Category Archives: arizona hard money loans

Why Arizona Hard Money Lenders Can Help You Obtain the Funding You Need

Who are Arizona Hard Money Lenders? What part do they play in the finance industry?

Arizona Hard Money Lenders are private or individual investors providing asset-based funding. When considering granting a loan, these lenders focus on collateral value and equity rather than creditworthiness. For the most part, Arizona Hard Money Lenders use real estate as collateral, which must be appraised for the lender to ascertain value.

Upon determining a property’s value, Arizona Hard Money Lenders evaluate and mitigate risk by establishing interest and loan-to-value LTV. As an example of LTV, consider that a property’s market value is $100,000, and that the lender is willing to loan money at 60% LTV. This means that the borrower must provide $40,000 to receive a loan of $60,000 at a given interest rate. By requiring a percentage of the property’s value, Arizona Hard Money Lenders are buffered should the debtor fail to make payments. In exchange for cash down, the debtor is granted an asset-based loan, opposed to a credit-based one.

So, who uses Arizona Hard Money Lenders? While traditional lenders such as banks and credit unions loan money based upon credit scores and voluminous stipulations, Arizona Hard Money Lenders fund individuals and businesses: unable to secure traditional funding, looking to acquire shorter terms, struggling to build credit, or needing to consolidate debt built up the form of multiple loans.

Who Benefits from Arizona Hard Money Lenders?

With less red tape, paperwork, and regulations, Arizona Hard Money Lenders offer pragmatic solutions to many clients. Some of these individuals may have had subpar credit, foreclosures, or bankruptcies. On the other hand, other individuals associated with renovating, renting, or selling real estate may frequently use Arizona Hard Money Lenders over conventional lenders to build profit. These include: contractors who buy land and build real estate; flippers who purchase, refurbish, and sell real estate; and leasers who purchase, renovate, and rent real estate. Additionally, other clients turn to Arizona Hard Money Lenders to expand commercial or industrial property to provide more building space for staff, machinery for production, and technology for upgrades. Consistently as well as continually, many of these types of businesses have relied on hard money to acquire more assets and secure more returns. Though businesses receive the initial benefit from the added capital from hard money lending, community also receive a boon as well.

Hard money lending builds local businesses and communities

Indirectly, growth in local business assets and returns benefits local cities, economies, and neighborhoods. As businesses grow, they tend to purchase more equipment, hire more employees, and consume more services in a community. If you are in need of a hard money loan, talk to a representative to day at Level 4 Funding.


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

Can You Work with Hard money lenders in Arizona as a First-Time Investor?

iStock_000067965589_XXXLarge v1One of the biggest questions first-time investors ask is whether they can get approval from hard money lenders in Arizona or not. The truth is, you can get funding, but you’ll have to demonstrate knowledge.

Real estate investors turn to hard money lenders in Arizona for a myriad of reasons. Sometimes their projects simply won’t qualify for a traditional loan at the onset, while other times having cash ready to go helps ensure they can grab the property before someone else does. First-time investors face additional challenges, as banks usually need to see a track record for success before they’ll put their money on the line as well.

Ergo, most seasoned investors work with hard money lenders in Arizona on a regular basis and keep this option in their toolkits for various situations and property types. As a newcomer, you’ll want to become established with professionals you can trust as well, so that you can turn to them as needed and streamline the process for subsequent projects. Getting that first approval can seem daunting, though.

On the bright side, alternative funding options aren’t set up like banks, which means that you don’t necessarily have to have a portfolio of successful projects in order to get approved. With HMLs, the biggest concern is the value of the property, meaning if you can grab real estate for less than it’s worth, the odds of getting approval are relatively high. You’ll often hear the term “loan to value” or “LTV,” which refers to the amount of your loan in relation to the value of the property. For example, if the property is worth $100,000 and you’re requesting a $70,000 loan, your loan to value is 70%. Sometimes, HMLs will go as high as 90% LTV.

If You Have Some Experience, You Can Get Funding More Easily

Naturally, the LTV is only one part of the equation. If you have some kind of experience which relates to the project you’re undertaking and have a strategy to overcome difficulties along the way, that will impact your ability to get funding too. Many first-time investors have backgrounds in the mortgage industry, real estate, appraisals, home repair, or similar, so it’s easier for them to understand the value of a project, what must be done to increase value, and what the property will likely sell for upon completion. This type of experience really shines when an investor is pitching his or her idea and can often help overcome a lack of formal investment experience.

Don’t let lack of funding stand in the way of your success.

Ultimately, the best way to know if hard money lenders in Arizona will work with you is to talk with a broker before applying. A great broker will walk you through the process, let you know what HMLs are looking for, and make suggestions specific to your situation that will improve the chances of getting an approval on the first go. If you’re still denied, ask lots of questions to find out why and learn what you can do to improve the odds next time around. First-time investors absolutely can get funding; having a solid strategy and finding the right HML for your needs are the vehicles that will get you there.

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

HELPING YOU UNDERSTAND ARIZONA HARD MONEY LENDING

iStock_000002512608_LargeWhat exactly is an Arizona hard money lender? How are they different from a traditional bank loan? How can they help you?

You have heard the term, “Arizona hard money lender.” But, do you actually know what one is? Arizona hard money loans are asset-based loans. With this type of loan a borrower must have property that will secure the loan. A traditional bank loan can be a grueling, time consuming project; and you may have to wait a long period of time for approval. Also, with traditional bank loans, your credit is of utmost importance. There is no elaborate underwriting when it comes to these loans so developers find them useful for time-sensitive projects.

Arizona hard money loans are primarily used for short duration projects. These types of loans are typically used for purchasing real estate, improvements, renovations and construction. There are a variety of other reasons for these loans. Most reasons involve some type of improvement that will add value to a property.

Hard Money Lenders Approach

Arizona hard money lenders are more concerned with collateral; unlike traditional banks who routinely dig deep into a borrowers credit. The value of your collateral gives the lender security; it is more important than your financial situation. If you are unable to repay the lender they can take your collateral, sell it and get their money back. Lenders will lend the borrower as much as their property is worth based on the loan-to-value (LTV). The lender determines this by the ratio of the loan amount divided by the value of the property. These lenders are able to make much quicker decisions because they don’t have to investigate your entire financial life. The loan will be a much shorter duration than a traditional loan, usually lasting between 6 months and three years. Arizona hard money loans typically charge a higher interest rate than a traditional loan, ranging from 10% to 18%. Arizona hard money lenders are able to help many borrowers who don’t have perfect credit; they can also help borrowers who are having financial issues such as bankruptcy. As long as you have collateral that can be used as security, these lenders can work with you. Also, due to the absence of a complex underwriting, lenders can work with a borrower on repayment schedules. The flexibility of these asset-based loans can save many hungry borrowers.

Things to consider when deciding if a traditional bank loan or finding an Arizona hard money lender will work best for you.

Working with Arizona hard money lenders will benefit borrowers that are working on a short duration project, may not have perfect credit (or have some marks on their credit) or need quick financing and own assets that will cover their obligation in case they are unable to repay on time. These lenders can be found in organizations that specifically offer these loans. If a non-conforming loan will not work for your situation you may find the funding, you require through a Arizona hard money lender.

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

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

House Flipping Loans: Is Local Private Money the Right Help For You?

635967198When it comes to house flipping loans and private money you need to first understand what private money actually is and where it can be found. Learn some basic strategies to find the help that’s right for you

Private money is a vague term, but it refers to any private group or individual with enough capital to lend. So where you should you look for this type of lender?

You might begin your search online, where you will likely find many “private lenders,” but most of these are really hard money providers. Its difficult to pin down what exactly private money is, especially when compared to “hard money.”  In truth, the differences are insubstantial, financing is financing after all.

The only real difference between private hard money that you should be aware of is that hard money often entails higher interest payments when compared with private. Hard money providers usually charge between 12 to 15%, while private lenders typically charge between 8 and 12%.

However truly private lenders are usually individuals that can offer far more flexible loan terms in comparison with other types of financing providers.

If you look online you likely wont find a truly “private lender,” that offers this type of flexibility, so then where should you begin your search?

When it comes to Arizona Private Money Lenders, the best way to find the right help for you and your deal is to ask around.

The best way to come in contact with private money providers is to attend real estate networking events.  At such events talk to other house flippers to get a sense of their experience with various local private lenders.  You should ask questions like how quickly were their loans funded? What were the specific terms of their deal? And how willing was the lender to negotiate these terms with them?

Above all, you want to find a lender that is willing to negotiate. Because when it comes to private money you want to take advantage of flexibility this type of financing offers.

When it comes to truly Arizona Private Money Lenders, if you can do your best to secure an equity partnership which can help you avoid the expense of carrying a loan.

You might not even have to make any payments on your loan if your private lender chooses to act as an equity partner in your project. In this case, the proceeds of your resale will pay off the remaining loan balance, while your lender receives a share of the profits you earn.

To negotiate this type of deal, you’ll probably need to find a truly private lender. Hard money is a great financing option in the case of flipping projects, but these are lenders, not investors, and they will give you a loan which you will have to pay back with interest.

If you want to find a true private investor for your next project you should avoid beginning your search online. Perform your due diligence by asking your fellow real estate developers about their experience with local private lenders. Once you find a lender that has a good reputation, see how much room there is to negotiate. If you can try to arrange an equity partnership with them which will help you avoid the expense of carrying a loan.

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

Important Tips When Looking At Arizona Hard Money Loans

Not every loan or lender is going to be equally good. So it is very important that you follow these tips when comparing Arizona Hard Money Loans.

One key fact to remember is that hard money is provided by private lenders so the terms and the loan are not dictated or regulated in the same manner as they are for banks and traditional lenders. So you will want to be very diligent as you review the terms of any Arizona Hard Money Loans. Be cautious of any lender who is demanding large upfront fees. An appraisal fee is normal but large fees for exploration or due diligence is a strong sign of a less than legitimate lender. Large fees can also be a sign of a broker who is trying to lead you to believe that he or she is a lender and not just a broker. This is just a way of adding a middleman who will charge you fees but really add nothing of value to the deal. In both cases, it is very likely that the Arizona Hard Money Loans are never funded but the applicants are out whatever fees they paid.

It is also not uncommon for lenders to “fail” to provide you with a complete breakdown of the cost of a loan. There could be additional fees that you do not learn about until you are ready to sign the loan documents unless you request a full breakdown of all costs associated with the loan. Fees which could be listed on the breakdown include document processing, site inspections, title documentation and verification, funding fees and administrative fees. Lenders can either break the fees out or some will simply charge points to cover all of these administrative tasks that must be completed. Regardless of the way the lender explains the fees, be sure to get a grand total cost so that you can compare all of the loan options that you might have so that you can select the best one.

Beware of Unreasonable Terms

Some lenders will prey on borrowers who have no credit or particularly bad credit. In these cases, the lender could make unbelievable claims such as funding a loan that no other lender will fund or 100% funding with no down payment. If the deal sounds too good to be true then it most likely is. Also, if the lender says that he might be able to fund the loan but due to very bad credit, you will need to pay extra fees or an extremely high-interest rate, then seek another lender.

Do Your Homework

It is always important to be as educated about any business deal as possible. Be sure that you have a few loan options and a few rates to compare. Even if you have bad credit, you should still be able to get Arizona Hard Money Loans at a fair rate. Also, be as knowledgeable as possible about the property that you wish to purchase so that you know what to expect on appraisal documents as well as other inspections of the property. This preparation will help to make the loan process less stressful and faster.

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

Rental Property Loans: Things to consider when it comes to Conforming Mortgages.

4page_img1When it comes to rental property loans, conforming mortgages are the lowest cost financing option available. Learn about the basic providers of this type of financing, what they will expect from you as a borrower and whether or not this is the right financing option for you.

A “conforming mortgage” is essentially the same thing as a standard home loan. The main difference is that you the borrower use the loan to purchase an Arizona Investment Property instead of a primary residence. Because you are using the loan proceeds to buy an Arizona Investment Property, lenders charge more for this type of loan and expect more from you as a borrower. Simply put, you are going to pay your primary mortgage first and foremost before paying the mortgage on your Arizona Investment Property.

This added risk makes this type of loan a bit more expensive than a standard home loan.

When it comes to conforming mortgage providers, lenders fall into three broad categories, online, businesses investment lenders and traditional banks.

Online providers offer convenience when compared with the other two types of lenders because you don’t have to go to a physical location to apply.  With online lenders, you can complete the entire lending process from the comfort of your home. Business investment lenders are ideal for borrowers who are a, businesses and b, looking for greater flexibility. The other two types of mortgage providers don’t usually lend for commercial or multifamily purchases. A traditional brick and mortar bank is best if you are looking for a provider with insight into your local market. In addition, one-on-one meetings with your lender in this situation, give you the opportunity to build a relationship, which you could leverage to secure a better deal.

In the case of Rental Property Loans, and specifically conforming mortgages, your eligibility will come down to a specific set criteria.

No matter which type of mortgage provider you choose there are basic standards borrowers should know before approaching any investment lender.

Basically, you can’t have a credit score lower than 620. Don’t have your debts take up more than 25 percent of your regular income, this is known as Debt to Income Ratio. If your debt to income ratio, it exceeds the 25 percent standard, expect your application to run into difficulties. If your score is lower than 620, or if you have a lot of outstanding debt you are better off considering alternative forms of financing.

When it comes to rental property loans, a standard conforming mortgage may not always the right help for you.

There are many situations where a “conforming mortgage,” might not meet your needs.

Conforming mortgages,  conform to the standards set by Fannie  Mae and Freddie Mac. Therefore there are specific situations where no matter how great your credit is, you will not qualify for a conforming mortgage.

The property you aim to purchase may be in deplorable condition. No conforming mortgage lender will be able to approve a loan on a property that falls short of FHA guidelines.If the property you want to invest in is in shambles you should look into a  rehab loan first.

Another situation is where you have 4 or more outstanding mortgages, the more mortgages you have the great scrutiny a lender will have give to your credit profile until you essentially need perfect credit to qualify. If this is your case, look into a blanket mortgage.

However, conforming mortgages are perhaps the most comfortable option for those just getting into the rental business. Before looking into a conforming mortgage, consider which type of lender can meet your needs, know the basic standards of qualification and whether or not a conforming mortgage is really best type of financing for your specific situation.

 Dennis Dahlberg Mortgage Broker[3][2][2][2][2][2]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.

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Understanding Commercial Loans and Where to Obtain One

There are several different types of commercial loans available to borrowers. Selecting the best loan to meet your needs and the best lender is very important for the success of your business.

There are several different types of commercial loans available and each one is best suited for different needs. Understanding how these loans differ can help you to make a wise selection about which loan will best meet your current and long term needs. When you are evaluating commercial loans, think of your lender as a service provider and evaluate the product or loan just as you would any other service or product that you would be purchasing. Investing some time to learn about each loan can help to ensure your future success in the business world.

A bridge loan is a short term loan for around a year. This can be used for cash flow, to construct a building before refinancing or even to make a commercial real estate purchase quickly. These loans require very good credit and are normally provided by private lenders. Because the lender is a private entity, there are fewer rules regarding the terms and the processing and fulfillment times are substantially faster than conventional lenders.

Real estate purchase loans are much like fixed rate and adjustable rate loans and are typically only offered to borrowers with exceptional credit of 700 or more. The commercial property must be used as the collateral on the loan and the rate is determined by the loan to value ratio. Hard money loans are a form of loan which comes from a private lender and often has a very fast turnaround time but comes with a high interest rate. The property is also the collateral for these commercial loans. Often times a hard money loan is used as a last resort to try to save a property from foreclosure. Due to the high risk involved, the lenders can justify the very high interest rates and the borrowers are willing to pay them in an effort to save their property from foreclosure.

Determine Your Needs

Before you set out to get a commercial loan, you need to have a well-defined purpose for the funds as well as a financial plan to repay the loan. Having that information will help you to determine which type of loan will best suit your needs at the present and in the future. This information along with your credit history will also help you determine who will be your best candidates for lenders. Conventional lenders such as banks and mortgage companies are the option which would normally be the most cost effective if you have the necessary level of credit rating. If creditworthiness or length of credit history is an issue then a private lender might be your only option. If that is the cast, you should expect a higher than average interest rate. This is the price that you must incur to get a lender to take a greater risk on you as a borrower.

Invest Time First, Then Money

When you are preparing to make an important financial decision such as getting a commercial loan, it is critical to invest your time in research long before you invest your money in loan application fees and appraisals. Take the time to learn about all of your options and then shop for a lender who offers you the best rate and terms to meet your needs.

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

Traditional Bank Loan or Arizona Hard Money Loan

If in case you have seen recently that conventional financial institution loans are getting increasingly tough to get in relation to your actual property wants, then you definitely aren’t alone. In reality, based mostly on paperwork alone, you’re a number of time wasted. It is likely to be price your time to look into Arizona hard money loans for the true property investor.
This might sound complicated. Most individuals don’t even know that you would be able to get a loan with no financial institution, however with Arizona hard money loans, you completely can. And the quantity of paperwork you don’t need to do will completely stun you. Banks made an enormous mess on the market, giving loans to individuals who should not have them and now they’re actually cracking down and making it actually tough to get a loan in case your credit score is not in tip-top form and that’s the place Arizona hard money loans are available.
Not will it’s a must to leap when the financial institution says leap, as a substitute you may have the money you want proper while you want it. Take into account the sorts of Arizona hard money loans that you would be able to get. You may have Private money lender Arizona or you might have hard money lender Arizona. Each may help you make the fee you have to get the property that you really want. Whether or not you want to repair up a property or you want to put some money down earlier than another person buys the property, Arizona hard money may help you get the money that you just want. You gained’t even need to show your credit score rating. 
Your private money lender Arizona or hard money lender Arizona does not thoughts what it’s. Your credit score rating has nothing to do with the property you need the money for. Take the time to consider getting Arizona hard money to your subsequent funding.

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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