Category Archives: Arizona home loan home loan Arizona Blog 14: Do You Need a Mortgage Broker Arizona?

Tips for Success When Using Hard Money Lenders

Borrowers can tend to be in a hurry when they are seeking hard money loans. Sadly that can lead to making a poor choice as a result of not checking out options for hard money lenders.

Finding the perfect property can be very exciting. The potential for making a great profit can make many new real estate investors rush through the process of selecting a lender. But using hard money lenders is no different than using a bank or a mortgage lender. And borrowers should always follow the same process when selecting their lender.

As with any business deal, you will want to complete some research on all potential lenders. This will tell you how long they have been in business, who they typically loan to and the types of loans that they normally offer. You might also be able to read customer reviews online or testimonials. All of this will let you know what other borrowers experiences have been with each of the hard money lenders that you are considering.

Talking to each lender will also give you a good feel for their level of interest in their clients. If the lender asks about your plans for the property, how you are financing the repair expenses and about comps in the area then he or she is interested in not only getting his or her money back but also in your success. Working with a lender who has a genuine interest in seeing you succeed will make the process much less stressful. Hard money lenders who are interested in creating long term relationships will express interest in each project. In addition, they will be more willing to work with you on creative or different terms than they normally offer.

What to Watch Out For

Bait and switch is a sure sign of an unethical lender. In these events, the lender offers great terms that the borrowers can’t refuse. Then as soon as the borrower verbally commits to the lender, the lender supplies a loan offer with drastically different terms. In most cases the interest rate is much higher and there are other hidden fees added to the final cost of the loan. A catch and release situation is where the lender charges several fees upfront that the borrower must pay before getting the actual loan offer. Once the borrower pays the fees then the lender ignores the borrower and never provides a loan offer. The lender gets to keep the fees and the borrower is faced to find a different lender. Both of these cases are certain signs of dishonest lenders.

Just Another Service Provider

When you are seeking any type of loan, don’t be intimidated by the lenders. Think of them as you would any other service provider and complete your due diligence to be sure that you are doing business with a reputable lender. An honest lender will not be offended by questions about their standard terms or loan practices.

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
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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Qualify for a Commercial Real Estate Loan

With all the varying requirements, it can be confusing understanding what one needs to do and expect when trying to qualify for a commercial real estate loan. Here’s a few of the basic documents and experience you need when applying for a loan.

No matter which type of lender you are working with, most will prefer that the borrower focus on a property when assessing a loan. This information should include the address and location, purchase price, intended use of structure, amount and scope of work, timeline for rehab, contractor bids and projected after-repair-value (ARV). The more information you can bring to the table, the better, such as drawings and environmental analysis.

The financial information regarding the project includes the rent roll or schedule of leases which basically amounts to the amount of income that can be expected from the property. If the property is under construction, a lender will want to see the general health of the particular market including the area’s vacancy rates and your plan for obtaining tenants. Having pre-leasing in place can be a big checkmark on the “yes” side when trying to obtain a commercial real estate loan.

They will also want to know what type of experience you have and any past investment projects in this specific segment of real estate. Some lenders will check the borrower’s qualifications such as credit history and bank statements. They will want to know your financial situation. Do you have other projects currently in the pipeline? If so, just how much debt are you currently faced with? If you have partners, the lender will want information on them as well. This will be their go-to in case of default.

Pro Forma

Other lenders require a pro forma for a commercial real estate loan. This includes the net operating income (NOI). Also known as EBIT or Earnings Before Interest and Taxes, it is, just that, and helps lenders understand what kind of cash flow you’ll be expecting. It equals all revenue from the property minus all operating expenses. The debt-service-coverage ratio (DSCR) is also part of this documentation and is calculated by dividing the Net Operating Income by the Annual Debt Obligation. The internal rate of return and cap rate are the final pieces of the pro forma puzzle. The internal rate of return is the rate of growth a project is expected to generate while the cap rate is the ratio of Net Operating Income to property asset value.

Conventional commercial real estate loans from banks and credit unions must adhere to strict rules and guidelines when it comes to financing an investment. For this reason, they are often more difficult to obtain loans from than one provided by a private hard money lender.

Traditional lenders will need to check your credit score as well as your creditworthiness. Hard money lenders, on the other hand, do not require income verification or credit references. These short-term loans usually fall into the one to three-year mark, though some will issue loans up to 5 years and allow extensions. Some lenders assess a prepayment penalty, usually 1 to 3 percent, while others do not—Important considerations when funding your project. It is much easier to qualify and faster to obtain funding for hard money real estate loans making them the loan of choice for many investors.

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

Arizona Home Loans for bad credit: FHA Loans

The Federal Housing Administration is a authorities entity that will help secure Arizona Home Loans for bad credit debtors. The federal authorities backed loans usually present below-average credit score debtors along with first time home customers a viable option to assist in home possession.
When you’ve below-average credit score, you’ve got possibly been turned away by a monetary establishment within the occasion you utilized for a home loan. You would possibly assume that proudly proudly owning a home is inconceivable. Nonetheless, there are a number of packages that will present you how you can qualify for a home loan. Probably the greatest first step is to ditch the monetary establishment and uncover a agency that focuses on serving to folks and households work out Arizona home loan for bad credit. A wonderful first stop is a mortgage seller. Not like a monetary establishment, the seller would not really loan out the money for a home loan. In its place he or she shops completely completely different banks that can show you how to uncover among the finest loan in your purchase and credit score rating situation. This allows additional flexibility by means of the types of loans that the seller can uncover along with lenders. A mortgage seller or mortgage agency can act as your intermediary and sometimes get you greater loans and better phrases than you’d get by going straight to a monetary establishment, significantly if in case you’ve below-average credit score.
One loan type your seller will recommend is an FHA loan. An FHA loan is a program for Arizona home mortgages for bad credit debtors. When you’ve below-average credit score, an FHA loan may be alternative so as to secure a home loan. An FHA loan is a authorities backed loan. Each month you pay additional insurance coverage protection in direction of default. The loan is secured by the Federal authorities so lenders normally have a tendency to provide them to debtors with below-average credit score. In order to qualify for an FHA loan you’ll have to have three.5% of the acquisition price to put down. Moreover, you’ll pay additional for month-to-month mortgage insurance coverage protection which can vary based totally on the amount of your loan. For lots of below-average credit score debtors an FHA loan is an environment friendly path for homeownership.
The Federal Housing Administration would not give out loans. In order to amass an FHA loan you’ll have to uncover a mortgage seller, monetary establishment, or funding company that is licensed to current out FHA loans. The FHA provides mortgage insurance coverage protection to the lender on their loans. This mortgage protects the lenders from losses on account of home proprietor default. The lenders bear a lot much less risk on account of the FHA pays an insurance coverage protection declare to the lender if the home proprietor defaults on their loan the lender has to foreclose on the property. This insurance coverage protection makes and FHA loan program for below-average credit score debtors on account of a lender is additional extra more likely to make a loan to a borrower with below-average credit score in the event that they’ve FHA insurance coverage protection.

Historic previous of the FHA and Its Place in Arizona home mortgages for below-average credit score Debtors

The FHA was established in 1934 by way of the Good Melancholy. The purpose of the corporate is to help all People purchase homes and to help stimulate the housing financial system. Inside the 1940s the FHA helped finance home loans for veterans and military households. By the 1980s the FHA moved into falling home prices and made it attainable for home customers to get financing all through needed by way of the recession. By 2001 homeownership within the USA was at a file extreme. The FHA has insured over 34 million mortgages since its inception.

As illustrated above, the FHA has been inside the home mortgage enterprise for over 80 years. It is totally self-funding and would not require tax payer money or authorities bail outs. This makes it good for Arizona home mortgages for bad credit on account of lenders know and trust the corporate. In addition to, there usually are not any surprises by means of charges of curiosity like there are in adjustable payment mortgages. FHA loans present mounted charges of curiosity for 15 to 30 years. Nonetheless, perceive that you will pay mortgage insurance coverage protection each month. The amount of this price varies counting on the amount of your loan. You may pay this insurance coverage protection until your loan to price ratio is decrease than 80%. Which implies, you may have an extra month-to-month price until you’ve got paid off 20% of your loan. If the value of your property will enhance dramatically chances are you’ll look into refinancing to eradicate this month-to-month price. In addition to, there are particular mortgage preparations which may be made all through your precise property negotiations to have the seller pay a portion of this insurance coverage protection upfront.

Talk about with a mortgage seller to search out out if an FHA home loan is an environment friendly alternative for you.
The Federal Housing Administration has helped many homeowners purchase loans they in every other case couldn’t qualify for. A mortgage seller can stroll you via the tactic of qualify for an FHA loan along with describe any funds you possibly can need. Identify a seller within the current day to take the following steps to purchasing a home.

Dennis Dahlberg
Seller/RI/CEO/MLO

Diploma 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917

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



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Get Yourself a Loan with a Mortgage Broker Arizona

Are you considering getting a loan that may provide help to repay your mortgage or to flip a little bit of property? Are you afraid on account of your credit score rating ranking isn’t what it must be? There’s no need to fret on account of there are strategies spherical that. You’ll get your self a hard money loan from a mortgage broker Arizona.
Arizona Mortgage Broker
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What exactly is a hard money loan going to do for you? It would give you a means of discount. Your hard money loan is simply not like a standard monetary establishment loan that will depart you hanging for upwards of months at a time and even then couldn’t ship the merchandise. Your hard money loan may be given to you fast and you will get what you need in an effort to loosen up only a bit.
Monetary establishment loans can depart you in a lurch. There are piles of paperwork with a standard loan and even then you definately won’t get the money you need. With a hard money loan, the loans are dealt out fast that signifies that you simply get your money fast. One factor that will make anyone actually really feel relieved about their financial state of affairs. You don’t have to worry about prepared in your typical loan. There is a method spherical it that’s so much easier than chatting with a monetary establishment.
Instead, what you’ll want to do is have a chat collectively together with your mortgage broker Arizonain regards to the alternative of getting the money you need with a hard money loan. You don’t should bear anymore, apprehensive that you just simply gained’t have the money to pay in your property. You’ll get it fast when you and your mortgage vendor Arizona plan on getting a hard money loan. Don’t hesitate to current it a possibility. It’d really merely change your life for the upper for the upper in solely a second.

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Dennis Dahlberg
Seller/RI/CEO/MLO
Level 4 Funding LLC

Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.setabay.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112
Phoenix AZ 85027