Beretta Only

Monday, April 15, 2019

How to Rig Your Credit & Why Arizona Hard Money Lenders Don’t Care

Experian is rolling out a new program that could let you rig your way to a better credit score. It won’t likely impact your ability to work with Arizona hard money lenders, but there’s some chance it could actually harm your ability to get a loan with good terms with other lenders.

If you haven’t delved deeply into credit scores before, you may be surprised to learn that you don’t have a single score. You have several. There are three big credit bureaus (FICO, Experian and Equifax) which gather data related to you and financial habits, then provide some type of score to help financing companies determine whether you’re a safe borrower or not.

Each assigns you a numerical credit score using an algorithm. Most credit reporting models are based upon FICO’s model, so your credit scores will likely be similar across all three. However, each is unique and sometimes one receives different information than the others, which naturally makes the outcome different too.

When you apply for a loan, the financing company may pull a report from any of them or all three. However, with FICO, decisions are purely based upon the credit score. If a company says you need to have a 700 to qualify and you have a 699, you’ll be denied no matter the reason. With the other two, a full report containing things like open accounts and late payments is provided, so financing companies can take circumstances into account if they so choose.

Historically, there’s been nothing a person could do if he or she had rotten credit—at least not quickly. If your past was problematic or you hadn’t established credit, those were indicators you might not be a safe bet. That makes sense. You’d have to spend years building or rebuilding to get credit from a traditional finance company. Arizona hard money lenders have always been a bit different in this respect, simply because your credit score is not a major factor in the decision to lend.

If You Can Pay at Least Some of Your Bills on Time, You Can Game the System

Experian is now going to let you cherry-pick some of what appears on your report. Under the new program, Experian Boost, you’ll be able to link Experian to your bank account and it will pull data on things like phone and utility bills. Then, it will show you each bill it can count, let you know how it will impact your score, and allow you to pick which ones to include in your score. If you decide you don’t like it, you can shut it off. While this won’t undo a bad credit history, including bills you’re a good payer on can demonstrate creditworthiness and show you’ve had credit for a longer period of time, thus potentially increasing your Experian score and getting you approval with companies which prioritize Experian. Again, Arizona Hard Money Lenders won’t necessarily care about this. The majority use a FICO score and, even then, it’s the value of the asset you’re borrowing against that matters most.

Experian’s shift could spell danger for the future of lending.

As a consumer, you’re probably excited about this change because it could be an easy way to instantly improve your credit score. Therein lies the problem for financing companies and perhaps a few Arizona Hard Money Lenders who break from the norm. While Experian says this does not change its predictive abilities, there’s some chance financing companies may stop trusting Experian or require higher scores if time proves otherwise.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC 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

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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Sunday, April 14, 2019

Benefits of Hard Money Rental Property Loans

Forget conventional lenders. Get hard money rental property loans and start making money today!

Frankly, conventional money is hassle and is incapable of funding the large majority of the quick paced real estate investments that are constantly in motion. Hard money is a reality when it comes to rental properties, snatching the right real estate, and renovating to increase profits.

Thus, many turn to hard money lenders because hard money rental property loans have less stipulations than conventional lenders. To receive such a loan as this, a borrower must have enough cash down, 20% to 60%, to create a favorable loan-to-value situation for his or her lender. Otherwise, he or she will need to leverage current real estate assets owned to mitigate the lender’s risk. By leveraging property, especially with excellent positive equity or with no debt owed, up to 100% LTV is possible.

On top of this, previous credit issues such as bankruptcy, foreclosure, and delinquency can be overlooked in favor of an optimistic equity situation. Don’t worry about the past, it is time to live in the glory of the entrepreneurial present. Another benefit of using hard money rental property loans, is that you are able to buy distressed property. This is a benefit if you are interested in renovating to rent a house since purchasing a house is cheaper than purchasing other refurbished units in an area. Though this may take honing a few more skills and becoming one with your inner weekend warrior, many are able to get more returns by paying less in these instances. If hard money lending seems right for you, talk a hard money broker at Level 4 Funding today.

Make More Money with Rental Property Loans

Rental properties are also attractive for a number of reasons: they are a great way to establish equity, home ownership, long term cash flow, and even a retirement. Rental properties are secure in recessions when renting becomes more common. Furthermore, rental property loans to finance acquisition and renovation are not hard to come by and form a great starting point for new investors.

Talk to a hard money broker at Level 4 Funding to get your rental property loans today!

Talk to a hard money broker to find the rate, term, and loan-to-value needed for the rental investment. After acquiring the property and getting funding to renovate through rental property loans, find renters and establish a lease rate that allows for paying off the active hard money loan.

Who are Private Money Lenders and How Can They You?

Private money lenders are a godsent for many individuals in need of loans, individuals unable to size up to institutional mandates—sometimes intimidating or even momentarily impossible.

Private money lenders are individual investors who are separate from federal institutions. Aside from conventional lenders who receive institutional money, rates, and regulations in order to lend money, private lenders loan out their own money to the individuals they see fit to loan to. They are small entities with their own interests and their own agendas, not an extension of the bureaucratic arm of federal lending.

Private money lenders pool together large sums of money, multi-million-dollar sums or greater. Some private investors have access to personal wealth and invest individually, other private investors are part of an investment group who together pool sufficient funds in order to lend. Whether an individual or a group, the concept is the same: a non-institutional source of money to be invested in monetary ventures.

Private money lenders are a godsent for many individuals in need of loans, individuals unable to size up to institutional mandates—sometimes intimidating or even momentarily impossible. This is why private money lenders serve a twofold purpose: First, they invest in individual or commercial ventures in order to secure monetary returns in the form of interest. Second, they offer a line of credit in a variety of situations for those who need it. Where the proverbial door of conventional banking closes, the door of private lending stays open. This is quid-quo pro. Private money lenders get a good return on roughly 7%-14% of their investments and are covered by the LTV they wish to set. By charging more than conventional lenders they are rewarded more and offer more options to others. Real estate investors win by finding a funding niche.

Private Money Lenders Are Your Lending Advocates

Instead of calling an obscure entity from a “1-800” number that is directed through a myriad of phone lines and codes just to hopefully get a bank representative, private money lenders are accessible, personable, and available. By building local investment ventures, they indirectly build communities, small businesses, local infrastructures, and community jobs. Though finding private money lenders is not as easy as other lending outlets, it is a comfortable and a less regulated lending form that continues to help many small business and individuals get their start.

If the banks have turned you down and you need a helping hand, talk to your broker at level 4 funding. Level 4 Funding has access to a variety of private money lenders and is able to get you the funding that you need.

If the banks have turned you down and you need a helping hand, talk to your broker at level 4 funding. Level 4 Funding has access to a variety of private money lenders and is able to get you the funding that you need. Level 4 Funding has a long history of helping individuals interested in real estate investment, home acquisition, home refurbishment, bridge loans, and commercial lending. Get in touch today. Interest rates start as low as 5.99% APR.

Are Conventional Fix and Flip Loans Possible?

Conventional or hard money fix and flip loans? That is the question. Find out how to weight the decision that affects your business.

There are two main options for fix and flip loans. Conventional or hard money. Though difficult to acquire for many flippers, conventional loans present great opportunity to individuals possessing the right credentials. For conventional lending, first off, high credit scores are needed. The banks want to see who well the borrower has payed his or her debts in the past. Have payments been made on time? Are there any delinquencies? Have there been any foreclosures or repossessions? Essentially, to the banks, credit history indicates the risk of loaning. If there is a favorable credit score GREAT. However, that is not the end of the story. Debt to income is another indicator.

What is debt to income? Debt to income is the total debt figure divided by income. Banks use this ratio to calculate if a potential borrower is able to make payments, especially after adding any requested loans. Max debt-to-income ratio for conventional banks tends to hover between 40%-50%. Thus, borrowers must show favorable debt to income in order to indicate that they can pay off debt with the amount within the constraints of a given income.

Collateral or significant assets to back loans is another indicator conventional lenders look for when loaning out money. It is another crucial factor for receiving a conventional loan. What types of assets, general property or equity in property, does the borrower possess? Is the proposed collateral enough to buffer the lender in the unforeseen event of foreclosure? These are escape plans for the bank. The leveraged assets of a borrower form the shield of lending agencies. Finally, conventional lenders look for a history of profit, repayment, and success as good omens. What is the borrower’s track record? Has the borrower been able to repay previous flipping debts? Will the borrower continue to repay debts and remain a profitable business entity in the future?

Ditch Conventional Lenders and Get Hard Money Fix and Flip Loans

If the borrower is able to prove that he or she has a positive record in these areas, it may be likely that he or she can receive a fix and flip loans from a conventional lender. The benefit to receiving conventional money is that the borrower is able to then access some of the most competitive rates available, much lower than that of hard and private money lenders. However, the draw-back to conventional lending is the fact that the funding process takes so long. Conventional lenders take months to fund on average. There are other complications that arise with conventional lenders. Mainly, how does one obtain distressed, short sale, or foreclosed property. This is a challenge because conventional lenders are primarily interested in properties that can be lived in.

Don’t let the conventional restriction get you down. Get funded today. Level 4 Funding is here to meet your needs regarding fix and flip loans.

If you don’t fall into these categories, or if you would like another source of lending that is quick and can get the job done in a timely fashion, talk to your broker at Level 4 Funding. Level 4 Funding is here to meet your needs regarding fix and flip loans.

Saturday, April 13, 2019

Get Property Fast—Owner Occupied Hard Money Loans

Owner occupied hard money loans help individuals get the property they want when they need it. They no longer have to wait on the banks. They no longer have to bend to the mandates of immaculate credit. Get yours today through Level 4 Funding!

Owner occupied loans are loans made out to individuals looking to buy or refinance residential property. A primary requirement for receiving an owner-occupied loan is that the buyer/refinancer is going to live on said property. There are a great many reasons why individuals may seek owner occupied had money. Whether to acquire a new home, fix an existing home, or manage debt, many have felt the comfort of being able to find a financing solution and enjoy the home that they deserve.

Acquiring a home. Many times, people get tired of renting and living in a small cubical. The time comes to stretch out one’s metaphorical wings and find a new place to live. Especially now, with property shortage, internet pricing, and more individuals moving to urban areas, the cost of renting is sometimes equal to or higher than a house payment. However, many people are stuck in a renting scenario because the are unable to verify enough time on the job, have unconventional employment, or abysmal credit, maybe even all of the above.

Owner occupied hard money loans help individuals get the property they want when they need it. They no longer have to wait on the banks. They no longer have to bend to the mandates of immaculate credit. Refinancing. Sometimes, debt accumulates. Credit cards, loans, debts, interest rates. Refinancing especially with owner occupied hard money loans can consolidate debt. It can limit the amount of interest paid on a house. Aside from Acquiring and refinancing, owner occupied homes allow many to start building on property.

Owner Occupied Loans Help Real People Get the Right Property

Finally, bridge loans. These loans help owners move into a new home until the old home sells. They usually have a duration lasting between three to twelve months. Opposed to long-term funding agreements which can span years, these types of owner occupied hard money loans are concerned with providing short-term financing for acquiring property. The word bridge indicates an intermediary period between hard money and conventional lending; since bridge loans are expensive, borrowers tend to enter into such financing agreements with the mindset of paying loans off quickly or bridging to a long-term source of financing later.

Level 4 Funding is here to help you qualify for owner occupied hard money loans today. Don’t wait on the bank. Don’t let marred credit stop you from finding the home that is right for you. Owner occupied hard money loans have helped many and can help you too.

Talk to your hard money lender today at Level 4 Funding to apply for owner occupied hard money loans that are right for you. Don’t wait on the bank’s tedious process. Get approved within days.

Forget the Banks—Get Residential Hard Money Lenders

Forget conventional lending and their numerous stipulations. Residential hard money loans are able to fill a wide variety of finance needs for varying ranges of individuals with varying credit scores. Get funded through Level 4 Funding, your hard money broker. Find the residential hard money lenders that are right for you today. Finance in days what normally takes months.

Residential hard money lenders lend money to individuals who offer their homes as collateral. The equity in the borrowers’ homes will be used to back hard money lenders in the advent of failed payments. Residential hard money lenders are a great option for those unable to acquire a conventional loan since, sometimes, conventional residential lenders just won’t finance the needed amount or individuals just don’t meet certain financing requirements.

There are many reasons why people struggle obtaining conventional residential loans. One of the first factors is creditworthiness. Conventional lenders are adamant upon looking at credit history, looking into credit delinquencies, crossing Ts and dotting Is, and making sure that potential borrowers can provide the documentation, paperwork, income, work history, etc. to qualify for the money. While many are able to qualify for these competitive rates and get some of the lowest interest in the country, others are not. Others find themselves in a sort of lending limbo.

For these reasons, many individuals petitioning for residential loans are: those in need of a home and also looking to sell their current home; those who have faced bankruptcy, foreclosure, or short sale; those dealing with a troublesome property; those buying a house for the first time; those looking to refinance; those looking to remodel a personal home; and those looking to consolidate debt.

Residential Hard Money Lenders Create Opportunity

Bridge Loans are another category of residential hard money lending. Sometimes individuals have a mortgage and are looking to buy another home. The time it would take to get approved through conventional residential lenders along with selling the current home would take many months, a time period in which the newly desired property would most likely be sold. In this instance, residential hard money lenders allow individuals to buy anew home while waiting for the old one to sell. Sell an old home from the comfort of the new.

Get funded through Level 4 Funding, your hard money broker. Despite being rejected by the banks and credit unions, you can secure the financial backing you need by using residential hard money lenders.

All in all, residential hard money loans are useful because they fill a wide variety of finance needs for varying ranges of individuals with varying credit scores. Get funded through Level 4 Funding, your hard money broker. Find the residential hard money lenders that are right for you.