Month: September 2019

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

111 Congress Ave | Austin | Texas | 78701

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

All you have thought about since you saw that old closed hotel downtown is fixing it up, but with your credit, where would get the money? Someone said “Try a commercial Arizona hard money lender.”, but what is that?

As you found out after grabbing your laptop and a fresh pot of coffee that night, lenders in this field base any loan upon commercial assets instead of using the borrower’s financial backing, credit, or steady employment –the things that conventional lenders put at the top of their list.

By depending on property instead of just the borrower, a private lender is able to loan money that a bank or mortgage company could not. Funding with them is set up through a first mortgage and is termed a ‘no doc’ or non-bankable loan.

Further reading on various websites let you know that there were numerous reasons a borrower might go with this type of funding, such as:

*You need a loan quickly because the property may be sold to another buyer any day and traditional loan applications, if you can even get one approved, take three to six months.

*Your situation is unique and you need a creative individual solution in order to meet your needs and the conventional lenders just can’t do that with their strict rules and regulations.

*Needed collateral is not limited to one piece of property, but is spread over several different areas.

*You are a foreign national without any ‘credit depth’ (availability of credit information ) in this country.

*Your credit falls under the term ‘disabled’.

Those were just some of the reasons outlined that called for a commercial Arizona hard money lender.

Other advantage of this type of loan were the fact they required no credit score, only minimal documentation and decisions were made by the lending company—no ‘loan committee’ or board that never talked to you personally, but still held your business dream in their hand. The types of loans and real estate properties covered were wide ranging as well.

Best of all, you found, decisions could be made in 10 business days and there were no upfront fees.

This sounded really good to you, but there had to be some hitches some place –life had already taught you that while the balance of a situation might lean heavily toward positive, somewhere in the entire picture lays a few negatives. You kept reading.

Commercial Arizona hard money lenders sometimes, but not every time, required a higher down payment than you would have had to pay a traditional lender. Interest rates could be as much as 10 percent higher than a mortgage companies. The risk involved is directly tied into these requirements. These lenders also give short payback periods such as one to three years, unlike banks whose repayment terms can start at five years and stretch to 30.

In the morning, I am going to call some of these companies, you thought as you closed out your computer. You particularly liked the first one you looked at–tons of information on the webpage and a boxed disclaimer that said for a would-be-borrower to be careful and become as knowledgeable as possible before even talking to a commercial Arizona hard money lender. Perhaps this time next year you would be the owner of a hotel with considerable market value.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

111 Congress Ave | Austin | Texas | 78701

If you are one those investors whose leanings still are in the direction of conventional funding, a 90% Arizona hard money loan may be the best answer for you.

These type loans are more difficult to obtain, but your project will be partially funded as opposed to having your entire effort wrapped up with one lender.

The documents required of a potential borrower are more in line with those requested by banks and mortgage companies. Basically the following items must be presented to your lender of choice: bank statements for past two months showing both your checking and savings accounts, your sales agreement, tax returns for the past two years, the proposed construction budget and a list of your current residential and commercial properties.

Depending on the lender, other documents may be asked for, but these are the ones generally requested by companies who provide this type financing.

Defined as Loan-to-Value, 90% Arizona hard money loans are the fix-and-flip area’s top-tiered lending. Requirements are stricter, despite their being in the non-traditional ranks of funding. This funding area does not cover owner-occupied loans, but does branch out over a large range of real investments other than this one.

A would-be borrower must have a FICO credit score of at least 600 and be very certain that he or she can sell the property within a year’s time. The down payment is set by looking at the borrower’s credit scores and past experience in the real estate field, ending up mostly at around 20 to 30 percent up front.

The average interest rate falls between 10 and 15 percent for these loans, depending on the lender and the perceived risk involved

You must have a property appraisal in hand. It does not need to be expensive or extremely detailed, just filled with correct information about your project. Most lenders in this field are more interested in the property value following the needed renovations and improvements than the basic value beforehand.

Application can be made for amounts beginning at $25,000, although most companies start with $75,000 and the figure can reach $2M. Figures like those are real assets to an investor’s portfolio later while trying to get other projects funded.

Each lender is different, but most set the repayment period for a 90% Arizona hard money loan at around 12 months, although some are longer. The clients’ needs also can be factored in here as well.

An added advantage is that if the loan is paid off early there is no prepayment fee attached.

A little hard work never hurt anyone, especially if it pays off in the end. If you have areas where traditional funding is unable to help you out and you need funding, a 90% Arizona hard money loan is a good area to check into. Do your homework; talk with people who are knowledgeable in this area. Finally make appointments with several companies that you feel might be a good fit for you and discover if this is the way you should go.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

111 Congress Ave | Austin | Texas | 78701

Are you looking to build a home for yourself or a string of one-family homes that you could sell quickly once construction is completed? Speculative home financing could be the answer for you. Read on and discover how to evaluate this area.

This type of funding is defined simply as financing attached to unsold property. It is not a large part of the construction financing world, but is still defined as part of the list of available options. Normally these types of loans are obtained through non-conventional businesses set up for this and other outside-the-box funding.

Most banks and mortgage brokers generally don’t have a great deal of interest in small areas such as this. Very often they have little knowledge of what avenues an investor should take as result. Considering the unforeseen consequences which can arise in a large number of situations, this is not what you want to deal with when you have questions which no one seems able to answer, deadlines looming on the horizon and the chance of losing your money before the prospective project is even completed due to a unforeseen glitch.

While it is certainly a wise move to get a potential lender who knows the business, it is equally valuable to both you and the lender to have everything available and ready that outlines what you have in mind. Having details on your credit background (credit report, tax returns, bankruptcies and liens (if any) and how/when they were cleared, a detailed budget, information on the builder and details concerning the project – costs, bidders, contractor’s license, locations of property, etc—is a big advantage when you go for an appointment with a lender. It will not guarantee your loan, but it will show that you are serious about the project and help define a completion date for it, something that will be important in determining the repayment time for funding received.

You may have a partner to go in with you on the project. This sometimes is a plus since the would-be-lender will feel more reassured of having the loan repaid if there is more one individual with a stake in the deal.

Speculative home financing in Arizona sounds like a good thing, you think after having done some in-depth research into the field, but what are some disadvantages a borrower needs to think about?

These loans require collateral—if you put up property you own, there is always a good chance of losing it since you are dealing with knowing what the public wants before they even see it. A house, apartment building, office complex has to be attractive enough to make a buyer want to put down a tidy sum of money in order to obtain it.

The bigger the funding, the bigger the gamble taken. This calls for detailed research, consults with people you know that done this and certainly not throwing everything you own on a venture like this the first or even the second time you take it on. When you have done all these things, only then will you know that speculative home financing is the way for you or not.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

111 Congress Ave | Austin | Texas | 78701

You’ve made your choice to go with a Arizona hard money lender in order to fund what you see as a really good opportunity not only to help the housing situation in your community,

but as a comeback for yourself in your chosen field. Your appointments are set and you’ve gathered together the documents you think you’ll need. Will things go well or will they be similar to some traditional lenders you have talked to earlier? Simply put, the Arizona hard money people may be non-traditional, but it does not mean they are easy marks or sloppy performers.

Potential investors need to have the following things in hand before approaching a possible lender. Lenders have the same basic requirements in most instances, but asking each separate one for a list of the requirements when calling for the appointment is a wise move.

The following is a basic list of qualifying documents:

1) Title report on the property: certainly the lender can obtain this for themselves, but it shows that you are prepared and have thought things through if you have it with you.

2) Purchase contract: this document needs to be available in order for the buy on the property you have in mind to be made as quickly as possible.

3) List of bidders for all work to be performed: your would-be-lender will want to know what work there is to be done on the property and all possible costs involved.

4) Insurance policy: generally speaking, there’s always an accident waiting to happen, particularly with projects where there are more than a couple of people involved. Lenders want to feel that this situation has been covered from all angles if possible in case something does go wrong.

As already noted, a Arizona hard money lender wants to know exactly what you have in mind regarding your project. Make certain you are properly prepared mentally for the interview.

Present your business plan in clear detailed terms, but try not to overdo it—provide all needed information, but nothing more.

Be prepared to answer a number of questions—your lender is in this to make money the same as you are. He or she will want to know your outlook on the project, what you have in mind for it, possible problems, your background and experience, etc. Have a list of your own questions in hand also.

If there is something that is negative or messy in a past business venture you were involved in, be honest and forthcoming about it—these lenders know that things can go wrong in the best of circumstances. This is where the higher interest rates and fees you’ve heard about come in—the lender is taking a risk by virtue of their clientele and you will pay more for the privilege of loan approval.

Make certain that you and your Arizona hard money lender are a good fit for each other. Even if you are certain the first one you talk with is the one to go with, it is strongly advised to check out at least two, possibly three more, before you decide on anyone. A good relationship could be a real advantage in the future with that next project you might need funded.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

111 Congress Ave | Austin | Texas | 78701

Are Arizona hard money loans the way to go when it comes to funding your dream business deal? Despite the little ads that appear saying “Stay away from this—you need to try . . .”, you owe it to yourself to check this funding out.

Times change and when you looked further into the matter—once these lenders had the worst reputation around, short of the loan shark in the old neighborhood. At least he was your uncle and had family connections. Now non-traditional lenders are up there with the regular ones, banker and mortgage firms who’ve been in the business for decades.

You remembered what had happened when you tried the conventional lenders and were pretty well turned down by every one of them. Thinking outside the box and living that way, too, while legal, didn’t seem to be a point in your favor. Having done your homework you had an answer when your cousin and best friend asked, “Well, what did you find out about the Arizona hard money loans?”

“Good things, a few things that bear thinking over,” you replied. “Those types of loans aren’t all bound up with restrictions and qualifiers in the same sense the traditional ones are. They focus mostly on applicants who have some credit issues, such as bankruptcy or a foreclosure, maybe a debt-to-income ratio that is out of balance. I’ve got that last one, but I just know buying that office building and fixing it up will help things because it will sell once it’s had some work done.”

“The people who handle these type loans are much more interested in your ability to pay them back the money they lend you than a lot of regulations. I will need collateral—I hate to put up the house, but it’s all I’ve got. My credit score is middling and I don’t have a steady job that pays every other week. Collateral is how these lenders get their money back in case the lender cannot pay off the loan.”

“The building is in a really good place and someone’s going to get it before I do if I don’t get that money,” you continued. “Arizona hard money loans can be applied for, processed and closed in as little as two to three weeks tops. Better still, I don’t have to produce every bit of business documentation in existence since my first job selling popcorn at the movie theater when I was 16. Waiting lost me a really good deal when I was dealing with that bank over in Milford. On the same day I was told that I didn’t qualify, I went by my-then-planned-for restaurant and there was a Sold sign on the door.”

“Are you going to go down there tomorrow?” Patrice asked. “I mean with all that going for you, what’s stopping you?”

“Well, nothing short of putting my house up really. The interest rates on these loans are higher than the traditional ones, but this funding has a flexible calendar and can gear the payments to your schedule. If you need a longer repayment term, that can be arranged, too.”

If you are interested in a Arizona hard money loan, do like I did, research carefully before making an appointment to see someone. Talk to an attorney. Look long and hard at your entire financial situation, past and present before moving ahead with any decision. It could be, like it was for me, one of the better moves you’ve ever made.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

111 Congress Ave | Austin | Texas | 78701

I am not eligible for most loans, Marilyn Fremont thought wearily at the end of another day of failing to float a loan for a project she was certain would be a success. Could a bad credit commercial mortgage lender be the answer to her problems?

I’ll call in the morning, she thought, grateful for the fact that it was past closing time for most businesses. ‘No’ might only have two letters in it, but carrying around a load of the little word was simply exhausting.

“Let me explain what we do,” Margaret Corbin of Corbin Funding said to Marilyn at the beginning of her appointment the next afternoon. “Some people don’t know all the details and find out they’re in the wrong place. First, we don’t officially use that negative–sounding bad credit designation—it makes everyone feel less than worthwhile. We deal in No Credit Check Loans.”

“Even the wealthiest of business people can end up in front of my desk—one billionaire whose name everyone knows has declared bankruptcy about five times, but we helped get him afloat again after the last time. If you have tax liens, a lot of debts that run your cash flow down, a slow payment history, things like that, we can try to help you. But we need to know all the details—the past needs to be in the past and cleared up so it won’t put a hitch in what we’re trying to do now.”

“We offer our clients a range of services to aid them in their business deals that conventional lenders cannot due to their stricter rules. Some loans have no FICO score requirement or a minimum credit score. Terms can be up to 30 years. Loan-to-value funding can be up to 75 percent. A debt consolidation loan, hard to manage when you really need it, is easier for us.’ A smile. “We bad credit commercial mortgage lenders do have a few things going for us.”

Ms. Corbin added in addition to these things, less documentation was required for the application and the application process itself was much less complicated. “And you don’t have to wait and wait and wait,” she added, much to Marilyn’s relief. “We get our approvals in a short period of time and closing can be done quickly, too.”

Marilyn took a deep breath and steeled herself for the answer to her next question. “It sounds good, so tell me the part most of your applicants don’t like.”

Again the smile. “Basically my company takes a big risk with the people it serves—bad luck seems to follow some of them and bad credit follows everyone. In order to see that I don’t end up on your side of the desk, I need some insurance. Our interest rates are much higher than conventional lenders, like banks and mortgage firms. Some clients have to attach their business credit to their personal credit—guaranteeing the loan is what it’s called. You’re more inclined to work harder to make payments if washing out is going to hit your personal credit, too.”

Armed with information on where to check on the Internet for detailed answers and Margaret Corbin’s advice to “Check out my competition—we all get along pretty well.”, Marilyn headed for home, planning to talk to friends who were in the business. Her intuition was telling her that a bad credit commercial lender–ah, no credit check lender–might just be exactly what she needed. That beachfront hotel property was looking better than ever.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

111 Congress Ave | Austin | Texas | 78701

Could a commercial private loan be what you need for your latest real estate venture? Read further to find out some of the things to consider and discover if this funding is the real deal for you.

In plain terms, these type loans are simply business financing that a corporation or private business other than a bank provides. They are built to cover areas not funded by conventional lenders, which includes most mortgage companies also, whose loan structuring and underwriting rules are tightly composed with very little of what is commonly called ‘wiggle room.’

Without the concrete regulations of conventional lending, Arizona commercial private loans can take care of practically any business financing need. And also without a high risk level for either lender or the borrower.

This advantage tends to be a real standout since around 60 percent of bank loan applications are rejected due to the hard and fast rules governing approval. Even a mid-level credit score can put a glitch in the procedure. A bankruptcy (even an old one) or foreclosure can generate a red negative for applicants, who are now back where they started from and possibly with six months of time lost.

Private loans tend to fall on the upper end of the spectrum with the approval rating reaching as high as an average of 85 percent. Other positive aspects of this type funding include less paperwork to be submitted, fewer covenants and closings that don’t stretch out over six months.

Small business owners tend to be a major portion of the applicants for this type funding, since their capital tends to be small due to the investments, they have already made to just get the business off the ground and running.

A side advantage that most borrowers don’t think of until it’s already done is that private loans can be used for almost any purpose. A worst case scenario of traditional lending can look like this: one applicant presented every document demanded, met all the qualifications, got approved and waited three months for closing—only to be handed a list of things he couldn’t spend his just-signed for money on and one of the three was exactly what he planned to do with the project in mind.

What are the dangers related to Arizona commercial private loans?

The ‘but’ in taking out one of these loans is that you will pay for it—literally. Interest rates are quite a bit higher than mortgage companies or banks due to the higher risk taken out by the lender. The further up the scale the chances are of having no or only some return on the money, the larger the interest rate becomes. Conventional lenders stay within their boundaries, taking few chances and offering lower interest percentage rates. You will need proof that your business can generate revenue also, so make sure it is available for the lender to review.

Do your homework—dig into the all of the aspects involved in commercial private loans. Both you and the lender are looking for this to be a positive experience. After all, you might need a helping hand in the future with another business idea.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

111 Congress Ave | Austin | Texas | 78701

Trust deed investments: is this type of funding the right choice for your real estate business deals? Investigate and find out the details.

There are quite a few advantages to using this particular type of funding. If designed carefully and correctly, this loan can bring up a positive current yield with the risk shown at a low average.

The loss involved in trust deed investments can be bordered by a safety margin—the difference here being the amount between the property’s actual value and the total amount of the loan. In the event of the borrower failing to repay the money for any reason, the lender can then take possession of the house, land, etc. and recoup their funds along with any attached interest. An investment can have a possible LtV of 65%, making the sometimes inevitable foreclosure a much less negative experience for the borrower.

Single digit returns up to 10 percent can be earned on a monthly basis.

However, you think to yourself, there must be disadvantages to this type funding—what are they?

These investments will produce income for you, yes, but there is no value appreciation such as is found in common real estate property investments.

Other things that can cause problems in this area include property whose actual value is less than the appraisal shows, litigation involving the property title, errors occurring when the property is accessed and the market value of real estate quickly taking a sharp plunge.

A bank will rarely do this type of investment for you since they want to make money off their loans – a six or 12 month payoff period doesn’t interest them. Their loans tend to stretch out up

to and including 30 years.

What should you do if you have decided that trust deed investing is the type of funding you want?

A Arizona hard money lender, one that works out of the traditional area with clients who are self-employed, have credit with a few holes in it, are not ‘established’ in the general sense. The interest rates and origination fees charged by these lenders are higher than the conventional ones.

A bridge lender—one who makes loans on properties in too much disrepair for regular funding– might be the answer for that since their rates are designed to be lower than Arizona hard money loans are.

This field requires research into all the details, fine print and just plain ‘What if . . .’ before taking this type loan. You need to be confident that all areas are covered and in order. Study the property assessment carefully and make certain it is correct and that any legal attachments have been completely cleared. Know the overall picture from every angle since these investments cannot be changed back into liquid cash as is possible in a blue chip investment if you change your mind later on.

Find an attorney or certified public accountant and have them give you their opinion on trust deed investing. Only after you have the facts, positive and negative, and have studied them carefully, then make a decision on the matter. This type investing may be for you but be certain you are a match for it.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

111 Congress Ave | Austin | Texas | 78701

What are private money lenders, you think to yourself after a friend suggested that for solving your current funding problem. How are they different from a bank?

After some research and noting that private money lending falls under the term ‘Arizona hard money lending’, you still are not quite certain it is the answer for you. After all, it was just two years ago that your loan to pay for an apartment building renovation was called in and you didn’t have the funds to pay it off. The doctor had gotten everything, including the last payment. Your credit record will reflect that for certain even if you had since gotten the money and paid off the loan in full. Working for yourself had its advantages, but both of the banks you talked to recently, looked askance when you told them that your office was in the spare bedroom of your home and consults with clients were held on your porch from two comfortable chairs with a coffee pot nearby. Never mind that this setup cut down on expenses so you would have more money to pay the bills and not end up with rotten credit.

Private money lenders in Arizona funding opportunities covered a wide swath of areas, you discovered: bridge loans, commercial loans, and renovation loans just to name a few. Deciding that more investigation would be to your advantage, you ran the term through the computer, checked out the nearest three that sounded like they would be a fit for you and made appointments with them for the next day.

Are these lenders the right choice to fund my project, you thought as you looked over brochures and documents following your appointments. You had never done any business before that went outside of conventional lenders, like banks and mortgage companies. Even your car had been financed through your bank.

Private money lenders in Arizona set up their funding deals via collateral-based loans or secured loans as it was more commonly termed. A large percentage of the loans covered ‘fix and flip ‘projects, where the buyer bought a property in need of work, renovated it, and sold it as quickly as possible. The property normally had a lien attached by the lender in order to protect their interests in the event of the borrower’s being unable, for whatever reason, to pay back the loan. This arrangement, if done correctly, was a boon to both parties’ taxes and the lender’s fee is generally negotiable.

Another advantage stressed was the reason for the term private money lenders—this sprang from the fact that mostly the lenders are personal friends, business colleagues or relatives, thus the term ‘relationship based loan’ was frequently used also. This also covered companies (Arizona hard money or accredited) that had been set for this express purpose.

All of the lenders you talked to emphasized one thing: the borrower needed to check into the fine points of these loans since they are custom-designed for clients. Conditions range from the type of funding and interest charged to the length of time to repay. Normally a down payment is presented, interest payments made through the repayment term (normally a year) and the balance comes due at the end of that period. Occasionally a lender will charge a fee for early payoff.

Try a different road and see where it leads you. Check into private investing and learn if that better life you have been pursuing is closer to becoming a reality than you have thought.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177