Category Archives: Uncategorized

4 SIMPLE STEPS TO GETTING AN ARIZONA HARD MONEY LOAN

Getting funded through a hard money lender is much less stressful than the process of a conventional loan. Many people aren’t familiar with the process of getting a Arizona hard money loan.

First of all, if you are looking to obtain a Arizona Hard Money Loan but aren’t familiar with the process, take a deep breath. This is most straightforward and painless loan process in existence. This article will cover all the steps you need to take to get funded through a hard money lender.

1. Find lenders— You can use a hard money lender from any part of the country. You can find many lenders online and everything is done online. But, if at all possible, you want a local lender. You can find local lenders through word-of-mouth, networking at local real estate investor functions or simply preform a Google search. Make sure you find a few and then meet with them individually.

2. Have a conversation— Once you have narrowed it down to a handful of lenders, look into what terms they offer. You can usually find this information on their web site, however you will always get more information from speaking to them. The first part of the conversation will be concerning the borrower’s loan request. The lender will ask a series of questions to determine if they can fund the request. After the lender gathers the information necessary they typically can give a contingent approval and a preliminary quote. This quote is composed of the interest rate, points and any fees (such as processing or underwriting) they will charge. The next part of the conversation will be the borrower asking important questions. Some questions a borrower ought to ask a potential lender are: How long do you take to fund? Do you impose prepayment penalties? How long have you been in hard money lending? Are you a direct lender or a broker?

3. Apply— After you have chosen your lender your next step is to apply for the loan. The Arizona Hard Money Loan is very straightforward. You will have to provide documents such as: tax returns, bank statements and proof of your assets. Once the borrower is approved, the lender begins preparing loan disclosures. Some of the documents the borrower will receive are the Fair Lending Notice and the lender’s privacy policy. After the required disclosures have been received, signed and returned, the lender will prepare the loan documents. These documents typically include: Deed of Trust, Note and escrow instructions.

4. Down Payment and Escrow— After all documents have been received the borrower will send their down payment (if one is required) to escrow. As soon as escrow has verified, they have everything needed from the borrower the lender will fund the loan.

WHY USE A HARD MONEY LOAN?

There are numerous reasons to obtain a hard money loan:

1. You credit score is not high enough and your income doesn’t meet traditional lender’s requirements.

2. You don’t have enough capital to cover the renovation of the property.

3. You have a property investment but don’t have time to wait on a bank loan process.

4. You want to purchase a Arizona Fix and Flip property.

5. You don’t have enough cash to purchase a property.

How do you determine if a Arizona Hard Money Loan is right for you?

If you don’t have the time to wait for a bank loan or your credit has declined, a Arizona Hard Money Loan can fund you and get that property in your hands quickly.

                       

                                                                                                                                         Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701

About:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

How TO GET RENTAL PROPERTY LOANS WITH BAD CREDIT

The American Dream is defined as “the ideal that every US citizen should have an equal opportunity to achieve success and prosperity through hard work, determination and initiative.”

Many people believe that the best way to reach that dream is through real estate investments—specifically, rental properties. The most frequent obstacle that gets in the way, for potential investors, is poor credit. Have no fear—the American Dream can still be yours even with bad credit. There is a way around pretty much everything and that includes less than perfect credit.

Very few people have the liquid assets to buy a rental property with cash—that is why conventional bank loans are used. Unfortunately, bad credit means bank loans are not an option. The best loans typically come from a traditional mortgage—these loans will give you the best rates and longest terms. This makes them the most affordable choice. But, if you don’t have superior credit and enough monthly income a bank will deny your loan request. If you want multiple rental properties it is highly unlikely that you will be approved for a conventional loan. Banks are uneasy when it comes to rental properties because there is always the chance that the home will be vacant; that means the investor will have to cover the mortgage. So, without a tremendous amount of monthly income it is most likely a bank will turn you down—even with gold credit.

FIND YOURSELF A HARD MONEY LENDER

Veteran investors know hard money lenders are the avenue to take when financing rental properties—not only for investors with bad credit, but also for the quick approval and flexibility of loan terms. Hard money lenders are private individuals or groups who invest cash for real estate ventures. These lenders extend loans based on property not the individual borrower’s credit.

Because hard money lenders don’t have to adhere to federal and state regulations and policies they can lend money to any borrower they see fit. The hard money underwriting is also not nearly as rigid as a conventional bank; therefore, speeding up the approval time. Most borrowers will receive an approval within two days—unlike a bank loan that can easily take up to 45 days—even without any hiccups.

Many Americans have given up on the American Dream; but don’t give up. With the right lender to guide you, you can live the American Dream—and investing in real estate is the only way to go.

                     

                                                                                                                                         Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701

About:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

Spending Money to Make Money: Arizona Airbnb Loans

   

Earn passive income using an Arizona Airbnb loan to secure an investment property that can bring in money each month. Boost your chances of a higher monthly income with the right real estate investment and idyllic upgrades.

Gone are the days of staying in seedy roadside motels, trying to score a last minute reservation in an expensive resort, or shacking up on a friend’s couch when you travel. Arizona Airbnb Loans, also known as rental loans, have changed the way we think of travel, and for homeowners it has changed the way we think of making money using property assets which no longer have to rely on long-term leases or high tenant turnover with occupancy-caused maintenance.

What do you do if you don’t have an existing property to use? Of course you can rent out a room in your personal home, but why not rent out a whole home for more revenue and keep your privacy intact? Whole home rentals have a premium price and open up the possibilities for larger group sizes to use your property.

Types of Arizona Airbnb Loans

There are multiple ways to purchase a home to use as an Airbnb property, including the following popular options:

· Typical home loan (best if you already have the income to obtain a rental home)

· Short term rental loan (can provide the income to gain rental property without pulling out of your own pockets)

An Airbnb loan, or a rental loan, can provide year-round income for you and your family and there are ways to maximize your return on your investment property. Think outside of the box and you can be one of the go-to destinations for Arizona Airbnb guests, building your clientele and securing year-round reservations.

· Keep an eye on local trends to snatch up the business of out-of-towners. Buy in a central location to ensure you get the Waste Management Phoenix Open traffic. Consider a home in a suburb of Phoenix to capitalize on spring training visitors.

· Use excess funds to make improvements to the home that will enhance the property and demand a higher per-night price from your guests.

· Need ideas on how to improve your pad? Join Airbnb host community forums to get tips and tricks from other hosts. Find hosts in your area who can tell you if it’s worth the cash to install an outdoor spa or if you would be better off upgrading your kitchen.

The opportunities to make money in real estate are endless, but an Arizona Airbnb loan can enable you to make passive money with minimal time and effort on your part. Make an appointment with a financial planner today and start taking steps towards a stable financial future by taking advantage of a 21st century moneymaking trend. An Arizona hard money lender can help you secure the funds to get yourself on the Airbnb revenue train and setting you up for the financial security you’ve always dreamed about.

                                                                                                                                          Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701

About:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

REGULATIONS OF VACATION HOME LOANS

You have finally figured out how to get that lake house you have dreamt of for years. You can rent it out when you are not using it—genius idea! But, hold on because traditional lender rules may not allow that deal to come true.

The first thing you must know is there are different mortgages to finance a vacation home and each of these mortgages have their own set of rules. There are three main mortgages: primary residence loans, second-home loans and non-owner occupied loans.

A primary residence loan is where a borrower will find the lowest mortgage rates. After living in the house for at least one year you are legally free to rent out the home as an airbnb. A second-home loan has the same rates as primary residence loans; however, down payments will be larger. On the average lenders require 20-25%. Finally, non-owner occupied loans, which are also called rental property loans. These loans will run you about .35 percent higher than primary and secondary home rates and your down payment will typically be 30-35%. With a non-owner occupied loan you will be allowed to rent it out and also to use it when it’s not being rented.

When you take a loan for an airbnb, there is a document titled the note. The note will have all the information about the “cans” and “can’ts” of your loan. This will include everything from the loan rate to any additional requirements of the loan. This is where you will find, in a second-home mortgage, that says you can not rent out the home. If you do not follow these laid out rules you will be found in default of the loan.

MAKE SURE YOU TAKE OUT THE RIGHT LOAN FOR AN AIRBNB

Many people are choosing to invest in vacation properties. If the property is near a popular tourist destination it is very possible that the entirety of the mortgage can be paid solely from renting the property out. Airbnb is taking over hotels. Why would people pay the same amount for a hotel room when they can have an entire condo for close to the same price? It’s a brilliant idea to buy a vacation home and have the mortgage paid by tourists. Unfortunately, financing the purchase of vacation real estate can be quite the challenge. Typically, lenders don’t lend large loans on vacation rentals because they are considered investment properties. The problem lies in that banks have no reliable source of data for the vacancy rates on a vacation rental property. Add on that appraisers don’t use short-term rental rates when looking at rental or vacation properties. What that means to a potential buyer is that these properties are undervalued in their potential generation of income. Therefore, banks are not confident on a borrower’s ability to pay the mortgage on said property.

Help with getting a loan for an Airbnb in Arizona

This is where a hard money loan comes into play. These investors know the market is out there and believe a profit can be made. Hard money investors do not base your ability to pay back the loan on your debt-to-ratio or your credit. These loans are based on a borrower’s assets. They are asset based loans. You can find them as low as 7% interest and your investor will work with you closely on loan terms. Remember, where there is a dream, there is a way. See a hard money investor to explore the options that are available to you.

                                                                                                                            Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701

About:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

WHY 100% LTV Financing in Arizona IS HARD TO GET

100% LTV Financing in Arizona is not impossible to get, but it can be challenging.

Hard money lenders are typically disinclined to approve 100% financing on a deal. It is unsettling, to most lenders, when a borrower requires 100% financing. There are 3 main reasons that most lenders won’t approve 100% financing.

1. The borrower has no experience in real estate or hard money: Not having any experience in hard money loans or real estate increases the chances that the borrower will make a mistake and this will cause both the lender and the borrower to lose both time and money.

2. The borrower isn’t financially solid: When a borrower asks for 100% financing it casts doubt on their financial situation. This can cause the lender concern about the loan being repaid. Typically, lenders feel that a borrower who isn’t risking any of their own money has very little skin in the game; and that is not a risk most lenders want to take.

3. The borrower won’t assume risk on the deal: When a borrower requests 100% LTV F­­inancing in Arizona and therefore has no equity into an investment, it makes sense that lenders feel it would be easy for the borrower to walk away from the property, leaving the lender fully responsible for any potential losses.

100% financing is rare in commercial real estate deals. You will see it more in residential investing; and even more commonly you will see it in fix-and-flip deals. A lender is more likely to finance 100% of the project if it is a short-term deal with a clear predetermined strategy. Most lenders that finance an entire purchase will only do so for experienced real estate investors. A borrower that is new to the game will have a much more difficult time finding complete financing.

INEXPERIENCED BORROWERS NEED SKIN IN THE GAME

When it comes to investments you will always take it more seriously if you have some skin in the game. It’s a little like being a kid; remember, wanting new shoes, or a video game, or a remote-control plane? You would ask your mom or dad and they would say, “yes.” More than likely once the excitement settled down you would toss it wherever the “toys of yesterday” lived. But, remember saving your money and buying that same toy? I’m willing to bet you took better care of it. It is human nature to take care of things better if you have invested in them. If you have no money invested, it will always be easier to walk away.

What is cross collateral and how can it help you get 100% financing?

Cross Collateral is where the borrower allows the loan to be secured by equity in an additional property. Hard money loans are always backed by real estate. In cross collateral there is more than one property and at least one of the properties are free and clear—meaning the owner owes nothing on the property.

Let’s say you find a property you want to purchase for $200,000. You want to purchase this price, but don’t want to put money down on it. You also have a property that is appraised at $175,000 and is paid off. You will find lenders that will give you the $200,000 because the property you own free and clear plus the new property are enough collateral to pay back the loan if you default on the terms of the loan. That is cross collateral—and that is what you will most likely need if you are an inexperienced investor looking for 100% financing.

                                                                                                                           Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701

About:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

Are Arizona hard money loans the way to go when it comes to funding your dream business deal? Despite the little ads that appear saying “Stay away from this—you need to try . . .”, you owe it to yourself to check this funding out.

Times change and when you looked further into the matter—once these lenders had the worst reputation around, short of the loan shark in the old neighborhood. At least he was your uncle and had family connections. Now non-traditional lenders are up there with the regular ones, banker and mortgage firms who’ve been in the business for decades.

You remembered what had happened when you tried the conventional lenders and were pretty well turned down by every one of them. Thinking outside the box and living that way, too, while legal, didn’t seem to be a point in your favor. Having done your homework you had an answer when your cousin and best friend asked, “Well, what did you find out about the Arizona hard money loans?”

“Good things, a few things that bear thinking over,” you replied. “Those types of loans aren’t all bound up with restrictions and qualifiers in the same sense the traditional ones are. They focus mostly on applicants who have some credit issues, such as bankruptcy or a foreclosure, maybe a debt-to-income ratio that is out of balance. I’ve got that last one, but I just know buying that office building and fixing it up will help things because it will sell once it’s had some work done.”

“The people who handle these type loans are much more interested in your ability to pay them back the money they lend you than a lot of regulations. I will need collateral—I hate to put up the house, but it’s all I’ve got. My credit score is middling and I don’t have a steady job that pays every other week. Collateral is how these lenders get their money back in case the lender cannot pay off the loan.”

“The building is in a really good place and someone’s going to get it before I do if I don’t get that money,” you continued. “Arizona hard money loans can be applied for, processed and closed in as little as two to three weeks tops. Better still, I don’t have to produce every bit of business documentation in existence since my first job selling popcorn at the movie theater when I was 16. Waiting lost me a really good deal when I was dealing with that bank over in Milford. On the same day I was told that I didn’t qualify, I went by my-then-planned-for restaurant and there was a Sold sign on the door.”

“Are you going to go down there tomorrow?” Patrice asked. “I mean with all that going for you, what’s stopping you?”

“Well, nothing short of putting my house up really. The interest rates on these loans are higher than the traditional ones, but this funding has a flexible calendar and can gear the payments to your schedule. If you need a longer repayment term, that can be arranged, too.”

If you are interested in a Arizona hard money loan, do like I did, research carefully before making an appointment to see someone. Talk to an attorney. Look long and hard at your entire financial situation, past and present before moving ahead with any decision. It could be, like it was for me, one of the better moves you’ve ever made.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701

About:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

Can You Really Apply for New construction loans in Arizona from Two Companies at Once?

You can apply for new construction loans in Arizona from two lenders at once. However, you should be aware of the benefits and drawbacks before you do.

Most people building homes or businesses won’t qualify for traditional funding. Instead, they’ll take out new construction loans, which are short-term options sometimes referred to as self-build loans. They’re commonly leveraged by individuals who are having a custom home built as well as by the builders themselves. Once construction is complete, a new loan, often called an end loan, is taken out to pay off the initial one.

However, getting the initial round of funding can be a little tricky, simply because banks consider construction-related ventures to be a bit risky. After all, if the project isn’t completed or something goes wrong, the bank is left with a property it may not be able to sell and a mess to clean up. This in mind, interest rates and costs associated with closing tend to be a bit higher than with traditional mortgages, so eager would-be borrowers often want to consider all the options before committing to one.

Because of this, it may make sense to apply to two or more lenders at once. You’ll be able to compare the options and choose the one which makes the most fiscal sense or let your lenders know about other offers you’ve received to see if they’re able to sweeten the deal enough to sway you.

Beware: Too Many Checks Harms Your Credit

“Most Credit Scores are not affected by multiple inquiries from auto, mortgage or student loan lenders within a short period of time,” says Fair Isaac Corporation creator of the FICO score. The organization says it takes special care to account for rate shoppers and that people are not typically dinged for multiple checks within 30 days for things which people typically rate shop for. The catch: new construction loans in Arizona are technically not mortgages, which means if you’re applying to multiple lenders and they’re all pulling your credit score, you could get nailed. Although the average is less than five points per check, FICO cautions that those with fewer accounts or a short history may be hit even harder.

Avoid the pitfalls of multiple checks and find a broker who will go to work for you.

One of the best ways to get new construction loans in Arizona is to find a broker who specializes in hard money loans. Oftentimes, private lenders with a background in the industry specialize in this type of financing because they know it well, which allows them to analyze it with more confidence than a bank might. Going this route, it won’t matter if your credit is bad to begin with and your broker will put in the work to find you the best possible deal. That’s it. No more endless shopping around and you get the financing you need. If you’re an avid builder and have a great experience, try to work with the same team for future projects as well. In doing so, you’ll not only get a fantastic deal, but will streamline the process too.





Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC 
Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO


NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701  

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

© 2016 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

Top 11 Takeaways from a Chat with a Level 4 Investor

Top 11 Takeaways from a Chat with a Level 4 Investor

Ever wonder what it’s like to be an investor with Level 4 Funding? Or, maybe you’re an entrepreneur who’s curious to know what the person financing your deal is really like and what he or she is looking for. John Evans, a current investor and former flipper, was kind enough to let us pick his brain, and he shared some candid details with us us, including what goes on behind the scenes and tips for success.

John’s Tapped into the Market, Even When Off the Grid

When we caught up with John, he was at a remote campsite with limited cell phone access. This is his life these days—going where he pleases when he pleases—and without worry of the daily grind. Of course, it wasn’t always this way. A series of savvy decisions brought him to where he is today.   Read More………

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701

About:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

Top 11 Takeaways from a Chat with a Level 4 Investor

clip_image002Top 11 Takeaways from a Chat with a Level 4 Investor

Ever wonder what it’s like to be an investor with Level 4 Funding? Or, maybe you’re an entrepreneur who’s curious to know what the person financing your deal is really like and what he or she is looking for. John Evans, a current investor and former flipper, was kind enough to let us pick his brain, and he shared some candid details with us us, including what goes on behind the scenes and tips for success.

John’s Tapped into the Market, Even When Off the Grid

When we caught up with John, he was at a remote campsite with limited cell phone access. This is his life these days—going where he pleases when he pleases—and without worry of the daily grind. Of course, it wasn’t always this way. A series of savvy decisions brought him to where he is today.

There were the early decisions, like pursuing a bachelor’s degree in marketing and public relations as well as a master’s in business administration, and then subsequently climbing the corporate ladder to attain titles like director and VP. There was the background screening company he founded in post-9/11 culture when everybody wanted to know exactly whom they were working with. Although initially operated from a spare bedroom in his Silicon Valley home, business boomed until a global information services company caught wind of his growing company and convinced John to sell it to them in 2005.

As part of the deal, he worked for the company for a year to ensure a smooth transition, but that left John with a problem most people dream of—a stack of cash with unlimited potential, provided he invested it well.

He Got into Flipping During the Recession

We’ve done a number of interviews with flippers, lenders, and realtors who weathered the recession. In many cases, these were tough times because conditions leading up to the recession were so favorable. Property values were skyrocketing, so investors and rehabbers could grab a slice at a reasonable price, do some repairs, and then sell, profiting from a mix of increasing market values and sweat equity. Of course, when the market changed, many were left with properties of diminished value they couldn’t sell. John’s story is a little different in that, when everyone else was losing, he saw the market drops and decided it was a good time to get into it and start buying. His specialty was fourplexes in the Phoenix metro area. The prices were right, but the job was not for the faint of heart. Many of the deals were in rough neighborhoods and the properties were boarded up when he took over. He dealt with squatters too, but thankfully, they bolted when they realized someone else was on the property rather than engaging.

He says the margins were high at the time, but eventually it hit the point where it no longer made financial sense to flip. So, he became a property manager instead, only selling off his portfolio and moving into the investment side three or four years ago. “It’s the same money or better without the work,” he reveals.

Top 10 Ten Investor Takeaways

1. Study up if you want to get into flipping or investing.

John didn’t just jump into buying fourplexes and flipping. He spent about a year studying before he closed his first deal. He says Arizona Real Estate Investors Association (AZREIA) was highly instrumental for him. “Because they’re non-profit, it’s fairly inexpensive and you get a good education,” he explains. Beyond taking classes through AZREIA, John obtained a real estate license too.

2. Become familiar with the difference in fractional and whole deals.

Although he works with Level 4 Funding now, John tried partnering with other companies before. In these cases, he says he used the fractional model of investing; pooling money together with a group of investors and forming an LLC to fund the deal. The problem is, “you’ve got no controlling interest—no say in what happens with the property,” he explains. This isn’t necessarily an issue when the borrower follows through on his end, but when the borrower doesn’t, it takes considerable time to resolve the default. With Level 4, the deals are whole deals, meaning John’s no longer holding a 5% stake with no pull, but a 100% stake which allows him the ability to respond swiftly if issues arise.

3. Perform diligence checks or work with someone who does.

The importance of performing due diligence cannot be overstated. Unless you run the numbers and visit the property, it’s challenging to know what you’re getting into. For someone with John’s nomadic lifestyle, it’s not realistic to visit a property in person before investing. This is one of the reasons he likes working with Level 4 Funding. “They do the diligence,” he notes. It’s “Here’s the property, value, LTV, and address.” Even still, John looks into the data, himself, as well.

4. Know there’s risk involved.

“Loan to Own,” is the slogan John lives by. This doesn’t mean that you need to want to own the property, but rather, “Don’t loan money on a property you’re not willing to own. Assume it’s going to go into default,” he cautions. With this mindset, it’s easier to make wise investment decisions and pivot as conditions change.

5. Relax, a default doesn’t mean you’re losing.

When a borrower defaults, it can be difficult for an investor, especially for those in fractional deals where the foreclosure process may drag out for an extended period of time. “Sometimes people get into it and, for whatever reasons, are not able to hold up their end,” John explains. He’s done about 15 deals in the past couple years and, yes, a couple have defaulted. However, he says his contact at Level 4 guided him through the process and put him in touch with a local family-owned foreclosure services company which took care of everything within about 90 days. Although John was initially apprehensive due to his prior experiences with defaults on fractional deals, he no longer has these concerns. “The way the contract is structured, the interest rate goes up and the borrower has to pay more,” he clarifies. “I have always come out on top.”

6. Investors really do care about the success of entrepreneurs.

Poor lending practices contributed to the 2008 recession and, unfortunately, many people lost their personal homes. The stigma associated with this persists today and tends to be the elephant in the room when people are new to hard money lending. In this respect, knowing the mindset of the investor funding your deal can make all the difference in the world. “I don’t get involved with people buying for their family,” he explains, but even then, the decision to move forward with the foreclosure process is never simple. As someone who has been on both sides of the table, it’s easy for John to identify with the struggles rehabbers face. Though funding deals may be a “matter of business,” he says, “I feel bad for people that default because they put their time, money, and effort into it.” A successful outcome for everyone involved is always the priority.

7. Rehabbers need connections to flip today.

Historically, auctions were the way to go, but John says this strategy doesn’t work anymore. “There’s too many trusts buying today. They pay over retail and don’t care when they do.” The average flipper can’t compete with this and there’s not a lot of inventory, which means word-of-mouth is the best way to find good deals.

8. Know your numbers.

We asked John for some tips for new investors. “Anybody can get into it, BUT, you’ve gotta understand the numbers,” he imparts. When John started flipping, the margins were high, but he says 10% is a good profit now. This is a major component of the “thrill of the deal,” he adds. “Doing the analysis and thinking, ‘hey, this is going to work,’” is exciting.

9. If you’re flipping, pad everything.

“Be conservative with estimating value of a property; overestimate your costs, overestimate how long it will take to sell,” he cautions. “It always costs you more than you think to do these things,” his wife and business partner Sandy offers.

10. Lending is based on the property, not the person or credit score.

“You’ve got bad credit, but a good property? I’ll lend to you,” he declares with absolute confidence. Although John doesn’t search for his own deals, he brings this attitude to lending via Level 4 Funding. “It’s a great way to lend money. They do all the homework; they’re shadowing them, checking the numbers.” Because he’s a licensed realtor, John can also do his own valuations and make sure the numbers make sense, and notes, “What doesn’t work for banks works for private lending.” A bank won’t lend to someone with a credit score in the 500s, but John says that’s not a problem with the types of loans he funds. “You don’t have to have good credit. Find a good deal,” he advises.

11. Cycles aren’t important, but being able to pivot is.

There’s a lot of talk lately about how the market cycles, and with home values skyrocketing, those who weathered the 2008 recession are often especially wary that another massive drop is due. Perhaps John sees this differently, as he got into real estate during the recession and wasn’t holding properties when it started, but at the same time, he also adapted his fix-and-flip strategy to fix-and-hold due to market conditions back then too. “I don’t see the cycles as a problem,” he explains. “Even if the market sees a dump, you’ll break even on a 70 LTV.” If need be, “you can rent until you can sell,” he adds.

Contact Level 4 Funding if You Want to Grow Your Wealth Too

Whether you’re an investor like John or in the fix-and-flip biz and need someone to finance your deals, Level 4 Funding can help. Visit the site to get a free investment guide and see current deals or contact us to find out what terms you’ll qualify for as a borrower.

Ever wonder what it’s like to be an investor with Level 4 Funding? Or, maybe you’re an entrepreneur who’s curious to know what the person financing your deal is really like and what he or she is looking for. John Evans, a current investor and former flipper, was kind enough to let us pick his brain, and he shared some candid details with us us, including what goes on behind the scenes and tips for success.

John’s Tapped into the Market, Even When Off the Grid

When we caught up with John, he was at a remote campsite with limited cell phone access. This is his life these days—going where he pleases when he pleases—and without worry of the daily grind. Of course, it wasn’t always this way. A series of savvy decisions brought him to where he is today.

There were the early decisions, like pursuing a bachelor’s degree in marketing and public relations as well as a master’s in business administration, and then subsequently climbing the corporate ladder to attain titles like director and VP. There was the background screening company he founded in post-9/11 culture when everybody wanted to know exactly whom they were working with. Although initially operated from a spare bedroom in his Silicon Valley home, business boomed until a global information services company caught wind of his growing company and convinced John to sell it to them in 2005. Read More

Written by

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

 

 

 

 

 

 

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About:  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.
© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions



Are you ready for the next Real Estate Crash–Get Ready Now.

Holy Cow Here We Go Again

Hold On To Your Wallet

Get Ready For The Next Crash

Has anyone ever told you that Real Estate is on a 7 year cycle? That every 7 years values change direction and we are heading into a crash or a boom.

I’ve graphed real estate prices for the southwest over the past 15 years. (see attached graph) and to my surprise it has been 7 years from the bottom.   For Phoenix, the bottom was officially 3/1/12.  So it’s been roughly a little over 7 year. Since the peak in 2006 is been around 12.84 years.  Read More

I’m getting out while the getting is good.  Read More

All real estate holdings are being sold. Why? Read More



Dennis Dahlberg


Broker/RI/CEO/MLO


Level 4 Funding LLC


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