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Thursday, January 10, 2019

Funding the Down Payment on Rental Property Loans in Arizona

Securing Rental Property Loans in Arizona is not always as easy as just getting a mortgage. But some creative financing can be a big help.

When you begin to invest in rental properties, you will find that the larger the down payment, the more likely you are to get financed. Lenders like to see at least 20% down on Rental Property Loans in Arizona, but making a down payment of 25% or more is certain to get you more interest from lenders and even a better interest rate. But coming up with that large sum of money might pose a challenge. Thinking creatively could help you to make that big down payment to get a great interest rate and a really reasonable monthly payment on your rental property.

Unless you have a large savings account, chances are that you are going to need to make other arrangements when you need to make a 25% or more down payment. But one way that many first-time investors finance a first rental property is using a home equity line of credit on their home. This will provide you will a substantial amount of cash in most cases and it also allows for a longer repayment period. Many landlords will use some of the rent money coming in each month to make the HELOC payments to ease the personal financial burden.

Other homeowners will choose to refinance their home and remove the equity that they have built up. This is helpful because it does not include the extra monthly payment of the HELOC but it does increase the length of time that you are paying on your own home. This also only makes sense if you can get a good interest rate on your refinance.

Plan Ahead

If you have been thinking about breaking into the real estate investment business and you know that Rental Property Loans in Arizona require a large down payment, then hopefully you have been planning ahead. Having time to save for the larger down payment is also another way to avoid losing a property because you can’t cover the down payment. Some future real estate investors have chosen to work a second job to save for the down payment while others have decided to lower their cost of living to be able to save more. Either method works and will let you make the down payment without taking out another type of loan to pay it.

Borrow From Your Future

If you have a retirement account then you might be able to lend yourself the money for a large down payment. Many 401K plans allow you to take out a loan against your retirement savings. And in this case, the interest that you are paying is going back into your retirement account. Clearly, there are many ways to fund the large amount that you must initially put down on Rental Property Loans in Arizona, but the outcome is worth the risk. Make a wise choice on your first property, and then let the profit pay for your next property. In a few years, you can be living off of the rental income and continuing to grow your personal wealth.

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
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.
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Arizona Fix and Flip Loans 101

Property flipping is all the rage thanks to a few cable TV networks. Used properly, Arizona fix and flip loans can make flippers rich.

It seems that there are about a dozen or more fix and flip shows on TV at any given time. They vary in location and the type of properties being flipped but the concept is always the same. A flip is a fast process that entails buying a property, increasing the value with renovations and repairs and then selling the property just as fast as possible. The goal is to carry Arizona fix and flip loans for as short a period of time as possible to reduce the interest you are paying and to increase your profit margin. And the fastest way to accomplish all of this is to make the initial purchase with a hard money loan.

These privately funded loans are also known as asset-based loans because they are based on the value of the property being purchased rather than the borrower’s personal creditworthiness. The property being bought is the collateral and is at risk if the borrower defaults on the loan. But there are many benefits that outweigh the less than traditional nature of hard money fix and flip loans.

In most cases, a hard money loan request can be processed, approved and even funded in less than two weeks. This is because the lender’s due diligence is in researching the property being bought and not a person’s credit history. A borrower with a credit score of 550 would have a hard time getting money from a bank but most hard money lenders are willing to work with the credit challenged borrowers. The lender will sometimes request that the borrower pay upfront for an appraisal of the property but in most cases, all of the fees are due at closing when the loan is funded.

The Cost

Nothing in life is free, and hard money Arizona fix and flip loans are no exception. The lender is free to charge a higher interest rate as he or she is not required to follow the same rules and laws as a lending institution. In addition, the lender can determine the fees that will be charged. In most cases, hard money will cost five to ten points more than a traditional loan. But for the fast funding and the ability to secure the loan with a low credit score, many flippers are willing to pay the higher rates.

Many Perks

Fast funding and low credit score requirements are only two of the benefits of hard money. These loans are short term which works very well with the fast pace of the fix and flip segment of real estate investing. In addition, because the lender is a private individual, you are likely to be able to have the rest of the loan terms tailored to meet your needs. This could mean variable payment amounts, longer payment cycles or even a balloon payment at the end of the loan term. Knowing all of these perks helps to justify the cost while demonstrating why so many flippers are fond of using Arizona Hard Money Loans.

First Timers Loans To Flip Houses in Arizona

As a first-time flipper, it can be difficult to find the appropriate loan. But there are a few tips which can help you secure your first Loans To Flip Houses in Arizona.

When you are getting into the house flipping business, there are many unique aspects of the business that you will need to learn. One of the first challenges that you will face is securing your first few Loans To Flip Houses in Arizona. The process is not anything like getting a mortgage for the home that you will be living in and as a homeowner, it would be very difficult to qualify to carry two traditional mortgages at the same time. For that reason, most flippers are fond of using hard money to finance the purchase of a property to flip as well as to cover the cost of the renovations and repairs.

Hard money is a short-term loan which is designed to be used by real estate investors. These loans are considered non-traditional because they are funded by a private lender and not a bank or a mortgage company, which is considered a traditional lender. The most common term for a hard money loan is between six months and a year but the term can vary because you are working with a private lender who is much more likely to customize the terms of the loan to meet your needs than any traditional lender would.

Another reason that investors choose Arizona Hard Money Loans To Flip Houses in Arizona is that these loans are asset-based. What this means is that the amount of the loan is determined by the value of the collateral, which is the property that you are buying. So the borrower does not need to be worried about having a great credit score or a very low level of debt. This is what allows a new investor to enter the market without having saved the entire purchase amount of the property.

Hard Money Loan Down Payments

The loan that you are getting to purchase a property must always be for less than the total value of the property so that the lender has some sense of security. If you as the borrower default on the payments of the loan, the borrower will take possession of the property and sell it to recover his or her money. So to ensure that the property value is always greater than the balance of the loan, the lender will require a down payment of 20% to even 25% of the property value.

Understand The Interest on Loans To Flip Houses in Arizona

Being that hard money is both a short-term loan and an asset-based loan makes them perfect for flippers. But this convenience does come at a price. You can expect to pay anywhere from 125 up to 21% or more for a hard money loan. The lender will determine the interest rate based on his or her perception of the risk involved in the loan. The more risky you appear the higher the interest rate. But remember that you will only be paying that high rate for a few months and hard money is a great way to get your foot in the door as a flipper and a real estate investor.

Grow Your Business with 100% LTV Commercial Real Estate Financing

When the only way to make more money from your business is to expand, you can use 100% LTC commercial real estate financing to do it. Learn all about it to see if it’s right for you.

Successful small business owners who don’t have enough capital to expand their business can turn to 100% LTV commercial real estate financing to achieve their goals. This type of financing is one that many business owners have used successfully, and they are quick and easy.

Perks of Using 100% LTV Commercial Real Estate Financing

The biggest perk of using this type of real estate financing is that there is no down payment needed when purchasing a commercial property or having one constructed. The financing may even be able to cover closing costs, business debt and become working capital.

100% LTV commercial real estate financing are for “owner occupied” properties. The business occupies at least 51% of the property for it to apply.

When you use a private lender for this type of financing, you don’t have to deal with all of the red tape involved when you use a traditional lending institution. For instance, you don’t have to complete packets of paperwork to apply. You simply just need to provide a small amount of information, and that is sufficient for the private lender to determine if you qualify. With no underwriter involved, approval can be as quick as two business days or less. The money can be available within the week.

Another great perk about this type of financing is credit is not a big deal. The business is an asset, so that is enough to secure the loan. This is perfect for people who have had unfortunate situations happen to them or they made some financial mistakes in the past. It’s a way to resolve all of those issues, and get back on track to bigger and better profits.

Grow your business now with the capital you need.

It’s time to take your business to the next level of wealth. You can get your business out of debt and purchase another location to sell more of your products and services. You can do all of this with 100% LTV commercial real estate financing. All you need to do is take the first step.

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.

Wednesday, January 9, 2019

Investing in New Construction with Spec Home Financing

If you’re looking to build new construction but don’t have the cash to do it, spec home financing may be able to help. Learn all about it here.

New construction is still doing well in the housing market. Experts report that this next year will be another amazing year for new construction sales. Many real estate investors are looking forward to another lucrative year because of it.

If you’ve always wondered about investing in new construction for either rental property or selling, this is your chance to do it. Not having the cash is not a problem. Spec home financing is all you need.

What Is Spec Home Financing

Spec means speculative. You are speculating a completed house when you’re done with the project. To finance that house, you can use this type of financing.

Since it can be hard to know how much you will need when building a house, lenders often loan a certain amount to get started. This cash is readily available to begin the project. As you go through the construction of the home, the construction costs may over exceed what you initially received, and we may need more to complete it. This can be done as long as it doesn’t go over the percentage you’ve been approved for of your asset’s value.

Spec home financing can make it possible for you to step into real estate investing successfully.

With financial help, you can fund new construction, which can then be sold for more than what you paid to build it. That’s how making money off this real estate investment works. If you spend $200,000 to build a house, and you sell it for $300,000, you end up with a profit of $100,000.

Some people walk away with their profit, while others roll it into another investment. It all depends on how much you truly want to make from real estate investing.

If you’ve ever wondered about making money in real estate, consider this option. Remember, you don’t need the cash in your hands right now. You can get that from the spec home financing. All you need to do is call us to start the process of getting one. It only takes a few minutes to provide the needed information and, in a day, you will find out if you’re approved.

Don’t let this investment opportunity pass you by. Isn’t it time to experience financial freedom?

Vacation Rentals Bring in Big Bucks and Rental Property Loans Make It Possible to Invest

I always want to have rental property in a vacation spot to make some money. I didn’t know if I ever would be able to until I learned about rental property loans.

My dream was to purchase a home on Ocracoke Island, NC so I would have a place to go with my family as they grew up. I didn’t have enough money to buy a vacation home. Even when I considered that I could rent it out during the summer to make up some of the mortgage, I still didn’t think I could afford it.

One day, I was doing some work for a client, and I learned about rental property loans. As I was reading about it, I wondered if this would be something that could help me make my dream a reality.

Some of the perks of the rental property loan is that you don’t have to have great credit. If you do, that’s good, but if not, it doesn’t stand in your way. The other thing is that you don’t have to supply or complete a ton of paperwork. If you’ve ever took out a loan from a bank, you know how cumbersome that can be... With these private hard money loans, you don’t have to deal with all of that. You also don’t have to wait what seems like an eternity to get it approved. There’s no approval committee. You work with either one investor or a small company that manually reviews it. The time it takes to get the money is short too. Most people can get the funding they need for a rental property within a week.

This all really sounds great to me, so I decided to do it.

How I Used Rental Property Loans

When I was approved and received the rental property loan in my bank account, I started looking for the perfect vacation home. I found a couple that were in the area I wanted close to the coffee shop and restaurants and within the amount I was loaned about 70% of the value of my home.

After looking at the couple of places, I decided on the first one. Since I had cash, I was able to close in a couple of weeks. I was so excited to get started on my new investment property.

I had a little bit of money left over from the loan, so I spent it on painting and decorating. I was able to buy some furniture too. It was perfect.

After spending a week at our vacation home, we went back to our primary residence. At that time, I started to promote the home to people who wanted to vacation on Ocracoke Island. It didn’t take long before I started receiving calls to book a week or more. It was great! I was able to set the rental amount higher than what I owed on my loan each month. This made it possible for me to pay off the loan quickly.

Rental property loans made it possible for me to create memories and a real estate investment income.

If you have a similar dream as mine, I recommend rental property loans. They made it possible for me to buy a vacation home and turn it into a lucrative real estate investment.