Setabay Private Hard Money Lender: November 2018

Thursday, November 22, 2018

Loans for Flipping Houses: The Dangers of Hidden Costs

Hard money lenders are the go-to source of financing when it comes to flipping houses. These lenders overlook the distressed condition of a property while giving loans as a percentage of properties potential value. But it is essential to carefully consider the cost structure of any hard money deal.

Some hard money deals are structured in two parts. The first portion of the loan secures the purchase of distressed property and the second portion of the loan covers the cost of renovations. The rehab portion of the loan is often distributed bit by bit as work proceeds, and this has important implications when it comes to the cost of hard money financing. The following examples will show why it is crucial to analyze the terms of any hard money deal.

In the first is instance our prospective house flipper goes to a hard money provider and proposes a two-month rehab project. The cost of closing on the ramshackle home will be eighty thousand, and the cost of renovations will amount to 30,000. Our first borrower takes out a loan, for a total $110,000 with the rehab budget given out in two successive draws totaling $15,000 apiece. The lender offers a standard hard money interest rate of 14 percent. Work proceeds on the house things go smoothly, and our flipper resells their home earning a handsome profit of 55,320.

It seems like things worked out pretty well in this case, or did they?

You can save money by carefully considering the cost structure of hard money loans

Another flipper sees a similar property sale block away from our first. They must have been spying on the first borrower because their proposed project is the exactly the same. The purchase price of the house is 80,000, and the rehab budget is thirty thousand. But they approach a different hard money provider. They agree to a loan of 110,000 with a 30 thousand rehab budget distributed over two draws at a 14 percent interest rate.

Suspicions glances are exchanged between the two investors as they pass each on the way to their respective work sites. Let us assume they finish work at the same time, and they resell their properties at the same sales price.

But, for some reason, our second flipper earned a profit of 56,020 while the first earned 55,320. Why? Because the second flipper carefully considered the terms of their deal. What was the critical detail in the term sheet the first flipper missed?

The first lender charged full interest on the total loan amount up front through the whole two month period, the second lender only charged interest on the money as it was given out in draws. This tiny detail saved the second flipper 700 dollars.

Don’t make unnecessary interest payments on hard money loans

This hidden cost of hard money is something that is often overlooked, and it could cost you thousands in unnecessary interest payments. In the context of a house flip, 700 dollars might be a piddly amount of money. But let's change the situation, what if our first house flipper's project went on for 6 months and they had to pay that 14 percent interest rate on the full loan amount? They'd pay roughly five thousand additional dollars in unnecessary interest payments. In the context of a flip 5,000 dollars is a lot of money.

Don't make interest payments on money you don't have. Carefully analyze the cost structure of your hard money deal. If you don't receive the full loan amount up front ask your lender will they charge you interest on the entire loan amount or just on the funds you've received from them. Analyze the terms of your hard money deal, so you can avoid making unnecessary interest payments.

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.

Advice Arizona Spec Home Investors Will Never Tell You

Learn how Arizona Spec Home Investors are making money with real estate investing and how to get started with doing the same.

Purchasing or constructing a property often requires additional funding or real estate financing. This large sum of funding can sometimes be a challenge to receive from traditional lenders, such as brokers that work in a traditional bank setting. One solution is finding a spec home investor to help you achieve your goals. This type of private investor can help you by providing some or all of the funding required for you to achieve your goals of getting started with real estate investing. This type of investor works behind the scenes giving you the additional funding and support you need to achieve your investment goals. Just because these individuals work behind the scenes, doesn’t mean they don’t plan a key role in helping people get started with achieving their dreams of pursuing real estate investing.

Banks are decreasing their mortgage lending activities for a number of different reasons due to the various financial risks involved. Because of this, it can be more challenging than ever to receive a lending opportunity with a bank. This means that if you are hoping to pursue other real estate investing opportunities, you may need to consider different options. Arizona Spec Home Investors can be the perfect resource you need to have the additional cash on hand to invest in real estate. These sorts of arrangements require certain legal requirements and proceedings to be done properly. In order to make sure your investing opportunities are done properly, it is important to find the right private investor to help you achieve your goals. It is crucial to find an experienced investor that has the experience and resources needed to give the best financial guidance possible. If you are new to investing, it may be important to wait carefully for the right private money lender for your needs.

Arizona Spec Home Investors Know How to Make Real Money in Real Estate

There is no better time than right now with this thriving economy to get started with real estate investing. Don’t be discouraged by the lack of investment opportunities at a traditional bank. Instead, broaden your horizons and consider the great opportunities Private Money Lenders Arizona can provide. Arizona Spec Home Investors know all the secrets of the trade and can be a great resource to help you get started with real estate investing. By learning from the experts, you can start investing like the experts.

Find lending opportunities for your financial goals and get started with real estate investing to start building a valuable investment portfolio as soon as possible.

A poor credit score or lack of experience can sometimes make investing in real estate feel impossible. This is simply not the case! With the right tools and private money lending opportunities used properly, you can have access to the adequate funding needed to start making money with real estate investing. Learn the tools and tricks of the experts and don’t be afraid to ask questions. Use the experts as your guide to learn the right way to go about investing.

Things to Consider with Private Money Lenders Arizona

Are you wanting to have some extra cash to pursue your investment goals? Private Money Lenders Arizona can be the right tool you need to jumpstart your real estate investment career and secure a brighter financial future.

If you’re stuck at a job you hate and feeling unfulfilled by life it may be time to broaden your horizons. The right lending opportunities can help you get started making real money on the real estate market even if you have no previous experience or a poor credit rating. How is this made possible? With Private Money Lenders Arizona, you can receive funds outside of the traditional lending opportunities you would find in a traditional bank setting. This gives you the ability to receive a loan without having to worry about your credit score or lack thereof. Thinking outside of the box when it comes to investment opportunities such as these can lead to huge opportunities.

Private Money Lenders Arizona can give you the cash you need fast to start investing in real estate. Whether your goals are to fix and flip properties or rent out a property, private money loans are a great resource to get the funding you need to get started with these goals. Many people enjoy making money with real estate because it can be can done from the comfort of your own home. With your laptop and your smartphone, your office can be wherever you are.

Why are Private Money Lenders Arizona the right choice for your investment goals? When you try to receive a loan with a broker at a bank, you must meet certain criteria such as having an adequate credit score. Down payments and other details are a necessity and you may be subject to high interest rate. Private Money Lenders Arizona give you the freedom to adjust the terms of your loan and help you find the perfect lending option for your financial goals and budget constraints. With the assistance of Private Money Lenders Arizona, there is no better time than now to get started with real estate investing.

Private Money Lenders Arizona Give the Helping Hand You Need to Invest

If you’ve been letting a poor credit score get in the way of your investment goals, there is no better time than now to adjust your mindset. The right lending opportunity can be adjusted for your budgets and help fund your real estate investing projects. No matter what your real estate goals might be, a private money lender can help give you the funding you need to get started.

Find the right lending opportunity near you to get started with your investment goals and get a real income with real estate investing started.

Arizona Hard Money Lenders are ready to help you achieve your real estate investing goals and find the perfect lending opportunities for your needs. With the right investment options, you can begin to build a strong investment portfolio and grow your real estate experience. Start soon to find the best opportunities near you!

Why Don’t More People Use Residential Arizona Hard Money Lenders?

Residential Arizona Hard Money Lenders are giving people the financial freedom necessary to get started with real estate investing. Learn about these lenders and the exciting opportunities they can give you with real estate investments.

No credit history? Not enough time to wait for a loan to get approved at the bank? Arizona Hard Money Lenders are here to help. With residential Arizona Hard Money Lenders, you can get started with investing in homes whether it be to fix and flip a house or purchase a property with the hope of finding tenants! Arizona Hard Money Lenders operate much differently than brokers at a traditional bank setting do. Rather than look at your credit score or lending history, Arizona Hard Money Lenders take other factors into account when determining a person’s eligibility for a loan. The right hard money lending opportunity can be a great resource for finding the funds you need to get started with real estate investing.

Arizona Hard Money Lenders are a great resource for individuals that are hoping to get started with investing in real estate but don’t currently have the funding they need to purchase a property by themselves. Rather than wait for your credit score to go up so that you can get approved to take out a business loan at the bank, Arizona Hard Money Lenders can help you get the cash you need to invest fast. Stop waiting and making excuses for yourself when it comes to getting started with your investment goals. Take advantage of the opportunities you can pursue sooner than later with the assistance of residential Arizona Hard Money Lenders. Don’t miss out on a thriving economy and bustling real estate market. Have the cash you need now to get started with the real estate projects you’ve been longing for!

Residential Arizona Hard Money Lenders Give You Cash Fast

It can take a long period of time to get approved for a lending opportunity at a bank. When you choose to invest with the financial assistance of a hard money lender, you can know with confidence that you will be able to quickly receive the financial support you need to get started with real estate investing. You also won’t have to worry about a poor credit score holding you back. Get matched with a hard money lender so that you can get the funding you need as quickly as possible to start pursuing your dreams.

Arizona Hard Money Lenders are helping people achieve their dreams and are the perfect lending opportunity for people who don’t have a good credit score.

It’s easy to make excuses for ourselves when we are afraid of pursuing our dreams. However, Arizona Hard Money Lenders can take away the room for these excuses. With the right lending opportunity, you can easily have the funding necessary to get started with real estate investing. If you’re hoping to get cash fast and are wanted to get started with investing in the real estate market, there is no better time than now to see if a hard money lending opportunity is right for you.

Risk Less and Earn More with Arizona Rental Property Loans

Start making money by renting out properties with Arizona Rental Property Loans. If you have been wondering how to make money with tenants, this guide will help introduce you to some of the key secrets and tricks of the trade.

A rental property can be a great way to earn residual income if done properly. Imagine having a monthly income you can always depend on. That’s money in your pocket every month that you can count on! What extra things would you do if you had a residual income? Imagine the possibilities! If you have always wanted to make money with rental properties, Arizona Rental Property Loans can help you achieve your goals. Even if you currently don’t have a good credit score or haven’t had much experience with real estate investing, there are still lending opportunities available to help you get started. By using a hard money lender to take out Arizona Rental Property Loans, you can have the financial freedom to get started with investing in rental properties.

Purchasing a rental property is the opportunity you have been waiting for to start making money in real estate. If you’ve been looking for different ways to build a residual income from the comfort of home, Arizona Rental Property Loans are the tool you need to get you there. Hard money lenders are ready and available to help you get started with investing in real estate.

With rental property investing, you can risk less and earn much more than other investment properties. For example, fixing and flipping properties can lead to unexpected or unforeseen expenses and consequence. In some cases, you can purchase rental properties where tenants already are occupying the property. This can take away some of the uncertainty or stress involved with finding potential tenants.

If you’ve been waiting for a sign to get started with investing in real estate, know that there is better time than now to get started. Finally achieve your investment goals and make the residual income you deserve by getting started with owning rental properties. The right hard money lender can help you achieve these goals and much more.

Arizona Rental Property Loans are the Answer You’ve Been Looking For

Don’t feel like you have spare time? Is your credit history lacking? There may still be Arizona Rental Property Loans available for you. With Arizona Hard Money Loans, you can still qualify to receive a loan without having a strong credit history or high credit rating. More importantly, Arizona Hard Money Loans can be paid off at a schedule or pace that matches your financial goals. With Arizona Hard Money Loans, you can form a relationship with a potential lender and adjust the terms of the loan to fit your financial needs. You won’t find the same arrangement at a bank.

Arizona Hard Money Lenders can help you get started with investing in rental properties.

Rental property investment can be a great opportunity to start building an investment portfolio and have a residual income.

Top Secrets of Using Arizona Hard Money Lenders Revealed

Many people are taking advantage of Arizona hard money lending opportunities to get started with investing in real estate. Learn the secrets you need to know about Arizona Hard Money Lenders to start making real money in the real estate market.

Have you ever wanted to invest in real estate properties or fix and flip a house but never had the funding to do so? If you have always wanted to get started making money in real estate, there may be a number of issues or misconceptions holding you back. One common excuse is that you simply do not have time to invest in the real estate market. This does not need to be true! If you have enough time to pick up the phone or send an email, you have enough time to start making real money with investing in properties!

Another common excuse or factor holding people back from investing in real estate properties is that the funding just isn’t there. You may not currently have the additional funds required to purchase a property or invest in real estate. If this sounds like you, I’d like to let you in on the secret people are tapping into to start making money in the real estate market. This secret is Arizona Hard Money Lenders!

A hard money lender can give you the financial freedom to actually start pursuing investing in real estate properties or flipping homes. Arizona Hard Money Lenders don’t give loans the same way lenders or brokers that work at a bank do. Instead of looking at credit score, Arizona Hard Money Lenders take other factors into account in order to determine a person’s eligibility for a loan. This is great news for people who are new to investing in real estate or for people who do not currently have the funding needed to start making money with investing in properties. A hard money loan can help you cover the initial investment of purchasing a property or flipping home with a minimal down payment and no good credit score required. The time is now to stop making excuses about your investment goals and to instead jump into the real estate market with the assistance of Arizona Hard Money Loans. There are plenty of Arizona Hard Money Lenders available who are excited to help you get started making money in real estate.

Arizona Hard Money Lenders are Helping Dreams Come True

No time? No credit? No problem! With a smartphone, laptop, and the right motivation, you can start making money on the real estate market. The right hard money loan can give you the initial funding you need to get started with investing in properties.

The real estate market is thriving and there is plenty of wealth to go around if you know how to use the market to your advantage or learn how to invest in the right tools to help you achieve your goals!

With the right resources to get you there, a real career in real estate investing is right around the corner. Find the right hard money lender for your needs to help you start making money!

Setabay Private Hard Money Lender