Setabay Private Hard Money Lender

Wednesday, March 13, 2019

Finding the Right Commercial Property Loan: Why a Hard Money Loan Is the Way to Go

Buying commercial property can be one of the biggest purchases for an investor. The high price means you’ll need to really investigate your options. Learn more about making a commercial investment and hard money commercial lenders in this blog.

Commercial properties are a great way to diversify your investment portfolio, but it’s a different ballgame than residential properties. The price tag is bigger, the capital needed to maintain is bigger, but the potential for income is also bigger. Securing a Arizona hard money commercial lender could be your first step into commercial investment. Here’s why taking that step could be the right move for you!

Commercial properties are less affected by the stock market

Residential properties have a high correlation with the state of the stock market in most cases, but commercial properties can sustain their asset equity better. Speaking with a financial analyst can give you good insight into information that will help you make a well-informed decision on the type of commercial property you should invest in, insuring your money is working for you.

There’s potential for stable cash flow

If the numbers for unemployment in your area are trending upwards, there’s a high chance you won’t have a problem finding tenants in a traditional commercial building. If housing prices are keeping steady, an investment in a multi-family property could provide that stable cash flow for you. This is also an opportunity to speak with a Arizona commercial hard money lender to see where they see the market moving. It’s the business they’re in so they could have some insights into which investments are giving the best ROI in your area.

The long-term growth potential is huge

As prices rise and inflation hits different areas of the country, that also raises the prices of commercial properties, allowing owners to raise rates for space in their buildings. Recessions are always a looming threat in real estate, but the organic growth while the market is good allows for investors to maintain a steady influx of cash flow in the meantime.

Commercial property investment is a good way to diversify your portfolio and while it poses a larger cash risk up front, you’re not depending on a single tenant to make or break your earnings.

If you want to learn more about how you can secure funding from a hard money commercial lender, call Level 4 Funding today.

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.

Hard Money Lenders are a Win-Win Solution

Financing a residential or commercial investment is quick and easy with hard money lenders. Here are some quick facts about hard money lenders so you can know what’s best for you.

If you’ve ever bought a home then you’re familiar with the guidelines and qualifications you had to meet in order to secure a lender. There was a ton of paperwork just to get started, then you had to get your prequalification, and then work with a lender to determine the best loan for you. Hard money lenders are more simple in their determination of loan funding.

Below you’ll find some facts about hard money lenders that you may not know.

They don’t fund traditional loans per se

Arizona Hard money lenders aren’t looking to fund owner-occupied properties, though some may from time to time. For the most part they want to fund opportunities for residential and commercial investments that will pull in a bigger return. Just as the investor is looking to make money, so are hard money lenders, just like traditional banks. The main difference is that they will fund that money quicker because it is an investment and they know that investors can’t wait for funding to come through.

They aren’t working with secondary mortgage markets

Arizona Hard money lenders are giving you, often times, their own money. Unlike traditional lending institutions your loan won’t be sold to Freddie Mac or Fannie Mae. Your money is coming from an investor, much like yourself, and they will see that loan through. That’s why their requirements for eligibility are different from those of big banks.

Eligibility is based on property, not owner

You won’t be asked to fork over tons of personal financial information by a Arizona hard money lender; instead, they’ll want to know more about the property. They’re investing in the opportunity and want to know that the risk is worth the loan. That’s why they’ll want to know your plans for the property so be prepared to answer questions such as that.

Short term loans is the name of the game

If you’re looking for a 30-year loan, this isn’t the place for you! Short term loans are what hard money lenders specialize in and that’s because they need to be able to free up their money for more investments. You’ll usually find loan terms somewhere between a few months and two years. The repayment terms will be negotiated between the lender and the borrower.

If you think that a hard money lender can help you realize your investment dreams, call Level 4 Funding today!

Tuesday, March 12, 2019

Tips and Tricks: Choosing a Arizona Private Money Lender

You should be selective about choosing your Arizona Private Money Lender. In this blog we discuss the things you should look for and what to avoid.

Choosing a hard money lender is a big decision. Like any other loan, you’ll want to vet your Arizona Private Money Lender to make sure it’s a relationship that’s going to work for you and your investments. Whether you’re wanting to make a commercial real estate investment or get into the fix-and-flip business, here are some things you should know about your Arizona Private Money Lender before applying for your loan.

Make a list, check it twice

It can be simple to do an Internet search for Arizona Private Money Lenders in Arizona. Get yourself a list so you can begin the comparison process to narrow down your search. You’ll want to make sure that they will fund your type of purchase and that they match your expertise level. Do they take on first-time investors? Those are important questions to ask up front.

Do your research

You want to know as much as you can about your potential Arizona Private Money Lender. Check their qualifications and license and also don’t be afraid to ask for referrals. The best information you can get on a lender is from a current or previous borrower. Do some online searches and see what you can find out about them before keeping or crossing them from your list.

Take them on a date

You want to treat this like a relationship. Ask your lender some ‘get to know you’ questions. Ask about their loan terms and their qualification criteria. Ask about their most recent investor success story. The more you know going in, the less you’ll be surprised later. You want to work with a lender who is willing to answer any and all of your questions so that you aren’t going in blind.

Choose Wisely

Once you’ve gathered this information on a few lenders its time to make a decision. Be picky! This is your investment future and if they don’t seem committed to your success, then maybe it isn’t the right lender for you.

Arizona Private Money Lenders are there to help you with your investments, but they’re also in it to make money, as well. That means they need to be as interested in your investment plan as you are. During your selection process make sure to ask about all fees and the options for loan repayment and loan terms while also presenting them with your investment story. The information sharing should go both ways!

If you’re feeling comfortable with your lender it’s time to make your investment happen! As a Arizona Private Money Lender in Arizona, Level 4 Funding wants to help you do just that. Give us a call and see if we’re the right fit for you!

Pitfalls of Traditional Commercial Loans

Traditional commercial loans can be difficult to obtain and take a long time to fund. Arizona Hard Money Commercial Loans can help bridge the gap and get you funded quicker to turn a profit from your commercial real estate.

Retail spaces, office buildings, warehouses…. The list goes on and on. Commercial investment properties are a hot commodity in Phoenix, allowing investors to maximize their income potential. The return from commercial properties can blow residential investments out of the water, but that’s because they come with a big price tag.

In order to afford that commercial investment property you’ll need to have the cash to make the purchase. If you’re familiar with Arizona Hard Money Commercial Loans they can be a great way to secure funding. Here are a few reasons why traditional commercial loans may not be the way to go for your investment.

Must-meet requirements

Traditional commercial loans will come with similar requirements to traditional residential loans where the borrower will have to meet certain requirements that can be based off of things like credit score and payment history. If you don’t fall into the category of people with great credit, that can be a road block for you. Arizona Hard Money Commercial Loans will offer an alternative by looking at other factors so you don’t have to spend time and money fixing your credit.

Your repayment schedule will be strict

Traditional lenders are very strict about their repayment schedules, not allowing for flexibility so that the borrow can tailor the loan to their needs. That’s where Arizona Hard Money Commercial Loans have a leg up. The terms can sometimes be negotiable, allowing the borrower and lender to work together to come up with the most beneficial terms for that particular loan.

You’re running on their time

Commercial investment has a hefty price tag and can come with some hefty unexpected expenses. If your commercial property needs a big ticket repair, how long do you think it would take a traditional lender to help you get that money? Because Arizona Hard Money Commercial Loans have the flexibility that traditional lenders don’t offer, there’s the potential for alterations to the loan that can help you with large fixes such as roofing or heating/cooling.

Quick response is NOT the name of the game with traditional lenders so if you’re looking to make a move on a commercial property, going with a hard money commercial loan that will be serviced with a company like Level 4 Funding. Call us today to learn more!

Sunday, March 3, 2019

Finding 100 LTV Commercial Real Estate Financing Near You

100 LTV commercial real estate financing isn’t always easy to find from lenders. Use these tips to locate a hard money lender near you that offers these loans.

Many hard money lenders nowadays offer commercial real estate loans, but not as many will give you 100 LTV. We wanted to give you tips on finding money lenders that offer 100 LTV commercial real estate financing. Really, it’s as easy as knowing where to look.

Do an initial scan of your options.

It can help to first see what hard money lenders are out there before choosing one. Search for hard money lenders that lend in your area. At least one of them is bound to offer 100 LTV commercial real estate financing.

Check out the company websites.

After you’ve got the names of a few hard money lenders, take a look at their websites. Do they have testimonials? Look at those, too. See what kinds of loans they offer and if they’ll be able to give you 100 LTV on your commercial property. You should be able to get an idea of the trustworthiness of the company from the website, as well, which can be helpful moving forward.

Look for company reviews.

If there are reviews on Google, Yelp, or other websites, they will definitely be useful. Reviews can tell you what the company website will not from the perspective of past borrowers. As a potential borrower, it’s worth it to read what other customers had to say. However, keep in mind that reviews can be slightly biased. If someone had a bad experience with a company, they’re more likely to take the time to write about it than someone who had a good experience. If company ratings are skewed on the low side, take it with a grain of salt.

Give your top companies a call.

After you’ve found companies and seen their reviews, you should be able to narrow your list down to a few companies that have the best chance of giving you 100 LTV commercial property financing. Call each company and get a better feel of what they’d be able to offer you and ask any other questions you might have.

Don’t be afraid to negotiate.

One of the advantages of hard money lenders over banks is that they can work with you on rates and payment plans. When you’re talking with hard money lenders, don’t be afraid of negotiation. If you’re determined to get 100 LTV and their website says 95, see if they’ll give you the extra 5%. You never know unless you try.

Level 4 Funding has financed many commercial real estate projects, and they could help you, too.

Level 4 Funding of Phoenix has experience lending to help fund projects in many areas of the American West, including Arizona, Texas, and California. Visit their website for more information about their commercial real estate loans and see if their services are right for 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

How to Choose the Best Spec Home Lot on the Block

Not all lots are the same. Taking the time to find a quality lot to purchase with Arizona spec home financing can be the difference between profit and loss.

Building a spec home can be an excellent source of income if you do it right, so it’s important to consider every element of your potential home to ensure the greatest profit. Design, choice of contractors, and neighborhood location all contribute to a home’s value, not to mention the lot it’s on.

When choosing a lot for your spec home, there’s a lot to keep in mind. Think about the following when searching for a spec home lot:

1. Lot size Will the lot comfortably accommodate your floorplan? Try to choose a lot that will fit your floorplan while leaving some breathing space between your home and neighboring houses.

2. Location in the neighborhood Is it by the main road or off in the back? Is it on a main street or in a private cul-de-sac? Think about the best spots in the neighborhood and find a lot as close to them as you can get. Some areas have parks or walking paths within earshot of a lot, which can be useful in selling a home.

3. Upcharge Make sure you’re aware of any extra charge for the lot you’re looking at. If there is an upcharge, consider whether the lot warrants that upcharge. Is the lot worth what it costs, or could you find a comparable lot with no upcharge?

4. Neighboring homes/areas What’s next door? Lots next to parks, walking paths, or golf courses tend to cost more, but they will produce the most profit. If none such lots are available, lots on street corners tend to be larger and have no neighboring homes, which can make them more appealing to buyers. Consider any upcharges your premium lot may have and see if it’s worth it to choose compared to a standard lot.

Think about each element carefully in relation to your ideal clientele. If the neighborhood in which you’re building is marketed toward families, think about that when you’re choosing your lot. Which lot would be the most ideal for a family moving into that neighborhood: on a corner or near a park? The better the lot you choose, the more potential offers you could get.

Arizona spec home financing

With construction, lot costs, and more, Arizona spec home financing can be hard to come up with. Hard money loans are great alternatives to traditional bank loans, as they can get you money both easier and faster. Hard money lenders often deal with real estate funding like Arizona spec home financing, and therefore have a lot of expertise in the real estate industry.

Level 4 Funding is a trustworthy hard money lender that can help you finance your next spec home.

Level 4 Funding is a Phoenix-based hard money lender that has funded projects all over the Western United States. Run by two lenders with extensive experience in real estate, Level 4 Funding can give you the Arizona spec home financing you need at the rates you want.