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Saturday, April 8, 2017

Just What the Doctor Ordered: Buy One Property Annually to Retire Comfortably

Could adding one property per year to your rental property portfolio help you retire comfortably? For Dr. Dat Tran, this strategy is just what the doctor ordered.

Dr. Tran is an internal medicine physician practicing in the metro Phoenix area, with 35 prestigious years of medical experience under his belt. Originally from Japan, Dr. Tran moved to the US and ultimately to Arizona because it was where his wife truly wanted to be. He takes great pride in caring for his family, and for others.

When asked what his biggest motivation is in life, Dr. Tran says he finds true fulfillment in taking care of others. He loves the medical field and his daily ability to help and heal. But he also knows it’s time to start thinking about his retirement and securing a strong financial future for his family.

Securing an strong financial future

At the advice of trusted friends, Dr. Tran started investing in real estate and is slowly growing his portfolio of rental properties to help fund his retirement. Prior to 2017 he used a variety of lenders for his real estate purchases. Then a trusted colleague mentioned he should try Level 4 Funding.

Dr. Tran reached out to Level 4 Funding and connected with loan originator Mark Gowlovech. Having experienced mediocre service in the past when it came to loan requests, Dr. Tran was especially impressed with Mark’s speed and efficiency.

“Very fast, very quick, very helpful” said Dr. Tran of his experience with Mark Gowlovech. He is glad he took his friend’s advice and was thrilled with the results. With Mark’s help, Dr. Tran received his loan funds in record time and wrapped up his most recent property purchase in Avondale in March. Now he’s one step and one property purchase closer to retirement.

Could real estate fund your early retirement?

Dr. Tran is not alone in leveraging real estate as a key component of his retirement and financial strategy. Though the real estate market will always experience ups and downs, many physicians and other professionals still see it as a viable retirement funding solution.

Physician’s Money Digest reports that some successful physicians endorse a simple retirement strategy from their mentors—"Buy one real estate investment property a year." In one example, a well respected physician who was also a savvy real estate investor shared that he had “technically retired years ago, but had continued working simply because he enjoyed it.”His simple and effective strategy? You guessed it, buy one real estate investment property per year.

By the numbers

This retirement strategy is certainly not restricted to physicians. But can only one property per year truly make a difference? As this one-per-year real estate purchase model shows, by year 20 the numbers truly add up:

Assumptions:

· All properties purchased are single family homes.

· Each was purchased with 30% down private hard money loan, up to 4 properties financed at a time.

· Property values are modest, at only $100,000 on average.

· Average cash flow per property is extremely achievable—$400 per month.

· Once each property is paid off, it cash flows at $800 monthly.

· The Case-Shiller index was used to estimate a 3.4% property appreciation rate.

10 Year Summary:

· 8 properties were purchased in the first 10 years of this simulation model, just short of goal.

· 4 homes are completely paid off.

· Cash flow by end of year 10 is $57,600 annually.

· Portfolio property value is $750,000.

· Total investment so far is $300,000.

20 Year Summary:

· Properties continue to be purchased at an average of 1 per year.

· Portfolio property value is $2.8 million at the end of year 20.

· Cash flow reaches $172,800 per year.

The case study concludes that these are conservative estimates which most people can replicate. The numbers start to snowball around the 10 year mark, and many would agree that an annual income of over $170,000 in retirement qualifies as “comfortable” and then some.

Expand your funding options to escalate success

A 20 year retirement model looks great if you are 30 years old and want to retire by 50. But what if you’re a bit closer to retirement and need to escalate your plan?

One simple tweak is to expand your real estate purchase funding options. Rather than restrict your loans to just four at any given time (one of which is likely your primary residence), look to Level 4 Funding for greater flexibility and a longer runway in your financial plan.

You may run across a stellar investment property, hopefully one which cash flows for well above $400 per month. And you may have to act swiftly to win the bid. Your local bank will likely bog you down in a sea of paperwork and lengthy approval processes. Plus they are sure to have some sort of maximum property funding limit.

Keep things simple and follow Dr. Tran’s lead. When it comes to real estate financing he recommends Level 4 Funding. Just “go there and try them” he says, and experience their professional swift, service for yourself.

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Happy senior business man making his notes at workDennis 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

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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.

Sunday, January 15, 2017

The Benefits of Working with Private Money Lenders in California

 

2page_img1If you are like most borrowers and investors, you have probably asked yourself at least once, what the big deal is when it comes to private money lenders in California? Well, the big deal is really about the benefits that come from working with private money lenders in California.

Private money lenders in California are more than just great local lenders. The reasoning being that you do not have to necessarily live in California in order to take advantage of all the benefits they have to offer. Nevertheless, one of the major benefits of these particular California lenders is that they are local, which means they are not some worldwide or national financial institution. Instead, they are reputable lenders that value their potential borrowers as well as their investors just as a family-owned and operated business would.

Of course, that is not to say that all private money lenders that are based out of California are small or have humble beginnings. In fact, many reputable private lenders are well-seasoned individual and large financial institution with deep roots in the community. Therefore, the point here is simple, local California lenders care about your success and do not look at you or your business venture as just another number.

In addition to being able to put a face to a name when dealing with your California-based lender, there are several other benefits that are well worth the trip if you are not native to California. For starters, your chances of getting approved are much greater and here is why. Number one, you are more than likely dealing with a niche lender who understands your particular vision and specific circumstances. This goes back to the idea or rather reality that there are dozens of California-based lenders, but they make it a point to specialize, which is why you have a better chance of being approved.

Additional Benefits Private Hard Money Lenders in California

Moreover, when dealing with California lenders, you also allow for faster processing and quicker financing. Think about it, if you are dealing with an individual, he or she can quickly approve and fund your loan—sometimes on the same day or at least within a few days. Other benefits include a lower risk associated with your investment and as briefly mentioned a lender that has experience in your particular market. You have a lower risk on your investment because California-based lenders of private money tend to be more involved in the process (appraisal, assessments and so on), thus they make it a point to ensure everyone’s success as much as allowed. Lastly, these lenders’ niche-mentality is what keeps California lenders of private money thriving—they know your market plain and simple.

Private Hard Money Lender in California - The Real Deal

Thus, as you can see, there are a few substantial benefits that come from working with California-based lenders. Therefore, if you have considered working with these particular lenders already, what exactly are you waiting for? Remember, there is no time like the present and it never hurts to step outside your comfort zone to try something new.

Level-4-Funding-Dennis-Dahlberg-Mort[1]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
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

 You TubeFace Book Active Rain Linked In 
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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.


 Free Report The 8 Things You Must Do To Be A Successful Home Flipper







          

Saturday, January 14, 2017

Trumps Economy Is Going To Take Off! Get Ready Now!

Thing are going to happen..

2page_img1Something is going on out there. Recently I've opened a new checking account at BofA for a small business venture, but I had one major problem to overcome. Something that I would have never expected. When I got to the bank they said "you will have to stand in line to open an account. " I asked my personal banker 'what's going on'? She said " did not understand what was happening, but since this morning there has been a steady stream of new customers coming into the bank and opening business checking accounts. I have never seen this much activity before". Brandon Abney Arizona Home Mortgage FHA Specialists

Based on a recent Bloomberg report, Optimism among America’s small businesses soared in December by the most since 1980 as expectations about the economy’s prospects improved dramatically in the aftermath of the presidential election.

Being in business for 40 Plus years I hear this from my personal business associates. The consensus is that their feeling is '2017 is going to be a good year'. The share of business owners who say now is a good time to expand is three times the average of the current expansion, according to the NFIB’s data. More companies also said they plan to increase investment and keep hiring, which reflects optimism surrounding President-elect Donald Trump’s plans of spurring the economy through deregulation, tax reform and infrastructure spending.

Fifty percent of respondents, the biggest share since March 2002, said they expect better business conditions in the next six months. That was 38 percentage points higher than in November. The net share of firms projecting higher sales jumped by 20 points to 31 percent. Some 29 percent say they will boost capital outlays within six months.

The National Federation of Independent Business’s index jumped 7.4 points last month to 105.8, the highest since the end of 2004, from 98.4. While seven of the 10 components increased in December, 73 percent of the monthly advance was due to more upbeat views about the outlook for sales and the economy, the Washington-based group said. “

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Rising confidence adds to the economy’s upward momentum,” Jim O’Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, New York, said in a note. At the same time, the “NFIB membership appears to be disproportionately Republican, so it is possible that the data will start overstating strength, opposite the pattern during the Obama administration.”

The NFIB report was based on a survey of 619 small-business owners through Dec. 28. Small companies represent more than 99 percent of all U.S employers, according to the U.S. Small Business Administration. A small business is defined as an independent enterprise with no more than 500 employees.

“We haven’t seen numbers like this in a long time,” Juanita Duggan, president and chief executive of the NFIB, said in a statement. “Small business is ready for a breakout, and that can only mean very good things for the U.S. economy. Business owners are feeling better about taking risks and making investments.”

So now what do you do? What is your plan for the next 1-2 years? Should you invest in the stock market, hold cash, purchase real estate? Personally, I'm jumping back into the real estate rental market. But I'm being very cautious on what and where I purchase. I'm still licking my wounds from 2008.

Dodd-Frank will be changed. Only 3 new banks have been started since the 2008 crash. I remember when it would have been hundreds! Lending has been stagnant as local and regional banks are handcuffed to lend. What we have is constipation of the money pipeline due in large part to Dodd-Frank. 

 

 

 

 

 

 

Level-4-Funding-Dennis-Dahlberg-Mort[1]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
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

 You TubeFace Book Active Rain Linked In


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


 Free Report The 8 Things You Must Do To Be A Successful Home Flipper







          

Deed of Trust Definition - What is a Deed of Trust

What is a Deed of Trust?  Deed of Trust Definition

Definition of A Deed of Trust (also know as trust deed) is a deed (piece of paper usually recorded at the county) that gives legal title to real estate to a trustee. It secures the note (Mortgage).

There are three parties to this type of title. They are:

  1. The Trustor (Borrower),
  2. Beneficiary (Lender) and a
  3. Neutral 3rd part called the Trustee.

They are written so that the lender gives money to the borrower to purchase a real property (home) and the borrower signs a deed of trust giving the power of sale for property to the natural 3rd party trustee to be held in trust for the lender. (I like to think the trustee takes the Deed of Trust and puts it in the top drawer of their desk and waits.) The borrower owns the property, but the title is held by the trustee.

This is noted in the Deed of Trust and is called the ‘power of sale clause’.

 

Deeds of Trust Definition

Equity – our long-term Mortgage program is brokered at 60% of the after repaired value (ARV or LTV) where the goal is to have a fixed and rented home that more than covers the monthly payment..

Money Down – All of our professional real estate investors will have either personal funds or a spread of equity in the transaction serving as their personal guarantee and commitment that the Deeds of Trust payment is a priority

1st Deeds of Trust Only – Our investors are the only holder of the note and in first position

No Pooling of Funds – The Level 4 Funding does not pool funds (also called fractionalized Deeds of Trust). This gives the Deeds of Trust investor more control over the investment

Non-Owner Occupied Properties Only – The Level 4 Funding only brokers Mortgages for non-owner occupied, single family homes and units (1-4) to a very unique client, the professional Arizona real estate investor.

Appraisal – An estimated value placed on a property at a particular point in time. Also known as appraised value.

Beneficiary – The beneficiary is the lender that can be an individual or a legal entity. Also known in a Deeds of Trust investment as a private money lender.

Deed of Trust – A document signed by the borrower that, once recorded, acts as proof that a Mortgage has been made on a property.

First Deeds of Trust – The first in line of Deeds of Trust recorded on a property.

Hard Money Mortgages – given at a higher interest to reflect perceived risk and added convenience of speed.

Interest Only – No payments being made on a Mortgage are being applied to principal. The balance due stays the same.

Simple Interest – Its calculated using the following:  (Balance Amount * Interest Rate) divided by 12.  This gives you the monthly payment for interest only payments.

Mortgage to Value (LTV) – Is a ration is used to determine risk and equity position in a property. If the property us currently valued as it stands now at $100,0000 a Mortgage of $70,000 gives a LTV of 70%   ($70,000 divided by $100,000). This should not be confused with ARV – After Repair Value.

Points – A percentage fee charged for origination of a Mortgage. One point is equal to one percent.

Promissory Note – The Promissory Note is signed by the borrower and shows the terms of the Mortgage.

Trustee – An individual or organization authorized to hold a trustee sale.

Trustor – The trustor is the borrower.

 

Level-4-Funding-Dennis-Dahlberg-Mort[1]Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

 You TubeFace Book Active Rain Linked In

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

Friday, January 13, 2017

Does Our Government Really Hate US? Really?

What's wrong with our economy?

One of the technical terms used when evaluating a healthy economy is a term called velocity of capital.  What this means is how fast  money is moving around from one person to another,  or defined as "The velocity of money is the rate at which money is exchanged from one transaction to another and how much a unit of currency is used in a given period of time. Velocity of money is usually measured as a ratio of GNP to a country's total supply of money.

 image

As you can see from the above graph the Velocity is on a steady decline.  So what causes the drop? My opinion is that there are two main reasons:
  1. People (consumers) have stopped spending money.   They are sitting on a boat load of cash and they are in a wait and see mode. 
  2. The second reason why there is a decline is that the government has put up road blocks to keep spending money.  One of the biggest road blocks enacted are the Dodd-Frank Regulations  that are making it extremely difficult for individuals to purchase homes. 

When someone purchases a home it's not just the seller and buyer who are happy.  There are those downstream of this  closing  that are going to be happy when the home closes.  Typically the listing and selling agents are happy, but there are others who also benefit from this happiness and make a living off of the sale.  Sure the buyer is happy, they have their dream home they always wanted, and the seller is happy since the can move to their next home,  or maybe get rid of the current home.  It's going to be a Happy, Happy, Happy fest.  The agents who listed/sold the home can't wait till they receive the final HUD 1 is completed and the title company sends out the checks to the brokers.  Most agents keep a list of the transactions in their pipeline and like most agents, their spouse is quizzing them on the transactions.  My wife usually says, 'got anything closing this week'?  She says this specially during the holiday season.  I'm happy to say that yes!.  This is going to be a good Christmas.  However there are many others who will benefit from this transaction and will have a happy Christmas.

  • Title company and the title agent are getting something from this transaction, like title insurance & escrow fees.
  • The loan company, Loan Officers, Loan Brokers, Underwriters, support staff, company sales rep also benefit.
  • Home Inspectors, and termite inspectors are getting some of the money.
  • Handyman who will fix the conditional items from the homeb inspection also get a piece of the deal, and don't forget all the hardware stores will get a piece of this pie when the handyman  buys a new faucet or  other item to be fixed.
  • Tax payers benefit when home taxes are being paid in full with collections of future taxes.
  • Insurance companies are writing a new policy.
  • HOA's are going to receive a transfer fee and maybe impact fees.
  • Neighbors are going to be happy to see a new neighbor.
  • Disabled Vets are going to receive all of the  stuff the new home owners are going to give away before they move.
  • Utility companies are going to get a change notice and if the account is past due, they are going to get paid.
  • Appraisal companies will get their piece of the pie also.

iStock_000002302749XSmallIt is amazing when you think of all the people who will touch this transaction to complete the deal at all.  BUT what's really startling is how many people will be able to keep their job, put food on the table and survive. 

With all of this occurring, we should sell homes all the time, but I'm shocked by the road blocks our government has put in place to stop this from occurring.  In an effort to fix the last collapse of the housing industry, the administration has generated a mountain of mind numbing regulations to stop consumers from purchasing a home.  It's like passing through  gates of hell to get a loan.  We have gone too far in the wrong direction to fix the problem.  The incoming administration has indicated that they are aware of this problem and is promising to fix the regulations ASAP.  Let's get money flowing again!




Level-4-Funding-Dennis-Dahlberg-Mort[1]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
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

 You TubeFace Book Active Rain Linked In


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




 Free Report The 8 Things You Must Do To Be A Successful Home Flipper







          

Wednesday, January 11, 2017

Level 4 Funding LLC Arizona Private Hard Money Lender

Level-4-Funding-Dennis-Dahlberg-Mort[1]Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

 You TubeFace Book Active Rain Linked In


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


 Free Report The 8 Things You Must Do To Be A Successful Home Flipper