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Tuesday, May 15, 2018

How to Understand Repayment Terms for Business Loans Arizona

When trying to obtain business loans Arizona and decipher the sometimes complicated jargon in the agreement, it’s critical to know what is of expected of you in terms of paying back the loan. Level 4 Funding breaks it down.

You need to start with a clear reality about what it’s going to take to get a loan approved — and then be able to meet the repayment term schedule. Terms for business loans Arizona are totally different than home mortgage payments, for example, that you might have for 30 years. These loans at loan-term can range from five to 20 years, give or take, and at short-term, between three and six months to three years. However, the latter will also include higher interest rates.

The short-term business loans Arizona are designed for business owners that need cash and they need it now. This could be for a number of reasons (need to make payroll, want to purchase a building, need to do some important renovations or upgrades to pass inspections) — all of which are time sensitive. These loans can be approved and turned around with cash in hand for the borrower within as little as 48 hours, give or take. However, ultimately, these loans can be more difficult to pay off because of the shorter repayment time allotment plus the additional high interest rates.

With long-term business loans Arizona, the time frame for repayment stretches over a much longer course of time, and they are amortized loans, which means that the loan needs to be paid in fixed installments through the duration of the payment terms. This is similar to how homeowners pay their mortgage — with principle and interest all together. But sometimes there is a balloon payment required at the end of the terms, meaning the borrower much pay the remainder of the loan back in one large sum, which can be difficult as well.

Be sure you are aware of any penalties.

While you would think that paying your loan back early would be rewarded, it can actually work against you. Some loan agreements charge a penalty for early payment (likely because they would like to keep receiving that high interest through the term of the agreement).

Give a professional a call to help you understand the intricacies of repayment terms.

When seeking a loan and understanding all the ins and outs of this complicated application and agreement contract, it’s important to work with someone you can trust. Level 4 Funding’s lenders are professional, experienced and they care about finding you the right loan with the repayment terms that work for you and your business. Give us a call today and let us help you discover how easy and simple the loan process can be.

Sunday, April 29, 2018

How to find the right hard money lender for your next project

Just because you cant secure a traditional bank loan doesn't mean you don't have other options, you may have considered a hard money lender but where do you start? What should you expect from a potential lender, and what will a lender expect from you?

A quick google search for private lenders should turn up an endless array of financing options. Because you might need a specific type of lender to match your particular project an online search can prove to be a little overwhelming. You could always try to be more exact with your search terms, trying things like ‘private rehab loans,' or ‘private construction loans.' Being specific with your online searches may help you find the lender that is right for you, but this isn't always the case.

Consider using one numerous lender databases available online to narrow down your financing options. The ideal database would allow you to aim your search for lenders based on the amount of financing you need or will enable you to search for lenders based on your specific project, (i.e., Renovation, construction, commercial, etc).

If you'd rather avoid the hassle of searching for a lender on your own, you could seek out a referral from a licensed mortgage broker. Local real estate investment groups could also put you in touch with lenders they have worked with in the past.

If you find the right lender, the question then becomes what should expect from them and how do you know you're getting the best possible deal.

What should you expect from a potential hard money lender during the application process?

Search relevant government databases to ensure your lender is licensed. Your lender should also be transparent throughout the process. Ensure that they meet their published guidelines related to fees and closing costs. You should also be wary of teaser rates offered by unscrupulous lenders.

Know that every private lender is different and will have their criteria when it comes what they expect from you as a borrower.Ask your lender to be transparent about any documentation you might need throughout the loan application process.

Know what your hard money lender expects from you to get the best deal possible

This type of loan is often used to finance rehabilitation and construction projects.If your seeking financing for renovation or construction, a lender will want to ensure that you are competent and knowledgeable about your project. In these cases, before approaching any lender, have details about the property you wish to purchase, a budget for your renovations and thorough projections about the future profitability of your project. You build up your lenders confidence and gain room to negotiate by demonstrating your understanding of a project's potential.

You need to have a detailed understanding of what your property is worth to qualify for the best possible loan. A private lender usually bases the amount of financing offered on the market value of the property you are purchasing. You won't qualify the largest possible loan if you don't have a good sense of what your property is worth.

Thursday, April 26, 2018

Which type of Hard money loan is right for you?

The "hard "asset being financed secures a typical hard money loan. But there are different types of asset-based loans, so how can you figure out which one is right for given your specific circumstances?

Asset- based lenders consider the value of the property which secures the loan rather than a borrowers credit score, so this type of loan can be more accessible for some borrowers.

The application process is easier than a traditional bank loan as borrowers don't need to provide extensive financial documentation in most cases.

Typical types of asset-based loans include commercial, renovation and cash-out refinance loans. Businesses rather than individuals take out commercial loans.This type of loan is short term, and it is not typically used to purchase real estate or to make long-term investments. Instead commercial loans should be used to cover short-term costs like equipment or inventory.

Borrowers use renovation loans to improve a property and then resell it for a profit. Refinance loans allow borrowers to quickly purchase a property and then later refinance to a traditional mortgage.

So what are some specific situations and how do they relate to these particular types of asset-based loans?

Evaluate your situation to determine which type of hard money loan is right for you

An asset-based loan could be a good solution if your business has sufficient collateral and you cant secure financing from a regular bank. If you want to renovate a distressed property, an asset-based lender is your best bet. Few banks are willing to issue renovation loans because raising the required capital is made difficult by government regulations. Traditional lenders also deem such projects too risky because there is a high risk of default if the borrower's project doesn't go according to plan.

A cash-out refinance loan can be ideal if you want to purchase an investment property quickly. A traditional mortgage can take several months to close. A cash-out refinance loan allows you to make the initial purchase while giving you the option to refinance to a long-term mortgage at a later date.

Whatever circumstances asset-based loans provide you with flexibility, but any lender you approach should be transparent and willing to offer advice.

Beware of hard money lenders that cant offer you specific advice about which loan is right for you

There are other types of asset-based loans of course, but a good lender will carefully consider your situation to find the option that can best meet your needs. You should look elsewhere if a lender isn't transparent or is unable to give you insight into your specific situation.

A commercial loan can be great for businesses owners with a lot of collateral, but who are ineligible for regular financing. A renovation loan can allows you to improve and resell a distressed property, and a cash out-refinance loan allows you to complete time-sensitive transactions. In short, asset-based loans are easier to qualify for, can be used to make speculative investments and can close quickly to complete time-sensitive purchases. Carefully consider your specific situation to find the type of loan to meet your financing needs.

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

Sunday, April 8, 2018

How to Benefit From Hard Money

Many borrowers have heard the term hard money but are not familiar with this type of loan or how it can be used. But understanding these loans can open up many opportunities for financial success.

A hard money loan is normally a short term loan that is offered by an individual or private lending group. The loan offer is based on the value of the collateral and not the borrower’s credit score or credit history. This makes asset based lending a very useful tool for certain real estate deals and other conditions when a traditional bank loan is not possible.

Being funded by a person or a small group means that a loan application can be very quickly evaluated and granted. This makes a hard money loan very attractive to a borrower who need funding very quickly to secure a purchase. The drawback is that the loan will carry a larger interest rate and also higher fees in most cases. But the borrower is willing to pay a higher rate for faster funding. Some borrowers will then refinance once the property is purchased while others will keep the short term loan as they are planning to flip the property very quickly.

Another reason that these loans are popular is the fact that they are based on the collateral and not the borrower’s credit. Having bad credit or no credit is not a crime but sometimes it can feel like it is. Getting a traditional loan or mortgage with bad credit is nearly impossible. So people with less than good credit are happy to pay a higher interest rate to get the loan that they need to purchase a property. And the lenders are willing to take the increased risk of lending to a person with bad credit because they are earning better interest. It is a win for both parties involved in the loan.

Novice’s In Real Estate

Getting into the real estate business is not difficult but you need to have the funding to get through the first few deals. Once you have bought, renovated and flipped a few properties, you will have built up a nest egg to uses for future purchases. But getting the money for that first purchase can be very tough. Banks and mortgage lenders are not interested in taking a risk on an unknown entity. But hard money lenders are willing to assume the risk to reap the greater reward.

Many Reasons to Pay the Higher Rates

Being money conscious or even thrifty is good in any business. But there are times when you just need to pay a little bit more to get what you are looking for. Having bad credit, no credit or no credit history are all good reasons to pay the higher rate to secure an asset based loan. The increase in the fees is a much better option than not getting the loan and missing a great opportunity to make a deal and turn a great profit.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Monday, March 19, 2018

How Short Term Commercial Loans Can Help Your Business Dreams Come True

Can you really take your business to the next level? You can with the help of commercial loans to help you finance the next phase of your company, and Level 4 Funding explains how.

If you need cash fast to put a down payment on a property for a new location, for example, short-term commercial loans are the perfect option. Unlike conventional bank loans that typically have five- to ten-year terms, short-terms are defined by shorter repayment schedules that are designed to be paid off in between three months to three years. Usually these loans have higher approval rates than long-term loans, and can be paid in smaller daily or weekly payments versus a monthly lump sum. Ensure you can manage the daily or weekly payments prior to agreeing on the terms of this loan.

Short-term commercial loans are great for businesses because they are typically approved a lot quicker, which means you get cash in hand quicker in comparison to a conventional lender application and approval process. New businesses can get approved for these loans, which can actually make it easier for them to get approval for long-term or more traditional loans in the future. Prior loans — and proof of paying them off — give lenders peace of mind that you can pay off a loan.

Short-terms are also easier for new businesses to get approval or for companies that haven’t yet established a business credit history. Once credit history is established with a short-term loan that is another way to help future loan approvals from traditional banks. Usually lenders specializing in shot-term loans do not require a minimum on credit score as conventional lenders typically do, especially for long-term loans.

One of the best benefits of short-term commercial loans is that their approval time is fast – which means you can get your funding fast.

With these loans, businesses can receive their cash advance in just 24 hours, give or take. This is important for many reasons as a company is looking to expand, but it can also be just the thing a business needs if they are cash-tight and need to handle payroll or pay their vendors. Fast cash is one of the reasons short terms are so desirable for new and expanding businesses that are having growing pains or “tight” times.

It’s important to know that while there are many benefits to short terms, there are some disadvantages to be aware of, too.

While these short terms are very helpful to businesses, there are some drawbacks. For example, the annual percentage rate tends to be much higher with loans like this than the APR of conventional loans because the amount of time the loanee has to pay back the loan amount is much shorter. While there are very short reschedule periods of three to six months, it might be more reasonable to negotiate a (relatively) longer payment schedule up to three years. There are also lender fees and other costs that may be associated with short terms so it’s important to know what those are before you proceed.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Saturday, November 21, 2015

Is House-Flipping with Hard Money Lenders in Texas a Successful Venture?

House flipping using funds from hard money lenders in Texas is still popular, but many people looking to get into the industry wonder whether it can still provide returns like it did in previous years. Not only is it a lucrative business, but it’s also growing, which means those who know how to do it well are seeing in excess of 50% ROI.

The industry saw a slight decline in the number of flipped homes that were selling earlier this year. However, when Realty Trac released the third quarter results, there was actually an 18% increase over last year. With the economy recovering, buyers are getting pickier about what they’ll accept in a home, and they’re looking for houses that are ready to be moved into. The number of flipped homes has remained relatively constant since the last have of 2009, and aside from a few quarterly blips, hasn’t changed much more than a small fraction of a percent in years.

What has changed, however, is the amount of profit rehabbers are bringing in. Although Realty Trac didn’t cover any Texas real estate markets, several regions throughout the country boasted an average profit of more than $200,000 per sale, and one area even topped $350,000 profit. In some of the more modest markets, house flippers received at least $40,000 per rehab project.

There is presently a perfect storm occurring in many markets across the country, which bodes well for rehabbers. Home values are on the rise, and people want turn-key homes. Hard money lenders in Texas have money ready to lend for these projects, though it’s worth noting that the number of homes that are ideal for fix and flip projects is shrinking.

Get Funds from Hard Money Lenders in Texas, Be Successful by Appealing to Your Buyers

Hard money lenders in Texas can give you the funds you need to do a home makeover, but if you want to get the most for the money, you need to identify who the buyers are in your particular market, and design the home for their tastes. This time around, Realty Trac focused on millennials and baby boomers who are buying homes, and noted how each group is looking for something very different in a new home. As you approach a new project, check out the demographics and see who inhabits the neighborhood. For instance, millennials tend to look for open floor plans and low-maintenance features. They’re also not into pricey details, so you can skip things like crown molding. Boomers, on the other hand, still appreciate the fine touches that make a house more elegant, though they’re also budget conscious and don’t want an overwhelming mortgage.

Competition is tough for rehab homes, and working with hard money lenders in Texas can help you gain an edge.

It’s clear that the profit is there, and that people in the business of flipping homes are getting amazing ROI right now. However, the diminished inventory makes it difficult to find the right home to renovate, and experienced rehabbers are jumping on them fast. When you have financing lined up with hard money lenders in Texas, sellers are more-likely to work with you because they know the transaction will be swift and easy for them. Be true to your buyers and make educated decisions- incredible profits are still being seen across the industry.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

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 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.

Friday, November 20, 2015

Eager to Move? Using Hard Money Lenders, Texas Homeowners Can Buy Before Selling

There are many reasons why a homeowner might want to move before his house is sold, but it’s difficult to do when the funds are tied up in a property. With help from hard money lenders, Texas homeowners can receive what’s known as a “bridge loan,” so they can move when it’s best for them.

For most people, their home is the single biggest investment they will make in their lifetime. Although they may trade it out a few times over the years, the majority of their income is poured into the property. That money gets locked down tight, and banks aren’t keen on releasing any of it back to the homeowner.

However, we also live in a world where moving for the sake of employment is often necessary. There are a myriad of other issues that might come up, forcing a family to have to pick up stakes and move quickly and unexpectedly as well. Unfortunately, with the money tied up in a house, homeowners are stuck.

Occasionally, a home equity line of credit can be issued. This is where the bank will give you some of the money you’ve paid, so you can use it on whatever you need to. However, this option is routinely stripped away once the bank finds out that your house is on the market. Using hard money lenders, Texas homeowners can have access to the equity in their home, even if they plan to move right away.

Working with the Best Hard Money Lenders, Texas Bridge Loans Can Be Right for You

The concept is called a “bridge loan,” simply because it’s designed to be short-term, to help bridge the gap between your move to a new home, and the time your old home is sold. The short span isn’t generally a problem though, because most homeowners only need a couple of months to get their old home sold. With help from hard money lenders, Texas homeowners can obtain a bridge loan, and use it to cover the down payment on their new home. The loan is generally based on the equity you have in your existing home, so even people with poor credit or other issues can qualify for this valuable service. So, not only are they easy to obtain, but they’re perfectly designed to fill the gap and make your housing transition incredibly simple.

When working with hard money lenders, Texas borrowers have access to expert advice.

Traditional wisdom says that you should always sell your home before you purchase a new one, but in the real world, that isn’t always possible or practical. Using bridge loans from hard money lenders, Texas homeowners have another tool in their arsenal when trying to navigate the changes of life. Additionally, the people who provide them are experts in the industry, and are familiar with numerous types of financing options, so you can get all the information you need to be sure that you’re choosing the best option for you.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Monday, November 16, 2015

How to Quit Your Day Job With Hard Money Loans Texas

If you are tired of the daily grind, it may be time to get out of the rat race for good. With hard money loans Texas you can make full time money as a real estate investor. You get to set your own hours, be your own boss, and have more control over your work life.

If hanging out at the water cooler and discussing the office gossip over coffee while you make less than you're worth is becoming old, it may be time to look into hard money loans Texas. Texas hard money loans are a specific type of collateral based real estate loan that can help almost anyone get started in real estate investing. Real estate investing can help you make money and get you out of the office, for good. If this sounds like the job for you, keep reading to learn more about how hard money loans Texas work and how you can use them to your advantage.

Texas hard money loans are cash loans given by private investors and investor groups. They are based on the potential value of the property you want to buy as an investment. You can usually borrower up to 80% of the property's value and you can use other property you own (like your home or another real estate investment) as collateral to borrow more than 100% of the investment property purchase price. This is great news for you because it means that with hard money loans Texas there is little to no money coming out of your pocket.

You can use hard money loans Texas to buy a fix and flip or other short term investment property. You can also use them as a short term bridge loan to help make up for capital that you are expecting soon. Really, the possibilities are limitless, unlike that cubicle job you have right now.

So, what are you waiting for? Get started with hard money loans Texas today!

Learn the ins and outs of Texas hard money by calling us at Level 4 Funding. We can walk you through the process and help you on your journey to building your real estate empire. Who knows, you may be the next Donald Trump.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Tips from Hard Money Lenders Texas: What Makes a Great Real Estate Investment

Hard money lenders Texas know that not all real estate investment properties are created equal. There are some features that make certain properties better investments with a higher potential for earning large profits.

If you are interested in real estate investing, the first thing you need to do is find hard money lenders Texas to help you with your loan. Once you have found a lender you trust, it's time to start searching for a property to invest in. Whether this is your first investment property or your 50th, there are a few things you need to keep in mind as you find the perfect property to invest in.

Choose your location wisely. You can change most things about a property, but you can't change the location (unless it is a mobile home which I don't recommend as an investment property). If you buy a home in a bad neighborhood, it doesn't matter what you do to make it nice, you will not be able to sell it for as much as a comparable home in a sought after area. Do your research on neighborhoods, schools, and even streets to find a house in a desirable location.
Don't take on too much. If you are planning to do a fix and flip with your Texas hard money loan from your hard money lenders Texas, don't bite off more than you can chew. If you don't have the budget to fix the roof, HVAC system, and replace all the windows, choose a home with less work to do.
Don't offer list price. Always negotiate. With your hard money loan from hard money lenders Texas, you will be able to buy the property with cash. This makes your offer much stronger than a credit offer so you have some room to negotiate price. Use this to your advantage.
Have the home inspected. Chances are you will be buying a foreclosure or auction property and it will be sold as is. However, you should still have the home inspected to make sure that no unforeseen issues come up. This will help you stay within your budget and timeline.

Once you have chosen your property, make sure to complete your renovations in a timely manner and stay as close to budget as possible. Use your Texas hard money loan to fix up the property quickly and sell it for top dollar. Once you have paid back your Texas hard money lenders, the rest of the profit is your to keep.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
dennis@level4funding.com
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

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Tuesday, May 15, 2018

Sunday, April 29, 2018

Just because you cant secure a traditional bank loan doesn't mean you don't have other options, you may have considered a hard money lender but where do you start? What should you expect from a potential lender, and what will a lender expect from you?

Thursday, April 26, 2018

The "hard "asset being financed secures a typical hard money loan. But there are different types of asset-based loans, so how can you figure out which one is right for given your specific circumstances?

Sunday, April 8, 2018

Novice’s In Real Estate

Many Reasons to Pay the Higher Rates

Monday, March 19, 2018

Can you really take your business to the next level? You can with the help of commercial loans to help you finance the next phase of your company, and Level 4 Funding explains how.

Saturday, November 21, 2015

Get Funds from Hard Money Lenders in Texas, Be Successful by Appealing to Your Buyers

Competition is tough for rehab homes, and working with hard money lenders in Texas can help you gain an edge.

Friday, November 20, 2015

Working with the Best Hard Money Lenders, Texas Bridge Loans Can Be Right for You

When working with hard money lenders, Texas borrowers have access to expert advice.

Monday, November 16, 2015

So, what are you waiting for? Get started with hard money loans Texas today!