Tag Archives: Hard Money Lenders

Trust Deed Investing: Differences, Benefits, and Strategies to avoid risk.

October 29, 2018Deed of Trust Investing, investing in deeds of trust, Trust Deed Investing, trust deed investing Arizona, Trust Deed InvestmentsHard Money Lenders, hard money loans, investing in deeds of trust, trust deed investing, trust deed investing in Arizonabigdaddydennis

You may have never heard of trust deed investing, learn some of the basics, benefits and some simple strategies to avoid risk when it comes to this type of investment.

A deed of trust is a security agreement which is secured by real estate, I.e., it’s a mortgage. The main difference between a trust deed and a regular mortgage are the parties involved and the specific regulations. With a mortgage for only two parties the borrower and the lender are involved. With a standard mortgages, there is a lengthy judicial process when it comes to foreclosures.

With trust deeds of trust, there are three parties involved, investor (beneficiary), trustee (trust deed broker) and trustor ( the individual borrower). Little, if any, court involvement is needed to foreclose on deeds of trust.

So how can this arrangement benefit you as an investor?

Here are just a few of the benefits of Trust Deed Investing in Arizona:

With deeds of trust a borrower (trustor) goes to a broker (trustee), the broker then funds the borrower’s loan with funds received from you, the investor (beneficiary). This arrangement benefits you in the following ways:

• Easy: Trust deeds allow you to appreciate the benefits of real-estate investment without the hassle of managing the property yourself.

• Variety: There are of course many types of real-estate and just as many types of trust deeds allowing you to invest in a diverse array of properties, from residential all the way to industrial.

• Flexibility: Every deed of trust deal is different. Unlike bank loans which are subject to rigid guidelines and bank bureaucracy, trust deeds are private arrangements made between an individual broker, borrower and you the investor.

• Predictable: Unlike other investments where returns are somewhat uncertain, with trust deeds the borrower is contractually obligated to make regular payments. As long as the loan remains outstanding you can expect to receive a return.

That is unless your borrower defaults.

With trust deed investing in Arizona the primary risk is that the borrower defaults, here are a few strategies that can help you risk less.

Yes, trust deeds give you the right to foreclose if your borrower defaults, without court involvement. But what if the borrower files for bankruptcy? Well then the courts are involved, and you cannot foreclose as the borrower reorganizes their debts. As the borrower’s bankruptcy proceedings make their way through the court, your deed of trust is essentially a worthless piece of paper.

Even after the borrower’s bankruptcy closes and foreclosure goes through, foreclosed properties never really sell for their full market value, which equals a loss for you.

To mitigate the risk of default consider the following:

• Be sure your borrower can pay back the loan: Don’t just rely on what your broker tells you. Carefully review the borrower’s financial history, to be sure that the borrower can pay back the loan.

• Don’t just go after the highest yield: Don’t invest in high-interest trust deeds just because they offer a higher return on paper. The higher the borrower’s interest payments, the higher the risk of default

• Start small and scale: Begin with small investments as they are less risky. As you do more of these deals and develop your own understanding of the process, you can then begin investing in larger loans.

By employing these strategies, you can avoid the risk of default and enjoy the benefits of trust deed investments.

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

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.
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Phoenix Fix and Flip Loans: How to use Crowdfunding to Invest and Make Money

October 29, 2018Arizona hard money lender, Arizona hard money lender, Arizona hard money loanArizona fix and flip loans, fix and flip loans, hard money lender, Hard Money Lenders, hard money loan, hard money loans, Phoenix fix and flip loansbigdaddydennis

You don’t need to be an active house flipper to make money from flipping projects. You can avoid all the hassle of these projects and still earn a profit by financing fix and flip loans through online crowdfunding platforms. Learn some of the basics about what you should look for in these deals and some basic strategies to find the best way to invest in these types of loans.

Crowdfunding remains the most accessible way for individual investors to earn money from house flips without actually carrying out the renovations themselves. Crowdfunding usually takes place on an online platform and relies on you (the individual investor), to finance the loans listed on the site. These loans are then given out to active house flippers.

However, there some fundamental things you should look into before investing in these loans.

Expectations before investing in Arizona Fix-n-Flip Loans

Before investing in any loan, consider the platform, or the website on which you aim to make your investment. Be wary of crowdfunding sites that claim to charge absolutely no fees. In almost every case this is too good to be true. In general, these websites will charge you a percentage of the income you earn either on an annual or a regular basis. Obviously, you want to make your investment on the crowdfunding website that charges the lowest possible fees.

Consider the type of flip you are investing in, is the project a residential or commercial flip? Residential flips offer a smaller return over a shorter period, while commercial flips provide a potentially larger return over a longer period. So consider how quickly, and how much, of a return, you want from your investment.

Consider the borrowers details, ideally you want to someone with prior experience and a proven track record of successful projects. Also, do your best to understand the conditions of the surrounding market to get a sense of the project’s potential. Developing an understanding of an individual borrower and their project might put your mind at ease.

Ideally, you also want to invest in loans in which the borrower has signed a personal guarantee, as this will indicate they have some personal stake in their project.

After you find the right loan, there are two ways to actually invest.

When it comes to investing in Arizona fix-n-flip loans, you risk less as a debt partner, but you can make more money by acting as an equity partner

When it comes to investing in these types of loans, you can choose to act as a “debt” or “equity” partner. Acting as a debt partner allows you get regular interest payments throughout the term of the loan. Most crowdfunded fix and flip loans, have terms of 36 months and charge interest rates of 8 to 14%. You earn these interest payments on a regular monthly basis, and once the term of the loan expires, you receive the remaining interest and principal.

Acting as an equity partner gives you a share of ownership in the property. In this case, once the flipped property is sold you earn a specific percentage of the profits earned by the borrower. The potential returns from an equity partnership can be far greater; however, there is more risk in this case. It’s uncertain how much profit a flip will earn until the renovations are finished and the property is actually resold.

In short, crowdfunding presents the opportunity to earn money from house flipping without actually flipping homes yourself. Consider the platform, type of project and borrower you want to invest in and whether or not you want to act as a debt or equity partner.

Private vs. Hard money lenders: The Differences

October 29, 2018Arizona hard money lenders, Hard Money Lenders, Hard Money Loan, Private Phoenix Arizona Hard Money LenderArizona private money lender, Arizona private money lenders, hard money lender, Hard Money Lenders, hard money loan, hard money loans, Phoenix hard money lendersbigdaddydennis

You may wish to finance your next investment property, but find yourself a bit confused about the differences between private and Phoenix hard money lenders. This article will attempt to clear up some of this confusion and some common misconceptions, so you can get a clear perspective and find the help thats right for you.

Some consider private money and hard money lenders essentially the same thing. But there are a few fundamental differences you of which you should be aware. It all comes down to the criteria these lenders use to evaluate borrowers, and these considerations can impact the type of deal you can secure.

The main difference between these two types of lenders is how they evaluate individual borrowers. Private lenders might consider all three C’s of lending (credit, capacity, and collateral). Hard money providers generally only consider the value of the collateral on offer.

Therefore, private lenders may put scrutiny on aspects of your financial history such as your credit score. A private lender may also want to get a sense of your capacity or your ability to repay your loan. They might look into your financial history to ensure your income is sufficient to carry your current debts, usually this measurement is expressed as a debt to income ratio (DTI). If your credit score or DTI doesn’t meet the private lender’s criteria, you may not qualify.

In contrast, hard money providers mainly look at the value of the collateral on offer, i.e., the value or potential value of the property you aim to finance. However because collateral is the primary consideration in the case of hard money there are some misconceptions when it comes to this type of lending.

The main complaint about Phoenix hard money lenders is that they are less willing to work with borrowers

Because hard money providers mainly look at the collateral offered by the borrower, they assume a higher risk. Because of this assumed risk hard money is often more expensive than private money.

However, some assume that hard money providers are less flexible than their private counterparts. Because this type of lender only looks at collateral, they might have less confidence in a borrowers ability to repay. Therefore, if a borrower meets turbulent fiscal headwinds, many assume it’s in a hard money providers best interest to foreclose on the property and resell it at a profit.

But this is a flawed assumption; because any reputable lender wants their borrower to succeed.

Foreclosure is a hassle, and no one wants to deal with it. So don’t assume your hard money provider won’t work with you if you run into financial difficulties.

Arizona Private Money Lenders may offer a better deal, but fewer borrowers may be eligible.

Going the private money route can result in a better deal. Because most private money providers look into your credit and your capacity to repay, and therefore they have more confidence in you as a borrower.

This confidence on the part of the private lender could give you the leverage to negotiate a better deal.

While private money may potentially be cheaper, it may also be less convenient. You may not qualify according to the standards of an individual lender. In addition, underwriting your loan could take a long time, and this application process could cause you to miss out on your investment opportunity.

But there are no hard and fast rules in the case of either private money or hard money, as every individual lender is different.

Just know that the primary difference is that private lenders may consider( may being the operative word here), all three C’s of lending before approving an application, while hard money providers only consider the collateral on offer.

Private lenders might be able to offer cheaper loans, but the application process might also be less convenient when compared with their hard money counterparts. It is a catch 22. Private money might be less expensive but also less convenient. Hard money might be more convenient but it also might be more expensive.

However, don’t make assumptions, every private or hard money lender is different. Ask any lender you approach about how they evaluate individual borrowers to see what type of deal you might be able to negotiate.

The Benefits of Fix and Flip Loans

October 28, 2018Arizona hard money lenders, Arizona hard money loan, Arizona house flipping loans, hard money lender arizonaArizona fix and flip loans, fix and flip loans, hard money lender, Hard Money Lenders, hard money loans, house flippingbigdaddydennis

Flipping houses quickly can be a very lucrative business. But the key to being successful is having fast access to fix and flip loans.

Most people are familiar with the traditional mortgage loans offered by banks and mortgage companies. But everyone also knows that securing a mortgage from a bank can take a great deal of time and effort. When time is critical, such as it is when flipping a house for a profit, Arizona Fix and Flip Loans offer all of the benefits that you need including a fast approval and funding time. A standard bank loan can take far over a month just for approval but the private lender will be able to process your documents and have an answer for you in just a few days.

Another benefit to Arizona Fix and Flip Loans is that these loans can be used on any type of property purchase. A traditional lender is not going to be willing to look at bank owned, foreclosure, short sale or a run-down property and make a fair decision. But a private lender is only really interested in the current value of the property. Banks do not like to lend on riskier investments but a private lender is willing to assume a greater risk as long as the borrower is willing to pay a higher interest rate.

Another drawback to a traditional lender is that fact that they are counting on a full interest payment. This means that if you pay the loan off early, the lender is making less money in the form of interest. So to avoid that, the lender will charge an early repayment penalty. Basically, no matter when you pay off the loan, it still costs you the same amount. But a private lender is not going to charge you any early repayment fees in most cases. But it is critical that you read the entire loan document prior to signing it as the lender is free to impose any terms that he or she sees fit. It is your job to catch any issues with the terms before you sign the loan documents.

Costs of Repairs

When you are flipping a property, you understand that a large part of the cost involved is going to be for the materials and labor for repairs. A traditional lender is not interested in this issue and will not always work with you on a loan for repairs. But lenders who specialize in Arizona Fix and Flip Loans normally will set up a loan reserve which helps to cover some of the repair costs for the property in additional interest.

Pick The Right Lender

As you begin to learn more about the process of fixing and flipping houses, you will also learn more about the financial side of the business. But when you first start out, it is important that you select a lender who is familiar with the process and knowledgeable about the real estate market. This will ensure that you have a good resource and a solid partner to guide you through your first loan experiences.

Securing Arizona Fix and Flip Loans With Bad Credit

October 27, 2018Arizona fix and flip loans, fix and flipArizona fix and flip loans, arizona hard money lenders, Hard Money Lenders, hard money loansbigdaddydennis

For consumers with bad credit, flipping houses is a good way to earn a good profit and rebuild your credit. But first, you need to understand how to get fix and flip loans.

Having bad credit makes it nearly impossible to go to a traditional lender to get a loan for anything, let alone a business venture such as fixing and flipping homes. But if you are really ready to repair your credit, earn some good money and create a business to ensure your financial future, then Arizona Fix and Flip Loans could be the answer to all of your issues.

There is a nontraditional type of loan which is called hard money or sometimes asset-based lending. These are loans which are granted not based on the borrower’s credit score, credit history or even current debt level. These loans are granted based on the value of the property that you are going to purchase, which makes the name asset-based lending more meaningful. The secret is that the loan is secured by the property that you are purchasing. This offers the lender protection in case you default on the loan.

These hard money lenders are not just out to loan money to feel good about a selfless act though, they are interested in making money as well. And if you are using hard money due to bad credit, then you represent a higher risk. So the hard money lenders will expect you to pay a higher interest rate for the money that you borrow. In some cases, the rate can be as high as 15%. In addition, you will pay other fees such as closing and lender fees. But you are getting the loan even though you have bad credit.

Loan to Value

Hard money or Arizona Fix and Flip Loans are based on the value of the property. In most cases, the lender will offer anywhere from 70% to the property value to 80% depending on his or her personal preference. This is an added protection for the lender in the event that you default on the loan. If you default, the lender will seize the collateral for the loan, the property, and sell it to recover the investment in your loan. And the lender wants to be certain that the property is always worth more than the balance of the loan. So with a loan of 70-80% of the property value, there is always built in equity.

Understand the Terms of Fix and Flip Loans

Asset-based loans are a great option for someone who has bad credit but wants to get into the fix and flip business. But it is critical that you understand the full cost of the loan and use that number to create the budget for the project so that you will make a profit and be able to use that money to improve your personal credit and to also make your next purchase to continue your flipping business.

Types of Deals and Properties for Arizona Hard Money Loans

October 27, 2018Arizona hard money lenders, Arizona hard money loan, Hard money lenders Arizona, Hard Money Loanarizona hard money lenders, Arizona hard money loans, Hard Money Lenders, hard money loansbigdaddydennis

Not every loan is perfect for every type of purchase. But there are many deals work very well within the parameters of Arizona Hard Money Loans.

One of the great features of Arizona Hard Money Loans is that they are funded by private lenders. This means that the borrower often has a great deal more freedom with regard to the type of property being purchased with the funds. The loan is being secured by the property so the lenders do want to be certain that the property value is greater than the loan. He or she will also be interested in the saleability of the property in the event of a default on the loan. But as long as there is a market for the property, most lenders are willing to fund a loan for any type of property. That is not to say that some lenders don’t specialize in a specific property type, but as a rule, any type of property including residential, commercial or industrial can be purchased with hard money.

Some of the features of Arizona Hard Money Loans make this a better loan for certain types of purchases. The short-term of Arizona Hard Money Loans makes them impractical for most home purchases but it also makes them ideal for many investment type purchases. Real estate investors who purchase properties to quickly fix up and resell, flippers, are very fond of hard money simply because it is easy to apply for and secure as well as being one of the fastest funding loans. In the world of real estate flipping, time is a critical element that makes it a perfect fit for hard money.

Hard Money Land Loans

Land can often be harder to purchase with a traditional loan. But a hard money lender is often happy to have the land as collateral on a loan. This allows the borrower to purchase the land and improve it with a building, utilities or other features to make the land more valuable prior to selling it. And with the loan for the land being hard money, there is less of a chance that the purchaser will be denied a construction loan for the addition of a structure.

Hard Money Loans with Bad Credit

Many borrowers find that with bad personal credit or no personal credit history, it is impossible to obtain a traditional loan to purchase real estate. But hard money lenders are basing their decision on the value of the property being purchased and not the creditworthiness of the borrower. So a bad credit score might mean that you pay a slightly higher interest rate, but in most cases, you will be able to get a hard money loan. Hard money can also be your only option if you have gotten into a very expensive project and you have overextended your credit or maxed out all of your other options. Again, the interest might be higher but you can get a hard money loan. Finally, for a busy flipper who might have multiple properties under contract at one time, the hard money lender will not decline your request based on the number of loans that you are carrying. The only really important factor is the value of the property. Knowing how to use these loans correctly can open many doors for someone who wants to enter the real estate industry as a flipper.

Who are Hard Money Lenders?

October 27, 2018Arizona hard money lenders, Arizona hard money loan, Hard Money Lendersarizona hard money lender, arizona hard money lenders, Arizona hard money loans, Hard Money Lenders, hard money loansbigdaddydennis

When you are looking for hard money, it is not as easy as going to your local bank. It is important that you understand who Arizona hard money lenders are and where to find them.

When you need a traditional loan, all you need to do is go to your local bank and see a loan officer. Or if you work with a national bank, you can often go online and begin the application process there. But finding hard money lenders is not as easy as going to the bank. You will likely want to begin your search on the Internet and then schedule interviews to meet potential lenders.

Hard money lenders in Arizona are private lenders who might not even operate a full office. In other cases, the private lender could be a part of a group of lenders who work out of an office. But the best place to begin your search is the Internet. This will let you find lenders in your area. Having the ability to meet face to face with the lender is a good idea if you are new to the hard money lending process. It allows you to ask questions and will add to your comfort level as you learn the business. Meeting the lender or lenders in person is also a good way to dispel some of the myth about hard money being a less than ethical lending resource and that the lenders are shady.

Another important bit of information to keep in mind is that private lenders have the ability to structure their loans as they see fit, unlike the tight structure that most banks must follow. This can work in your favor if you want to request certain special terms but it can make the process more confusing if you do not take detailed notes regarding each lenders terms.

What to Expect from a Hard Money Lenders

Even with the ability to create tailored terms, most lenders will only extend Arizona Hard Money Loans out to a year and the interest rates can range from around 7% to as much as 15% or more. The level of risk involved in the loan will often dictate the interest rate offered. Some lenders also work with unique repayment schedules where the payment rate changes each month. This can be helpful as the early payments are normally small but the later payments can be much larger.

Know You Project

Before you begin to speak with lenders, it is important that you prepare yourself. Arizona Hard money lenders are not adverse to taking a risk when making a loan, but they do expect to see the money returned as well as the fees and interest. So knowing the details of your property and your project will allow you to answer the lender’s questions and also appear knowledgeable and prepared to complete the project on time and on budget. This confidence might end up being the deciding factor for you getting the loan or it might be what gets you a slightly better interest rate. But being professional is always going to offer the best potential.

You Don’t Need to be a Handyman to Begin to Seek Out Loans to Flip Houses

October 24, 2018Arizona hard money lenders, Arizona hard money loan, Arizona Investment Propertyflipping houses in Arizona, Hard Money Lenders, hard money loans, loans to flip houses, loans to flip houses in Arizonabigdaddydennis

Financial prosperity with flipping houses is possible before you ever even have to pick up a power drill or a saw. Many people are enjoying riches in the real estate market with flipping houses in Arizona without doing any of the manual labor themselves and you can to by learning more with this helpful guide.

Yes, you can begin owning your very own portfolio of rental properties or real estate properties without having any handyman skills whatsoever as early as today. Real estate investing is a budding market that you need to be seriously considering if you are serious about achieving your financial goals and making your dreams of financial goals. What is so great about investing in real estate? Well, rental real estate, for example, is capable of retaining its value as long as you are careful to choose the right tenants, keep careful track of your properties, and are sure to hold the right insurance. What’s great about rental properties is that they are able to generate some form of cash flow each and every month as your tenants pay their rent. You can make sure that this happens by carefully choosing your tenants and removing those that are irresponsible or are not good about paying rent.

Since you can outsource the work of flipping a house or property, you can achieve this and more without ever having to pick up a paintbrush or a wrench yourself. Outsource this work and focus instead on investing in financial opportunities or choosing the best properties possible. You do not have to be a handyman to make a fortune with real estate and make your dreams come true.

Can I Retire Early With Loans to Flip Houses?

Is it really true that you can retire early with the help of real estate investment and flipping houses? Well, the short answer is actually yes! Real estate investing is a solid investment if you are searching for an early retirement if you do the process correctly. A lot of people have the incorrect belief that it requires becoming a contractor or handyman to begin the process of house flipping but this simply not true. In fact, instead of doing the work yourself, you can instead outsource the work of a handyman to a company that specializes in property management.

Become a real estate investor and a Arizona house flipper without ever having to pick up a hammer or a nail today.

Typically, these companies collect around ten percent of the rent from the property. Buying multiple rental properties can be achievable even with outsourcing the handyman work to other individuals. Think bigger than just investing in homes! For example, if you decide to invest in properties such as commercial buildings or apartments, all of the operational workings of the property will be managed by separate personnel. You do not have to be a handyman to begin flipping houses! The right loans to flip houses in Arizona can get you started on this goal.

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

Triple Your Income Today with House Flipping Loans

October 22, 2018Arizona hard money lenders, Arizona hard money loan, house flipping loans in Arizonafix & flip, hard money, hard money lender, Hard Money Lenders, house flippingbigdaddydennis

Start your career in real estate investment and grow your income exponentially with the help of a loan specialized in house flipping. The art of flipping houses can quickly triple your income if you follow some of the helpful strategies presented in this guide.

Are you considering getting started in the real estate market but don’t know how to go about doing it? You can make all of your financial goals a reality with the assistance of house flipping investments. Many people are reaping the rewards of real estate investments and there is no better time than now to see what these types of investments can do for you and your own financial dreams.

Consider the benefits of house flipping loans in Arizona:

Potential to Quickly Turn a Profit and Even Triple Your Income

We start any new investment with the hope of turning a profit. It makes sense that perhaps then the most obvious reason that a person might have for flipping a house or other investment property is to attempt to make some money.

The companies and individual people that are dipping their toes into real estate market are enjoying extremely lucrative results. That fact is that with real estate investment not only can you our your company achieve significant returns on your investments, but you or your company will be able to receive these returns on your investments extremely quickly in most scenarios.

Personal Networking and Development Opportunities

Though it may seem at first that investing in house flipping is going to require a significant amount of time and investment, there is actually a great deal of valuable, important experience to be gained from the art of flipping houses or other investment properties.

Beginning to get into the real estate market and starting the practice of frequently purchasing properties and the necessary materials needed to work on these properties helps you or your company begin to brush up on or develop great negotiating skills. You can learn how to become a much more capable delegator, expert at task management, and hold people accountable. Your knowledge of construction and real estate will also expand.

Are House Flipping Loans in Arizona a Worthwhile Investment?

Flipping houses is more than the money. Even if you may be only interested in flipping houses for the monetary awards, it is clear that flipping properties is more about the cash and checks.

The real estate industry is a buzzing market that has all of the tools you need to achieve your dreams and financial goals.

Updating a property is a way of cleaning up an old neighborhood and developing new communities you are in a way giving back to the community and rewarding yourself with this form of enrichment. Flipping houses goes more than achieving your income goals or expanding your wealth. Triple your income mentally and physically by giving back to the community and surrounding areas by upgrading old homes or properties and helping to elevate the quality of the surrounding community.

How to Get Arizona Business Loans with Rotten Credit

October 14, 2018Arizona Business Loans, Arizona commercial loan, Arizona hard money, Arizona hard money lenders, Arizona Investment PropertyArizona business loan, arizona business loans, hard money lender, Hard Money Lenders, hard money loansbigdaddydennis

Getting Arizona Business Loans when your company is growing can be difficult to begin with, but those without excellent credit scores face additional challenges. Thankfully, lack of cash on hand doesn’t have to halt your plans, provided you know where to look.

Credit Cards: Although few would consider credit cards to be the ideal choice, they can work if you’re trying to bridge a gap and have confidence your revenue will continue to grow. Without being able to demonstrate your business is solid, lenders will typically expect you to get cards in your name instead of the business name. Poor personal credit may give them reason to pause, but oftentimes there are options with higher interest rates or annual fees that can be tapped into. Use these sparingly and pay off the balances ASAP, so they improve your credit and you can apply for more favorable terms in the future.

Factoring: Technically, invoice factoring isn’t a form of lending, but it can help you bring in cash faster if your inflows are sluggish and you’re missing payments by a small margin. It works well if you send out invoices to clients for work completed or goods delivered, but your clients sometimes take too long to pay. When you work with a factoring company, they purchase the invoices from you and pay right away. Then, your clients pay them. Factoring companies aren’t overly concerned with your credit, but they will only buy select invoices from you when the person who owes you has good credit.

Collateralized Business Loans: One of the more popular ways to go is to obtain collateralized Arizona business loans. In these cases, you’ll offer an asset or assets as collateral, giving the lender confidence that they have recourse even if you don’t make good on your payments. These are easier to obtain as well because the lenders aren’t worried about your credit score quite as much; they’re looking at the value of the asset more. Some lenders will accept land, inventory, or equipment as collateral, though most prefer to use the business owner’s home. Terms vary, but you can sometimes get up to 90% of the value of your asset, which makes this a good choice if you require a large lump sum for startup costs, equipment, real estate, or to cover a surge in growth.

How Can I Tell Which Options I’ll Qualify For?

Applying for financing repeatedly can damage your credit too, so it’s not wise to apply for everything all at once. That’s because lenders will typically assume you may well get all the credit you’ve applied for, and if you do, the chances are slim you’ll pay them. Instead, you have to make an educated guess as to which options will fit your needs and then inquire what each lender is looking for. Do a little research before you apply to ensure credit checks aren’t being done when you aren’t likely to be approved.

If You Own a Home, Collateralized Arizona Business Loans Can Supercharge Your Company

Various forms of lending exist because people and businesses have unique needs. If your credit isn’t good, but you own your home, a collateralized option can put a substantial amount of cash in your hands now, so you can grow your business and thrive.

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.