Setabay Private Hard Money Lender

Monday, March 18, 2019

The Basics of Arizona Hard Money Loans

(Understanding hard money loans and asset-based lending is important for all consumers. It might not work for everyone, but it is a good option to know about.)

As a consumer, you might only know about the more traditional types of lending such as a bank or mortgage company. But there are many other options available if you know where to look and understand how the loans work. Arizona Hard Money Loans are granted more on the merits or value of the collateral property than they are based on the borrower's personal credit score. For this reason, Arizona Hard Money Loans are also sometimes referred to as asset-based loans. This might sound like a very unorthodox type of loan, but once you understand the purpose of these loans and how to use them most efficiently, you will discover that hard money has its place in the world of finance.

It is also important to know that hard money is not something that you can go to a bank and request. Hard money is funded by a private lender, rather than a traditional lending institution. The lender could be an individual or even a small group of people who work together to provide hard money to borrowers. The other important bit of information is that these loans are not long-term like a traditional 15 year or 30-year mortgage. Hard money is normally borrowed for a year or two at the most, but the terms of a loan can be as short as a few months depending on the needs of the borrower.

As you might have guessed, coming from a private lender and with a much shorter loan term than a traditional mortgage, these loans carry a higher cost. In most cases, the interest is several points higher than a bank loan and the fees for the loan can be more as well. But there are many benefits to using a private lender to secure an asset-based loan.

Benefits of Hard Money

There are three main benefits to hard money that make it worth the higher cost of the loan. Because you are working with a private lender and not a bank, the loan is processed in a fraction of the time of a traditional loan. Speed is a huge benefit to many borrowers. In addition, private lenders can be far more flexible than a bank when it comes to the terms of the loan. This is also a great benefit to many borrowers. And finally, having the loan approval based on the value of the collateral and not your personal credit score means that Arizona Hard Money Loans are easier for many people to secure.

Understand What You Are Signing

The most important part of any loan process is that you have a clear understanding of what you are signing and what is expected of you. Because asset-based loans can be customized, you need to verify all of the terms with your lender and be sure that you understand the total cost of the loan before you sign the loan agreement. Even though the loan is not from a bank, the loan agreement is a legally binding document.

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

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.

Thursday, March 14, 2019

Cannabis Business Loans: The Future for Hard Money Lenders in Arizona

Arizona hard money lenders have to stay on top of financial trends. Currently, cannabis business loans are top dog. Learn more about how investors are using hard money cannabis loans to open up their own businesses.

The Arizona cannabis industry is exploding and investors are trying to get their hands on some of that money. Dispensaries are popping up all around the state, serving the tens of thousands of medical marijuana card holders.

When a new growth industry pops up, you want to get in the business early. Cannabis business loans in Arizona and working with a hard money lender allows you to get that money quickly so you can get started as soon as possible. Here’s why you should consider a cannabis business loan in Arizona in Arizona.

The business is booming

You can’t go wrong getting into a growth industry and cannabis is just that. Arizona is exploding population wise and with that comes new medical marijuana patients. As people move to the state and explore the cannabis scene, they are going to seek out the latest and greatest, and that’s where you come in with your bright, shiny, new cannabis business!

Larger cannabis companies are expanding in Arizona

It’s always a good sign when you see larger companies investing in an industry in Arizona. Technology has been top dog for quite a while, but cannabis is quickly becoming a competitor. If the business wasn’t there, they wouldn’t be investing in our state. Investors go where the money is and right now the money is flowing in the great state of Arizona!

The risks are diminishing

When the medical marijuana industry hit Arizona years ago there was a fear of prosecution. New business owners were faced with a harsh reality that they were up against some strict laws that would prevent them from doing business. As the medical marijuana sector grew Arizona started providing dispensary licenses that allow business owners to operate worry-free.

There are still regulations that need to be followed and procedures to complete in order to open a cannabis business in Arizona, but now is the time to do just that and get in as the industry is exploding.

Finding a hard money lender who deals in Arizona cannabis business loans will enable you to get the cash up front to get started. Level 4 Funding is one of those and our Arizona cannabis business loans are funded quickly and efficiently. Call us to learn more!

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

Wednesday, March 13, 2019

Are You Ready to Step Into Commercial Property Investment?

Many residential property investors think about moving into commercial property investment, but it can be a tricky transition. Here are some reasons it may be the perfect diversification for your funds.

Residential properties are a great way to dip your toe into the property investment waters, but there may come a time when you want to open yourself up to new opportunities. For some investors commercial property investment is the next step.

Commercial properties, which can be funded by Arizona Hard Money Commercial Loans, offer different cash incentives as well as other benefits to investors. Here are a few of those advantages!

Risk diversification

If you’re renting a single-family residential property, you’re dependent on that one tenant to pay you. In a larger commercial property, you have less of a chance going a month with no income even if a few tenants fail to pay. The earning potential also grows because commercial leases typically have longer terms than residential and also the rate of return is usually higher.

Some commercial properties have specific operating hours

Unlike residential properties, commercial properties will usually have operating hours meaning you are more likely to deal with maintenance calls during normal business hours. There is the potential for other issues to arise, but for the most part your day ends when theirs does.

There could be tax advantages

When you’re looking into diversifying your investment portfolio it’s important to discuss how it’s going to affect you long-term. One advantage of procuring a commercial property, whether through a Arizona hard money commercial loan or otherwise, is that there could be deductions for depreciation or upkeep. Speaking with a financial advisor is a good way to understand the potential for those tax breaks.

Speaking with a Arizona hard money commercial loan funding entity is a great way to get your questions answered before jumping headfirst into the commercial property pool. Here at Level 4 Funding we are committed to working with our investors to make sure they have a comfort level before taking their next investment step.

We can walk you through the process, discuss different types of funding, and help you work out your financial future. Give us a call today to learn more!

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.

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!