Arizona Hard Money Lenders: A Helping Hand for those in Financial Turmoil

If you are a real-estate investor and have recently experienced bankruptcy or some other financial difficulty, you likely won't be able to qualify for conventional financing. In spite of your current credit challenges, Arizona Hard money lenders can help you acquire new properties and continue investing in real-estate. Just don't consider hard money the best way to clear up personal debts or think of it as a long term solution.

If you’re a real-estate investor and your last deal didn't quite pan out the way you planned, you might find your credit in ruins and yourself unable to secure new financing. Even so, you still have options which can enable you to continue investing in real-estate, I.e., Hard money.

If your not aware a hard money deal is secured by the "hard asset," being purchased, which means that your current or past financial difficulties aren't at the forefront of a hard money providers mind. If there is enough potential in your real-estate investment, this type of lender may be willing to overlook your financial difficulties, including bankruptcy.

Arizona Hard money lenders might be able to overlook your financial difficulties, even if you’ve undergone a recent bankruptcy you might still be eligible.

Hard money providers consider the value of your investment, instead of your financial situation. However, this type of lenders willingness to overlook your financial difficulties will vary and will depend on their appetite for risk.

Nevertheless, credit is basically a non-factor in the case of hard money, and you may qualify even if you've undergone a recent bankruptcy.

Note however that under Chapter 13, you will have to negotiate any hard money deal with your previous lenders; so under Chapter 13, it might be impossible to secure hard money financing.

But even if you can qualify for hard money, is this the right financial solution for you?

To avoid the pitfalls that come hard money carefully evaluate your situation. Arizona Hard money loans are best used for real estate investments and you should not consider them a long-term solution to your current financial issues.

Hard money is probably not an ideal solution for general day to day financial issues. In most cases, hard money is meant exclusively for investment in real estate. That is because it’s the value of real estate secures most Hard money deals.

So, unless you are willing to pledge your primary residence to secure this type of loan (probably not a good idea if you can't pay your current debts), don't consider hard money as the best solution for personal financial issues.

Hard money is also not a long-term financial solution. This type of lender charges more in interest because of the risk they take in overlooking your credit score.  Most hard money deals are for the short-term and are usually paid off by the resale of the property being financed. In the case of hard money, your aim should be to pay the loan off as quickly as possible. Note however with hard money there is usually the option to refinance to a less expensive loan after your financial situation improves.

Basically, Hard money gives you options. Hard money providers can look past a recent bankruptcy because credit is not their primary consideration. Nevertheless, hard money is not the way to overcome personal financial difficulties, as this type of loan should be used to invest in real-estate.

In the case of hard money, always have a plan in place to pay the loan off as quickly as possible, either through the sale of your Arizona Investment Property or refinancing.

Still, hard money enables real-estate investors in the midst financial turmoil to continue making deals and purchasing new properties.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com 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: commercial loans,commercial lending,commercial mortgage

Evaluating your options when it comes to Arizona Investment Property Financing

Evaluating your options when it comes to Arizona Investment Property Financing real estate, you may be overwhelmed by the multitude of Arizona Investment Property financing options available.

The first option you might consider if you want to invest in real-estate is a conventional investment mortgage. An investment mortgage, is the same thing as a regular mortgage expect that it is used to purchase investment properties.

While an investment mortgage offers the lowest rates, the underwriting process takes a long time. In the worst case scenario, the sale of the property you were considering might go through, as you wait on your conventional lender to review reams of financial documents. So, if a conventional investment mortgage is the only financing option you consider, you could miss out on the best deals.

While conventional financing offers the lowest interest rates, these lenders have exceptionally high standards which many new investors may not be able to meet. The main issue comes down to credit, to get the best conventional investment mortgage possible your credit score should be over 700, the minimum is 620. So if your credit score is lower than 620, there is little to no chance you can qualify for an Arizona investment mortgage.

So if you can't qualify for a conventional Arizona Investment Property financing, can you still finance the purchase of an Arizona Investment Property?

Some investors draw equity from their primary residence to finance the purchase of their first Arizona Investment Property,  while others secure loans from crowdfunding websites. Some investors may have friends or family members with deep pockets, who are willing to help and who can finance their first purchase.

Home equity lines of credit, crowdfunding, and personal loans are all options you could consider if you can't qualify for a conventional investment mortgage. However, of course there are drawbacks to consider.

With home equity loans, you put your primary residence at risk if you default. With crowdfunding there are not guarantees your loan will ever be fully funded and borrowing from close friends and family can put a severe strain on your relationships if you run into financial difficulties.

If you can, you should consider hard money which can be an excellent Arizona Investment Property financing option

This type of lender uses the value of the property you aim to purchase as a means to secure the loan. For this reason, hard money providers can look past your financial situation and your personal credit score, making hard money an option if you can't qualify for a conventional investment mortgage.

Unlike home equity loans, with hard money, there is often no need to pledge your primary residence as collateral. Most hard money providers have the funds on hand to fully finance your loan. So with hard money, unlike crowdfunding, there is no need to wait around for your loan to be fully financed. Unlike personal loans, you don’t risk your relationships with hard money.

While hard money is more expensive than other types of financing, it gives you options.

After you purchase your Arizona Investment Property, you can always refinance to a less expensive conventional loan after your financial situation improves.

So if your just getting started in real-estate investment and you can’t qualify elsewhere consider hard money as a potential financing option.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com 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: commercial loans,commercial lending,commercial mortgage

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/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

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.

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

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.

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

Why Investors Choose Hard Money Loans

There are many advantages to using hard money loans that make the higher cost of the loan less of an issue for investors as well as homeowners.

When most people think about taking out a loan, the first concern is what it will cost to borrow the money that they need. But even as counterintuitive as it may sound, in the business world there are factors that end up being more critical than money. Which is why many investors gladly choose to use hard money loan over more traditional types of loans from a bank or mortgage company.

One huge benefit to using hard money is that the loan approval is based on the value of the property that is being used as collateral, which is almost always the property being purchased. This eliminates the worries about personal credit scores, debt to income ratios and the issues of other outstanding loans. The only factor that is considered in most hard money lending transactions is the current market value of the property. And as long as the loan amount is under 70% of the current value then the loan is almost assured of being approved. Investors have the ability to secure funding for multiple properties without the lenders being concerned about the debt load. This keeps the investors happy because more deals mean a greater profit.

Flexibility is another great feature of hard money loans that appeal to investors. A bank is always very riged about the terms of a loan and their policies regarding length of term and fee structure. But a lender who works with hard money is not required to operate under the same stringent guidelines that govern banks and other lending institutions. Hard money lender have the ability to work with a borrower to create terms which are mutually beneficial.

Time is Money

One factor that is often even more important than money in the business world is time. When an investor finds a great deal on a property, there are sure to be other investors making offers and trying to steal the deal. So for an investor to make an offer that is being funded via hard money, sells see that as a major advantage. The seller knows that the funding will occur quickly and that they will not be a lot of red tape or the potential for the deal to fall through. Sellers also know that a potential buyer who is willing to use hard money to make a purchase is serious about the property and will complete the transaction as quickly as possible.

Hard money loans are a wise option

Most real estate investors are well aware of the benefits of using hard money from the fast funding to the added flexibility in terms. And due to all of these benefits, investors are very willing to pay a higher interest rate and even a few added fees to use this nontraditional lending resource. Faster funding means more investments can be made in a short period of time and will create a greater return on investment.

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

Why Borrowers Choose Hard Money Lender

There are many options for borrowers who are seeking a loan. But choosing to work with hard money lenders is a great option for several reasons.

Hard money lender offer many benefits that are not available from the traditional banks and mortgage lenders of the world. Some borrowers discover that they have no choice but to work with hard money lender due to their low credit score or lack of credit history. But many other borrowers choose these nontraditional lenders because they are a better fit to meet their borrowing needs.

Traditional banks, credit unions and mortgage companies are very regimented and only offer a few types of loans. And the loans that they do offer have no real flexibility. So borrowers are forced to take the terms and rate that is offered or find another lender. But hard money lenders are able to work with a borrower to create a customized loan that meets the needs of the borrower. Loans come in all shapes and sizes so hard money is a great option of a person purchasing a home or the investor who is interested in buying a property to flip or even an entire rental complex.

Getting approved for a traditional loan can be difficult. Not only is it important that you meet the credit score and income criteria but you also need to be able to provide detailed documentation to prove your earnings and debt. So it is stressful and time-consuming. But these lenders are more interested in the current market value of the property than the personal financial history of the borrower. This is because the approval of the loan is based on a comparison of the loan amount being requested and the property value. The term is loan to value. In most cases a lender is only comfortable lending up to about 70% of the current market value of the property. They use this number so that there will always be some equity in the property and in the event of the borrower defaulting on the loan, the lender can sell the property to recover his or her investment.

Timing Can Be Critical For Hard Money Lender

In some cases, getting a fast loan is more important than getting the very cheapest loan. A buyer might be trying to purchase a home which is very competitively priced, meaning there will be a lot of bids on the house. So by submitting an offer noting that the funding is in the form of hard money is a big benefit. The sellers will know that if selected, that buyer will have funding quickly to close the deal. The same is true for an investor who finds a great deal but wants to make the purchase before other investors discover it. The fast funding of hard money can be all that makes a great deal work.

Making a Deal with a Person

Borrowing from a nontraditional lender is much more personal than borrowing from a huge corporation. You are actually working with a local person in most cases and can ask questions, make requests and even get a great deal of education on the art of hard money deals. Many borrowers are happy to have the option to work with an individual or small group rather than a huge company with impersonal service. All of this personal service and the potential to customize a loan makes hard money a great option for many borrowers.

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