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.

Try These 4 Tactics to Secure Arizona 90% Hard Money Loans

Trying to secure Arizona 90% hard money loans can be a challenge. However, you can increase your eligibility by applying some tried-and-true strategies.

1. Partner up. Often times, Arizona 90% hard money loans in Arizona are reserved for those with lots of experience and a stellar track record. If you don’t have this, bring a partner on board who does and be sure to listen to the tips and advice they provide along the way. If you can’t find someone with a strong enough background to get you 90 LTV, explore alternatives, such as someone with at least a little background and some cash to add to the down payment.

2. Score a deal. The less you pay for the property, the lower your loan-to-value rate will be. Auctions have incredibly steep competition these days, which makes it so much harder to get a good deal that way. You may have better luck networking with other investors or working a neighborhood and connecting with a potential seller before he or she puts the property on the market.

3. Leverage a portfolio. If you already have another property paid off, you can leverage it as well. For example, let’s say you’ve got a property that’s worth $100,000 and you know it will be worth $200,000 after you sink $50,000 into it. You negotiated a deal and will only pay $90,000, but that means you still need $140,000 to purchase it and make repairs, leaving you $60,000 short. You can leverage other properties you already own to help bridge the gap.

4. Show your lender what you can do. Don’t lose heart if you can’t get 90 LTV right away. Instead, try to find projects that will allow you to move forward using the cash you do have. Once you’ve developed a reputation for completing projects successfully, the offers you receive will improve. It also helps to work with the same lending team for repeat projects, as you’ll develop rapport and your team will become eager to work with you more often.

Come Up with a Win-Win Solution

Getting approved for Arizona 90% hard money loans in Arizona really comes down to reducing risk for the lender and there are lots of ways to create a win-win solution. For example, you may be able to pay a higher interest rate to get more cash up front. Or, if you’ve got really great credit, you can leverage that to show your lenders that you’re not a financial risk. Try to look at it from the lender’s perspective and consider what it would take you to loan to someone under the circumstances you’re in.

Get a helping hand from an experienced broker.

Find an experienced broker who routinely helps get Arizona 90% hard money loans in Arizona off the ground. He or she will be able to tap into multiple avenues to get you the cash you need. Failing that, they’ll provide you with insights to help improve your eligibility for financing and better terms as well.

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

Why New Borrowers Strike Out with 100 LTV Hard Money Lenders

On the hunt for 100 LTV Arizona hard money lenders and not having luck? There are a few fundamental reasons why this happens.

Oftentimes people just getting into fix-and-flips or real estate in general are all fired up and ready to go. They’ve learned a bit about the industry and either have some expertise in home repair or believe they can manage a crew effectively. All they need is just a little bit of cash to get started. And, they’ve heard that 100 LTV Arizona hard money lenders are the place to get it.

Then, reality sets in. After connecting with a bunch of people who work in lending and scouring forum boards, it starts to look like 100% funding doesn’t exist. People do talk about it, so it must, yet it’s quite elusive for newcomers to the field. What gives?

Generally speaking, it doesn’t really happen. Some companies may use it as a draw to pull people in, while others may provide 100%, but only to borrowers they know incredibly well who have already completed several successful deals with them. The reason is straightforward. If the lender gives you 100% of the value and you don’t come through with your end of the deal, he or she is going to lose bigtime.

Set Realistic Expectations When You Start in Real Estate

Chances are, you will never find true 100 LTV hard money lenders in Arizona. Something more like 80-90 LTV is attainable when you know the investor and they’ve seen what you can do. However, newcomers usually qualify for closer to 50-70 LTV. Investors want you to have some skin in the game and need to see that you’ve got what it takes before they’re willing to bet on your projects.

If you’re savvy, you can increase your eligibility in other ways.

While you may not see true 100 LTV hard money lenders in Arizona, you can put less of your own money on the line by adapting your strategy. For example, you can bring on a partner with more experience, which could get you closer to 90%. You might also be able to leverage multiple properties, which will get you 100% of the funds you need by tapping into your portfolio. Lastly, you can try to negotiate a better deal with the seller. Naturally, the less you pay for the property, the lower your loan-to-value will be. If you’ve tried all these options or none of them work, there are two other avenues to try. First, spend a bit more time learning about the process and offer to work as an apprentice or assist another person doing what you want to do. The information you take away from the experience will prove invaluable and you’ll make new connections. Secondly, have a conversation with a broker. A really great broker will provide you with the information you need to be more successful in the future. It may be hard to hear that you’re not ready to jump in just yet, but the advice you’re given will be pure gold.

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

Top 3 Things to Consider When Taking Out Commercial Private Loans in Arizona

Commercial private loans in Arizona come from individuals rather than banks. It’s important to learn the benefits and pitfalls to know if this type of lending is right for you.

1. You’ll probably be looking for a hard money lender. Although Commercial private loans in Arizona can come from virtually any non-institutional source, such as friends, family, acquaintances, and professional connections, chances are these people aren’t breaking down your door to hand you cash. Hard money lending is different in that these investors are actively seeking deals to fund, though you’ll probably have to connect with a broker to find the right one for your needs.

2. Most specialize in real estate. Although you can borrow from an individual under a variety of circumstances, most who work in the commercial sector serve the real estate industry. In these cases, the property being purchased backs the deal. However, businesses can use their buildings and property to secure funding for other ventures too.

3. You’ll need to have some of your own cash to get the deal off the ground. Lenders focus on loan-to-value, shortened to LTV. To get the LTV, you’ll take the amount you want to borrow and divide it by the value of the property. For example, if you have a commercial building you want to leverage or are purchasing a home to flip, its value is $100,000, and you want to borrow $80,000, your LTV is 80%. This is actually a good place to be, but some won’t go higher than 60 LTV and others will provide well-qualified borrowers with solid plans 90 LTV. Either way, you’ll have to have some of your own cash to get started.

Your Eligibility Does Not Rest on a Credit Score

One of the great things about leveraging Commercial private loans in Arizona is that your credit doesn’t always matter. While each potential lender has his or her own requirements, and some do care about credit, you’ll see less of this in the hard money sector. That’s because the value of the property backs your loan. With traditional lending options, the person giving you cash is betting on you and looks at your history to see if you’re the type of person who’s likely to make good on a loan. Obviously, individuals care about this too, but they use different logic. If you’ve got a good deal that’s going to make you money and you’ve put some of your own cash into it, you’re going to stick with it. In the even that you don’t, they’re still protected because the property has value.

If you can prove you’ve got a successful plan, you’re likely to get funded.

When it comes to commercial private loans, a lot of the approval process has to do with examining the plans you’ve made and ensuring the numbers add up and offer a solid profit margin. Particularly when you work on the hard money side, you’ll also need to ensure you can pay off the balance when it comes due. They’re short-term options, so most pay them off by selling the property or refinancing at the end of the term. Lastly, you’ll want to work with a broker who can help ensure you’re matched with the right individual and best possible terms. That way, you’ll keep more money in your business and will have a smoother process overall.

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

How to Know if Bad Credit Commercial Mortgage Lenders are the Real Deal

We’ve all seen the ads for Arizona bad credit commercial mortgage lenders and some of the deals look great. As the saying goes, though “all that glitters is not gold,” so it’s important to find out what a financing company is bringing to the table before you sign up,

Arizona bad credit commercial mortgage lenders usually all work on the same premise. It’s hard, if not impossible, to get a loan if you’ve got rotten credit or haven’t had a chance to establish credit yet. Sure, some will let you use your personal score instead of your business score to try to qualify, but that doesn’t necessarily help. After all, data from CNBC concludes that the median score for an approval right now is 759, which is an “excellent” FICO score. Meanwhile, the average person has an average FICO score of 704. About 75% of the loans are going to people who have a score over 700, which means most of us—even those of us who have been diligent for years—are not going to qualify. So, there’s certainly a great need for alternatives.

However, each lender approaches providing this underserved market with funding a little bit differently, and knowing the nuances of the trade can help you identify whether a lender is really going to help you or if they’re full of smoke and mirrors or plan to charge you an arm and a leg for their services.

For example, entities which say they’ll lend to everyone or have an unusually high approval rate often have a trick up their sleeve. No lender can fund every deal—they’d lose money hand over fist. Some deals are simply bad ideas. In that case, the company may be trying to give you a false sense of security to encourage you to apply or are outright lying to get you in the door, neither of which is a good sign.

Work with Someone Who Knows How to Evaluate Your Deal

The second trick Arizona bad credit commercial mortgage lenders use to get you in the door is a one-size-fits-all approach. They fund all sorts of deals and aren’t particularly knowledgeable in the areas they serve. For example, if you do fix-and-flips, you want a local who knows the industry establishing your terms. If you’re planning to start a grow operation, you want someone who can accurately evaluate your business plan to see if it’s viable and will yield returns. If the person funding your project has no experience in your specialty, they can’t accurately assess what you’re bringing to the table. Worst case scenario, they’re getting behind you on a plan that will go bust; best case, they may not offer you the best possible terms because they erroneously assume your deal is riskier than it really is.

Beware of companies with a high number of complaints.

It probably goes without saying, but it’s important to check into the reputation of Arizona bad credit commercial mortgage lenders before you jump in. You want to choose someone who has been in business for years—a company that’s too new could be green or may have changed names to escape a bad reputation. A company that’s been around for an extended period of time, on the other hand, will probably have a few bad reviews simply because they’ve worked with the general public a lot, but should have overall good sentiments. This provides extra assurance that you’ll have a good experience too.

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

Why Local Commercial Arizona hard money lenders Can Help You Be More Successful

Working with commercial Arizona hard money lenders is a great way to get a project of the ground. However, it may be more advantageous to go local rather than choosing a national entity.

Commercial Arizona hard money lenders generally fund real estate deals, but there are other applications too. The value of the property backs the loan and allows people who might not otherwise qualify for a loan to get the cash they need. Loans are typically structured as short-term deals, lasting only a matter of months or a couple of years. During the duration of the loan, the borrower usually makes interest-only payments, then pays the full balance off at the end of the term.

As you search for the best financing options for your next venture, you’ll find individuals and organizations which fund deals all over the country as well as those which focus on a smaller area, be it a couple of states, a single state, or even just one major metropolitan area. On the one hand, the reason for this is fairly straightforward. Each region or state will have its own legislation regarding how the loans are processed and the terms involved. It makes sense that someone would want to minimize their potential liabilities, paperwork, and headaches by homing in on one set of regulations to follow. However, it actually goes a bit deeper than this, and the other aspects can be a serious boon for those applying for loans too.

Generally speaking, the investors financing the deals are already tapped into the real estate market they serve with loans. For example, someone who now funds fix-and-flips was probably a flipper before becoming an investor. Someone who funds deals on multi-family properties quite likely has experience managing them and working as a landlord.

When You Know the Area, You Risk Less

Not surprisingly, someone who has been on the other side of the table knows exactly what it takes to make a project successful. Obviously, if an investor amassed enough wealth to be able to lend it out, he or she was pretty good at earning before too. However, knowledge is region and niche specific, meaning commercial Arizona hard money lenders who understand rehabs in a specific city can size up someone’s plans with relative ease. If the deal is in another city or involves a different type of property than they’ve personally worked on before, it’s much harder to assess the risk of the loan. Ergo, they’ll stick to financing what they know best to minimize their risk.

When you risk less, you offer better terms to borrowers.

This in mind, choosing to work with local commercial Arizona hard money lenders means you’re likely working with someone who knows your region or city incredibly well and can therefore tell whether you’re making a pitch that will fly or if you plans could flop. When they choose to get behind you, it’s because they believe your plans are solid. This is an important distinction because a national lender may be able to look at stats, but doesn’t know the market like a local will. Because of this intrinsic knowledge, locals may fund deals national entities won’t and may offer better terms than a national outfit will as well. In other words, by choosing to go local, you’re setting yourself up for better deals and lower rates, while increasing your odds of success and potential ROI at the same time.

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

Can You Still Get Arizona business loans with Rotten Credit?

Finding Arizona business loans when you’ve got rotten credit is a challenge. However, there are options for just about every circumstance if you know where to look.

Generally speaking, small businesses are underserved by traditional lending options. Most haven’t been in operation long enough to have established credit, plus banks look at things like cash flow and profitability. When the company, as an entity, is applying for credit, many don’t get the funds they need or don’t get the amount required. Because of this, company owners often try to get funds in their own name to use for to support the growth and development of their organizations. Unfortunately, lending is still based on the strength of the individual’s credit score and financials, so it’s challenging to find Arizona business loans this way as well.

This in mind, potential borrowers have three primary options: to give up part ownership of their company and bring on an investor, to crowdsource funds, or to locate a collateral-backed loan. Most don’t go with the first option because they don’t want to give up any portion of their company and, during the early stages of growth, a huge stake of the company is usually required. This is the type of deal seen most often on TV shows like Shark Tank.

Crowdsourced funding can also work. Historically, the individuals putting up funds were excited by the thrill of the deal and were happy if it got them a discount on the emerging service or some free products. Nowadays, platforms which offer this are savvier. Even the layman lender is going to want to know details about your credit and plans.

Collateral-Backed Financing Can Help You Be More Successful and Risk Less

With collateral-backed business loans, you’re not risking the survival of your company by giving a portion of the ownership up or inviting a stranger in to make decisions for you. And, you’re not at the mercy of uninformed individuals or sharing your plans with the world hoping to get the cash you need. Instead, you’re using something of value that your company owns to secure the financing you need. Companies which invoice their clients will often use merchant cash advances or invoice factoring to get money in quicker, but if you don’t bill customers or have recurring transactions, then you’ll likely be looking at using larger items of value, such as equipment or property, to secure the funds.

If you can leverage real estate, hard money lending might be right for you.

Many people get Arizona business loans from hard money lenders, especially when they’re borrowing to get property, such as a house to flip, rental units, or even a building that will be used for commercial purposes, such as starting up a retail shop, office, or marijuana grow business. In these cases, the property serves as collateral and details like credit are not really a concern. Some offer as much as 90% of the value of the property, so it’s possible to get started with little money too. If hard money sounds like the right solution for you, connect with a broker to go over details and find the right lender and terms for your needs.

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 is a Hard Money Lender?

You’ve seen an ad or a forum discussion and now you’re scratching your head wondering: “What is a hard money lender?” In short, it’s someone who lends based on the value of a hard asset, but there’s a bit more to it than that.

What is a hard money lender (HML)? Well, it could refer to one of two things. Some people use the term to describe organizations which fund loans with private money, such as brokerages or groups of investors, and others use the term to describe the individual people who are providing the funds. In either case, the financing is usually coming from one or more private individuals rather than a bank. Sometimes, the investors pool their money together to fund a deal and other times a single investor funds the whole loan on his or her own.

Whereas many lenders base their decisions upon the person borrowing funds, this form of lending is based upon the value of a hard asset. On a broad scope, it includes physical things like machines, inventory, gold, and real estate. It’s things that can be readily converted into cash or other resources. They’re different from soft assets which cannot be exchanged for cash easily. Stocks and bonds are a prime example here, but if you were referring to a business, it might be things which are valuable to the business, but aren’t reflected on balance sheets, such as brand recognition or intellectual capital.

This form of lending is seen more often in the real estate industry. The property, building, or land is the asset which is used to back the loan. It fills a gap that traditional lending leaves behind. For example, people who want to purchase a property to flip or rent out often can’t get approved by a bank at all.

What Are the Benefits of Working with Alternative Lending?

To understand the benefits, we have to break down, “What is a hard money lender?” a bit more. As noted earlier, they serve niches that the banks don’t. For example, if the bank won’t touch you because you plan to use the property for commercial purposes (non-owner-occupied), an HML will help. The same is true if you’re doing flips and the property is in such disrepair that it makes the bank too uneasy to loan. It’s also ideal for those who need to move quickly. It can take a month or more to close on a traditional loan, but an HML can have cash to you in days. Plus, credit doesn’t matter as much. You can still get approved by an HML with rotten credit, simply because your loan is backed by the value of the property.

Why don’t HMLs get more press?

Now that you can answer “What is a hard money lender?” you’re probably wondering why this is the first you’ve heard of the concept. The reality is, alternative lending doesn’t work for everyone. It’s not a universal solution. Those in the consumer market are usually served by banks unless they’ve got rotten credit. Plus, the individuals funding the deals don’t usually advertise their services. Instead, they work with brokers who find deals for them and oversee the process. That in mind, you’ll often hear terms related to HMLs more on real estate lending sites or within circles of investors and house flippers. If working with an HML appeals to you, you’ll want to find a broker who works with lots of private individuals who fund deals in your niche and will help you get the best terms.

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

How to get Renovation Loans from Private Hard Money Lenders

If you are seeking out a renovation loan from a private money lender, you probably know that untraditional loan lenders are quick alternatives to rejections by your local bank or credit union. Why is this though? And what do you need to be aware of before signing the terms of a loan agreement with an alternative hard money lender?

The first question to tackle is the difference between private and public money lenders. The short answer is requirements and regulations. A public lender like a bank is going to have strict policies, making hard for the average Joe to meet the requirements of loan acceptance, especially if there are imperfections in his financial history. Additionally, there will be questions about mortgages and the percent you must put down on the loan. When you meet with your local private money lender, the process will be a little different—and definitely less intimidating.

Private money lenders do ask that you prove yourself to be a reliable lender—but they don’t stop at your financial history. They also heavily consider your plans, your team, and the potential of the property. They will work with you on an individualized versus a generalized basis. The plans for your property are going to be just as important to them as your financial ability, giving you a greater chance of gaining loan approval.

What You Need to Know About Private Fix and Flip Loans

Private fix and flip loans can be very beneficial to borrowers because of the speed and flexibility they offer. However, there are a few other financial aspects to consider—and that is the literal cost of the loans. While private Arizona Hard Money Lenders can usually get the ball rolling within the week—while banks usually take at least a month—there is a quick repayment period to these loans, and high interest rates. You need to be confident in your ability to repay the loan. If the typical repayment period of one year is too fast, investors have been known to extend the period longer—it just depends on who they are. Lastly, the interest rates on Arizona Hard Money Loans are steep—about five percent higher (or more) than others on the market. There are many attractive qualities of hard money, however, you have to determine if it’s what is best for you.

How to Make a Profit on the Real Estate Market

When it comes to making any major financial decision, you need to take your time. Work with and for the people who are going to work with you to meet all of your real estate goals. Don’t stop at just one hard money lender—meet multiple, and determine how you can work with each other. If you are seeking out Arizona Hard Money Loans in Arizona, visit your local hard money lender at Level 4 Funding. We are here for you to offer a personalized loan lending experience, and guide you through the ups and downs of the real estate market, ensuring you make the most of your renovation loan and property!

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

How to Use Hard Money for your Renovation Loan Needs

You’re ready to take on the project of a fixer upper—so, how do you go about it? While many people may consider banks as their go-to for all of their loan needs, consider how private Arizona Hard Money Lenders literally lend themselves to all your renovation loan needs!

A private hard money lender offers a few things that lend themselves to those working on fixer uppers: speed and flexibility. When you find the perfect property that has the potential for beautiful, modernized renovations under the aesthetic of your eye, the urge to snap it up is a big one. Fortunately, Arizona Hard Money Lenders can get money to you fast. Whether it is the day off or before the end of the week, they can get you the money much faster than banks who may take as long as a month for the loan to be processed and received. Arizona Hard Money Lenders can give you the confidence you need when bidding on a competitive housing market. Additionally, the loan repayment period of hard money is a short one—usually one year. While the loan can be extended depending on your lender, it is the complimentary timeframe to those working on fixer uppers and looking to make an immediate sale and profit.

Differences Between Private and Public Money Lenders

Requirements and regulations are the major differences between private and public money lenders. Private money lenders don’t have as many as public lenders like banks and credit unions do. This means that private money lenders can approve more people—usually. A perfect financial history is not as important to them, as long as you can prove yourself to be a reliable money borrower. Banks will not have as much leeway or be able to work with you on such an individualized basis. The flexibility of private money lenders can be very beneficial, as can their speed. Especially when attempting to score a great property off of a competitive market, speed can make all the difference. You do not want to have to settle on a project—especially one you are renovating. You want the perfect property for your plans and abilities as a renovator. Obtaining your renovation loan in as little as a week, instead of the bank’s general timeframe of a month, can make all the difference!

Making a Profit with Fixer Uppers

The last thing you want when seeking out your renovation loan is a property that falls through with some unexpected surprises, or one that is unable to reap a profit. When seeking out a property (and loan lender), you really want to consider location. Choosing a property that is in an entertainment district, near restaurants, office spaces, and the greater community, will make it more appealable to potential home buyers. Your property should also be “improved.” This means it will already have established key features like sewers and curbs that you won’t have to finance or worry about later. Finally, your property should be in the same general geographic location of your loan lender. Finding both a great property and great lender is key, and they must go hand in hand. As you go on your search for hard money, visit us at Level 4 Funding. We can work with you through all of your renovation goals to ensure you make the most on the housing market. Give us a call today!

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177