up front and can be done even if you do not have a strong credit rating or previous credit history.

Choosing the Best Hard Money Lenders Arizona for Your Goals

Hard money gives you the perfect opportunity for advancement into the world of real estate investment and flipping homes. Finding a lender that can work with your financial goals and help you find the perfect plan to move forward can take your financial future to the next level. Growth and financial prosperity is achievable if you are able to make the right risks and network with the right people. The right lender can make this and more possible

With any new business venture or investment, it is important to weigh all of the facts into consideration so that you can make the best financial decision for you or your business.

Most hard money loans do require proof that you can eventually repay them but this is still very unique than the typical process of getting a lending opportunity through a more traditional bank setting. Typically at a bank, the lenders there are much more interested in your credit history than anything else as well as your current finances. Hard money loans in Arizona take a much more unique approach. Because of this, you can easily get approved so long as you have proof of being able to repay the loan. Borrowing previously is one example of this. That means that getting started with hard money loans can open doors for even more opportunities in the future for you.


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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Phoenix Fix and Flip Loans: How to use Crowdfunding to Invest and Make Money

4page_img5-bigYou don’t need to be an active house flipper to make money from flipping projects.  You can avoid all the hassle of these projects and still earn a profit by financing fix and flip loans through online crowdfunding platforms. Learn some of the basics about what you should look for in these deals and some basic strategies to find the best way to invest in these types of loans.

Crowdfunding remains the most accessible way for individual investors to earn money from house flips without actually carrying out the renovations themselves. Crowdfunding usually takes place on an online platform and relies on you (the individual investor), to finance the loans listed on the site. These loans are then given out to active house flippers.

However, there some fundamental things you should look into before investing in these loans.

Expectations before investing in Arizona Fix-n-Flip Loans

Before investing in any loan, consider the platform, or the website on which you aim to make your investment. Be wary of crowdfunding sites that claim to charge absolutely no fees. In almost every case this is too good to be true. In general, these websites will charge you a percentage of the income you earn either on an annual or a regular basis. Obviously, you want to make your investment on the crowdfunding website that charges the lowest possible fees.

Consider the type of flip you are investing in, is the project a residential or commercial flip?  Residential flips offer a smaller return over a shorter period, while commercial flips provide a potentially larger return over a longer period. So consider how quickly, and how much, of a return, you want from your investment.

Consider the borrowers details, ideally you want to someone with prior experience and a proven track record of successful projects.  Also, do your best to understand the conditions of the surrounding market to get a sense of the project’s potential. Developing an understanding of an individual borrower and their project might put your mind at ease.

Ideally,  you also want to invest in loans in which the borrower has signed a personal guarantee, as this will indicate they have some personal stake in their project.

After you find the right loan, there are two ways to actually invest.

When it comes to investing in Arizona fix-n-flip loans, you risk less as a debt partner, but you can make more money by acting as an equity partner

When it comes to investing in these types of loans, you can choose to act as a “debt” or “equity” partner.  Acting as a debt partner allows you get regular interest payments throughout the term of the loan. Most crowdfunded fix and flip loans, have terms of 36 months and charge interest rates of 8 to 14%. You earn these interest payments on a regular monthly basis, and once the term of the loan expires, you receive the remaining interest and principal.

Acting as an equity partner gives you a share of ownership in the property.  In this case, once the flipped property is sold you earn a specific percentage of the profits earned by the borrower. The potential returns from an equity partnership can be far greater; however, there is more risk in this case. It’s uncertain how much profit a flip will earn until the renovations are finished and the property is actually resold.

In short, crowdfunding presents the opportunity to earn money from house flipping without actually flipping homes yourself. Consider the platform, type of project and borrower you want to invest in and whether or not you want to act as a debt or equity partner.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Private vs. Hard money lenders: The Differences

page3-img2You may wish to finance your next investment property, but find yourself a bit confused about the differences between private and Phoenix hard money lenders. This article will attempt to clear up some of this confusion and some common misconceptions, so you can get a clear perspective and find the help thats right for you.

Some consider private money and hard money lenders essentially the same thing.  But there are a few fundamental differences you of which you should be aware. It all comes down to the criteria these lenders use to evaluate borrowers, and these considerations can impact the type of deal you can secure.

The main difference between these two types of lenders is how they evaluate individual borrowers. Private lenders might consider all three C’s of lending (credit, capacity, and collateral).  Hard money providers generally only consider the value of the collateral on offer.

Therefore, private lenders may put scrutiny on aspects of your financial history such as your credit score. A private lender may also want to get a sense of your capacity or your ability to repay your loan. They might look into your financial history to ensure your income is sufficient to carry your current debts, usually  this measurement is expressed as a debt to income ratio (DTI). If your credit score or DTI doesn’t meet the private lender’s criteria, you may not qualify.

In contrast, hard money providers mainly look at the value of the collateral on offer, i.e., the value or potential value of the property you aim to finance. However because collateral is the primary consideration in the case of hard money there are some misconceptions when it comes to this type of lending.

The main complaint about Phoenix hard money lenders is that they are less willing to work with borrowers

Because hard money providers mainly look at the collateral offered by the borrower, they assume a higher risk. Because of this assumed risk hard money is often more expensive than private money. 

However, some assume that hard money providers are less flexible than their private counterparts. Because this type of lender only looks at collateral, they might have less confidence in a borrowers ability to repay. Therefore, if a  borrower meets turbulent fiscal headwinds, many assume it’s in a hard money providers best interest to foreclose on the property and resell it at a profit.

But this is a flawed assumption; because any reputable lender wants their borrower to succeed.

Foreclosure is a hassle, and no one wants to deal with it. So don’t assume your hard money provider won’t work with you if you run into financial difficulties.

Arizona Private Money Lenders may offer a better deal, but fewer borrowers may be eligible.

Going the private money route can result in a better deal.  Because most private money providers look into your credit and your capacity to repay,  and therefore they have more confidence in you as a borrower.

This confidence on the part of the private lender could give you the leverage to negotiate a better deal.

While private money may potentially be cheaper,  it may also be less convenient. You may not qualify according to the standards of an individual lender. In addition, underwriting your loan could take a long time, and this application process could cause you to miss out on your investment opportunity.

But there are no hard and fast rules in the case of either private money or hard money, as every individual lender is different.

Just know that the primary difference is that private lenders may consider( may being the operative word here), all three C’s of lending before approving an application, while hard money providers only consider the collateral on offer.

Private lenders might be able to offer cheaper loans, but the application process might also be less convenient when compared with their hard money counterparts. It is a catch 22. Private money might be less expensive but also less convenient. Hard money might be more convenient but it also might be more expensive. 

However, don’t make assumptions, every private or hard money lender is different. Ask any lender you approach about how they evaluate individual borrowers to see what type of deal you might be able to negotiate.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Phoenix Fix and Flip Loans: How to Make Money in Apartments

iStock_000002512608_ExtraSmall copy point calyx 9When it comes to fix and flip loans and apartments you need to have a strategy to pay off the loan as soon as possible. The following article will tell you where to find the best deals, how to value apartments and how you can use simple income boosting strategies, to maximize the value of your apartment property, quickly earn a profit and pay off the balance of your loan.

Before you take out a loan to flip an apartment, you need to find the right property.

Finding apartment properties to flip is a bit tricky, as most apartment buildings are sold off-market. Landlords don’t want to alert tenants to possible changes in ownership, and so they avoid listing their properties outright. So to find apartment properties with the most potential you need to get in touch with local real estate brokers, who can give you a sense of which properties are available.

After finding a potential property to flip, consider the following:

• Is the property is in an exceptionally dilapidated condition: Is there an immediate need for physical improvements, If you can, then make these improvements, and you can quickly boost the properties value and resell it at a profit.

• Consider outside factors that could increase the property’s value in the near-term:  Are new public amenities like hospitals and schools about to be constructed nearby? If the answer is yes, then you may not need to spend any money to see the properties value appreciate.

With Phoenix fix and flip loans and apartments evaluate each deal based on the income potential of the property

The main difference between flipping apartments versus single-family homes is a matter of valuation.  Residential properties are valued based on comparable sales, which limits the potential returns from residential flips. With commercial properties, I.e., apartments, the income generated by the property determines its value. Therefore the potential returns from an apartment renovation can be enormous, depending on how much you can raise the amount of income generated by the property.

When it comes to valuing apartment buildings, the value is usually set based on the market cap rate (annual income/ fair market price) divided by the overall annual revenue generated by the property.

So if your apartment earns 120,000 dollars in income annually and the prevailing cap rate is 5 percent= 120,000/.05= 2.4 million dollars.

This nuances of this valuation process are beyond the scope of this article.

However before taking out any loan you need to have a strategy in place to pay it off quickly. You also want to earn a profit by causing the value of the property to appreciate as quickly as possible. So when it comes to apartments, what’s the fastest way to raise a properties value? Raise rents.

With fix and flip loans and apartments your best bet is raising rents which present a low cost way to boost value and pay back your loan quickly.

With any flipping project, you need a short-term strategy to boost a properties value,  to pay off your loan and earn a profit as quickly as possible. When it comes to apartment flips the best way to boost value is to raise rents. 

Obviously can be amoral or unethical about this, the improvements you make should justify any rent increases. However, in some cases you can still raise rents without paying for any improvements at all. If a property is charging rents that are exceptionally low, you can raise rents to a reasonable standard and quickly earn a profit.

Even a small increase in rent can dramatically boost the value of an apartment building.  Consider the first example where the property was valued at 2.4 million dollars

• 120,000 (annual income) /.05 (cap-rate)= 2.4 million dollars.

This property is a 20 unit building, and each unit brings in 500 dollars in rent per month. If you were to raise rents by 50 dollars the property will earn 1,000 dollars of additional income per month, or 12,000 in extra annual revenue.

While this might not seem like a lot, this small increase in rent, based on a 5 percent cap rate, equates to a new valuation of:

• 120+12=132,000 (annual income)/.05 (cap-rate)= 2.64 million dollars.

So in this case that extra 12,000 dollars in income resulted in a 240,000 dollar increase in the properties value. As you can see, the sky is the limit when it comes to apartment flips. But of course there is math and then there is reality. So things wont always work out according to plan.

Nevertheless, before taking out a loan on an apartment property, find a reputable real estate broker and look for properties with:

• Easy low cost fixes that could raise value,

• Properties where new public amenities are being constructed which will increase the value of the property without any cost to you, and above all,

• Look for properties that are charging below market rents.

Raising exceptionally low rents to a reasonable standard is the fastest, and cheapest way to quickly raise the value of an apartment, allowing you to pay back your loan and earn a profit in the shortest possible amount of time.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

How To Understand House Flipping Loans

4page_img5-bigNot every loan works for every project so it is important that you understand all of the aspects of Arizona house flipping loans. This is a huge first step in a successful project.

Flipping houses can be a great business and a great way to build your personal wealth. But it can also be a very difficult business is you are not familiar with the financial needs and the criteria for that makes good house flipping loans. You will quickly learn that a traditional loan is not a good fit for most flippers. The biggest drawback on a traditional loan is the extended time frame to secure the loan. In addition, you need to have very good credit to qualify for most bank loans. But fortunately, there are much better solutions for your house flipping loans.

The best way to avoid all of the runaround and document requirements is to avoid the traditional lenders. Using a private lender is a lot faster and easier. The cost can be a little bit higher but in most cases, you can tailor the loan to meet all of your needs including a fast approval and funding process. These types of loans are called Arizona Hard Money Loans or asset-based loans and they are offered by a private lender or a small group of people who function together as a private lender.

The lenders are not looking at your credit history, income or even your credit score to decide if they are willing to loan you the money. For asset-based lending, the determining factor is the value of the property that you are buying. The lender requires that you use the property as collateral for the loan so that it is secured. All the lender is concerned about is that the value of the collateral is always greater than the balance of the loan.

Calculating the Amount of House Flipping Loans

Lenders who focus on these Arizona Hard Money Loans have a set loan to value ratio that they are willing to offer borrowers. The LTV is normally somewhere between 70% and 80% of the value of the property. There are two reasons for this choice. First, this assures the lender that the property will always be worth more than you owe in the event of a default on the loan. Second, the lender knows that you are very motivated to get the deal done as you have invested your own money in the project to reach the asking price. This is known as having some skin in the game and is a good motivator.

Know The Terms

Flipping houses in Arizona can be a great business and can grow very quickly if you are aware of the proper types of funding for these projects. In addition, you need to understand that the conveniences of hard money only come at a higher cost. So it is important that you find the best deal possible to begin your home flipping business and ensure your success.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Using Hard Money for House Flipping Loans

635975440There are many benefits to using hard money when you need house flipping loans. These nontraditional loans offer all of the flexibility and benefits that will make you profitable.

Traditional loans are designed to be used by home buyers who are going to carry the mortgage for 15, 20 or even 30 years. But house flipping loans should never reach even a year if you are running your business correctly. You want to buy quickly, make the repairs and renovations and then get the house resold for a profit as quickly as possible. And asset-based lending or Arizona Hard Money Loans as they are also called can be the perfect loan for flippers.

Arizona Hard Money Loans are very short-term loans. Many are for only a few months and because of their short-term, the rates are higher than a traditional loan. The rates range from a low of about 7% to as high as 15% or more if the lender is unsure of the deal. There are also additional fees that the borrower will pay such as closing costs and lender fees. But the biggest benefit of hard money is that the application process is very fast and simple. Many loans are fully processed in less than two weeks which is far less than the average 90 to 180 days for a traditional mortgage to process.

The process to qualify for Arizona Hard Money Loans is based more on the value of the property that you are buying than it is on your personal creditworthiness. While the lender might check your credit score and require a score of 550 or better, that is far below more traditional lenders standards. The value of the property is also what will determine the amount that the hard money lender is willing to offer you. The loan to value rate is how this is determined. Each lender has a specific percentage of a property’s value that he or she is willing to loan. In most cases that number is between 70% and 80% of the current value of the property.

Collateral on House Flipping Loans

The reason that the LTV is important is that the lender will require that you use the property as collateral for the loan. This protects the lender in the event that you default on the loan. Bu loaning only a percentage of the property value, the lender will always know that the collateral is worth more than the balance you owe on the loan. If you do default, the lender will take possession of the property and sell it to recover his or her investment in the loan.

Hard Money is a Wise Choice

As long as you make wise choices and are aware of the expenses of an Arizona house flipping loans, hard money is a good selection to fund your purchase. But only when you have a clear renovation plan and time frame for completion of the project. The short timeframe of the hard money loan and the higher interest rates leave little margin for error if you want to earn a good profit.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Types of Deals and Properties for Arizona Hard Money Loans

Brandon-Abney-Arizona-Home-Mortgage-FHA-Specialists-150x150Not every loan is perfect for every type of purchase. But there are many deals work very well within the parameters of Arizona Hard Money Loans.

One of the great features of Arizona Hard Money Loans is that they are funded by private lenders. This means that the borrower often has a great deal more freedom with regard to the type of property being purchased with the funds. The loan is being secured by the property so the lenders do want to be certain that the property value is greater than the loan. He or she will also be interested in the saleability of the property in the event of a default on the loan. But as long as there is a market for the property, most lenders are willing to fund a loan for any type of property. That is not to say that some lenders don’t specialize in a specific property type, but as a rule, any type of property including residential, commercial or industrial can be purchased with hard money.

Some of the features of Arizona Hard Money Loans make this a better loan for certain types of purchases. The short-term of Arizona Hard Money Loans makes them impractical for most home purchases but it also makes them ideal for many investment type purchases. Real estate investors who purchase properties to quickly fix up and resell, flippers, are very fond of hard money simply because it is easy to apply for and secure as well as being one of the fastest funding loans. In the world of real estate flipping, time is a critical element that makes it a perfect fit for hard money.

Hard Money Land Loans

Land can often be harder to purchase with a traditional loan. But a hard money lender is often happy to have the land as collateral on a loan. This allows the borrower to purchase the land and improve it with a building, utilities or other features to make the land more valuable prior to selling it. And with the loan for the land being hard money, there is less of a chance that the purchaser will be denied a construction loan for the addition of a structure.

Hard Money Loans with Bad Credit

Many borrowers find that with bad personal credit or no personal credit history, it is impossible to obtain a traditional loan to purchase real estate. But hard money lenders are basing their decision on the value of the property being purchased and not the creditworthiness of the borrower. So a bad credit score might mean that you pay a slightly higher interest rate, but in most cases, you will be able to get a hard money loan. Hard money can also be your only option if you have gotten into a very expensive project and you have overextended your credit or maxed out all of your other options. Again, the interest might be higher but you can get a hard money loan. Finally, for a busy flipper who might have multiple properties under contract at one time, the hard money lender will not decline your request based on the number of loans that you are carrying. The only really important factor is the value of the property. Knowing how to use these loans correctly can open many doors for someone who wants to enter the real estate industry as a flipper.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Triple Your Income Today with House Flipping Loans

page5-img2Start your career in real estate investment and grow your income exponentially with the help of a loan specialized in house flipping. The art of flipping houses can quickly triple your income if you follow some of the helpful strategies presented in this guide.

Are you considering getting started in the real estate market but don’t know how to go about doing it? You can make all of your financial goals a reality with the assistance of house flipping investments. Many people are reaping the rewards of real estate investments and there is no better time than now to see what these types of investments can do for you and your own financial dreams.

Consider the benefits of house flipping loans in Arizona:

Potential to Quickly Turn a Profit and Even Triple Your Income

We start any new investment with the hope of turning a profit. It makes sense that perhaps then the most obvious reason that a person might have for flipping a house or other investment property is to attempt to make some money.

The companies and individual people that are dipping their toes into real estate market are enjoying extremely lucrative results. That fact is that with real estate investment not only can you our your company achieve significant returns on your investments, but you or your company will be able to receive these returns on your investments extremely quickly in most scenarios.

Personal Networking and Development Opportunities

Though it may seem at first that investing in house flipping is going to require a significant amount of time and investment, there is actually a great deal of valuable, important experience to be gained from the art of flipping houses or other investment properties.

Beginning to get into the real estate market and starting the practice of frequently purchasing properties and the necessary materials needed to work on these properties helps you or your company begin to brush up on or develop great negotiating skills. You can learn how to become a much more capable delegator, expert at task management, and hold people accountable. Your knowledge of construction and real estate will also expand.

Are House Flipping Loans in Arizona a Worthwhile Investment?

Flipping houses is more than the money. Even if you may be only interested in flipping houses for the monetary awards, it is clear that flipping properties is more about the cash and checks.

The real estate industry is a buzzing market that has all of the tools you need to achieve your dreams and financial goals.

Updating a property is a way of cleaning up an old neighborhood and developing new communities you are in a way giving back to the community and rewarding yourself with this form of enrichment. Flipping houses goes more than achieving your income goals or expanding your wealth. Triple your income mentally and physically by giving back to the community and surrounding areas by upgrading old homes or properties and helping to elevate the quality of the surrounding community.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions