Category Archives: Arizona hard money Mortgage

What You Need to Know If You Are New to Investment Property Financing


2page_img3If you think that obtaining investment property financing will be as easy as getting your home mortgage, think again. Prepare for funding your first investment property with these tips.

The default rates for borrowers on investment property loans is higher than home mortgages. Because of this, lenders require higher down payments and rely on strict underwriting for Arizona Investment property financing.  This means that, if you’re purchasing an investment property, be prepared to put down at least 20 percent of the purchase price.  There are, however, exceptions and percentage rates are often based on the type of property. For instance, anywhere from 25 to 40 percent may be required for multi-unit properties.

The advantage of a commercial loan is that the borrower is not required to carry mortgage insurance.  Conventional loan programs allow 80% LTV and, for investment properties, this is a best-case scenario.  You will also want to explore crowdfunding websites for real estate. While these tend to be more expensive, they are often more flexible than conventional loans. Before entering into an investment property, you should have at least three months payments as reserves.

Both interest rates and upfront lender fees are higher than conventional mortgage lenders.  Lenders advertise that their rates will be 0.25% to 0.5% higher than their homeowner loans. You should expect 1 to 3% points higher than owner occupied loan rates. If the lender charges 4% interest for their homeowner loans, you can guestimate an interest rate of 5%-7% for investor loans.

In addition to the interest rates, you will be charged up front points for a mortgage loan.  One-point equals one percent of the total amount of the loan. You can see how these fees add up quickly. Make sure you have reviewed your credit report and credit score. If your credit score is below 740, you will have higher interest rates, higher lender fees, and lower LTVs for your investment property.  If you have a mid-level score, then a conventional loan may not be an option. However, the collectable (property) is reviewed more than you as a borrower. As we mentioned earlier, homeowners are far less likely to default than investors. Lenders have built in loan programs with lower LTVs as caution to default.

The Effects of Multiple Mortgages on Investment Property Financing

If you are carrying multiple mortgages on your credit report, your options are dwindling.  Once you hit the threshold of four mortgages on your credit report, you may be untouchable by conventional lenders.  Fannie May has established a program to help investors that allows 5 to 10 mortgages. Fannie May’s program requires 6 months payments in liquid reserves at the time of settlement.  The program requires 30% down for 2 to 4 units and 25% down for single family homes. You are persona non-grata if there are any foreclosures or bankruptcies or late mortgage payments.  You will need a credit score no less than 720+ if you have 6 or more mortgages.

If you have 10 or more properties, you have slim options.  A good starting place is community banks. Blanket loans issued by commercial lenders are secured against multiple properties.  Be sure to ask what happens if you want to sell a property in the package.

Hard money lenders are an option that many investors turn to.

Level 4 Funding solves Arizona investment property financing issues while offering the lowest possible rate term. Real estate investing has made millions of individuals millionaires. Don’t hesitate because you are unsure of your investment worthiness. Call us today for a no-obligation quote.


Dennis-Dahlberg-Mortgage-Broker_thum[1]_thumb_thumbDennis 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

Spotting a Business Loan Arizona That Is Too Good To Be True

Looking for a great deal on a business loan Arizona is smart. But you need to be able to determine which offers are legitimate and which are actually a scam.

When you are searching for a business loan Arizona, it can be difficult to tell which lenders are legitimate and which are actually running a scam just to collect fees from unsuspecting potential borrowers. But completing your due diligence will reveal some information that will give you a good indication of which firms are legitimate and which are scams. There are some legitimate lenders who do request a processing fee when you submit your request. So that is not always a sure sign of a scam but there are a few dead giveaways.

When researching lenders to submit loan applications to, it is wise to always eliminate any that are outside the United States. This will greatly help to reduce the number of shady or fake lenders that you will be speaking to. Any lender who is outside the country is not going to be forced to follow any U.S. laws and that greatly increases the potential for you to become a victim of a scam or to have your personal information and identity stolen. In addition, if you are working with a firm who claims to be in the United States and then in fact is not, stop all transactions. A business who is hiding their location is more than likely not legitimate.

If you are told that there are no qualifications to be met for business loan Arizona approval, you are likely dealing with a fake company. These “firms” are likely to say that they charge a somewhat substantial fee for the loan request to be processed but then the fees are applied to your loan points. And that it is just a formality because there are no criteria that you must meet to get approved. These are all lies to get you to pay the fee. Once you pay then the lender never calls you again and will not return your calls or emails.

Don’t Be Fooled By an Office

Even if the company has a nice office in a respectable neighborhood there is no guarantee that they are legitimate. In most cases the office is in another state or city and all that you are seeing are pictures on a website. Not only is the office likely to belong to someone else but the entire business could be nothing more than a person who is running a website and collecting application information to sell as well as bilking borrowers out of application fees.

There Is No Free Loan

You are never going to find a legitimate business loan Arizona that is offered without any fees or interest. Lenders are in business to make money just as you are. So always look very closely at the entire contract and all of the fee and payment structure of any loan that appears to be too good to be true.

 

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender
Arizona Office:  (623) 582-4444
dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

clip_image002clip_image004clip_image006clip_image008

How to Prepare Applications for Commercial Real Estate Loans

Not all lenders have precisely the same requirements for commercial real estate loans, but they are very similar. Understanding the documentation which will be required is the first step in a successful loan application.

There are many factors which can dictate your documentation packet contents for commercial real estate loans. These can include the internal policies of the lender, your history with the lender and your financial health. But in general, there is a basic packet of documentation that most lenders will require. Having this information gathered and prepared for all lenders is a good way to create a professional first impression and to reduce your stress level as you pursue your loan.

Information about the size and scope of the project is likely to be the first information that any lender will want to see. This includes but is not limited to a complete description of any improvements or construction, the future use for the structure, drawings and design plans, environmental analysis, potential contractors and a timeline for the completion of the work. Although this might sound like a lot of documentation, it is really only copies of the information you have used to create the project, create the job cost and decide to actively begin the project.

Financial information about the project will also be critical to securing commercial real estate loans. For existing structures, the lender will want to verify the rent roll for apartment type structures or self-storage facilities. Lease schedules will be required for retail, office or warehouse space. In addition to pure occupancy numbers, the lender will want more details about the length of the leases and the types of tenants. This will help to determine the stability of the proposed income from the property.

Full Financial Disclosure

Lenders will also want to understand the borrowers big picture financial position. This is due to the fact that a borrower could hold multiple loans or could own other properties which might be financially challenged. A single poor investment can drag down an entire investment portfolio if not managed correctly. Money generated by one piece of collateral could be syphoned off to pay for the bad investment and put the new loan payments at risk.

Investor Financials

Finally lenders will want to understand the financial position of all investors in the project. This is to see if borrowers would have the personal ability or assets needed to make the loan payments if necessary. In addition, the lender can require investors or company owners to provide a personal guarantee for commercial real estate loans. The lender needs to know that the borrowers providing the guarantee actually have the ability to make good on their promise to pay. Knowing what is required prior to beginning your loan application process will help to reduce your stress and to complete the application more quickly. It will make a very positive and professional first impress to all of the lenders whom you are approaching for a funding.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

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

How to Get the Most Benefit from Hard Money Loans

Understanding how hard money loans function is critical to using them successfully. By understanding just a few facts, these private loans can be the key to your financial success.

Most borrowers know very little about the process and characteristics of hard money loans. They understand that the money is provided by a private lender or a group of private lenders and not a traditional bank or lending institution. And they are also aware that the money carries a higher interest rate than traditional loans. But with that very limited bit of information, most borrowers turn away from this very viable and potentially profitable source of funding.

It is very true that hard money loans can carry interest rates in the double digits which is considered to be high. But what most borrowers are not considering is that these types of loans are much more accessible than traditional loans. Long processing time frames, stringent qualification standards and predetermined terms are all facts of life when seeking traditional funding. But a non-traditional loan can offer a much less difficult process for most borrowers.

A private lender is not going to require but a fraction of the documentation that a traditional lender demands during the loan application process. Banks want to see credit history, bank statements, other loan documents, income statements and even documents defining your business and the relationship of the owners of the business. But a private lender is not focusing on that information to determine the risk of your request. So there is much less paperwork involved and therefore much less time wasted during the application and approval process. Borrowers can often have funds in hand in a week or two when working with a private lender.

What Determines a Good Risk?

A private lender is also not going to focus on the borrower’s financial stability when considering a loan request. This opens the door of opportunity for borrowers who have low credit scores or have a high debt to income ratio. What a private lender is going to base the loan approval or rejection on is the value of the collateral for the loan. In most cases the collateral is the property being purchased with the loan funds. The lender needs to be assured that the collateral will always have a greater value than the outstanding loan balance. In the event that the borrower defaults the lender must be able to take possession of the collateral and sell it to recover their investment. For this reason, most hard money loans cannot exceed 70% of the value of the collateral.

Making Private Loans Make You Money

Clearly, private loans can be obtained in a very short time as compared to traditional loans. And these loans can also be obtained with less than perfect credit. If you are willing to pay a little higher interest rate, then a privately funded loan is an option for a borrower who has been denied due to a low credit score or who needs funding quickly to secure a great deal. There is always the option to refinance later at a lower interest rate from a traditional lender. But private lenders can be the answer when time is critical to closing a deal and not missing out on a great money making opportunity.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

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

What you should know when you using a commercial loan to flip commercial real estate

If you took out a commercial loan to flip a commercial property you need to know how to value commercial real estate and plan your project around the duration of your loan.

Flipping a commercial property offers the potential for higher returns, as commercial real estate usually has a higher value per square foot. Compared to residential deals, commercial real estate negotiations are often more flexible, which gives each deal greater profit potential.

When it comes to flipping the commercial real estate the market is far less competitive. In most markets, Single-family homes that were once significantly undervalued have usually already been renovated and resold.In many areas, there is an abundant supply of distressed commercial properties in need of restoration.

However not every commercial property should be renovated and sold off immediately. Depending on market conditions a wise investor should consider whether leasing their property is a better strategy. If there a chance real estate prices in the area could appreciate substantially over an extended period, it may better to lease and hold onto the property.

The risk when it comes to flipping commercial real estate is that renovations can be costly and may not suit the needs of every potential buyer. Leasing avoids this risk as tenants can usually improve the property themselves to suit the needs of their businesses.

Before using a commercial loan to flip your property, you need to know how to value commercial real estate

Commercial property is almost never valued based on comparable sales. Commercial valuations can be specialized and require a great deal of expertise and are based on cap rates, gross rent multipliers and cash on cash returns .

The cap rate is the purchase price divided by the net operating income of a property and describes the potential return on an investment without accounting for any debt resulting from the initial purchase. To calculate the gross rent multiplier, divide the properties sale price by its rental income at full occupancy, this will indicate the earning potential of a property over time. To calculate cash on cash returns divide the total down payment on a property by its annual pre-tax cash flow, which will account for the debt involved in purchasing the property up front.

Knowing these factors will help any investor understand how to maximize the sale price of a commercial property, which is the primary goal of the flipping process.

Commercial loan terms are different, and your renovation project should match the duration of your loan

Commercial lenders have to abide by fewer regulations, which means financing may be easier to secure. Investors should be aware of the how terms of commercial mortgages can differ from residential ones.

Commercial mortgages are usually short-term loans structured around balloon payments. Before taking out a commercial mortgage have plans in place to either sell the property or refinance it before the final payment is due.

Every commercial flipper should consider the shorter lifespan of commercial mortgages in the context of the longer sales cycle involved with commercial real estate. Expect industrial properties to sell within six months, office properties to sell within 8 and retail space to sell within 12.These numbers could change depending on the demand for commercial real estate in the area.

Plan ahead before financing a renovation project. Ensure a projected completed and resold before any loan matures and expect any commercial property to remain on the market for a longer time.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

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

Why Commercial Loans Had a Successful 2017


The end of 2017 wasn’t quite the strongest quarter, but overall 2017 was a really good year for commercial loans. Just recently, Bank Financial Corporation released their impressive numbers from 2017 and many others in the industry shared the same success.

With a 20 percent increase from last year, Bank Financial Corporation recorded a net income of $9 million dollars. There was a decline in the 4th quarter from previous years, but it was mainly due to accelerated payments and also prepayments of leases. On top of that, the reduction of wholesale deposits did cause a decline in total deposits in the 4th quarter, but 2017 still saw an overall increase.

Commercial loans and industrial loans san an increase in $53.5 million dollars in 2017. Also, seeing increases, multi-family residential real estate loans increased by $45.5 million dollars and middle market commercial leases grew by $18.1 million dollars. Bank Financial Corporation wasn’t the only company that saw an increase throughout 2017. Many in the industry also saw just as impressive numbers when it comes to all the different types of loans.

It was a favorable year for Bank Financial Corporation set a new record with commercial related loan balances of $1.22 billion dollars. The total retail and commercial deposits didn’t grow, but it also didn’t decline either, leading to stability throughout the year. Stability isn’t the best scenario, but it is a lot better than seeing a decline. Which is why many in the industry are hoping that the numbers continue to increase or at least be stable as we continue into 2018.

Bank Financial Corporation thanks the positive trends due to a new organization structure.

With such a great year with accelerated growth with commercial loans, Bank Financial Corporation has given credit to the success to new key business plan objectives that they were able to execute for a successful year. The company is hoping to continue to improve and become more efficient throughout the new year. The company was able to organize their plans to successfully deliver the business that their consumers are looking for.

The momentum from 2017 is expected to continue through 2018.

Due to the successful year, Bank Financial Corporation has been able to obtain new customers, acquire new account types and even expand relationships with existing customers. Bank Financial Corporation is the holding company for Bank Financial National Bank, who currently have 19 offices across the United States and offer things like commercial loans.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

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

How to Know What to Expect When Applying for Commercial Real Estate Loans


If you are looking for a loan for your real estate property, then you need to know what to expect when applying for commercial real estate loans. There are many important components that you should be aware of during the application process.

Commercial real estate loans are not given to individuals, but to corporations, developers and other business entities. The funds can be used for a number of things for their business. It can be used for remodeling, adding more locations. If your business doesn’t have a strong credit history, then some lenders might be looking at the owner’s individual credit scores. To be sure of approval, it is best to have an excellent credit score, usually of around 700. So, make sure to keep that in mind before applying.

Be prepared to pay higher interest rates than those compared to residential loans. On top of higher interest rates will also be extra costs for the fees. These fees can include: legal fees, appraisal, loan application and survey fees. Keep these fees in mind when you ae shopping around for the best deals. You want to take these into consideration along with interest rates and other terms.

Also, be aware that you could face prepayment restrictions. Most of the commercial real estate loans come with certain regulations and terms. These will pop-up if you decide to pay off the whole amount of debt before the payment due date. This could result in having to pay penalty fees. This is actually a very common thing among lenders. It is usually calculated by multiplying the current outstanding balance by a certain penalty amount or interest guarantee. If the balance is paid off early, you may be responsible for paying a fee to the lender.

There are many different types of terms offered for commercial real estate loans.

The terms usually range from 5 years to 20 years, but the amortization period could end up being much longer than the actual term length of the loan. For example, a loan term could only be 7 years, but the amortization could be for 25 years. The length of the loan and amortization could affect the rate of the fees and the interest rate. But remember that most terms are negotiable. Just keep in mind that the longer period of the loan length, the higher interest rate.

Always take into consideration the factor of loan to value ratio.

The loan to value ratio measures the value of the loan compared to the value of the property that the loan is being used for. This is calculated by the lender and the category of the loan does play a role in this. If the loan to value ratio is high, then it is usually common for loans to be approved. Always talk about this with your lender before making any final decisions.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

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

How to Avoid Phony Hard Money Lenders

Some phony hard money lenders have ruined it for a lot of lenders in the industry, as now many are looked at as money sharks. It is important to steer clear of the fake lenders and only deal with the real ones that you can trust.

There are many respectable hard money lenders out there and you can easily spot the fakes one if you pay attention to the red flags. Nothing can be a bigger sign than poor grammar and misspellings in the actual documents. This is one of the biggest signs that you are probably not dealing with a lender in the United States. It is always a smart move to work with a local lender. Also, be cautious of the number of types of loans they offer. You want to find a lender that specializes in hard money. It is usually a scam when a lender offers multiple types of loans like business loans, personal loans, home loans and car loans all in one place.

When it comes to a hard money loan, it usually requires some form of collateral to secure the loan. If you get an unsecured loan, that could be a sign of trouble. You never want to deal with those and also be wary of having to pay any large upfront payments. A large amount required at the beginning of the process is always a bad sign. Usually, only a small amount should be required as upfront payment.

A very low interest rate, ranging between 2 percent to 4 percent, along with no requirement of monthly payments, is also a sign that you should probably not deal with those hard money lenders. There is such a thing as too good to be true and these types of terms is usually what that means. Also, avoid lenders who do not have any websites or establish company emails. Scammers are known to use generic emails like Yahoo, Gmail or Hotmail. There should be no reason that you need to search hard for any proof of their reputation.

All reputable lenders will have a website that contains basic information about them.

It is always a good idea to do your research and homework on any company that you decide to work with when it comes to dealing with finances. The website should always include information about where their physical location is, contact information, information about recent loans they have closed on and reviews. Scammers will often not have a website at all, or try to include as little information as possible. If you are still unsure, you can always check on their licensing. It is not a requirement to be licenses with the Better Business Bureau, but it is always a good sign when they are.

Pay attention to all of the documents and offerings.

Reputable hard money lenders will always be upfront about the programs they offer. They usually provide a sheet listing their terms along with a commitment letter. If you are being pressured on the spot to make a decision right away, then you should probably look for another lender. You will usually be given enough time to do your own research to make the right decision.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

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

How to Use an Arizona Bridge Loan to Benefit Your Business

Arizona bridge loans are gaining repute throughout the housing market as a method to bridge the
down price gap and allow customers to purchase a model new residence sooner than selling their
current residence. They’re moreover a helpful software program for small enterprise householders to get
money quickly based mostly totally on enterprise collateral and upcoming affords.
Arizona bridge loans are temporary time interval
loans which may be designed to bridge the outlet between needing liquid money and a
future funding paying off. The most typical use of Arizona bridge loans are in the midst of the residence looking for course of to bridge
the outlet between needing a down price for a model new residence and selling a gift
residence. The bridge loan is secured to the distinctive residence, the one which’s on the
market. The funds from that loan are used as a result of the down price for the mortgage
on the model new residence. 
There are no strict pointers when it comes to Arizona bridge loans so credit score rating ranking
and debt to income ratio are normally not usually components that may routinely
disqualify you. That is good news for debtors with decrease than stellar credit score rating
or who might need a extreme debt to income ratio as quickly as they purchase their new residence.
In its place, bridge loans are based mostly totally on a few varied elements, along with how
seemingly it is that you will promote your current residence quickly, and whether or not or not or not
chances are you’ll make every mortgage funds for a short time if it turns into very important.
For individuals who default on a bridge loan, the lender has recourse to get their money
once more using the property you’ll have within the market because of it is the one which
secured the loan.
A bridge loan is normally an excellent chance for explicit particular person debtors who have to
purchase their subsequent dream residence nevertheless have not purchased their current residence. A bridge
loan usually has the following fee of curiosity nevertheless positive loans will allow you to skip
funds, making it unlikely that you will have to pay any of the curiosity as
prolonged as you promote your property quickly. A bridge loan moreover allows you to put your
residence within the market quickly and with none schedule restrictions. You presumably may even
stage it to make it promote additional quickly. A vacant residence will usually promote additional
quickly and for prime dollar so a bridge loan may aid you earn additional money on
your property sale.

How one can Use Arizona Bridge Loans as a Enterprise Proprietor

A a lot much less widespread nevertheless nonetheless helpful use of Arizona bridge loans is to help your small enterprise if you end up
strapped for money. In the long run most enterprise experience a money stream problem.
A bridge loan may assist bridge” the outlet
between instantly’s need for fast money to pay funds and the last word closing of a
pending funding deal or long-term financing bundle
.
For individuals who uncover that you simply simply need some fast money
sooner than an unlimited deal pays out, a bridge loan is normally an excellent reply in your
enterprise. In an effort to secure the loan you’ll want to present your functionality to
pay the loan once more. A lot of strategies to do that is through:


·       Earnings. It is attainable lender may be ready to extend a bridge
loan on the thought of earnings alone. You will have to have a stellar credit score rating
historic previous, a relentless observe doc of making earnings, and highly effective product sales to point
chances are you’ll repay the loan in a short time period. Besides you’ll
fulfill all of these requirements, you’ll want to search out one different method to pay money for
financing.


·        Collateral. In case your
earnings aren’t as a lot as par, that you must use enterprise property as collateral to accumulate
a bridge loan. Instruments, precise property, and completely different capital property can all be used
to secure a bridge loan.

A vendor may aid you navigate the ins and outs of Arizona bridge loans whether or not or not you need one for enterprise or precise
property. Having the appropriate financial expert by your aspect may aid you hazard
a lot much less and revenue additional. You’re going to get the money you need and help defend your
current property. Title our office instantly for additional information on
   Arizona bridge loans.

Dennis Dahlberg
Supplier/RI/CEO/MLO

Stage 4 Funding LLC
Arizona Tel:  (623) 582-4444 

Arizona Tel:     (512) 516-1177 

www.setabay.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112
Phoenix AZ 85027


 
 You TubeFace Book  Active Rain  Linked In

 

 

Is Arizona hard money good for first time investors?

hard money lender arizona
hard money lender arizona

As a main time investor, Arizona hard money might seem really difficult in any other case you is more likely to be really all for what it entails. Arizona hard money simply is not a normal Mortgage; it is not based mostly totally on a monetary establishment’s willpower nevertheless instead based mostly totally on the precise property property that you just wish to purchase.

Typically with Arizona hard money, chances are you’ll as effectively get quite extra money than you’d with a normal monetary establishment Mortgage. Usually Arizona hard money can present you as a lot as 100% of the value of the property you is perhaps borrowing in direction of. That is quite greater than an on a regular basis Mortgage issued out by a monetary establishment.

Since Arizona hard money comes from people instead of a typical lending institution, you’ve got some additional leeway. Personal money lender Arizona is an individual who factors you money. It could be from anyone you understand and even anyone you merely met who must spend money in your precise property endeavor. Within the meantime, hard money lender Arizona is a bunch of individuals, not just one particular person, who invests in your precise property property.

Whereas the speed of curiosity is approach elevated than a normal Mortgage, that isn’t one factor you even have to stress about with an Arizona hard money Mortgage on account of the turnaround goes by so shortly you acquired’t even have time to rack up curiosity.

It is good to know this stuff sooner than you start wanting into an Arizona hard money Mortgage or funding because you want to simply keep in mind to’re getting what you wanted out of the deal. An Arizona hard money Mortgage is good for anyone who must skip the hardship of the monetary establishment Mortgage paperwork and get correct into the enterprise of flipping property. Don’t be shy, first time investor or not, the time to look into Arizona hard money is definitely at current.

Private Hard Money Lender in Arizona
Huge Daddy Dennis Laborious Money Lender

Arizona Hard Money
Diploma 4 Funding LLC
22601 N 19th Ave Suite 112
Phoenix AZ 85027
623-582-4444