How Arizona Construction loans Helped My Parents

You can’t control what is on the real estate market, and eventually house hunting can become completely exhausting and emotionally draining. But you don’t have to give up. Consider the potential Arizona Construction loans have in making all your dreams come true.

My parents were searching for their dream home off and on over the course of two years. Eventually, every prospective look became the same: too small; no office; not big enough yard; disappointment. Sometimes the idea of modernizing a home came up, but it was just too much work to tweak something that wasn’t valuable to them into perfection—and not all homes can be tweaked in the way you wish.

Eventually, my parents decided to consider Arizona Construction Loan. Instead of endlessly searching for the dream home on a market of reality, they decided to literally build their dream home from the ground up.

How to Build Your Dream Home

My parents began searching for vacant lots and properties with the potential for building. This included seeking out quiet neighborhoods with a local community they would enjoy, while also considering distance to entertainment, business, and school districts. Finding a property wasn’t easy either. However, once they found the perfect lot, they were able to get started with a qualified team to build their dream home.

Building a dream home meant applying for Arizona Construction loansand a land loan to cover the cost of the build. This meant working with an architect, property manager, and builders to ensure their plans were possible and fit into the budget. Lots of research and resources were pulled together to find out what details and limits needed to be met.

Even though this was taking a lot of time and energy, they were content in knowing they were building something together that they would love. They were investing in a project that they would get to make their own from the very beginning. While over time you grow into a home and make it your own through the memories and experience you make and have in it, my parents were making a home their own from the second they stepped on the land and put a pencil in hand to sketch out their dream floor plan and layout.

Loans in Arizona

If you are seeking out Arizona Construction Loans, consider speaking with the loan lenders at Level 4 Funding in Arizona. Qualified mortgage brokers are available for you to discuss your plans and dream home with a free initial consultation with no costs or upfront fees. Private mortgage lenders like those at Level 4 Funding can work with you on an individual basis, unlike public money lenders like banks and credit unions. This is a wonderful factor when it comes to something as unique and personal as building a home—your experience, preferences, and budget are going to be completely unlike other borrowers based on what your dream home is, and the lenders at Level 4 Funding understand that and will work with you.

Don’t give up on your dreams. Make them a reality by considering how an Arizona Construction Loan can make your dream reality. Give Level 4 Funding a call today to see how you can make that happen, just like my parents did with their Arizona Construction Loan!



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
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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

What Are Arizona Construction Loans?



When you are building rather than purchasing an existing building, structure, or home, the loan requirements are different. Understanding these Arizona Construction Loans is critical to the success of your project.

There are two main categories of Arizona Construction Loans. The first is a construction to permanent loan. In these Loans, the money to build the structure is advanced to the contractors in stages. The balance of the loan becomes the permanent mortgage after the construction is completed. A stand-alone construction loan only covers the cost of building the structure. Once the building is completed, the owner must then secure a mortgage or be able to cover the cost of the construction loan in cash. And while this sounds like a great way to build a structure or home, few people have the resources to allow them to pay cash once the construction phase is finished.

The most significant benefit to selecting a construction to permanent loan is that the borrower only goes through the long and arduous process of securing a loan once. This means that all of the paperwork and credit reports are only done for the initial loan and then reused to obtain the final longer-term mortgage. The mortgage can be either 15 or 30 years and is just like any other mortgage that you might secure with either a fixed or adjustable rate. An added benefit with only one set of documents and credit checks is that there are fewer fees for the borrower to pay.

Using stand-alone Arizona Construction Loans allows the borrower a bit more flexibility when choosing a long term mortgage. In most cases, lenders will not offer VA or FHA Loans for a construction to permanent loan. But with a stand-alone loan, the borrower can secure these reduced-cost Loans as their long term mortgage. But the price to be paid for the selection is that you must qualify for the two Loans separately. That means maintaining a high credit score and low debt to income ratio for a more extended period of time.

Factors to Consider On Arizona Construction Loans

When you are deciding if you want to go through the loan application and approval process twice, consider all of the factors that could slow down the construction process. This could include a lack of materials, difficulty obtaining obscure materials, or even a long stretch of bad weather. With the two in one loan format, the time extension is not as big an issue, but if you are getting a second loan as your long term mortgage, a time change could add challenges.

Qualifying For a Construction Loan

Securing a construction loan is much like qualifying for a traditional mortgage. You need to show a very good credit score and also be able to make a down payment of 20% or more. Because the home or structure is not completed, it cannot be used as the collateral for the loan. In these cases, the lender will require specific documentation from the builder to secure the loan. Additional information about the builder could also be necessary to ensure that they have credibility and experience. If building appeals to you more than buying an existing property, it is vital to research the process of using a construction loan so that you can make a well-informed choice.

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
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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Hard Money Changed My Life

As a stay-at-home mother of 15 years, my life abruptly changed with my husband’s death. This is my story of hard money saving my financial future.

I had always loved staying home with my children, attending PTO meetings and never missing a beat with my family. Carson and I had been married for 15 years when he suddenly passed away. He worked construction and we lived paycheck to paycheck, as so many Americans do; however, early in our marriage we had inherited a large piece of land with two small homes in Montana. We rented the homes out; that was the income that allowed for me to stay home.

My life was pretty perfect. I was secure and my family was taken care of, until the night of March 14, 2012. On top of feeling lost without my husband, I now had to figure out how to both emotionally and financially take care of our children. For weeks I couldn’t think, couldn’t feel and some days couldn’t move. The bills began to pile up and I was alone, with no one to lean on. I had home design skills but was also 40 years old with no work experience. I decided to go to a staffing agency.

In my interview I began giving information about myself in order to be matched with employment. Basically, I could be a receptionist. I had no college degree and no work experience. I literally broke down in tears when the agent asked if I had any property, anything I could sell. She began telling me how she started rehabbing homes and selling them, fix and flips.

How I Got My Start in Fix and Flips

I sold the property, as I had intended to do well before the conversation with the agent. However, I believed that I would pay the bills off and invest in stocks. I never thought of investing through real estate and making a much better return. My first fix and flip project was exciting, yet terrifying at the same time.

I worked with an amazing lender that took an interest in what I had been going through and helped me through the process, as I knew absolutely nothing about real estate investments. I found a house that needed a ton of TLC. My lender approved the loan at 85% ARV (after repair value), leaving me with funds for materials and labor. I ended up with a profit of $7,000 from my first flip. It took me 6 months to rehab and sell. I know that doesn’t sound like great money, but remember I was a complete novice.

I am now flipping 9 to 10 houses a year. Last year my gross income was $167,000. I have a wonderful relationship with my lender. In fact, he is the only one I have ever used. Because of the trust we have built and the success we have made he is very flexible with my loan rates and repayment plan.

Sometimes life will hit you hard and you have to be prepared.

It may sound scary to invest in real estate. Trust me when I say that the fear comes completely from the unknown. You don’t have to do it full-time. Through my years I have met people that maybe flip one house a year, but it is enough for their retirement, to put their children through college or towards a vacation. Hard money and the right hard money lender can change your world!

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
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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Build Your Dream Home With a Arizona Construction Loan

House hunting can be an exhausting process that yields little results. If you are unhappy with what is on the market, consider how an Arizona Construction Loan can make all your dreams come true!

House hunting can be exhaustive. After a while, you may feel like giving up—but settling on a house is not something you should do. After all, you spend time in your home every single day and it is a reflection of who you are and functions within your lifestyle. Choosing a home that is too small or doesn’t have all the features you like will make you unhappy in the long run. Fortunately, there are other options.

Some prospective home buyers may go as far as to consider fixer uppers. Sometimes, this option can be cheaper.

However, it does involve a little bit of work and transforming a home before your eyes. Depending on who you are, if you have a natural eye for design and are able to work with the existing foundation, the process of making a fixer upper your own can be difficult—and, because you are forced to work with what is there, not all creative design choices are possible. If you are tired of not being able to find your dream home, or even renovate or modernize one to your liking, consider building one from scratch with a construction loan.

Why You Should Invest in Arizona Construction Loans

An Arizona Construction Loan will allow you to create your dream home. You will be able to design the floor plan, and even go as far as picking the location of your property, probably with the help of a land loan. Building a home from scratch is a lot of work that involves multiple heads: an architect, project manager, and the builders themselves. However, a collaboration like this one may be able to allow you to create the home you want but doesn’t exist on the market.

The idea of building a home from scratch can definitely be overbearing. There is a lot of pressure to do the job right, but you are not alone. If you don’t want to design your floor plan by yourself, you can work with an architect who can help make adjustments or suggestions that will help ensure you are getting the home you want that fits your aesthetic and lifestyle. If you choose to work with a qualified mortgage broker, like those at Level 4 Funding in Arizona, you can be confident that you are working with someone who considers your needs on an individualized basis with a thorough understanding of the real estate market.

Arizona Construction loans in Arizona

If you are tired of the nonsense availability of the current homes on the real estate market, give the lenders at Level 4 Funding a call to discuss what an Arizona Construction Loan can do for you. We offer a free initial consultation, with no upfront costs or fees, to help you determine the best way to make your dreams reality. Our lenders are willing to work with you on an individual basis so that you can build the home that speaks to you. Give us a call 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
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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Essential Tips to Know About Fix and Flip Loans



Most new real estate investors are not familiar with Fix and Flip Loans. But these few tips can set you on a path to use these Loans successfully to launch your real estate career.

Most people are familiar with traditional bank Loans and mortgages. We have all been through the process when purchasing a home. But when you are interested in investing in real estate as a career or even a side business, you quickly learn that these conventional Loans are not going to meet your needs. One of the most widely used alternatives to a bank loan is borrowing from a hard money lender. While this might sound a little scary, hard money is an entirely legitimate industry. It merely means that you are getting Fix and Flip Loans from a private lender and not the traditional bank or loan institution.

Because hard money lenders are private entities or individuals, there is not as much advertising to promote these lenders. In some areas, you might even find it a bit tough to locate hard money lenders when you are new to flipping. So, it is crucial that you begin to build a network in the industry. Speak to other flippers, real estate investors, and realtors to learn who the best hard money lenders in the area are, and how to contact them. Word of mouth from satisfied borrowers is a great way to determine who is honest, upfront, and easy to work within your local hard money game.

Hard money lending moves at a very fast pace as compared to traditional lending, so it would be best if you had all of your information ready when you speak to a hard money lender. In general, you will need to have the address and description of the property that you are interested in. Also, prepare a project plan to demonstrate your professional experience in flipping or rehabbing and your budget. Finally, have documentation ready to prove that you have access to the funds needed for the down payment and the renovations that will be required on the property. The more documentation you have to show the lender about the property, the faster he or she can decide if you and your deal are a suitable risk.

There Is a Cost for Speed

While the speed of evaluating a hard money loan application is much faster than a typical loan application, there is a cost associated with that speed. In most cases, you will pay anywhere from about 10% to 20% interest on Fix and Flip Loans. You will also need to pay points, which are equal to 1% of the loan value. The lender will determine how many points he or she wants to fund the loan. Other loan costs will include an appraisal of the property and possibly a survey of the land.

New Is Good

While you might not be familiar with hard money Loans and lenders, they are an excellent solution for Fix and Flip Loans. And the time that you invest in learning the process and possibilities for hard money is sure to pay off. Most flippers find that building a long-term relationship with one or two hard money lenders is the perfect way always to be prepared to make a fast purchase when they see a great deal on a property.

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
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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

The Dos and Don’ts of Investing in Deeds of Trust



So, you’re interested in investing in deeds of trust? We’ve got over 20 years of experience doing just that, so we’ve compiled a list of dos and don’ts to help guide you.

Everyone wants to dip their toes in the real estate market. This is in no small part due to the fact that it’s everywhere. There are countless TV shows about flippers, podcasts about rehab projects and seminars every week telling you how to get rich with fix and flips. Trust deeds let you cash in on this craze without taking as much risk. How? All of these flippers need funds to buy properties and they’re living up by the droves to apply.

You can be the one to lend to them, but there are a lot of dos and don’ts you should pay attention to if you want to protect your investment.

● DO make sure you love the property. Make sure you physically check it out yourself; this means kicking the tires by crunching the numbers, looking at comps and examining the property yourself. If it feels right and the numbers make sense, it might be worth it.

● DON’T lend to relatives and friends. Lending to relatives and friends (even the most well-intentioned) is a great way to lose your money and your friends.

● DO look for experienced people. If this is a fix and flip, make sure they know what they’re doing. Have the flipped properties before? Did they make a profit? Did the flip stay on target, both budget-wise and time-wise?

● DON’T lend based on a projected future value. No one knows the future and even though all signs point to a rosy outcome, that doesn’t guarantee anything. Only loan based on the current value.

Consider Going Through a Trust Deed Broker

There are many things you can do to help protect your investment and going through a broker is one of the best. The broker can help bring you candidates for investing in deeds of trust. Even better, they can help vet the candidates, making sure they have relevant experience, they have chosen a good property and they know what they’re doing.

Trust Deed Investing in Arizona

At Level 4 Funding, we have multiple decades of experience with investing in deeds of trust in Arizona. Our track record speaks for itself. Give us a call or get on our trust deed newsletter to be the first to hear about new deals.

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
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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

What Are Arizona Construction Loans For?

If you are new to the real estate market, you may be playing catch up in all the jargon and lingo that goes on in the business—neglecting to watch HGTV may also keep you out of the loop in the types of creative passion projects people have and attempt to make a profit off of. So, what are Arizona Construction Loans? Are they the new fixer upper?

Someone choosing to obtain Arizona Construction loansare looking to build land on a property they own. Instead of purchasing a property to renovate or modernize, they choose to build from the ground up. In this way, builders have complete control over the type of home they build, and have a say in the location. Usually people who obtain Arizona Construction loansalso obtain Arizona Land Loans to complete a total vision of the project.

Construction or Fix and Flip?

Designers and lover of aesthetic may be more interested in fixer uppers than construction projects. Fixer uppers already have an essence to them, and somebody working on a fixer upper has to work with what exists. It’s true that renovators can tear down walls and turn a small office into a half bath and vice versa—but there is a foundation that is not malleable. Designers may see potential in what is already there and tweak it.

Those interested in construction projects may have an idea for a complete vision. Perhaps there is a vacant lot near business, entertainment and school districts that would be the foundation for a charming family home. Or, perhaps they are an architect with the vision of a director, and they would like to design and curate the home based on a blank canvas, or, in this case, vacant lot. Both construction projects and renovation projects have their pros and cons, but someone seeking Arizona Construction loansmay have to invest more time and money than those seeking fix and flip loans.

An Arizona Construction Loan covers many costs, and building a home involves a lot of people. Compared to fixer uppers, complete home builders require more labor and more brain power. This is because the project is being completed from scratch and as the home is built, many different people come into play to make sure it happens; this includes the architect, builders, project managers, inspectors, as well as those who provide the resources to actually build the house.

Sometimes it’s possible to find an affordable fixer upper that just needs a few changes, the commitment isn’t as deep, and the cost and stakes aren’t as high. Building a home is a much higher commitment and investment.

Where to Get a Construction Loan in Arizona

If you are seeking out an Arizona Construction Loan, consider the mortgage brokers at Level 4 Funding. We are a team of qualified professionals who offer a variety of loans and free initial consultation. We charge no upfront costs. Give us a call today to see how we can help make your passion project go from dream to reality.



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
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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Why Hard Money Is Better For Fix and Flip Loans



Hard money Loans might cost a bit more than a bank loan, but they offer many benefits that make them an excellent choice for Fix and Flip Loans.

When you are searching for Fix and Flip Loans, you will quickly discover that traditional lenders, such as banks and mortgage companies, are not interested in working with you. These lenders have very strict criteria to qualify for a loan, and they are also federally regulated. This makes qualifying for a less than cookie-cutter loan, very challenging. But the good news for real estate investors interested in Fix and Flip Loans is that hard money lenders provide Loans that better meet your needs.

Hard money lenders are private individuals or small groups who work together to provide Loans to borrowers. And because they are not regulated in the same way as banks and mortgage companies, they can be much more flexible and accommodating on terms for your Fix and Flip Loans. The loan terms cover everything from the length of the loan, or life, to the rates and repayment schedule. On flip projects, you never want to have a mortgage that drags out for more than a year, and hard money Loans offer the short life that you need. In addition, you can work with the lender to set up a repayment schedule that works for you, such as no payment for 90 days.

When applying for a traditional mortgage or bank loan, there are many documents that you must submit. And the approval of your loan hinges on having all of the forms completed correctly and having a high credit score. But with a hard money lender, the approval of your loan request is based on the value of the property that you are purchasing. This dramatically reduces the amount of paperwork that you need to submit. And it takes the stress off you if you do not have an excellent credit score.

Fast Cash

If you have ever applied for a loan from a bank, then you know that it can take many weeks or even many months for the approval process to be completed. And even after completing all of the paperwork and waiting, you still might be rejected. That is far from the case when you are requesting a hard money loan. The lack of red tape related to these Loans makes it very easy for the lender to provide you with a fast answer on your request. And if there is an issue that causes your application to be rejected, you can often negotiate new terms for the loan and be approved in just a few days.

The Right Tool for the Job

Flipping homes is a fast-paced business and one where timing is often critical to the success or failure of a deal. You can’t wait for months to get funding on a traditional loan. The solution for a fast loan with no red tape and no deep dive into your personal credit history is hard money. It is a solution that can help you begin a successful career in real estate investing.

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
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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

How Does a Construction Holdback Work?

When you work with a hard money lender to finance your fix and flip, there is a possibility your loan will include a “holdback.” What exactly is a holdback and why would your lender want one as part of your contract?

Construction Holdback

A construction holdback is when your hard money lender helps fund your fix and flip, but “hold back” the construction part of the loan to gradually pay for the renovation of the property. Your loan includes a construction holdback because the property you are purchasing is serving as collateral on the loan; that means the loan will be recorded on the property’s title, in first position. If the borrower then defaults on the loan, the lender can simply foreclose on the property and recover the lost money. In most states, contractor liens take first position on a title; meaning that in the case of foreclosure, all outstanding balances due to the contractor are paid out before the lender receives any sale proceeds from the foreclosure. Therefore, if hard money lenders authorize the construction of a fix and flip, in the event that the borrower defaults, the construction crew will receive payment from the foreclosure sale, leaving a loss to the lender.

A construction holdback rarely affects loan approval or funding time at all. In the event that a hard money loanincludes a construction holdback all that is required of the borrower signs an agreement stating the details of the scope for the project’s construction plan. This agreement will also outline the terms and conditions connected with the holdback, and how the funds will be released.

Some borrowers request funds to pay their contractors in advance. Most hard money lenders will not rescind construction monies in advance. Generally, a holdback draw (money) is not advanced funding for construction. The draw, which is smaller amounts of the loan used for a specific purpose, matches the progress of the project’s construction. An inspector will typically come out to inspect the fix and flip’s progression and report back to the lender.

How Will I Get My Money?

Depending upon your hard money lender and your holdback agreement, either you, the borrower, will receive the funds or the funds will be sent directly to your contractor. The construction holdback is a part of the contract that you need to spend time fully addressing and understanding with your lender before signing on the dotted line.

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
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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
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What You Need To Know Before Applying For A Land Loan

If you are new to the real estate market but are looking to invest, it is important you also invest in research. Before applying for a land loan, read more below about what to expect and what you should do when investing in real estate.

So, you’re new to real estate and you don’t watch HGTV. What do you do to make it on the market? First, put yourself in your loan lender and potential land buyer’s shoes. When seeking out land, you’re going to want to choose something with potential. If you are looking to build or are expecting to sell to a family in the future, you are going to want to choose a nice piece of land in a great location. Land near school districts, businesses, and entertainment venues have the potential to bring in potential buyers. This will keep you near the local community and increase social circles.

Next, your land should have a few amenities. This includes curbs, sidewalks, water lines, power lines, and sewer. Land without this won’t be as attractive to build on. While some neighborhoods don’t have sidewalks, neighborhoods with sidewalks are more attractive to families spending time outside and the active community who may enjoy safe jogging or talking their dogs on walks.

Finally, a few technical things must come into play before applying for your land loan: Home Owner’s Association HOA, terms of the city, and covenants, conditions, and restrictions or, more commonly, CC&R’s. These are the technical requirements of homes built in specific cities and neighborhoods. It’s important to know what you are truly investing in and what kinds of limitations your land project may have before accepting the terms to a land loan.

Where to Get a Loan

So: you’ve found a great property and you are ready to invest—now where do you go?

Most borrowers seek out public money lenders when applying for loans. Public money loans include traditional loan lenders like banks and credit unions. Because public money lenders have high standards and loan requirements that not everyone can meet, they may refer you to Private Money lenders. Private Money lenders consist of private investors and companies. They usually offer hard money and don’t have as many strict loan requirements.

Hard money is a type of loan with a quick loan repayment period—but it also includes a generally speedy process. Private Money lender can usually get the process going within the week, compared to a possible 8 week wait by a bank or credit union. Private Money lenders can also work with you on an individual basis. If you prove yourself as a borrower with solid plans and resources, chances are they can help you out when investing in real estate.

Land Loans in Arizona

If you are seeking out a land loan, consider the qualified mortgage brokers at Level 4 Funding. We offer a free initial consultation and have no upfront fees or costs. As someone new to the real estate market, working with qualified professionals who take the time to focus on you and your project individually can make all the difference in a successful project and loan borrowing. Give us a call 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
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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions