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.

How To Find Mobile Home Loans

When you are considering a less than traditional option for your next home, you might discover that you need to explore various loan options. There is a lot to know about how to find the best Arizona mobile home loans.

Before you decide to purchase a more affordable mobile home rather than a traditional home constructed in place and on a foundation, you really need to learn a few terms and how they apply to the structure that you are thinking about buying. Mobile homes are defined as units that were built before June 15, 1976, which means that they did not have to meet safety regulations that were enacted in 1974. Manufactured homes are units that were built after the June 15, 1976 cutoff date, and they are required to meet the safety act from 1974. The final category is a modular home, which is a factory-built home that is assembled on site. These homes must meet all local building standards.

What all of this means is that a true mobile home can be very challenging to finance. Lenders shy away from these structures that might not be constructed in a safe manner because they are not as reliable a form of collateral. Many times mobile home buyers will finance with a chattel loan for the cost of the mobile home only when no land is included in the deal. These Arizona mobile home loans are actually a type of personal property loan rather than a real estate loan. The term is normally shorter than a traditional mortgage which makes the payment amount larger and more challenging to pay in some cases.

There are also specialized lenders who only finance Arizona mobile home loans. These lenders are more familiar with the mobile home market, the value of the units, and the pricing. Though these are loans for a place that you will be living, most do not offer the tax and other financial benefits of a traditional mortgage. These specialized lenders are also much more likely to fund the purchase of a used mobile home than almost any other lender.

Hard Money For Mobile Home Loans

The most appealing aspect of hard money is that it is offered by a private lender. This removes a great deal of the red tape that is usually associated with securing a loan for a home. And while not all hard money lenders are going to be interested in financing a mobile home purchase, you are likely to find some who are willing to work with you. But the biggest factor will be the numbers on the loan.

Know What The Lender Wants

Hard money lenders are in business to make money. And to do that consistently, they are going to require that the property, or in this case mobile home, has a value above the loan amount. You should know the value of the unit you are interested in purchasing and the percentage that the lender is willing to offer. Also, be sure that you can document that you have the additional funds needed to cover the remaining amount of the purchase. Not all loans for mobile homes will get financed from a hard money lender, but with the right deal, it is a very good creative option for some borrowers.

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 Trust Hard Money Loans?

Most consumers think of Arizona Hard Money Loans as something just above the level of a loan shark. But the trust is that legitimate lenders are out there and are a very good option for some borrowers.

Many borrowers are afraid of Arizona Hard Money Loans because they are provided by private lenders, and that scares off many people. They see this form of lending as something that operates on the fringe of legality and holds more potential for danger than it does for good. But that is not the case at all. Hard money lending, or asset-based lending as it is also called, is a legitimate and honest business. But as with any industry, there are a few bad apples to watch out for. Borrowers just need to educate themselves on the system and the lenders through reasonable due diligence.

Private lending is just like any other loan or business deal. You need to research and carefully select the people that you choose to do business with. There are many great lenders out there, but also a few who are only posing as lenders. Research each potential lender, check references, and speak to past clients to learn more about the strong points of each lender and the areas that might be lacking in their customer service or professionalism. You will also want to get the terms that each lender offers in writing so that you can compare and contrast your offers. Lenders are pretty much free to set their own terms, so this factor can vary a great deal from one lender to the next.

This brings us to an important piece of information. Arizona Hard Money Loans are not federally regulated, BUT they are regulated by each states Department of Real Estate. So in most cases, every hard money lender must have someone on staff who holds a Real Estate Brokers License. This is one very easy way to determine if a lender is legitimate or if you are about to stumble into a scam.

Red Flags To Beware Of

Most legitimate hard money lenders will offer fairly competitive rates and fees. But if you come across a lender who is charging a very high fee upfront for an application or who is charging no fees at all, proceed with caution. The high fees are just a scam to get a few grand from a desperate borrower. The no-fee plan is simply a way to gather personal information for identity theft purposes. Though the majority of all lenders are honest professionals, any deal that sounds too good to be true most likely is a scam.

Face To Face Is Best

If you have never done business with a lender, it is always best to meet face to face to get to know each other. This will provide you with the chance to ask questions and get a feel for the lender. You can also request a list of past clients that you can speak to as references. Do your research, set up a few interviews, and follow up with calls to past borrowers. These steps will help to ensure that you are selecting the best lender to work with and that you begin your experience in Arizona Hard Money Loans with a professional who will help you to learn about the loan process.

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

5 Legitimate Exit Strategies For Arizona Hard Money Loans

One of the critical pieces of securing Arizona Hard Money Loans is to have a successful exit strategy in place. Short-term loans require a large final payment and each borrower needs to be prepared when that day comes.

One of the top three reasons for all Arizona Hard Money Loans being denied is the fact that the borrower does not have a realistic exit plan in place. In most cases, the borrower has the down payment money. And he or she can afford to carry the loan and loan payments but has not determined how he or she will be able to pay the large balloon payment that will be due at the end of the short-term loan. These five exit strategies will provide most lenders with several options for making that final large payment when it is time to pay off Arizona Hard Money Loans.

The simplest and maybe best option for making a final large payment is to be ready to sell the property. If the deal was a fix and flip or even a longer renovation project, the term of your hard money loan should have allowed enough time to complete the project and get the property sold. This allows the borrower to pay off the loan and secure the profit that was motivating the project. That money can then be used for the next project, rolled into savings, or used as the borrower sees fit.

The next option is to refinance the hard money loan to a new hard money loan, a subprime loan, or even a traditional loan. The traditional loan would be best it the property is now being used as a rental income, or if the borrower is going to make the property his or her residence. A subprime loan is going to cost more than a traditional mortgage, but it can work if the borrower or the project does not qualify for the more affordable traditional loan. This is also more long term than the final choice, which is to secure a new hard money loan for the short term.

Selling Other Assets

In the case of a real estate investor, many times one projects profits can be used to pay off another projects loan. It is not uncommon to have multiple projects at different stages of completion. Your exit strategy could be to sell another property that is scheduled for completion before your short term loan’s final payment is due. Other sources of funding could be cashing out a retirement or investment account, or the sale of your home or other assets to pay off the hard money loan.

Having A Plan Is What Really Matters

There are many unexpected events or surprises in the real estate business, and you can never be certain what will happen in the course of any project. But it is very important to have at least one option in place to pay off any Arizona Hard Money Loans that you have financed. And the very savvy real estate investors will have at least one backup plan in place in the event of a really challenging project. This shows lenders that you are realistic, responsible, and know that the real estate investment business can be challenging, for even the most seasoned professional.

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

Bad Credit Commercial Mortgage Lenders in Arizona Do Exist

Don’t let your bad credit stop you from doing what you want to do in life. Bad credit commercial mortgage lenders in Arizona do exist and they can help.

Many of us hated math in school, but let’s face it — our lives are often dictated by numbers. Your ACT and SAT scores decide what kind of college education you can get. The amount of money you bring down a year can dictate your status in society. Your age dictates just about everything else. And, if you want to buy a home, rent an apartment or get financing for a car, your credit score will determine whether you get the loan and what kind of interest rate you’ll be charged.

The same goes for starting a business. Banks reject over half of the funding requests they receive, and much of that is because of low credit scores. So, you just have to resign yourself to working a dead end job until your credit improves, right? Not so fast.

Getting a Commercial Mortgage Loan with Bad Credit

The banking industry might have said “no” but that doesn’t mean you’re out of luck. Plenty of investors out there want to use private money to fund people and enterprises that they think will make money. The banks might look for people with a credit score of 700 or better, but bad credit commercial mortgage lenders in Arizona care about other things.

With a private commercial loan, you put up collateral to secure the loan, so they care more about things like your plan, your passion and your idea. So, bringing a hard money commercial mortgage lender a powerful plan, a solid budget, some experience in the business and a workable piece of collateral, you could walk out with the funding you need to get started. Here’s an important thing to note: the collateral could be an existing property like a home or business or it could be the property you are buying.

Bad Credit? Come to Level 4 Funding

If you’re looking for bad credit commercial mortgage lenders in Arizona in the Copper State, you’ve come to the perfect place. We have decades of experience in the industry and have funded many successful projects. Our interest rates are some of the lowest in the business and we have flexible terms that work for everyone involved. The process is quick and simple, too; give us a call to find out how fast you can get 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

Do 100 LTV Hard Money Lenders Exist?

100 LTV Arizona Hard Money Lenders are a bit like bigfoot: the sightings are rare and no one’s sure if they actually exist. Luckily there are ways to get 100% funded.

For real estate investors, there are two eras: B.C. and A.C. — before the crash and after the crash. Before the crash, fix and flippers could find Arizona Hard Money Loans that covered 100% of the price (or the property went up in value so quickly that it was de facto 100%) from 100 LTV Arizona Hard Money Lenders. Things were so good it was nearly impossible to lose money.

After the crash? Not so much. Even though flipping is still lucrative, lending 100 LTV in this new climate represents an incredible risk. These days, 60% LTV is more realistic, with some rare cases going as far as 90%.

What can you do if you don’t have the rest to close the deal? Luckily, there are still options.

Knowledgeable Brokers Can Help

A good private money lender might be able to help you figure out ways to make up the difference. For instance, you might find another investor who’s willing to cover the rest in exchange for some equity.

Cross-collateralization is also an option. You might be able to fund up to 90% of the purchase by using the property you’re buying as collateral and get the rest on a personal property or another investment property. If you’re confident in your abilities, this is a great way to fund when you don’t have a lot of liquidity.

Also, keep in mind that coming to the table with alternative funding is incredibly attractive to sellers. They’re looking to unload their properties and, with cash in hand, you have the ability to help them do that quickly.

There are other avenues to explore as well and the beauty of private money is that it’s super flexible. You know what they say — where there’s a will, there’s a way.

100 LTV for Rehab Costs Does Exist

Level 4 Funding is a 100 LTV Arizona Hard Money Lender in very rare cases. We do also offer up to 90 loan-to-value on the purchase price and up to 100 LTV on the rehab costs, which is a lot farther than most companies are willing to go. Here’s the thing: your success is our success so if we believe in your dream, we can find a way to fund it! Give us a call today to find out how.

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 Can Fill Out a Loan Application, You Can Get Out of the Rat Race

We’re all sick of doing the 9 to 5 shuffle, but there doesn’t seem to be a way out. Here’s the good news — a commercial Arizona Hard Money Lender can help you build your own wealth.

Wake up. Drink Coffee. Get stuck in traffic. Clock in. Deal with a miserable boss. Clock out. Get stuck in traffic again. Go to sleep. Repeat. It’s the routine we’ve all bought into, mostly because we think it’s the only way. We work for a company to help their bottom line, doing a job we despise for bosses we despise for (let’s be honest) a life we don’t really like.

There is a way to jump off this wheel and stop toiling for other people’s profits. Owning your own business is hard work, but it’s also rewarding. There’s no more groveling at the feet of your bosses for a menial raise, no clocking in and clocking out, and no clawing your way up the corporate ladder.

But you can’t do that because you have bad credit and a blemish on your financial history, right? Not so fast. There are ways to get loans to start a business, even with poor credit and the bank account of a mortal man.

Qualifying for a Commercial Hard Money Loan

Maybe the banks turned you down, but that doesn’t mean you won’t be able to get a Arizona commercial hard money loan. Banks are massive operations that have to adhere to internal regulations and they use very strict metrics to determine the risk of making a loan.

Hard money lenders use private money so they can analyze risk on a case by case basis and stay flexible to meet the needs of the investor and the borrower. They also use collateral to secure loans, so your credit score is of less concern than your experience and your plan. If you have a dream, hard money lenders have the flexibility to help you realize it.

Commercial Arizona Hard Money Loans in Arizona

Ready to ditch the routine and become your own boss? Level 4 Funding has commerical Arizona Hard Money Loans that might help you do just that. You have nothing to lose by talking to us. There’s no obligation, no begging and no jumping through hoops. In fact, we want you to succeed as much as you want to succeed. How do you get started? Give us a call, shoot us an email or fill out out quick loan application and you’re on your way!

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 Do Arizona Hard Money Lenders Determine Points and Rates?

Points and rates in the hard money world can seem arbitrary and mysterious. Let’s demystify them and look at how Arizona Hard Money Lenders determine them.

Interest rates, while mysterious in their own way, are at least somewhat understandable for the layperson, but points can be a little more confusing, so let’s break down what they are before we get started. Simply put, points are a percentage of the amount being borrowed that the lender charges to close on the loan. For instance, 2 points on a $100,000 hard money loan would be $2,000. Just like the interest rates, the points you’ll be charged are based on one overarching factor — risk.

Let’s take a look at risk and some of the factors that lenders use to determine risk. Namely, exit strategy, experience, and equity.

How Hard Money Lenders Determine Risk

The experience of the borrower. If you are borrowing to do a fix and flip, a spec home or any new construction, the lender will take a look at how much experience you have. If this is your first time trying your hand at it, the lender might see that as a bigger risk than someone who’s successfully flipped 10 homes in the same area.
The equity of the property. This is especially important if the property is being put up as collateral to secure the loan. If you come to the Arizona Hard Money Lender with solid, verifiable figures on the property’s worth and, more importantly, its future worth, you might be able to negotiate lower points and rates.
Your exit strategy. This might be the most important factor. Arizona Hard Money Loans are like mortgages; they’re meant to be quick and have a specific end date. Luckily, you’re both pushing in the same direction on this one. Both you and the lender want to be able to sell the spec home or flip for a profit within a set period of time. Come to the table with a realistic plan for finishing the project and selling within a reasonable time frame and your rates might reflect that.

Amazing Rates from Arizona Hard Money Lenders

Equipped with this knowledge, you can come to your Arizona Hard Money Lender well-prepared. Here at Level 4 Funding, we have loans with fixed rates of 5.99% and some loans with absolutely no points, plus flexible terms from 3 to 60 months. Ready to see the great rates you can get on a hard money loan? Contact us today to find out!

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

Get in on the Builder’s Market with Spec Home Financing

Demand is outpacing supply here in Arizona now, so it’s a good time to be a builder. Here’s how to be a part of the action with Arizona spec home financing.

While building a spec home might seem like a risky proposition (and it can be depending on a lot of factors), there are actually a number of advantages to it. This is especially true in a market like the one we have here in Arizona where there’s more demand for new housing than there is supply.

● There’s much less competition. Everyone and their mother are getting into flipping, wholesaling and rehabbing, but spec home building is a much more specialized endeavor, which means less people out there doing it.

● You get to start with a clean slate. When you buy a property, you have it inspected, but there are all sorts of things that can go wrong. These little surprises have sunk many a flipper. With a spec home, you get to control the materials and oversee the construction, so those mini shockers are fewer and farther between.

Things to Know Before Getting Spec Home Financing

Before you come to a private money lender to build a spec home, there are a few things you should have in your back pocket. These are:

● Know your market backward and forward. Know the absorption rate for current homes. Know the employment factors. Know average sale prices. Know trends in the market. Know the average days on the market. Do your research and understand all the factors involved.

● Come with a budget. As we all know, projects can get delayed and budgets can blow up, but it’s important to crunch the numbers ahead of time and be as realistic as possible.

● Find the best deal on the lot. Much of your profit will come from the purchase of the lot, so finding a fantastic deal will increase your margin for success. And isn’t that what we’re all trying to do?

Spec Home Financing in Arizona

Finding Arizona spec home financing through the bank can be a challenge, especially if you don’t have a perfect financial situation. Private money lenders, like Level 4 Funding, can be much more flexible with approvals, terms and rates. So if you’re ready to build your spec home in Arizona and need Arizona spec home financing, give us a call today to talk about your options.

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

Here’s How to Get in on the Booming Cannabis Industry

The cannabis industry is booming. Here’s how to use cannabis loans get in on the action and build wealth in it.

It might be the understatement of the century, but we’ll say it anyway — the CBD and legal marijuana industry is blowing up. In fact, numbers suggest that legal marijuana had an economic impact of $20 to $23 billion in 2017. That number is expected to grow to $77 billion by 2022. That tops the total sales of organic produce, Oreos, video games and doughnuts.

Perhaps even more exciting are the numbers for CBD, a product that doesn’t face the same legal gray areas that marijuana does (though 77% of Americans now support legalization). CBD products brought in $591 million in 2018 according to the Brightfield Group. Studies predict that that number should grow to $22 billion in just four years by 2022. The represents an astronomical compound growth of 147%.

So, we can all agree. It’s a business that’s going to take off in the coming years. But how can you use that to build wealth, especially if you’re someone without a ton of capital or a less-than-stellar credit score? Here’s how.

Hard Money Cannabis Loans Might Be the Answer

Hard money cannabis loans, like most private loans, are based on collateral, not your credit score or past financial history. That means the dream of getting rich in the legal marijuana and CBD industry is within reach for anyone. There are several advantages to going this route instead of the banks:

● You have a much better chance of getting approved

● When you’re approved, you can get your funding faster; sometimes in a matter of a week

● There’s no begging, no jumping through hoops and no stress

● You won’t be slammed with tons of upfront and junk fees

Call Today for a Hard Money Cannabis Loan in Arizona

Here at Level 4 Funding, we have extensive experience in the cannabis industry, having been involved since the very beginning. Our loans are flexible and designed to work for you. Interest rates for cannabis loans start at just 7.99%. So, what are you waiting for? Speaking with us on the phone, chatting with us online or using our free quick loan application on our site doesn’t cost you a thing. Contact us today and see how we can help!

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177