Category Archives: Arizona Home Mortgage

Rental Property Loans: Things to consider when it comes to Conforming Mortgages.


4page_img1When it comes to rental property loans, conforming mortgages are the lowest cost financing option available. Learn about the basic providers of this type of financing, what they will expect from you as a borrower and whether or not this is the right financing option for you.

A “conforming mortgage” is essentially the same thing as a standard home loan. The main difference is that you the borrower use the loan to purchase an Arizona Investment Property instead of a primary residence. Because you are using the loan proceeds to buy an Arizona Investment Property, lenders charge more for this type of loan and expect more from you as a borrower. Simply put, you are going to pay your primary mortgage first and foremost before paying the mortgage on your Arizona Investment Property.

This added risk makes this type of loan a bit more expensive than a standard home loan.

When it comes to conforming mortgage providers, lenders fall into three broad categories, online, businesses investment lenders and traditional banks.

Online providers offer convenience when compared with the other two types of lenders because you don’t have to go to a physical location to apply.  With online lenders, you can complete the entire lending process from the comfort of your home. Business investment lenders are ideal for borrowers who are a, businesses and b, looking for greater flexibility. The other two types of mortgage providers don’t usually lend for commercial or multifamily purchases. A traditional brick and mortar bank is best if you are looking for a provider with insight into your local market. In addition, one-on-one meetings with your lender in this situation, give you the opportunity to build a relationship, which you could leverage to secure a better deal.

In the case of Rental Property Loans, and specifically conforming mortgages, your eligibility will come down to a specific set criteria.

No matter which type of mortgage provider you choose there are basic standards borrowers should know before approaching any investment lender.

Basically, you can’t have a credit score lower than 620. Don’t have your debts take up more than 25 percent of your regular income, this is known as Debt to Income Ratio. If your debt to income ratio, it exceeds the 25 percent standard, expect your application to run into difficulties. If your score is lower than 620, or if you have a lot of outstanding debt you are better off considering alternative forms of financing.

When it comes to rental property loans, a standard conforming mortgage may not always the right help for you.

There are many situations where a “conforming mortgage,” might not meet your needs.

Conforming mortgages,  conform to the standards set by Fannie  Mae and Freddie Mac. Therefore there are specific situations where no matter how great your credit is, you will not qualify for a conforming mortgage.

The property you aim to purchase may be in deplorable condition. No conforming mortgage lender will be able to approve a loan on a property that falls short of FHA guidelines.If the property you want to invest in is in shambles you should look into a  rehab loan first.

Another situation is where you have 4 or more outstanding mortgages, the more mortgages you have the great scrutiny a lender will have give to your credit profile until you essentially need perfect credit to qualify. If this is your case, look into a blanket mortgage.

However, conforming mortgages are perhaps the most comfortable option for those just getting into the rental business. Before looking into a conforming mortgage, consider which type of lender can meet your needs, know the basic standards of qualification and whether or not a conforming mortgage is really best type of financing for your specific situation.

 Dennis Dahlberg Mortgage Broker[3][2][2][2][2][2]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

The Differences between Unsecured vs.Secured Real Estate Lines of Credit


userThe main difference between unsecured and secured real estate lines of credit, comes down to how these loans are secured. Both loan types offer you a similar degree of flexibility and savings when compared to traditional financing. Evaluating the cost of both loan types can help you figure out which type of loan is right for your specific situation.

Your personal property provides security in the case secured lines of credit. Personal property can range from your primary residence to anything your business owns or some other form of collateral. With an unsecured line of credit, the loan isn’t secured by anything except for your lender’s estimation of your financial strength.

Now, why not just apply for a regular term mortgage to finance your next real-estate purchase?

With a term loan of any sort, a lump sum is given to you up front. No matter how much money you spend, you still need to make interest payments on the full loan amount. In addition, with term loans, you generally need to take a new loan out to finance each separate acquisition. A line of credit gives you far more flexibility. With a line of credit you only owe and pay interest on the amount you spend, and you don’t need to apply for a new loan with every new purchase of real-estate.

Both unsecured and secured real estate lines of credit offer flexibility and savings over standard term loans, but there are some differences in terms of costs.

A secured line of credit is taken out and is secured by some form of collateral, which offers your lender a degree of safety should you default. By mitigating risk, lenders can provide lower interest payments on secured lines and larger credit limits. Nevertheless, with a secured loan of any sort, credit line or term loan, your personal or businesses assets at risk.

With unsecured credit lines you the borrower don’t risk your personal property if you default.  However, lenders need to protect themselves in some way, and so unsecured lines offer lower credit limits and entail higher interest rates, Unsecured lines also come with far more stringent qualifications versus their secured counterparts.

With secured and unsecured real estate lines its important to evaluate the costs of each loan type. This can help you determine which type of loan is right for your specific situation.

A secured line of credit is an excellent idea if you are confident you can pay back whatever you spend, as you don’t want to lose your personal property in the course of expanding your business. Because secured lines offer lower interest payments and larger limits, it is probably best to employ a secured line of credit for making full offers on properties.

Unsecured lines may be more expensive, but they are an excellent way to reconcile differences between offers you want to make and the amount of cash you actually have on hand.  You should employ unsecured lines only when necessary due to the higher interest payments involved.

In both cases having access to a credit line allows you to quickly close deals on investment properties. With a credit line, you don’t need to wait on a lender to make a full offer, which can give you an edge over competing buyers who might need to wait on financing. In addition, credit lines can offer significant long-term savings over term loans because only pay back and pay interest on the amount that you spend.

As with any type of financing, consider the costs, the risks and the benefits of each type of credit line to figure out which one is right for your specific situation.

 Dennis Dahlberg Mortgage Broker[3][2][2][2]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

Secured Real-Estate Lines of Credit: Benefits and Drawbacks


iStock_000002302749_Large (1)Looking to expand your businesses real-estate investment portfolio? Secured real estate lines of credit offer many benefits.A secured line of credit turns you into a cash buyer, and a secured real estate line of credit, you can make a full offer right away without having to wait for financing to come through. A secured line of credit can give you an edge over the competition when it comes to purchasing the best investment properties, while offering you savings over a standard term loan.

To qualify for this type of credit line, you’ll want to be a seasoned real-estate investor, whose properties are titled to an LLC or other legal business entity. Qualifying for this type of loan depends on how much income your business earns on a consistent basis and the total value of the properties currently titled to your business.



Eligibility in the case of secured real-estate lines of credit, comes down to the value of business assets and the financial strength of your business.

To get more specific about the qualifications for a secured line of credit, the sum of the loan you receive generally cannot exceed 65 percent of the value of your business’s currently held assets. In addition, your company should have a healthy balance of debt and income.

Because this is a business loan, its the financial strength of your company which counts for your lender, making your personal credit score a non-factor, which can make qualifying easier.

Secured real-estate lines of credit generally imply higher interest payments, and as with any secured loan, there is some risk to your personal property. However, if you can qualify, you could save a lot of money.

Business loans of any sort carry higher interest rates, but when compared to an unsecured line of credit, a secured line of credit generally offers lower rates, typically of 4-8 percent.However because a this line of credit is secured, your lender can confiscate whatever property you pledge should you default.

Nevertheless, applying for a secured credit line carries lower fees and little to no up-front costs. Application fees are virtually unheard of and there little in the way of underwriting costs.

But beyond the savings this type of loan offers you concerning fees, its primary benefit to you is what you could save in terms of interest. With a line of credit you only pay down and pay interest on what you spend, when compared to a conventional term loan this can result in massive savings.

In addition, secured lines of credit offer flexibility, once the loan closes you can spend the money in any way you see fit, with no restrictions on the type of property you can purchase. Compare this to a conventional loan where your lender will have to scrutinize the property you are purchasing.

Once you qualify for a secured line, your lender then gives you a lump sum which you draw from to finance individual purchases or spend as you see fit. So if your business can qualify a secured line of credit can help you rapidly expand, diversify your real-estate investment portfolio and could result in significant savings in terms of interest payments.

 Dennis Dahlberg Mortgage Broker[3][2][2]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

Evaluating your options when it comes to Arizona Investment Property Financing


Brandon Abney Arizona Home Loan FHA SpecialistsEvaluating your options when it comes to Arizona Investment Property Financing real estate, you may be overwhelmed by the multitude of Arizona Investment Property financing options available.

The first option you might consider if you want to invest in real-estate is a conventional investment mortgage. An investment mortgage, is the same thing as a regular mortgage expect that it is used to purchase investment properties.

While an investment mortgage offers the lowest rates, the underwriting process takes a long time. In the worst case scenario, the sale of the property you were considering might go through, as you wait on your conventional lender to review reams of financial documents. So, if a conventional investment mortgage is the only financing option you consider, you could miss out on the best deals.

While conventional financing offers the lowest interest rates, these lenders have exceptionally high standards which many new investors may not be able to meet. The main issue comes down to credit, to get the best conventional investment mortgage possible your credit score should be over 700, the minimum is 620. So if your credit score is lower than 620, there is little to no chance you can qualify for an Arizona investment mortgage.

So if you can’t qualify for a conventional Arizona Investment Property financing, can you still finance the purchase of an Arizona Investment Property?

Some investors draw equity from their primary residence to finance the purchase of their first Arizona Investment Property,  while others secure loans from crowdfunding websites. Some investors may have friends or family members with deep pockets, who are willing to help and who can finance their first purchase.

Home equity lines of credit, crowdfunding, and personal loans are all options you could consider if you can’t qualify for a conventional investment mortgage. However, of course there are drawbacks to consider.

With home equity loans, you put your primary residence at risk if you default. With crowdfunding there are not guarantees your loan will ever be fully funded and borrowing from close friends and family can put a severe strain on your relationships if you run into financial difficulties.

If you can, you should consider hard money which can be an excellent Arizona Investment Property financing option

This type of lender uses the value of the property you aim to purchase as a means to secure the loan. For this reason, hard money providers can look past your financial situation and your personal credit score, making hard money an option if you can’t qualify for a conventional investment mortgage.

Unlike home equity loans, with hard money, there is often no need to pledge your primary residence as collateral. Most hard money providers have the funds on hand to fully finance your loan. So with hard money, unlike crowdfunding, there is no need to wait around for your loan to be fully financed. Unlike personal loans, you don’t risk your relationships with hard money.

While hard money is more expensive than other types of financing, it gives you options.

After you purchase your Arizona Investment Property, you can always refinance to a less expensive conventional loan after your financial situation improves.

So if your just getting started in real-estate investment and you can’t qualify elsewhere consider hard money as a potential financing option.

Happy senior business man making his notes at workDennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Top Situations where a hard money loan is best

A hard money loan is any loan secured by a “hard” asset (i.e., An Asset-based loan). This type of loan can be your best option especially if you need financing to construct a new facility, to renovate a distressed property or if you need to make a purchase quickly.

Asset-based loans are typically short-term loans and are more expensive than traditional financing. Because of this higher expense, it is easy to ask, who would want this type of funding in the first place?

An asset-based loan is especially useful for real-estate investors who are speculating on a quick turn around when it comes to their project. Traditional lenders avoid relying on this kind of speculation.An obvious example is a fix-and-flip project, banks avoid financing these projects because there is no guarantee of a profit and the borrower could default in the end. Traditional banks are also wary of construction loans because they have to rely on the borrowers assumptions and success isn’t guaranteed.

A hard money loan can be the help you need if you need to fund a renovation or construction project

There are other reasons to consider asset-based lenders for renovation or construction projects. Typically a bank raises funds for a mortgage by reselling it to a government agency like Fannie Mae or Freddie Mac. Banks won’t be able to resell any mortgage on a distressed property that falls short of FHA guidelines.Therefore a typical bank will likely deny your application if you are trying to renovate a distressed property. Asset-based lenders raise their funds from private investors and have money on hand, allowing them to see past the poor condition of any property you intend to rehabilitate.

The situation can become complicated if you finance your construction loan with an ordinary lender. Banks disperse construction loans according to a specific timetable and specific benchmarks. The lender could withhold funding if your projecting doesn’t go according to plan. This scenario could be a disaster and could leave you unable to pay your contractors or to continue your project. The regulations that stifle traditional banks don’t hamstring asset-based lenders so you can get increased flexibility when it comes the terms of a construction loan.

However, asset-based lenders outshine traditional banks when it comes to time-sensitive purchases.

When it comes to time-sensitive purchases, a hard money loan can be a win-win solution

A typical bank loan usually closes within 120 days, and the best investment properties don’t stay on the market for long. Even the most qualified borrower won’t see their application go through any faster because banks have to comply with their own guidelines and with government regulations.

Asset-based loans can close within a matter of days allowing you to complete a time-sensitive purchase. An asset-based loan gives you the flexibility to then refinance to a long-term mortgage, or to sell the property for a profit.

In short asset-based lenders are ideal for borrowers who know the potential of their project, who need flexibility or who need cash quickly to make the most of a potential investment.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
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

Why Hard Money Lenders Only Fund 75% of a Property’s Value

Understanding why hard money lenders will only finance 75% of a property’s value will allow you to be better prepared for requesting a loan. It will also help you to understand what other factors can make your request more desirable to lenders.

Loan to value ratio is the most critical factor to all hard money lenders when they are evaluating a loan request. In general, the loan amount cannot exceed 75% of the current market value of the property. This is because the property is being used as the collateral for the loan, which is not unusual. Home mortgages are secured by the home being purchased as well. But in the case of commercial properties there is more information that must be taken into consideration.

Unlike home values which are fairly static, commercial property values are much more volatile. There are several events which can impact a commercial property’s value which are not considered to be factors in residential property values. The economy has a much greater impact on commercial properties the residential. A downturn in the economy or a single industry does not extend to every consumer who owns a home, but it does have an impact on every business. And as competitive as industry is in the country, a slight downturn in the economy is certain to cause some businesses to fail.

Likewise, a downturn in a certain industry would not cause all of the homeowners in a neighborhood to sell their homes or abandon them. But it could result in many businesses closing in a single area which would quickly drop the value of commercial properties in the area. All of these factors must be considered when a commercial property is being used as collateral.

The Hard Money Lenders Thought Process

Knowing that the value of commercial properties can fluctuate a great deal and can change very rapidly, the lenders want to be certain to always have a way to recover their investment. This means never having the current balance of the loan near the current market value of a property. Over the years, the 25% margin has become an acceptable industry standard among hard money lenders.

How to Use This Knowledge

Knowing that the market value of a property is critical to getting hard money approved, there are ways that you can build additional confidence with a lender. Selecting a property in an area that is thriving is always smart. Also, selecting a property which is not dependent on a single industry is helpful. Knowing that any business could use the property provides more options to rent or sell the property at a better price in the future. In addition, location can have a huge impact on the perceived value of the property and therefore its actual value. Being easily accessible is important for any business who relies on consumers visiting their location. So a property near an expressway or major street is more desirable than a location in a rural area or one that is difficult to drive to. Consider all of these factors and try to select a property which will hold its value well. This will make your loan request much more appealing to a lender.

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

Understanding the Two Major Types of Commercial Loans


When you begin to explore commercial loans, it can appear that there are an unlimited number of options. But you will find that in reality there are two major types, recourse and non-recourse.

There are a myriad of different terms involved in commercial loans, but none should be as important to the borrower as determining if the loan is recourse or non-recourse. In almost every loan on a commercial property, the main collateral for the loan is the property itself. But commercial property value can and does fluctuate much more rapidly than residential property. In some cases a repossessed property is not worth the remaining balance on the loan. For this reason, lenders want to have additional security in the event of a default on the loan. With a recourse loan, the borrower guarantees full repayment of the loan amount due. In a non-recourse loan the lender agrees to settle for the value of the property as full repayment even if the property value is less than the balance due on the loan.

Borrowers should however temper their desire to protect themselves and their personal financial well-being with a non-recourse loan and the extreme flexibility that can be achieved with a recourse loan. As with most things in life, you get what you pay for, and added features and benefits cost more. So the personal financial protection of the non-recourse loan costs you in the form of higher interest rates. That only makes sense as the lender is assuming a greater risk of losing money if you default on the loan. In addition, lenders can also include stipulations about cash flow and maintenance schedules for the property on a non-recourse loan. This is simply another way that the lender is protecting their investment by ensuring that the building, their collateral, is being well maintained to protect the property value.

When to Choose Recourse Commercial Loans

A recourse loan offers borrowers many more options and flexibilities during the course of the loan as well as a lower interest rate. Because of the added security, lenders are more willing to accommodate borrowers. If you want flexibility to customize the loan structure and the payments then recourse is a good choice. You should also select a recourse loan if there is a chance that you will want to restructure after the closing of the loan. If the property that you are purchasing is under construction or is in a distressed condition, you will most likely also need to use a recourse loan as lenders are not willing to extend the greater risk non-recourse loan to a property with questionable value.

Who Should Select Non-Recourse Commercial Loans

If you are planning on keeping the property you are purchasing for the full term of the loan and do not foresee needing to change the loan or its terms for the lifetime of the loan then a non-recourse loan is a good choice. The non-recourse is also important if you are not willing to or able to risk your personal financial well-being on this business property investment. Understanding the main difference in these two types of loans will allow you to select the financial tool which best meets all of your needs.

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

Tips to Secure Commercial Lending


Commercial lending is a much different landscape than consumer lending. Knowing a few tips about the lenders and the process can greatly improve your chances of getting a loan.

Appling for commercial lending is a long and often arduous process. The dollar amounts involved are rather substantial and that makes the approval criteria and process much more challenging. Lenders are interested in finding borrowers who will successfully repay their loan and the interest associated with it so that they are making their money. Understanding the lenders point of view and working toward that goal with them can make your loan application process much less stressful and difficult.

It is never a bad idea to keep your options open. Having a rapport with a few lenders is always a great plan. Investing the time to meet with lenders, understand their criteria for lending and just chatting with them about your potential needs will lay the ground work for the day that you do submit a loan application.

It is also wise to think of the lenders that you have relationships with as you would any other vendor. In this case the vendor is supplying you with money but that is after all what a service provider does. It is not dishonest or disrespectful to speak to several lenders for the same loan. You are shopping for the best deal and that is simply smart business.

The only way that you can make a mistake when creating commercial lending relationships is if you are not completely honest with the lenders. You are wasting your time if you are not honest in the information that you are providing about your business and yourself. The information and advice that you are getting will be tailored to the information that you give the lender. And if that information is false then most likely they will not be providing you will accurate or useful tips, information or processes.

Make the Right Impression

Commercial lending is a numbers game and the best credit score and credit history will get you the lowest interest rate. But there can also be a little grey area. This is where the lenders opinion of you and your business comes into play. You want to be honest but also paint the most impressive picture that you can when telling your story. Promote your strengths and successes as well as your goals and how you plan to attain them. Another way to impress a lender is to submit a completed loan application package that looks professionally prepared. Be certain that all of the needed documentation is included and that the format is easy to understand and follow.

Focus on Collaboration

Both you and your lender have a great impact on the outcome of your loan application. By investing your time and effort in the process and application preparation you can greatly improve the outcome. Honesty and professionalism will get the attention of your lender and could be that small difference that convinces your lender to approve your loan application.

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
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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

Business Purpose Loans –Line of Credit vs. Term loans

 So, you have decided that business purpose loans are what you are after, but, you aren’t clear on the difference between choosing a line of credit or a term loan or which option is best.

If you are like most people seeking business purpose loans, you’ve more than likely come across dozens of lengthy and complicated applications or required forms. On the rare occasion, you may have come across a straightforward application and let out a sigh of relief. Maybe, next, you happily grab your pen to fill in the blanks or began clicking on the appropriate boxes on your computer till suddenly you realize that you are halfway through one of the most straightforward application for business purpose loans you had ever seen.

But, more than likely just as you believed that you could fill out this particular application without any obstacles or feelings of anxiety, you came across the loan request information section. There in that section, you were innocently asked to fill out your primary purpose (working capital, purchase inventory or equipment or real estate, debt restructuring, accounts receivables, improvement or other) –no biggie. But, then suddenly almost out of nowhere or just right next to the primary purpose boxes, you see it—loan type requested, check the appropriate box for a line of credit or a term loan.

At first, you may have wanted to clearly check the term loan box; after all, it is all you’ve known when it comes to loans. But, maybe you liked the way “line of credit” sounded in your head. Well, snap out of it. This is your business, though, you do not have the luxury to kid around or make decisions based solely on the way the sound. So, what can you do? Well, first stop filling out the application i.e. put the pen down or stop typing if you haven’t already and let’s go over whether you are in the market for a line of credit or a term loan.

How to evaluate your Loan Type

The best way to evaluate which loan type is right for your business is to first and foremost understand what these terms truly mean. A line of credit, in regards to these particular kinds of loans, is very much still like any other line of credit. This means you have access to a specific amount of business-use only financing. It also means that you are not required to make any payments or deal with those pesky interest rates until you actually use the funds—think of it like a credit card. Term loans, on the other hand, means lump sum financing that you pay back over agreed upon period of time (amortization period).

The Real Deal

So who do you choose? Well, term loans are best if you are talking about specific long-term investments like making improvements or buying equipment. A Line of credit is more about having access to financing when you need it the most i.e. think short-term here. With that being said, mull it over some more, do your research and think about your priorities then you can check your appropriate box.

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