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.

Can Fees Be Rolled into a Loan from a Arizona private money lender?

Arizona private money lenders generally charge less fees than banks, but they aren’t nonexistent. So what do you do if you can’t pay them? Let’s take a look.

Beth wants to try her hand at flipping a property. She’s crunched the numbers 10 times, researched properties in the area, looked at potential growth and has a rudimentary budget in place. She’s even watched every flipping show on television. Unfortunately, her recent divorce means her finances aren’t as healthy as they once were. She decides to go to a Arizona private money lender to better understand her options.

The house Beth has her eye on is $100,000, and that includes closing costs like title insurance, transfer tax and closing fees. Sadly, there are other fees that aren’t part of the closing costs and have to be paid upfront.

On top of these typical fees, she’s also got a bird dog fee of $800. A bird dog fee goes to a “bird dog” — a person who finds motivated sellers or properties that are undervalued. In addition, there’s an insurance bill for $650 and a Self-Directed IRA fee of $300. The lender bears no responsibility for these fees; they’re all up to the borrower to pay to get the deal to go through.

That’s the end of the fees, but Beth also wants to rehab this delipidated property, which is going to take at least $20,000.

Private Money Loan Structure

Here’s the good news: Beth can borrow the money for the fees and the rehab. By rolling those fees and rehab costs into the loan, she’ll borrow a total of $121,750. She can borrow the $101,750 at once to close the deal and then take “draws” throughout the rehab. Draws are given out a little bit at a time as the rehab goes on. Beth will need to show that repairs are needed and offer budgets and, ultimately, proof that they were completed.

When the project is completed, Beth sells the property for $150,000, making nearly $30,000 without spending much at all.

Picking the Right Private Money Lender is Important

While private money is simpler than bank loans, they still come with their own set of complications. That’s why it’s important to have a Arizona private money lender who can explain everything to you, from the requisite fees to the ins and outs of repayment. Being armed with this information will make the process much smoother.

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 Jumpstart Your Company with a Arizona Business Loan

Whether you need a launch a company or complete an important project to grow your company, a hard money Arizona Business Loan might be a good option for you. Here’s a rundown of how it works.

If you’re a business owner, you know it all too well — running a company is hard work. You put your blood, your sweat, your tears, and even your soul into your business. Its fortunes are often tied to yours; if it succeeds, you succeed and if it fails, it can send your life into a tailspin. Making your business a success means both starting it on solid footing and being able to adapt to change.

What do both of those things take? Money. If you’ve been turned down for a traditional loan for your company by the bank, it might feel like you have to put your dreams on hold. Like you’ll never get your business off the ground or you’ll lose the business you have.

Luckily, the banks aren’t the only place to get a loan. Hard money Arizona Business Loans may also be an option for you.

How a Hard Money Business Loan Can Help

Arizona Hard Money Loans are an alternative to bank loans. Banks might dissect every aspect of your company’s finances, your financial history and even your life to decide whether you’re worthy of a loan, but Arizona Hard Money Loans work differently. They’re secured with collateral (for instance, a home or other property), meaning you don’t have to jump through hoops to try to get approved.

To get one, you’ll want to understand your loan-to-value ratio. Here’s an example. Let’s say Jane Doe Clothing has an expansion project that’s projected to cost $200,000 dollars and they need to borrow at least $150,000 to fund it. $150,000 is 75% of $200,000, so they would have a loan-to-value ratio (LTV) of 75. When they approach a hard money lender, that figure will play a role in approval and the rates and terms they’ll get.

Hard money Arizona Business Loans are also faster than traditional loans, but they can also come with higher interest rates and strict repayment guidelines.

Business Loans in Arizona

Level 4 Funding is your source for business funding in the state of Arizona. We’ve got decades of experience helping business owners get the loans they need to succeed. Give us a call or send us an email today to 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

111 Congress Ave | Austin | Texas | 78701

Best Areas in Arizona to Buy an Investment Property

With an Arizona investment property loan, you can get your money working for you, but where are the best places in Arizona to buy? We’ve crunched the numbers.

By all accounts, Arizona is a great place to buy an investment property. Job growth is strong here, AirBnB is legal (making short-term rentals a reality) and the laws are amenable to landlords. In fact, evictions are quick and simple, and non-compliance laws force tenants to pay on time and provide accurate information.

So, the Copper State is primed for incoming investors to get an Arizona investment property loan, but where are the best places to buy right now? Here’s what we found.

Buy Investment Properties in These Areas

Gila County. The median property price here is $217,320 and the traditional rental income is $1,200 per month. Cash on cash return sits at a fantastic 12% and the price-to-rent ratio is a solid 15.
Pinal County. You can find median property prices here of just $135,646 and rentals go for an average of $1,385. That equals a price-to-rent ratio of just 8 and a cash on cash return of 8%.
Cochise County. Median property prices here are a shockingly low $59,900 (for a per-square-foot price of only $59, but traditional rental income stands at $1,190. That’s hard to beat.

And here are some of the best places in Arizona for short-term rentals:

Maricopa County. Home to both Phoenix and Scottsdale, Maricopa boasts a median property price of $149,900 and a price-to-rent ratio of 10. Average monthly AirBnB rental incomes here are $1,692 for a cash on cash return of 5%.
Coconino County. Median property prices are higher in Coconino ($328,243), but so is the monthly AirBnB income, which is currently at $3,053.
Pima County. Pima County boasts the highest AirBnB occupancy rate (74%) on our list and properties can rake in around $2800 a month. Median property price here is $248,135.

Getting an Investment Property Loan in Arizona

As you can see, there are plenty of places in Arizona where investment properties are a good bet. If you need an Arizona investment property loan for a potential rental property in one of these counties (or any others across Arizona), give us a call at Level 4 Funding today. We’re here to help make your dream a reality.

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 Arizona Hard Money Lender?

To hear some people tell it, Arizona Hard Money Lenders operate in a shadowy world of private loans and collateral and harsh repayment plans. The truth is not so black and white.

Bring up the idea of Arizona Hard Money Loans to 10 people and you’re bound to get 10 different reactions. Why? There are a lot of misconceptions out there, fueled by ignorance, the banking industry or, in some cases, bad experiences. So let’s take a moment to demystify it a bit.

Arizona Hard Money Lenders offer loans that act as an alternative to big banks. With a bank, loans are doled out based on your financial standing, credit score and history; essentially, your perceived ability to repay. With hard money, collateral (such as a home or piece of land) is put up to secure the loan. This fundamental difference offers a range of advantages.

The Pros of Using an Arizona Hard Money Lender

● You’re more likely to be approved, even if you don’t have a spotless record, a high credit score or a fat bank account. If you have something to put up as collateral, you’ve got a good chance of being approved.

● Your loan terms can be played with to suit your needs. Rates, points and the length of your loan can be adapted to each particular investment opportunity.

● You can get your money much, much faster. With less regulations and hoops to jump through than banks, some loans can go through in a matter of days, rather than months.

With all of these advantages, why doesn’t everyone use hard money? There are a couple reasons. These types of loans can be more expensive than a bank loan, both in interest rates and points. Additionally, some people aren’t even aware that it’s an option for them; they think the bank is the only avenue for securing a loan.

For these reasons, hard money is typically best for short-term loans of around a year, usually for fix and flips or a stop gap before you can refinance.

Finding a Hard Money Lender in Arizona

Finding a good Arizona Hard Money Lender is of the utmost importance. Here at level 4 Funding, we’re here to listen to your investment opportunity and help you find a way to make it work. In fact, we’ve got decades of experience doing this. Want to be the next success story? 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

111 Congress Ave | Austin | Texas | 78701

Does Level 4 Funding Offer 90% Arizona Hard Money Loans?

Level 4 Funding offers a huge range of loan programs to fit investors’ needs, whether it’s their first time or their 50th. In many cases, we do offer 90% Arizona Hard Money Loans; here we’ll break down some of our loan programs.

If you’re here, you’re probably already familiar with the pros of Arizona Hard Money Loans. Unlike the banks, there’s no jumping through hoops, no begging, no super-strict requirements and you won’t be bombarded with unnecessary, head-scratching fees. Perhaps the best part of hard money, though, is that the terms are flexible enough to fit your needs. No two investors are the same, just like no two investments are the same, so you may need a lender that can work with you on the numbers.

Our basic loan programs offer a good guideline for your borrowing possibilities, but they aren’t set in stone. With that said, let’s take a look at some of the options we offer.

Arizona Hard Money Loans at Level 4 Funding

For a cash out refinance of less than 50% LTV, we offer rates from 5.99-8% with 2-3 points. Loans between 60-79% LTV are in the 8-10% range with only 2-3 points as well. Cash out refinance loans for 80-90% of the value are available at rates from 12-19.99%. All of these can be taken out for as little as 3 months and as much as 60 months.

For fix-and-flip, we offer up to 90% Arizona Hard Money Loans on the as-is value of the purchase, and up to 100% on the rehab with a rate of 10% and 2-3 points. For a rental purchase (including buy and holds), rates are as low as 7% for amortized 30. These last two loans do require some credit score qualifications.

There’s No Cost to Talk to Us

These examples are just a rough sketch of what we offer here at Level 4 Funding. In addition to 90% Arizona Hard Money Loans, we also have construction loans, AirBnB loans, cash out loans and many more. And here’s the best part: there’s no obligation or cost to talk to us. We can sit down, talk about your real estate dreams and work with you to provide the best possible loan for your situation.

If your investment opportunity is a puzzle, we’ll help you put the pieces together to make it work. What are you waiting for? Give us a call today to get started!

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 Trust Deed Investments Are a Great Deal

Investment opportunities are everywhere, but there are some that aren’t as crowded as others. One of the best ones is trust deed investment. Here we’ll talk about what they are and how they can benefit your bottom line.

With investing, everyone is looking for the same thing — a way to use your money to passively make more money. There are tons of ways to do this. Banks will give you a percentage in exchange for docking your hard-earned cash with them. The return is miniscule, but so is the risk.

You can put your money into stocks. This way, your fortunes are tied to a company’s (or companies) performance. It’s a gamble: it could pay off big if you sell at the right time, but you can also lose everything just as quickly. Smart investing can mitigate the risk, but only to a degree.

What is a Trust Deed Investment?

Trust deed investing has been around for a long time, but it’s still a bit under the radar. Here’s how it works in the most basic sense — you take your money and lend it to a borrower who buys real estate and offers the deed as collateral. You get payments with interest every month. Or, if the borrower fails to pay, you get the property. Think of it this way: you’re the bank.

You’re probably already seeing the advantages, but here’s why this type of investing can be a good idea for some investors:

You are always in control.
You get a healthy interest rate from the borrower; usually anywhere from 10% to 29%
You’re investing in a real, physical property, not something intangible.
You collect your payments at a regular interval (i.e. monthly).
The borrower puts up collateral, ensuring that you can’t lose everything.
Properties are insured by hazard insurance, meaning acts of God, like natural disasters, can happen and your investment is still safe.
Encumbrances, defects and leins aren’t an issue because everything is covered by a title policy.

Finding a Trust Deed Investment Opportunity

Trust deed investment opportunities are around, but it can take some digging to find the good ones. You can try to rustle one up on your own, but logistical and legal issues can get hairy. Level 4 Funding has all sorts of experience in this realm. If you’re looking to invest, we can find a deal that maximizes profits and minimizes risk. 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

111 Congress Ave | Austin | Texas | 78701

Can You Make a Mint Using Hard Money Loans?

Many people think the only way to make money in real estate is to jump through hoops at the bank. While that may work for some, there’s a breed of trailblazers who know that there are ways to make money without the big financial institutions. Let’s look at one of them — Arizona hard money loans.

They say fortune favors the bold. And it’s true; you won’t find many history books that detail the adventures of Bob, who worked a 9-5 and retired at the age of 65. In fact, history is filled with pioneers who took their fate into their own hands, poked the universe, challenged the status quo and lived lives full of adventure.

We’re not saying that there’s no nobility in maintaining a steady job and taking the golden parachute route, but it’s definitely not the only way to make money and succeed in this world. Like most people, you might have daydreamed about quitting that desk job and getting into real estate, but then your naysayer side kicks in. What will my family think? How do I find financing to buy a fixer upper? What if my credit score isn’t good enough? How will I pay for the rehab?

Here’s one way: forget the banks.

One thing we can tell you for sure: banks care about your credit score, your bank statement and your financial history. They only want to loan to the folks who have 2.5 children, a dog, and a spotless past. Arizona Hard Money Loans are for the rest of us; the ones who are willing to take a risk for the reward; the ones who aren’t perfect; the ones who want to do extraordinary things.

Hard money lenders are just people. They’ve taken risks and made money in real estate, so they understand your dreams. They don’t care as much about whether your credit score meets a certain threshold or if you had a financial problem in the past. They care about your passion, your plan, and your dedication. In fact, if you do well, they do well. Your success is their success. To the banks, you’re a number. To a hard money lender, you’re a person.

Finding Arizona Hard Money Loans in Arizona

Ready to stop the monotony of the office life with a Arizona hard money loan? Give us a call or send us an email. We’ve been making people’s real estate dreams come true for decades and we might be able to help you, 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

How to Use a Renovation Loan to Make Money

As home rehabs have become a huge deal over the last few decades, more and more people are looking for Arizona renovation loans to fix up a property. Whether it’s a quick flip or a place where you’ll stay for a bit, a loan can help you get it done.

Ever looked around your home and gone, “it’s seriously time for a renovation?” We have no data to back this up, but we posit there’s been a marked increase in these renovation thoughts ever since HGTV became a thing. You watch a couple turn a hideous home into a magazine photo layout and suddenly your pink countertops and green carpeting start looking even more outdated.

Renovations aren’t just about improving your home’s aesthetics, either. Buyers want the latest and the greatest and they’re willing to pay more for it, so doing a home rehab can increase its value by quite a bit more than the money you put into it. In fact, there’s not really a downside (except for maybe the blood and sweat you’ll expend if you do it yourself).

But home renovations are expensive. Where can you get the dough to make upgrades? Let’s take a look at some options.

Getting an Arizona Home Renovation Loan

● Banks. Banks sometimes offer home Arizona renovation loans to qualified borrowers. The key word here is “qualified.” They’re the big guys, so they generally get to call the shots. Have a low credit score? You might be out of luck. Had a foreclosure in the past? They might show you the door. Don’t have a big fat paycheck? You might be persona non grata.

● Hard Money Lenders. Hard money lenders usually have a more “mom and pop” feel. They use money from private investors and many specialize in lending money to people who want to flip homes, do renovations, and be a part of the real estate game. They’re not the big guys — they can sit down and listen to your story, hear your plans, and get fired up with you. They’re not bound by as many restrictions as the banks and borrowers use collateral to secure loans, so they aren’t as concerned with your credit, your past history, or your current bank statement as the big banks.

Home Arizona renovation loans in Arizona

Arizona renovation loans might not be for everyone. But, if you’re ready to increase your home’s value or rehab a property, they might be perfect for your situation. There’s one easy way to find out — give us a call or shoot us an email today to talk about your project.

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177