Setabay Private Hard Money Lender

Sunday, May 26, 2019

Top 7 Reasons to Get Into Trust Deed Investing

These days, there are myriad places to invest your money. One of the least know but potentially most profitable is Trust Deed Investing. Let's look at what this is and the top ways you can benefit from it.

Here's the ultimate goal — putting your money to work for you instead of working for your money. How do you do this? You can deposit your money in a bank. Your money will be safe there, but your return will also be almost nonexistent. You can invest in bonds or the stock market as well. With the stock market, you have the chance to get a really great return but you can also lose it all and there's not much you can do to mitigate that volatility.

Here's another idea that's been around forever but isn't given enough press: Trust Deed Investing. How does Trust Deed Investing work? It's simple — investing in deeds of trust makes YOU the bank. In the most common example, you invest your money with a borrower who then purchases real estate and gives you the deed as collateral. Every month, you collect payments. If the borrower fails to pay back the loan, you have the real estate as a backup.

Sounds good, right? Let's look at some of the top reasons to go with this type of investing.

Why Investing in Deeds of Trust is Good Bet

Your investment is backed by a real property, not just a promise from the government.
Your return on investment is high — usually between 10% and 29%.
You receive payments directly at scheduled intervals
You are in control from Day 1
Your collateral ensures you can get your money back in a worst-case scenario
Hazard insurance protects the property, so not even acts of God can derail your investment
A Title Policy protects the property as well, so you don't need to worry about liens, encumbrances or defects

Finding Trust Deed Investment Opportunities in Arizona

So how do you find these types of investment opportunities? You can hustle on your own, but you might open yourself up to all sorts of legal and logistical issues. A better way is to go through a company like Level 4 Funding. We have the experience and know-how to connect you to a worthy Trust Deed Investing opportunity. Give us a call today at 623-582-4444.

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.

Saturday, May 25, 2019

Three Factors Texas Hard Money Lenders Use to Determine Rates and Points

Points and rates in the hard money world aren't regulated, so Texas Hard Money Loans set them themselves. Here we'll look at how they determine rates and points, and what you can do to get the numbers on your side.

Most people understand interest rates, but points can be a little tougher to pin down, so before we get started, let's look at what points are. It's fairly simple — points are a percentage of the loan the lender charges to close on the loan. They typically range between 2% and 10% and they're determined by the same thing that the interest rates are usually determined by — risk.

Let's unpack that concept of risk and break it down into three factors — equity, borrower experience and exit strategy.

Some of the Ways in Which Colorado Hard Money Loans Determine Risk

Equity. The property's equity plays a big role in rates and points. If the property is being put up as collateral, the lender wants to know exactly how much it's worth and, sometimes more importantly, how much it might be worth in the future. Being able to show solid evidence of a property's equity may be able to help you secure a lower rate.
Borrower experience. This is especially important when it comes to fix-and-flips. If this is your first time wading into those waters, a Texas Hard Money Lender may see higher risk and thus ask for a higher reward. Conversely, if you've flipped 10 homes successfully, there's less risk for the lender and you may be able to negotiate lower rates.
Exit strategy. In the end, this is what it's all about. You want to pay off the loan with your profits and the lender wants to have the loan paid off. That's why going into it, you should have a solid plan for getting out. A fix-and-flipper might have a rehab plan backed by contractor estimates that says they can do all the work in three months and then put the home on the market. With this, the lender knows that the money will probably be at risk for a shorter period of time and he or she may be able to offer lower rates.

Getting Great Rates from an Arizona Hard Money Lender

At Level 4 Funding, we have fixed-rate APRs as low as 5.99% and flexible terms from 3 to 60 months on a wide range of loans, including fix-and-flip, construction, cash out and rental property. Want to see what rates you can get? Give us a call today!

Can Builders Still Get Arizona spec home financing?

Getting Arizona spec home financing might not be as easy as it was in the past, but it's still within reach, even if your financial situation isn't stellar. Let's look at how to get started and examine a few things to think about.

We harp on it a lot in this blog, but the housing crisis — and the subsequent Dodd-Frank Act — was a monumental turning point in the industry. New regulations designed to prevent another recession made big financial institutions really wary of taking risks. In spec home construction, that's meant funding has become really difficult to come by, at least through traditional routes.

Does that mean that getting Arizona spec home financing is impossible these days? Nope. But you may have to get creative or think outside the box to make it happen. It's not as daunting as it seems — Texas Hard Money Loans in Arizona may be able to help you through the process.

How to Get Hard Money Arizona spec home financing

One of the advantages of going with a Arizona Hard Money Lender is that, unlike the banks, you can sit down with an actual human being who has the power to make decisions. If you're looking for a spec home loan, use this to your advantage by talking about some of these topics:

● Discuss your options. A Arizona Hard Money Lenders will listen to your plan and brainstorm ideas to help make it happen.

● Discuss the process. Talk about how the process will go, from the initial meeting and the application procedures to how fast you'll have funding and when you'll need to start paying it back.

● Discuss the terms of the loan. Texas Hard Money Loans aren't bound by the same restrictions of the bank, so they have wiggle room to structure the loan in a way that makes sense for both of you.

● Discuss fees and interest rates. Good, honest lenders will tell you upfront how much everything is going to cost, including the interest rates, points and any requisite fees.

Getting Spec Home Financing in Arizona

The new housing market in Arizona is booming, so it's a fantastic time for builders to cash in on the trend. If you're thinking about building a spec home or you need Arizona spec home financing to help finish a spec home project, you've come to the right place. Give Level 4 Funding a call today to talk about your options!

Why Knowing Your Office Building's Class Can Help with Arizona Commercial Private Loan

Got an office building in your sights and need a Arizona Commercial Private Loan to make the sale happen? Knowing its class can help you in more ways than one. Here's how.

A huge part of due diligence in the real estate game — from applying for a Arizona Commercial Private Loan and putting in an offer to getting insurance and eventually listing it — is determining value. This can be even more true when it comes to commercial real estate. Things like buying in the wrong part of town or not catching a red flag can doom that commercial purchase and kill any potential profit it might have yielded.

One of the ways in which real estate professionals work to determine value is by putting commercial spaces into classes. It's a subjective process, but it's a tool to help you compare comparable buildings that will be competing for tenants. To help you get a better idea of the concept, let's look at the classifications for commercial buildings.

How Are Commercial Properties Classified?

Class A commercial properties are typically relatively large and relatively new and boast a wider range of amenities. They might have upgraded elevator systems, a concierge or security service, and technological enhancements that attract a more prestigious type of tenant. And, Class A buildings generally feature stunning architectural details and have that unnamable "wow" factor. Owners can charge a premium for the upgraded amenities and prime location.
Class B buildings are typically a bit older — perhaps 10 to 20 years — and may be a touch outdated or not equipped with the highest-end amenities. Class B buildings may feature less covered parking or be located on a side street adjacent to a main thoroughfare. This class of commercial property usually fetches the market average for rents.
Class C commercial buildings may be even older and more outdated, with previous tenants who have left their office or retail space a little rundown. Parking and security might be less present or even nonexistent, and maintenance may be lacking. This class might attract business looking for a more economical option and may get below-average rents.

Using Building Class to Get a Commercial Private Loan

There's nothing inherently "wrong" with any of these building classes, but being armed with this information is an important step in applying for a Arizona commercial private loan. Build this info into the plan and budget you present to the lender and he or she will see that you've got your ducks in a row.

Friday, May 24, 2019

Can You Get Rich Using Arizona Private Money Loans?

Even if the banks have turned you down, you may still be able to get the funding you need to realize your real estate dreams and make money. How? By going with a Arizona Private Money Loan.

Everyone's always looking for ways to get rich quick. Unfortunately, get rich quick ideas often end up making people lose money fast. So we're not here to tell you how to get rich quick, but there are millions upon millions to be made in this game and there are ways to turn a profit relatively fast with some hard work and the right funding.

And, if you're like a lot of real estate investors, you're not afraid to roll up your sleeves, get your hands dirty and put in the hard work. So that just leaves the part about finding the right funding, right? Banks are the traditional route, and many people find success that way, but there is a wealth of reasons why they aren't the best idea for everyone.

Banks are impersonal institutions that are bound by external regulations and strict internal guidelines. Anyone who's ever gone to one to see about a loan can attest to this. When they say, "jump," you say, "how high?" You'll be asked to show every bit of income and every account in your name. Your credit score will be scrutinized ad nauseam, and your financial history will get a good going over. Your rep at the bank will generally have no wiggle room to offer you a loan. And, if you don't meet their standards, they'll give you a flat no with no other recourse.

Arizona Private Money Loans as an Alternative to Bank Loan

Here's where Arizona Private Money Loans can be a great alternative to bank loans. As the name implies, this money comes from private individuals, so it's not subject to the same strict standards as the bank. That means your history and credit score don't have to decide whether you can get the funding you need. What's more, private money lenders have the flexibility to sit down with you, listen to your dreams and help you make the money you deserve.

Arizona Private Money Loans in Arizona

With a private money lender, there's a personal relationship — you can develop a rapport, hash out a plan and work together to turn a profit on that real estate investment. Not sure what a Arizona Private Money Loan can do for you? Call Level 4 Funding in Arizona today and find out!

Why Keep Jumping Through Hoops? Go the Arizona Hard Money Loan Route

Banks and traditional funding institutions are some of the fundamental pillars of our capitalist system, but they aren't the only way to get money to pay for your next investment. In fact, they may not even be the best way. Here's why Arizona Hard Money Loans might be a better option.

Our country's big financial institutions help facilitate the movement of money that keeps our economy chugging along. They're an important part of our economic system and, without them, our world would look a lot different. In fact, without a foundational system wherein people can borrow money to start businesses, buy homes and realize their dreams, this country wouldn't be the great place it is. However, it's important to understand that banks and financial behemoths aren't the only way to borrow money.

We sometimes get trapped in this thinking that there is "the system" and the only way to get through life is to go through that system. If you can't get a loan through this system, you'll be out of luck as others around you move up in the world. Let's dispel that myth right now. While banks are responsible for much of the lending that goes on in the United States, they aren't the end-all and be-all.

Arizona Hard Money Loans as an Alternative to Banks

Arizona Hard Money Loans offer a viable alternative. For some people, they're even better than going to a bank. Here's why. Because banks are so big (and they're regulated by government agencies), they can only do so much. They have very strict internal guidelines that tell them whether you are worth the risk or not. If you've had a past financial mistake; if you have a lower-than-their-threshold credit score or if you don't have enough in the bank, you're out.

Arizona Hard Money Loans work with private money, so they aren't bound by these same government restrictions and hard-as-nails internal standards. They can sit down with you, take a look at your plan, see what you have as collateral and make a choice on a human-to-human level. To them, you aren't a disembodied customer in a database; you're a human being with a dream.

Talk with a Arizona Hard Money Lender Today

At Level 4 Funding, we've helped hundreds of people realize their dreams, whether it's a commercial property, a fix-and-flip, a spec home, or anything else. If you want to see how a Arizona Hard Money Loan might work for you, give us a call or send us a message today!