I Want to Buy a Home - Bad Credit Home Loans in Arizona

You’re in love with a home you just spotted, or you want to stop paying rent and start building equity. But to put it simply, your credit rating is in the toilet. How do you go about getting approved?

Meet Anne. A single mom with two kids that wants to buy a modest home in the suburbs. However

do to her unfortunate past, she is unable to secure a home loan from the bank. Why is this?

In order to qualify and secure a home loan from a bank, a bank must look at your credit rating to see if you are a prime borrower candidate. Due to Anne’s past of a defaulted loan from a failed business venture, her credit is less than satisfactory.

Besides business failures, other black marks resulting in bad credit can also come from events such as divorce, injury, job loss, or other untimely circumstance. Any of these issues are possible in creating financial problems that prevent you from buying a home.

There are no bank-approved options for bad credit home loans in Arizona. Even if you have a significant amount of cash reserved for a down payment, banks are hard pressed to offer home loans to a borrower with poor credit. However contrary to common belief, you don’t have to go to a bank in order to retrieve a loan for the home you want.

So what options are available besides borrowing from the bank? Is there such thing as applying for bad credit home loans in Arizona?

If you have bad credit then obtaining a loan through a private or specialist lender is an excellent option. Unlike banks, private lenders are more flexible when it comes to poor credit history. These lenders have options available when it comes to obtaining bad credit home loans in Arizona. Private lenders offer bad credit loans (also known as sub prime loans). Bad credit loans can get you in the house you want immediately.

I am interested in getting approved for a bad credit home loan. What are the requirements for obtaining this kind of loan?

Despite having a low credit score, you can apply for an approved home loan. Though in order to get approved for this type of loan, you must have a higher down payment readily available. The down payment amount will usually more be than the standard 20% of the listing price. In addition, these types of home loans for people with poor credit will often also have higher rates.

Anne and her family are interested in purchasing a house right away. She doesn't want to wait to buy a home but has enough substantial cash for a sizeable down payment. She also has a secure job and is confident she can pay off her mortgage responsibly. Applying for a bad credit loan or sub prime loan will work for her.

Similarly, if you are someone that has money for a large down payment but shoddy credit, securing a bad credit home loan is a desirable option.

Sounds like a bad credit home loan is for me. How do I apply?

The only way to know for certain if you qualify for a loan with bad credit is to talk to an actual lender. Level 4 Funding has a lot of options when it comes to obtaining home loans with bad credit. Let the professionals at Level 4 Funding aid you in securing a your home loan.

Call today at 623-582-4444 to schedule an appointment with Dennis. We will go over your individual financial circumstances and offer you’re the best advice in qualifying for a loan.

Level 4 Funding LLC

23335 N 18^th Drive Suite 120

Phoenix AZ 85027

623-582-4444

www.Level4Funding.com

Using Trust Deed Investing to Fund Your Child’s Education

Trust deed investing is a little known high yield investment opportunity. With rates of return as high

as 12%, it can be a great way to fund your child’s college education. As a parent, your child’s future is always on your mind. One of the biggest concerns for most parents is how to pay for college. With rising tuition costs, books, housing, and other details, the cost can really add up. In fact, reports from the College Board indicated that the tuition cost alone can be upwards of $20,000 for a four year degree. This is for in-state tuition. This number rises dramatically with out of state schools and private institutions. For most families, this is a number that seems out of reach. However, with the right investments you can grow your money in such a way as to make paying for your child’s college education an attainable goal.

One type of investment that many parents take advantage of is bonds. There are a variety of different types of bonds that can be purchased from the United States government. Depending on the bond type it takes a specified amount of time to mature. Once the bond is matured the government will purchase it back for a guaranteed interest rate. Bonds are extremely safe investments as they are backed by the U.S. Department of Treasury. The main downfalls of bonds are that they earn fairly low interest rates, usually in the single digits and often as low as 2%, and they take a significant amount of time to mature. Bonds are a safe investment but don’t offer very high or timely returns.

Another investment that many parents use is a stock investment. With this type of investment an investor purchases parts, or shares, of a company. When the company makes money, so does the investor. If the company loses money, so does the investor. The risks and rewards of stock investing varies by the specific companies the investor chooses to invest in. There is not insurance against loss. To help make this investment less risky, investors can do their research. Make sure they know about the finances of the company they are investing in and choose companies that show stability over time.

A third investment that can help earn funds for college at a very high interest rate is known as trust deed investing. In this type of investment, the investor purchases an interest in a mortgage that is given by a bank. The borrower purchases a property, the bank lends money, and the investor (known as the trustee) invests money for the privilege of holding the financial deed to the property.  The trustee holds the deed for a specified amount of time from months to years, depending on the terms of the investment. As long as the trustee holds the deed, he/she earns interest from the bank and has almost no responsibilities as long as the borrower is current on payments. Interest rates on trust deeds are between 9 and 12 percent.

Level 4 Funding LLC

23335 N 18^th Drive Suite 120

Phoenix AZ 85027

623-582-4444

www.Level4Funding.com

Minimizing Risk When Investing in Deeds of Trust

Like all investments, investing in trust deeds does has an element of risk. The main risk for the trust deed investor is that the borrower will default on his/her loan. If the borrower stops making payments, it is then the responsibility of the trustee to sell the property on behalf of the lender. This process is called non-judicial foreclosure. Once the property is sold, the lender takes back its initial investment. If there is any money left over, the trustee is then paid.

If you are interested in investing in deeds of trust, there are a number of steps you can take to insure that you are making a safe investment. First and foremost, make sure that you work with a reputable, established lender. A bank or mortgage broker that has been around for a while with a good reputation doesn't give out loans to borrowers who are not able to repay them. Of course there are always exceptions, but generally reputable lenders are more selective with their loans than lenders who are just starting out.

Secondly, when you are investing in trust deeds, you can help insure you money against loss by having a fair and accurate appraisal before the borrower purchases. If the property is appraised well then you can be confident of its value moving forward. Then if the borrower does end up defaulting on the loan, you can sell the property for a high enough price to pay yourself back. This is perhaps one of the greatest benefits of trust deed investing because your investment is backed by real estate that has real monetary value, not just company profits like a stock. You can use the real estate to recoup your funds if necessary.

Trust deed investing is a great investment tool to earn high interest rates with little risk of losing money because your investment is backed by real estate.

Make sure to talk with a broker before you attempt investing in deeds of trust. A broker can work with you to find the best loan lengths, terms, and interest rates. He or she can also help you navigate the ins and outs of the specific laws and regulations in your state.

Dennis Dahlberg

Level 4 Funding LLC

23335 N 18^th Drive Suite 120

Phoenix AZ 85027

623-582-4444

www.Level4Funding.com

 

The Basics of Trust Deed Investing

Many smart investors incorporate the strategy of investing in deeds of trust as an easy and relatively low risk way to help grow their retirement accounts. With rates of return as high as 12% and real estate collateral, investing in trust deeds can be a good addition to a well-rounded investment strategy.

Trust deed investing is an investment tool that can help many people reach their monetary goals for invest in deeds of trust, it is important to understand the basic types of mortgages available and why trust deed investing is a win/win situation for all parties involved.

retirement. It is a useful addition to your retirement investing strategy because it is relatively low risk and low maintenance with a high rate of return. Before deciding to

The first type of mortgage is what is known as a true mortgage. In this type of real estate transaction, the borrower purchases a property with funds that are supplied by a bank or other lending institution. The legal and equitable deeds to the property both belong to the borrower as the owner of the property. This can pose an obstacle to the lender should the borrower default on his/her loan. Since the borrower holds the deed to the property if he/she defaults the lender must go through what is known as the process of judicial foreclosure. This involves the lender obtaining a court order before the home can be sold without the borrower’s consent. This can be a lengthy and expensive process for the lender.

The second type of “mortgage” situation involves a deed of trust. In this lending situation, there are three parties involved, the lender, the borrower, and a third party known as the trustee. The trustee purchases a deed of trust from the lender which gives him/her the right to hold the legal deed to the property on behalf of the lender. Deeds of trust can be purchased for anywhere from $1,000,000 and up. Once the trustee buys the deed, he/she is said to be investing in deeds of trust. Like any investment, the trustee earns interest from the lender.

The interest rates earned on deed of trust investments 

are typically higher than other types of investments. 

Some investors earn as much as a 12% rate of return on their investment. As long as the borrower continues to pay his/her loan to the lender, the trustee earns money for the term of the investment with no further work.

Level 4 Funding LLC

23335 N 18^th Drive Suite 120

Phoenix AZ 85027

623-582-4444

www.Level4Funding.com

Trust Deed Investing with Limited Resources

One common misconception about trust deed investing is that it can only be done by the very wealthy. This is not true. There are many lower cost options for budgets of almost any size. If you are on a budget, you might consider pooling your resources with a friend. Make sure that you both agree on the property and borrower that you are investing in and you can split the monthly interest payments. This is a way to purchase a larger deed of trust without investing more money. Some brokerage firms also offer trust deed investing pools where you can combine your resources with other to make a larger investment.

In addition, you can look into investing in lower value deeds of trust. Things like cemetery plots can actually be a great deed investment and they are usually less expensive because they are smaller and less valuable than a larger property or house. In some cases and states it is also possible to do partial trust deed investing also know as Fractional Trust Deeds. Basically you would purchase a part of a deed for a shorter period of time like 12 months compared to several years. You can also look into investing in deeds of trust that have been defaulted. This can be a great way to get into trust deed investing but is a very specialized niche. It is usually more risky but the investments are cheaper and often the returns are quite high.

Trust deed investing is a great investment tool to earn high interest rates with little risk of losing money because your investment is backed by real estate.

Make sure to talk with a licensed broker before you attempt investing in deeds of trust. A broker can work with you to find the best loan lengths, terms, and interest rates. He or she can also help you navigate the ins and outs of the specific laws and regulations in your state. Your broker can also help you invest your limited funds in the smartest way possible to earn the highest returns.

Level 4 Funding LLC

23335 N 18^th Drive Suite 120

Phoenix AZ 85027

623-582-4444

www.Level4Funding.com

Foreclosure and Trust Deed Investing: What You Need to Know

Investing in trust deeds is generally considered to be a fairly safe investment strategy. Like any investment, there are risks, and knowing how to protect yourself and your money is a crucial step in having a successful investment.

Investing in deeds of trust is a great way to earn high, fixed interest without having to do much work.  is a specific type of real estate investment where the investor invests money as a third party in the mortgage process. The bank or lender loans money to the borrower, the borrower repays the money to the bank and the property is secured by a Deed of Trust.  The Deed of Trust gives the Trustee (a third party) the ability to sell the property if the borrower defaults.  As an investor you can purchase the Deed of Trust from the lender and then you become the bank and receive the payments.   Interest rates a generally higher than most other investments at anywhere from 9 to 12 percent. Deeds of trust are a fixed investment so you earn that interest rate over the length of your investment.

Investing in deeds of trust

Now that you know the benefits of investing in trust deeds, you are probably wondering how exactly

it works and what your role as the investor is. As the investor, you invest money to hold the legal deed to the property as was discussed previously. You do not live at the property nor do you have to maintain it, the borrower does this and he/she holds the equitable title to the property. If the borrower makes payments on time, all the lender has to do is earn interest from for the length of the investment term. Investment terms can cover anything from a few months to several years. Interest is fixed and paid monthly as additional, relatively stable source of extra income.

However, as with any investment there is some risk associated with trust deed investing. The greatest risk is that the borrower will stop making monthly payments. If this happens, you as the trust deed holder, will begin to initiate the process of foreclosure on the property. The trustee has the power to sell the property for the lender. If the property is sold for a loss, the trustee will lose his/her initial investment.

Protecting Your Money during Trust Deed Investing

Although it is rare, defaults do happen and it is important to take every step necessary to secure your initial investment. One of the best rules of thumb is to never invest in a trust deed on a property you would not want to own. This does not mean that you want to live there, but that you could see the benefits of owning it as a rental, or it is in a desirable location, or has some other feature that gives it extra value. You also need to work with a good team that involves an appraiser. An accurate appraisal on a property helps make sure that it can be sold for the value of the loan, should a foreclosure situation arise. As long as the lender can recover its funds, anything left over will pay back your investment before transferring to the borrower.

Another key to protecting your money is to make sure that the property is always covered by a comprehensive hazard insurance policy. Fires, floods, and other natural and man—made disasters happen. If the home is destroyed, and insurance policy will help pay back both the lender and trustee. Make sure that the hazard insurance is current and sufficient on any properties that you are investing in trust deeds for.

Finally, you can help protect your money by always holding the first deed of trust on a property. Some lenders sell additional shares of trusts in the form of second or even third trust deeds. Basically what this does is put you in a line to be paid back in the event of default. The first trust deed holder is always the first to be paid back their investment if the loan defaults. Second and third trust holders often never recoup their funds.

Finding the right broker can make all the difference in trust deed investing.

Make sure that you are using a broker or firm that knows the ins and outs of trust deed investing. Ask about the team of Realtor, appraisers, home inspectors, and other professionals they work with to secure you investment. Also, make sure that they know you are only interested in being the first deed holder on any trust deed investments. Do your research about applicable laws and special circumstances to help protect your money.

Level 4 Funding LLC

23335 N 18^th Drive Suite 120

Phoenix AZ 85027

623-582-4444

www.Level4Funding.com

The Benefits of Investing in Deeds of Trust for You

Trust Deed Investing and You

One little known but high return investment strategy called trust deed investing can be a crucial investment for experienced investors to grow their investment portfolio. Investing in deeds of trust is a specific type of real estate investment wherein the investor, or trustee, invests money as a third party in the mortgage process. The bank or lender loans money to the borrower, the borrower repays

the money to the bank, and the trustee invests money directly to the lender in order to act a third party intermediary and hold the legal title to the borrower’s property. The lender then pays the trustee interest for holding the title. Interest rates a generally higher than most other investments at anywhere from 7 to 12 percent.

Not only does trust deed investing yield a high rate of return, it is also a rather low risk investment. The monetary investment is backed by the actual real estate purchased by the borrower. An accurate and thorough appraisal ensures that the property is actually worth the money that has been invested in it. If the borrower defaults the investor’s funds can be recovered by the sale of the property. In some cases, the investor can even take over payments from the borrower and acquire the property without an additional sale. This way there are no escrow fees, additional inspections, or closing costs.

Now that you know the benefits of investing in trust deeds, you are probably wondering how exactly it works and what your role as the investor is. As the investor, you invest money to hold the legal deed to the property. You do not live at the property nor do you have to maintain it, the borrower does this and he/she holds the equitable title to the property. If the borrower makes payments on time, all the trustee has to do is earn interest from the bank for the length of the investment term. Investment terms can cover anything from a few months to several years.

The Bank’s Role in Trust Deed Investing

A common question about trust deed investing is what is in it for the lender. This is a valid question because banks generally don’t like to give away 12% interest rates for free. In order to understand why the bank would engage in trust deed investing, it is critical to understand the two types of mortgages in the United States.

The first type of mortgage is a true mortgage wherein the only parties involved are the bank and the

borrower. The borrower holds the legal title to the property they purchase. If the borrower defaults on mortgage payments, the bank has to take judicial action against the borrower by actually suing them in a court of law. Only after the court has ruled in their favor can the bank take possession of the property via foreclosure. This is a lengthy process and can get quite expensive.

In trust deed investing, the trustee holds the legal title to the property and is paid interest by the bank for doing so. In the event of a default in payments by the borrower, the trustee can take legal possession of the property via foreclosure without judicial action. The bank can then sell the home quickly to recover their investment as well as the investment of the trustee. This is a much shorter foreclosure process and saves the bank money in the event of defaulted payments.

Investing in deeds of trust helps the lender protect their collateral while earning money for the trustee. The trustee’s investment is also protected by the actual physical real estate.

Investing in trust deeds is a high interest, low risk investment strategy. If the borrower pays on time, the investor literally does nothing other than collect interest. If they borrower defaults, the property that the borrower is making payments on helps to secure the trustee’s investment. This is perhaps the greatest benefit of trust deed investing. The investment is actually backed by physical collateral that the investor could literally drive by and see. The investor can also do a number of things beforehand to help secure his/her investment. The investor can use credit scores of borrowers to determine the riskiness of a particular loan. In addition, the property will be appraised to ensure that it can be sold to recover the investment if necessary. A further investment safe-guard is the requirement of all borrowers to obtain sufficient hazard and fire insurance. This protects the investor in the event of the property being destroyed.

If investing in deeds of trust sounds like a good investment opportunity to add to your portfolio, contact a broker that specializes in real estate investments. A broker can help you make the best investment decisions and help you start earning high interest rates with trust deed investing.

Level 4 Funding LLC

23335 N 18^th Drive Suite 120

Phoenix AZ 85027

623-582-4444

www.Level4Funding.com