Category Archives: Arizona hard money loan

Can You Work with Hard money lenders in Arizona as a First-Time Investor?

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iStock_000067965589_XXXLarge v1One of the biggest questions first-time investors ask is whether they can get approval from hard money lenders in Arizona or not. The truth is, you can get funding, but you’ll have to demonstrate knowledge.

Real estate investors turn to hard money lenders in Arizona for a myriad of reasons. Sometimes their projects simply won’t qualify for a traditional loan at the onset, while other times having cash ready to go helps ensure they can grab the property before someone else does. First-time investors face additional challenges, as banks usually need to see a track record for success before they’ll put their money on the line as well.

Ergo, most seasoned investors work with hard money lenders in Arizona on a regular basis and keep this option in their toolkits for various situations and property types. As a newcomer, you’ll want to become established with professionals you can trust as well, so that you can turn to them as needed and streamline the process for subsequent projects. Getting that first approval can seem daunting, though.

On the bright side, alternative funding options aren’t set up like banks, which means that you don’t necessarily have to have a portfolio of successful projects in order to get approved. With HMLs, the biggest concern is the value of the property, meaning if you can grab real estate for less than it’s worth, the odds of getting approval are relatively high. You’ll often hear the term “loan to value” or “LTV,” which refers to the amount of your loan in relation to the value of the property. For example, if the property is worth $100,000 and you’re requesting a $70,000 loan, your loan to value is 70%. Sometimes, HMLs will go as high as 90% LTV.

If You Have Some Experience, You Can Get Funding More Easily

Naturally, the LTV is only one part of the equation. If you have some kind of experience which relates to the project you’re undertaking and have a strategy to overcome difficulties along the way, that will impact your ability to get funding too. Many first-time investors have backgrounds in the mortgage industry, real estate, appraisals, home repair, or similar, so it’s easier for them to understand the value of a project, what must be done to increase value, and what the property will likely sell for upon completion. This type of experience really shines when an investor is pitching his or her idea and can often help overcome a lack of formal investment experience.

Don’t let lack of funding stand in the way of your success.

Ultimately, the best way to know if hard money lenders in Arizona will work with you is to talk with a broker before applying. A great broker will walk you through the process, let you know what HMLs are looking for, and make suggestions specific to your situation that will improve the chances of getting an approval on the first go. If you’re still denied, ask lots of questions to find out why and learn what you can do to improve the odds next time around. First-time investors absolutely can get funding; having a solid strategy and finding the right HML for your needs are the vehicles that will get you there.

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

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Can Arizona hard money loans Give a Helping Hand when Facing Foreclosure?

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male-frustrated-with-exclamation-pointsPeople who are facing foreclosure often look for creative ways to save their homes. Arizona hard money loans can help in these situations, but you must know how to evaluate which options are best.

If you’ve found yourself in hot water with your mortgage company, the first decision to make is whether you genuinely believe you can catch up your payments or if the best solution is to give up your home. If your plan is to save your home, you will need to work out a budget and plan for repayment of the past due balances. If you believe you cannot get caught back up, then the best course of action is generally to identify which options will help you move on without sinking your credit.

Ideally, your first point of contact should be to your existing mortgage company. If you already know how much you can afford to pay back each month, they may be able to give you an alternate payment plan that will help you avoid foreclosure to begin with. Sometimes, banks will also agree to a “deed in lieu of foreclosure,” meaning you’ll sign the home over to the bank, or they may agree to a “short sale,” which refers to selling the home for a price that’s short of what is owed. This option is generally only viable if the bank is considering auction and you’ve got a reasonable offer. It can help minimize the impact on your credit, but it can still drop your score 100-150 points. Considering that bankruptcy can reduce a score by 150-240 points and still may not help you save your home, a short sale may be the preferable option. Conversely, speaking to your mortgage company about having someone assume the mortgage, or take it over, could also work, though most contracts specifically exclude this option.

Lastly, Arizona hard money loans can be a viable option to help you bridge the gap, regardless of whether you plan to keep your home or not. Depending on the terms offered, you may be able to qualify for as much as 90% of your home’s value. The funds can then be used to pay off your existing mortgage, buying you some time to sell the home for maximum value, in which case your credit score won’t take the same hit as it would with a short sale or bankruptcy. Or, you may take advantage of reduced/ interest-only payments for some time until you’re able to qualify for a traditional mortgage again.

If You Can Work Out a Strategy, You Can Save Your Home

Whether you’re going with Arizona hard money loans or any of the other options mentioned, having a strategy is paramount. You will need to know what your end goal is and have worked out your financials in advance; do not move forward unless you know you will have the funds to meet obligations. Granted, this is common sense, but the possibility of losing one’s home can cause some to make emotional decisions, such as moving forward with the hope they’ll be able to pay, rather than the knowledge they will.

Set realistic expectations before settling on a plan of action.

When you’re facing difficulties, such as a potential foreclosure, there are no magic bullets. Explore your options carefully and learn the benefits as well as drawbacks of each. If Arizona hard money loans seem like the best possible option for your needs, talk to a seasoned broker to get the best terms possible.


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

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

BECOME SUCCESSFUL WITH ARIZONA SPEC HOME INVESTING

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536349311You’ve heard the term, but what is an Arizona spec home? Is it a smart move to invest in one?

Speculation building is a significant part of the new home construction market. Since 2016, close to three quarters of new single-family houses have been built on “speculation”- meaning, the home was built with an intention to make a profit. When the market is healthy Arizona spec homes are abundant because builders can build them quickly, sell them even faster and use the profits to build even more Arizona spec homes. This is a potentially large profit-making probability; financing these types of projects can be arduous.

There are many factors, for an investor, to consider when making a decision to be involved in the building of an Arizona spec home. It is imperative that the investor has a complete and thorough understanding of the local housing market. The challenge lies in balancing costs of the home’s features with what will ultimately make the home sell. Crucial factors, for the investor, to consider are: the local job market, design and architect and local housing prices. It is also necessary to keep the house nonspecific enough that it will appeal to the masses of buyers versus just a select population. These are key components that investors will take into account when making a determination on an investment.

What do I need to know about finding a spec home investor?

The investor will always have full control of the project’s expenses. Spec houses are just that, a speculation of sale. If the local buyers needs aren’t met, it can result in a loss versus a gain for the investor.

There are banks that lend for spec builders. However, banks tend to offer most of their lending toward custom homebuilding and large developments. That leaves room for private investing. In Phoenix there are a multitude of large new housing developments. It is becoming more common to invest in Arizona spec homes because it is becoming harder to find distressed homes to invest for fix and flips.

Hard money investors are the way to go when it comes to funding a Arizona spec home. The loan will be a shorter duration than a traditional bank. There is a high demand for new homes in many metropolitan areas. In a market with high demand and low inventory it is always a good time to build a Arizona spec home; and a Arizona hard money lender is your best bet when it comes to funding that project. It is of essence that you chose a location that your lender is comfortable with. Phoenix and Las Vegas, for example, are both booming cities with room for growth and a fast growing population. Arizona hard money lenders can provide fast funds for Arizona spec homes that would be near impossible with a traditional bank. The borrowers responsibility can run from no money down to upwards of 50% down.

What do I bring when I meet with a hard money lender?

Before you meet with a potential lender; gather all documents concerning your financial position and collect as much information, as possible, about the property. You will need your previous two years’ tax statements, all bank statements, your business’ profit and loss statements and a listing of all your assets and liabilities. When it comes to the property, you will need: a budget, a list of all materials that will be needed and income and expense statements. Some lenders will require more than others. However, it is always best to be over-prepared when meeting with your investor.


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

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

HOW TO UNDERSTAND ARIZONA CONSTRUCTION LOANS

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4page_img5-bigBenefits of Arizona construction loans and how to understand them.

Home development is a pretty complex process. Taking out a loan can be a very complicated part of the process. What exactly is a construction loan? In essence a construction loan is short-term, interim loan for the construction of a house. The terms of a construction loan are usually a maximum repayment period of one year; and the rates on these loans are higher than traditional mortgage loans. They also have variable rates. A variable rate means the monthly payment will slide up and down with the prime lending rate.

There are two types of Arizona construction loans. The first is a construction-only loan. In this scenario the borrower takes out two separate loans. The first is exclusively for the construction of the loan. After you move into the completed home, you will take out a mortgage loan. A construction-only loan will not require a large down payment. If the borrower has limited cash flow, but knows their financial situation will improve after the sale of the home, this is a good choice.

The second type of construction loan is a construction-to-permanent loan. With this type of construction loan you borrow the funds for the construction of the home. Then, once the construction is complete, that loan is turned into a traditional permanent mortgage. When the borrower is approved they will follow a schedule of the construction of the home. During the construction of the home the borrower will typically make interest-only payments.

How to qualify for a Arizona construction loan

Gaining approval for a construction loan can be more difficult that qualifying for a traditional mortgage. When you have a traditional montage your home acts as an asset. In case of default, the bank can take your home for collateral. With a construction loan, the bank has nothing to seize because nothing has been built. So, what will you need to qualify for this type of loan? You will need to be prepared for a down payment up to 20%, a history of stable employment (income), have a low debt-to-income ration and impeccable credit. You will also need to gather pertinent information concerning your building plan. (This will be everything from the house size to what contractors will be employed to build the home). Lenders will want to know everything about the home there is to know. Very often, the lender will send an employee to check on the construction’s progress.

Are you eager to build a new home?

Be aware that Arizona construction loans can be more convoluted than traditional mortgages. It is necessary to look at many lenders to find out their expectations of the borrower; learn their rates and terms. There will be many lenders that do not want to work with this type of loan. Typically, credit unions and smaller banks will be more wiling to work with you. Be sure that before you shop around for a contractor you are pre-approved for a loan. Once you work with a contractor you will pay for blueprints and the design of the home. Wait until you know where your funds are coming from before diving into this project.


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

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

ARE THERE LENDERS THAT WILL APPROVE A LOAN WITH ONLY 10% DOWN

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iStock_000004311792XSmallWhat type of down payment do I need for a hard money loan?  Is a down payment required?

The answer is, no a down payment is not always required. However, there is a difference between needing your own money for a down payment and being prepared to use some of your own money towards your potential property. Certain lenders will require a certain percentage as a down payment— that percentage can be calculated from your credit score and/or your real estate investing experience. Don’t get nervous; Arizona hard money lenders are not as concerned about your credit as they are your hard assets. You DO NOT have to have perfect credit to be approved for a loan. Most Arizona hard money lenders will work with you if you have a FICO score of at least 550. However, depending on the lender, you may have to put a little more of your own money down. Lenders that require a down payment usually will ask for between 10%-20% down with decent credit and around 25%-30% for bad credit—remember this is SOME lenders.

The good news is there ARE lenders who will only require a 10% down payment (and you may find one that doesn’t require one at all—although, that may be prove to be a little more difficult). With only 10% down, you are looking at a lender that will fund your investment at 90%.

All lenders use a different underwriting process. Underwriting uses the criteria they gather from you to assess the lender’s risk. That criteria will determine if there is a down payment; or determine the total down payment. Regardless, of the process they use it will be a much more lenient process than a traditional bank loan.

Can I find an Arizona hard money lender that will fund 90% of my investment?

Absolutely! However, you will have to research for those lenders and find out their requirements. Arizona hard money lenders that ask for a down payment are doing so to lower their risk. Also, borrowers that have something to lose put extra effort into the project.

A lender may fund you 90%, leaving you with only 10% of the cash flow to produce. Keep in mind that many times a borrower may not have to put much money as a down payment, but will have a money gap. If there is a money gap you will need gap funding. Gap funding is the money needed to fund an endeavor that is not currently being provided by debt, cash or equity. Essentially, it’s a second mortgage on a fix-and-flip or rehab loan. You can get gap funding from a Arizona hard money lender, as well. Make sure when you meet with your lender you ask them about money gaps.

You can get into real estate investing with little or no money of your own.

It is possible to get a hard money loan with only 10% down. However, you must fully comprehend your circumstances and what tools will be necessary to make that happen. Find a lender that you feel comfortable with, set up a meeting, bring all your information and, most importantly, ask questions!


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

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Arizona Construction Loans: How to Risk Less by Avoiding Extension Fees

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Brandon-Abney-Arizona-Home-Mortgage-FHA-Specialists-150x150If you are in the middle of building a house for yourself or you are in the middle of a renovation project, you need to know that with Arizona construction loans, there is an ugly little thing called extension fees. Learn why you want to avoid extension fees and some strategies to keep your project on track.

With construction projects, loans are distributed through a pay-as-you-go approach. You get a specific amount to pay for each step of the project, but you rarely get the full loan amount up-front. Most loans for residential construction projects last 12 months, but if your project stalls then extension fees come into play.

Extension fees are unfair in principle. You’re basically paying extra money to get access to money that is already yours in the first place. Yes, this practice may seem unjust, but these fees exist nonetheless, and it is in your best interest to learn how to avoid them.

The first way to avoid these fees is to scrutinize the terms of your loan and see if extension fees apply in your case. If they do apply, you need to plan your project carefully.

With Arizona Construction Loan, Extension Fees are a Danger you want to avoid.

Extension fees can eat away at your project’s budget.

If you can’t finish a project on time most often your lender is more than willing to extend the term of your loan. But they will likely charge you X amount of dollars each month until your project is finished. These fees are usually drawn from your remaining loan balance.

Slowly but surely these fees can eat away at your projects remaining budget. Month by month the money you have on hand to actually finish your project slowly withers away. In the worst-case scenario, you might not even have enough money to finish your project. So what are some tips to avoid this nightmare?

With an Arizona Construction Loan plan ahead to avoid the danger of extension fees.

First, you need to plan for the most common reasons any project gets delayed:

  • Permitting problems: Ponderous bureaucrats with clipboards can stall your project for several weeks. Do your best to ensure your property is up to code to avoid this situation.

  • Weather problems: Rain, mud and generally miserable weather can keep any work from getting down on your construction site. There is really no way to avoid this, except for ensuring that work is carried out during a generally favorable season.

  • Contractor issues: grumbling or lazy contractors may not finish the work you asked them to perform on time.  Only work with the most reputable contractors to ensure your project stays on schedule

  • Plan Revisions:  the other issues listed are generally beyond your control. But you can develop a clear plan and stick to it!

No doubt every project will have its delays, so you may want to have little extra money on hand to cover unforeseen costs. But above all, have a clear plan, swear by whatever you hold sacred not to divert from that plan and you can avoid extension fees.


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

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Arizona Private Money Lenders: Three Situations Where Private Money is a Win-Win

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2page_img3-bigTo truly grown real estate investment business you need two things:  You need capital to expand, and you to need close on the best investment opportunities as quickly as possible. Arizona Private Money Lenders offer both. However, there are some specific instances where private money outshines other forms of financing.

When it comes to financing real estate investment there, are, of course, many financing options out there. Yes, you might ponder going to a traditional bank, but the likely outcome is that your deal will choke to death amid all the red tape.

Some consider online crowdfunding platforms, but as smalltime real estate investors ponder the terms of your deal, your loan will sit unfunded. In fact, online crowd funding is perhaps an even less reliable source of financing than a conventional bank.

To really grow your real estate investment business you need cash. No not a suitcase full of money but a readily accessible source of financing that can allow you to make full offers right away on the best investment properties. 

Private lenders are perhaps the most convenient, flexible and accessible source of financing out there. They are not bound to rules and regulations like traditional banks, and unlike online crowdfunding sites, they have the means to fund your loan fully.

But there are specific instances where private money really is your best option.

The Benefits of Arizona Private Money Lenders Really Shine in these Specific Situations:

Bad Financial Situations:  Private lenders aren’t under regulatory scrutiny like banks, and therefore no matter what your credit score is a private lender is at least willing to sit down with you and can thoughtfully consider the terms of your deal.

  • You need financing “yesterday,”: Say you want to make a full offer, but you don’t have the cash on hand to close the deal. Better yet you might be in a situation where your latest real estate project will crumble without a quick injection of capital. If this is your situation, you don’t have time to wait around for the bureaucratic nightmare entailed by the traditional lending process. Private money providers have the flexibility to close loans in a matter of days.

  • There is a “bidding war,”: If an especially shiny investment property has just come onto the market, your fellow investors might be chomping at the bit to seal the deal. Once again private money can come through quickly,  and this can enable you to make a full cash offer before your competition does.

In these specific situations, private money outshines other forms of capital.

Regardless of your specific situation private money offers flexibility, speed and convenience to real estate investors.

Private Money Lenders in Arizona offer many benefits to those looking to quickly grow their real estate investment business.

If you need it fast access to capital, are tired of waiting around on banks to fund your deals, or if your financial situation is less than perfect, take advantage of private money and bring your real estate investment business to the next level.


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

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Tactics to Increase Eligibility with Arizona Hard Money Lenders

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iStock_000004067318XSmallIf you intend to rehab single-family homes, you may be wondering what type of financing is right for you.  Consider the benefits of Arizona hard money lenders and learn some tips on how to qualify for this type of loan.

The great recession is a far distant memory. Home prices are on the rise, and this presents a significant opportunity for those who are in the flipping business. Zillow estimates that nationwide home prices will appreciate by 6.4 percent by the end of this year.

However ordinary banks are inconvenient, and the bank application process is certainly not going to keep pace with the overheated housing market.

To be sure conventional banks are lending again but only to the strongest of borrowers. At the very least, anyone who seeks financing from a brick-and-mortar bank should expect to have a credit score of 600. Furthermore, to get the best deal from a conventional lender you need to have a credit score within the range of 700+. So if your credit isn’ t in that range, going to conventional lender is essentially a waste of time.

If you aim to flip homes, even if you have stellar credit, the condition of the property you want to invest in will bar any chance that your loan application will be approved.

So where do you go for financing? Hard money providers.

Why are Arizona Hard Money Lenders the best lenders for House flips?

With hard money, there are no “boxes to check,” when it comes to the condition of the property being financed. In the case of hard money its the potential of the opportunity that counts. The application process typically comes down to an appraisal of the property in which you aim to invest. But above all your eligibility and the terms of your loan will come down to your ability to demonstrate the upside of your flipping project.

With hard money, to get the best deal, you need to do whatever is in your power to demonstrate the potential of your project.

You can increase your eligibility with Arizona hard money lenders with the following tactics

  • Have a sense of the numbers: Before approaching any hard money provider, you should have a clear financial plan when it comes to your specific project. These lenders give loans as a fixed percentage of the property’s value after repairs. Know the purchase price of your property, and have a clear budget for the particular renovations you want to make. These numbers will show you how much financing you need and how much profit your project will earn after resale. These numbers give your hard money provider concrete assurance that there is a real opportunity in your flipping project.

  • Cite relevant statistics:  Be able to talk about the specifics of your deal by pointing to relevant data concerning the local market.  Refer to similar investment properties, and know how much they re-sold for; use this knowledge and demonstrate your wherewithal to a potential lender and increase your chances of qualifying.

Using these strategies will help you prove the potential of your project to your prospective lender.

To truly take advantage of the overheated housing market, you need to avoid conventional banks. If you are in the flipping business, even if your credit score in the stratosphere, a conventional lender is unlikely to give your project a fair hearing because of the properties condition. Avoid all this hassle and see a hard money provider first.


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

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

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Spec Home Financing: Tactics to Increase Eligibility

Arizona hard money lenders, Arizona hard money loan, Hard Money Lenders, Hard Money Loan, , , , ,

p1_img2The continued recovery of the real-estate market may have you pondering the construction of a spec home. When it comes spec home financing learn some of the basics of how these deals are structured,  what a lender will expect from you and how you can increase your eligibility.

Spec home loans are used to construct homes before an actual buyer has been secured. You get a short-term loan to cover the cost of construction. After you finish construction, you either sell the house or refinance to pay the balance of the initial short-term loan. Naturally, when it comes to spec homes, there are a lot of risks involved.

First the lender has nothing to repossess if you default, expect a hole in the ground. Second you don’t even have a buyer in place. Your finished home might sit there for months on end, crumbling to dust and filling with cob-webs, all the while your loan goes unpaid and your lender is at a loss.

Considering all this risk what do you need to do to increase your eligibility?

Eligibility in the Case of Spec Home Financing Comes Down to how likely is it that the property will sell? How much equity does the borrower have in the deal?

In the first place, your lender will want to know the land you aim to purchase has access to roads and utilities. Obviously, your chance of qualifying will be made far more difficult if you intend to build a multiplex condo development in the middle of the woods.

A similar standard comes into play when it comes to your proposed project. A neoclassical surrealist home complete with faux-fur finishes is not going to qualify for financing. Your proposed home should appeal to the average buyer, which assures your lender that after construction is complete, someone will actually purchase your new home.

Also expect to make substantial down payment. The risk implied in these types of deals means few spec lenders are willing to offer more than 85% of projects projected value after completion, so you as a borrower should have the funds on hand to make up the difference.

Some lenders will also want to look into your savings in case your project runs into any unexpected difficulties. They may scrutinize your credit score, tax returns or other pertinent financial documents.

But above all, you need to prove your worth as a borrower when it comes to financing a spec home.

Try these tactics to increase your eligibility for Arizona spec home financing.

There’s obviously a lot of risk in these sorts of deals, and a lender will need a lot more assurance than just a credit score to approve your loan. Good credit or bad, there is no substitute for a compelling business plan. 

Have a very detailed plan with nearly every aspect of your project worked out ahead of time including blueprints, budgets, and precise timetables. Having a clear timeline of how your project will proceed is of vital importance. Your lender will want to know when your spec home will actually be finished, and when they can expect repayment.

Above all, you should be able to tell your lender the “story of your project.”  This story should not be make-believe and based purely on your own conjecture. Have a clear plan which should include projections of the profit that can be earned based on statistical evidence. Look at similar projects in the immediate area and know how much they sold for, this information can lend credence to your projected valuation.

In short, be sure that your proposed project is in line with the realities of the market. But above all have a clear plan. Use evidence to back up your projections. Employing these strategies will increase your eligibility for financing and help you get your spec home project off of the ground.

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

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

100 LTV Hard Money Lenders: Things to Consider.

Arizona hard money, Arizona hard money lenders, Arizona hard money loan, , , ,

Business cardDo 100 LTV Hard Money Lenders offer no money down financing to real-estate investors? The answer is yes, but, only for a certain type of borrower.

Say you want to secure financing for the full market value of your next investment property. This is known as a 100 LTV loan and it is something of a holy grail or unicorn of sorts in the real estate investment community. First you need to understand what LTV is and why its so important to lenders.

Loan-to-value ratio equates to the total size of your loan divided by the fair market value of the property you aim to purchase. Lower LTV equates to less risk for your lender. With a 100 LTV type of deal your basically telling your lender, “no I’d rather not pay a single cent of my own money, I want you dear lender, to take on all the risk for my next deal. So that if my next project goes belly up I wont lose a dime.”

Such a deal is good for you, but not so good for your lender.

Its easy to understand why these types of deals are so rare, but if your heart is set on finding this type of financing, just know that no lender worth their salt is going to get in with you on a long term investment.

100 LTV Hard Money Lenders prefer to fuel the cost of short-term deals

Don’t expect to get a 100 LTV loan if you intend to hold onto the property long-term. In this case, long term investments represent a huge risk for a lender. The longer a property sits on the market, the higher the chance that market conditions will change and that your lender will take a loss.

Therefore, this type of loan is usually reserved for those who intend to rehab a prospective property. A 100 LTV loan which covers the full cost of purchasing a ramshackle, tin-pot house in a pristine neighborhood, actually presents a real short-term opportunity for a lender. If you intend to restore said home to magazine worthy condition, and then resell it, you might be able to get a 100 LTV loan.

So, in 100 LTV type deals, lenders want the assurance of a quick payout. To even consider applying for this type of financing, you need to have a clear plan in place for how you are either going to re-sell or refinance your property in short order.

However, the best way to qualify for 100 percent financing is to have a proven track record of real estate projects. Having experience will give your lender confidence in your ability to generate a return.

The best tactic to increase your eligibility with 100 LTV Hard Money Lenders is to develop a personal relationship with them

Let’s face it this type of deal presents your lender with a lot of risks. Without a down payment your lender basically has nothing to fall back on if you default. If you don’t have a proven track record of successful development projects standing behind you, your chance to qualify for 100% financing are pretty slim. If you are a real estate novice and someone is offering you no money down financing, well beware. Common sense should prove the danger of ‘no money down, zero interest type’ financing.

In the long run, to get 100 percent financing you need to build a personal relationship with your lender, and this takes time. Yes, you could put together the most excellent plan imaginable to show your lender the potential of your project. But there is no supplement for the trust that comes from an established relationship.

As you close more deals and gain more experience, your lender will have more confidence in your abilities which will allow you to capture the benefits 100 LTV, no money down financing.

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

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

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions