Phoenix Arizona Hard Money Lender
Definition of A Deed of Trust (also know as trust deed) is a deed (piece of paper usually recorded at the county) that gives legal title to real estate to a trustee. It secures the note (Mortgage).
There are three parties to this type of title. They are:
They are written so that the lender gives money to the borrower to purchase a real property (home) and the borrower signs a deed of trust giving the power of sale for property to the natural 3rd party trustee to be held in trust for the lender. (I like to think the trustee takes the Deed of Trust and puts it in the top drawer of their desk and waits.) The borrower owns the property, but the title is held by the trustee.
This is noted in the Deed of Trust and is called the ‘power of sale clause’.
Equity – our long-term Mortgage program is brokered at 60% of the after repaired value (ARV or LTV) where the goal is to have a fixed and rented home that more than covers the monthly payment..
Money Down – All of our professional real estate investors will have either personal funds or a spread of equity in the transaction serving as their personal guarantee and commitment that the Deeds of Trust payment is a priority
1st Deeds of Trust Only – Our investors are the only holder of the note and in first position
No Pooling of Funds – The Level 4 Funding does not pool funds (also called fractionalized Deeds of Trust). This gives the Deeds of Trust investor more control over the investment
Non-Owner Occupied Properties Only – The Level 4 Funding only brokers Mortgages for non-owner occupied, single family homes and units (1-4) to a very unique client, the professional Arizona real estate investor.
Appraisal – An estimated value placed on a property at a particular point in time. Also known as appraised value.
Beneficiary – The beneficiary is the lender that can be an individual or a legal entity. Also known in a Deeds of Trust investment as a private money lender.
Deed of Trust – A document signed by the borrower that, once recorded, acts as proof that a Mortgage has been made on a property.
First Deeds of Trust – The first in line of Deeds of Trust recorded on a property.
Hard Money Mortgages – given at a higher interest to reflect perceived risk and added convenience of speed.
Interest Only – No payments being made on a Mortgage are being applied to principal. The balance due stays the same.
Simple Interest – Its calculated using the following: (Balance Amount * Interest Rate) divided by 12. This gives you the monthly payment for interest only payments.
Mortgage to Value (LTV) – Is a ration is used to determine risk and equity position in a property. If the property us currently valued as it stands now at $100,0000 a Mortgage of $70,000 gives a LTV of 70% ($70,000 divided by $100,000). This should not be confused with ARV – After Repair Value.
Points – A percentage fee charged for origination of a Mortgage. One point is equal to one percent.
Promissory Note – The Promissory Note is signed by the borrower and shows the terms of the Mortgage.
Trustee – An individual or organization authorized to hold a trustee sale.
Trustor – The trustor is the borrower.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About 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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.