Beretta Only: September 2018

Thursday, September 27, 2018

5 Situations When Using Hard Money Loans is Best

Do you know when choosing hard money loans is best? Although they’re not ideal for every situation, there are times when no other form of financing works quite as well.

Hard money loans, also referred to as private money, can make a world of difference in certain circumstances. If you’re exploring your financing options for a project, knowing the benefits and when they perform best can help ensure your plan gets off the ground fast and finishes on schedule, all while keeping your expenses as low as possible.

1) Fix-and-Flips: One of the most common uses for private money is home rehabs. Investors prefer it because they can get cash in hand fast and properties face less scrutiny then they might with other forms of lending.

2) Fix-and-Holds: Many investors prefer to build up a portfolio of rentals rather than turning property around fast. While traditional loans still work well for this, they can’t always be processed fast enough and sometimes homes don’t qualify for them based on their condition. With fix-and-holds, people generally get a traditional loan at some point down the line, perhaps when good terms are available or when the rehab is complete.

3) Construction Loans: Because hard money loans require interest-only payments they can make it easier to keep more cash on hand throughout the construction process.

4) Credit Issues: Traditional forms of lending worry about all kinds of things, especially the borrower’s credit. With private money, the greatest concern is usually the value of the asset, followed closely by the plans to enhance the value. For this reason, people with poor credit and even bankruptcies may be able to get financing.

5) Speed Concerns: There are many situations in which time is of the essence. For example, potential buyers may only have a small window of time to secure financing in order for a deal to go through or they may want to try to sway a seller by demonstrating they’ve got cash ready to go.

Are there Pitfalls with Private Money Loans?

Realistically, there are pitfalls with every type of lending. Sometimes it’s hard or impossible to get a traditional loan while others the wheels simply turn too slow. This isn’t seen so much with hard money loans. On the other hand, private money lenders usually have short terms for borrowers and interest-only payments are made, so it’s not usually a good fit for someone who plans to keep their property and not refinance or sell within a couple of years.

Experienced investors know how to make money by choosing the right type of financing for any given project.

Knowing which type of financing is right for a project depends on what’s being financed and what the borrower’s exit strategy is. If your primary concerns are speed or getting approval despite self-employment or credit status, private funding could be right for you. The best way to find out is to complete a free application and then review the terms offered. Contact us to get started today.

Dennis Dahlberg Broker RI/Level 4 Funding LLC Privatae hard Money loans Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: owner occupied home loans,private hard money lender

Monday, September 17, 2018

How to Know if a Hard Money Lender is the Real Deal

If you’re like most people looking for finance options, no doubt you’ve heard horror stories about lenders who totally dropped the ball and derailed a project. You may have even experienced it yourself. While personal referrals and online reviews can make it easier to find a reputable hard money lender, it doesn’t necessarily mean you’ll have the same experience. Moreover, companies tend to specialize in a specific loan type or cover a geographic area, so many people are on their own even if they’ve been through the process before or know someone else who has been. However, there are a few things you can look for when you make contact with a company that indicate they’re a good company to work with.

For starters, they’ll recognize your time is valuable. One of the biggest benefits of working with this type of financing is that it enables you to have cash in hand fast. If they’re dragging their feet and not returning calls promptly now, there’s no telling if or when you’ll get your cash. However, if they return calls promptly and address your concerns, you’re on the right track. You should be able to count on having cash on hand in a matter of days or weeks, not months.

Secondly, your broker will be eager to listen to you and help you strategize. There are lots of different financing options, and your broker should be able to ensure you’re finding something that’s right for you based on your needs.

Lastly, they’ll have experience in the area you’re working in. Single-family homes, multi-family homes, commercial properties, and other project types each require a unique set of expertise. You’ll want to be sure you’re working with someone who understands what you’re planning to do in order to make the approval process smoother.

Will a Reputable Company Still Work with Me if I Have Rotten Credit?

One of the biggest things a hard money lender will look at is the value of the asset in question. Although there are other factors involved in making a final decision, they tend to matter to a much lesser degree. For this reason, bad credit and even bankruptcies are less of a concern when you go with this type of financing.

A good company is there for you when you need them.

When you’re in this type of industry, building positive relationships is everything. A good hard money lender knows this and will do their best to help you regardless of your circumstances. In times where they can’t, they’ll still treat you with the respect you deserve. If you’re looking for lending solutions but aren’t sure which company is best-suited, contact Level 4 Funding. With experience across a broad spectrum of private money loans, a myriad of positive customer testimonials, and a low-rate guarantee, it’s easy to apply with confidence.

Technorati Tags: owner occupied home loans,private hard money lender

Why New Fix-and-Flippers Get Denied by Hard Money Lenders (And What You Can Do About It)

People new to the home rehab business often make fatal mistakes that impact their ability to get funding. If you’re preparing to approach hard money lenders, you’ll need to have a few things in place to get approval.

It seems like today we have a fix-and-flip culture. There are TV shows designed around it and almost everyone knows someone who has done a flip before. Unfortunately, those just getting into the field can sometimes take this to mean that it’s easy or that it will generate millions for them overnight. While it can be quite lucrative, you’ll need to know the numbers and have a strategy in place before you can consider it a side-hustle or career.

One of the biggest issues is failure to consider additional cash needs. No matter how great of a deal you’re getting, you’ll need some kind of cash to get going. Although some will provide you with 80% or more of the value of the home, you’ll need to be able to pay the remainder on your own. Moreover, there will be expenses associated with the repairs and that’s not typically part of the initial loan. Those just getting into the business can really benefit from having a trusted inspector visit the home in advance of a purchase to help determine what repairs will be necessary.

The second major issue is failure to have a solid plan. If you have a little experience with home renovations, it’s easy to look a home over and make a mental assessment of the work and costs, but that doesn’t constitute a plan. They’re taking a risk on you, so hard money lenders will want to know everything from your timeline through costs and exit strategy. Don’t think this means you have to take everything on alone, though. You can build a network of professionals and bring them in to consult on your projects or see if a seasoned home rehabber will mentor you.

Are There Other Things That May Stand in the Way of Becoming Successful?

Even experienced home flippers run into a bump or two on each project. It’s their ability to anticipate issues and set aside the time and money to deal with them at the onset of a project which helps ensure they achieve what they set out to. If you’re told “no” by hard money lenders at first, don’t be dejected. Instead, ask questions to find out what you can do to improve the odds next time around.

Every HML has different guidelines, so the best way to know if you qualify is to get in contact.

The better your planning is and the more numbers you crunch, the greater your odds are of getting a green light on a project. Hard money lenders simply want to know they’re investing in you wisely, and although the value of the home is arguably the biggest factor for most, each uses a different set of criteria to judge. At Level 4 Funding, we’ve heard stories from our own clients about how other companies have dropped the ball and cost a client a property, and while we can sympathize, our ability to help where others don’t, and low-rate guarantee are things we’re proud to offer because it sets us apart from the pack. While we enjoy working with home rehabbers who have an established track record, we help newcomers too. If you’ve got a solid plan for a fix-and-flip, give us a call today.

Technorati Tags: owner occupied home loans,private hard money lender

Beretta Only

Thursday, September 27, 2018

5 Situations When Using Hard Money Loans is Best

Are there Pitfalls with Private Money Loans?

Experienced investors know how to make money by choosing the right type of financing for any given project.

Monday, September 17, 2018

How to Know if a Hard Money Lender is the Real Deal

Will a Reputable Company Still Work with Me if I Have Rotten Credit?

A good company is there for you when you need them.

Why New Fix-and-Flippers Get Denied by Hard Money Lenders (And What You Can Do About It)

Are There Other Things That May Stand in the Way of Becoming Successful?

Every HML has different guidelines, so the best way to know if you qualify is to get in contact.

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