Setabay Private Hard Money Lender

Monday, January 14, 2019

How to Start Flipping Houses

Do you dream of living a life like Tarek and Christina on ‘Flip or Flop’? Do you know it is possible to fix and flip houses with little to no money down?

Can you really flip a house in Arizona with no money down? YES! Most people believe it is impossible to flip a house with zero money down. Surprisingly, you can do it and it may not be as hard as you can imagine! There is no real hidden secret on how to invest in real estate with no money of your own. Flipping a house with none of your own money will require you to use someone else’s money; this is called OPM (other people’s money). To finance your investment, you will need to find an investor that will lend you the money to rehab the property. You will then pay them interest on the money you borrow.

Where can I find OPM?

There are a few places you can find ways to start investing with no money.

1. Find a partner: A simple way to get funding for your investment is a silent partner. If you have no money but have all the skills and will do all the heavy lifting, find a silent partner. They put the money in, you do the work and you split the profit equally. This could be a family member, a neighbor who has a successful business or anyone you know that has money. Keep in mind that you will do all the work and they will receive the same profit because they fronted you the money.

2. Private Money Lender: A private money lender is just a person with disposable income to invest. They can invest in literally anything; and often they invest in real estate and land. These lenders will have income, but it is income such as investments, mutual funds and IRAs. They will not necessarily have hard assets. To attract a private money lender, you will need to offer them a high enough interest rate that it is worth them lending you the money.

3. Hard Money Lender: A hard money lender is a great way to get funded. What these lenders do is help people by often funding 100% of the purchase at a higher interest rate. The great thing about hard money lenders is they will approve a borrower with “not so perfect” credit. However, you need hard assets. In case you don’t repay the loan, they will have the rights to those hard assets. You will find that their interest rates are higher than traditional loans and your loan terms will be shorter. This is a perfect way to borrow especially if you are confident the house will flip in a reasonably short time.

Things to consider when thinking of flipping houses in Arizona

Flipping houses in Arizona can be either a full-time or part-time job. If you have assets, but don’t want to spend your own money, have time and understand what it takes to be successful then Flipping houses in Arizona can be a lucrative job. It requires hard work and careful attention to detail. As any investment, it comes with risk. However, working with an experienced lender will help you figure out how to get started.

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.

Red Flags On Loans To Flip Houses in Arizona

Sometimes it can be challenging to find a good deal on Loans To Flip Houses in Arizona. But if you find a deal that looks too good to be true then it probably is fraudulent.

Getting into the flipping business takes a lot of hard work, research and time as well as a good amount of cash or a reliable lender. When you are seeking a solid lender for Loans To Flip Houses in Arizona, it is important that you understand the terms of the loan and the red flags to avoid so that you don’t end up overpaying for your loan or getting scammed altogether.

Any legitimate lender is going to be will if not actually eager to disclose all of the loan terms upfront. This is simply a way for the lender to know that you are serious and to avoid wasting his or her time on a borrower who can’t afford the terms of the loan or one who is not willing to pay the fees for the loan. If you run across a lender who will not provide you with a complete list of terms and all costs in writing, then you should quickly find a new lending resource. A lender who is not willing to provide this information is likely to have hidden fees and a hidden agenda when it comes to your loan.

For a very similar reason, if your lender is not willing to provide you with a complete copy of your documentation prior to signing the agreement, then there are almost certainly hidden fees or terms included that will work against you. Loans To Flip Houses in Arizona are complex documents and unless you are familiar with the terminology and the legal ramifications of the loan documents, then you need to have a legal professional review the contract before you sign it.

Less Than Helpful Lenders

Any lender who is not responsive or who is difficult to contact during the application process is very likely going to act in the same manner after you sign the loan agreement. If you feel that you are not getting the customer service that you deserve, it is better to end the process and begin to work with a different lender who better meets your needs.

Follow Your Gut

Selecting a lender who will provide you with Loans To Flip Houses in Arizona is a big decision. If at any time during the process, you begin to feel uneasy, pressured or ignored by a potential lender, then you need to sever the relationship. Ideally, you will find a lender and continue to work with him or her for many years to come and on many deals. So be sure that you find one who is reliable, professional and above all, one who is honest and clearly has the integrity that you desire in a business partner. Invest the time in selecting a good lender and you will undoubtedly save yourself money over the course of your real estate investing career.

How to Make Money with Residential Hard Money Lenders in Arizona in 2019

Have you heard the housing market is cooling off? Freddie Mac’s Chief Economist says this isn’t so, meaning the outlook is good for those working with residential Hard Money Lenders in Arizona.

“I don't think the recovery is over,” Freddie Mac’s Chief Economist Sam Khater recently told reporters. “Economic growth is still very strong and essentially running at capacity.” This information came in amidst reports that the market was cooling, with slumps in home sales as evidence. Yet, Khater and other experts agree that demand for homes, both new and resale, is still quite strong.

Throughout 2018, many positive shifts impacted the housing market. For example, a stronger labor market paired with overall gains in the economy made it possible for more people to purchase homes. The natural result is diminishing housing stock, which means prices are rising. Adding to this, interest rates are climbing, construction of single-family homes has leveled out, and sales have dropped off.

“While the decline in home sales and deceleration in home price growth has been broad-based, the slowdown is more intense in the hot coastal markets -- which is a natural reaction to rapidly escalating home prices and higher rates versus a year ago,” he explained. One other area seeing a shift is the low-end of the market, with supplies dwindling and many would-be homebuyers being priced out of the market.

Projections Suggest a Shift in Strategy Will Lead to Greater Success

Whereas 2018 was a strong year to cash in on luxury properties due to the gains being seen, those doing fix-and-flips or fix-and-holds with the help of residential Hard Money Lenders in Arizona may do better to focus on the lower end of the market this coming year. The greatest demand is coming from people in search of affordable homes, so those who find properties with strong bones in need of TLC and make them move-in ready will have little trouble getting them resold upon completion. However, greater emphasis must be placed in choosing properties, as fix-and-flip pros will not be able to rely on market increases to yield gains as much as they have in the past. As noted by Khater, specific locations, such as coastal areas, are the hardest-hit by the shit, whereas inland markets are still seeing value gains. Equally, the surge in prices which has left many unable to purchase suggests 2019 will also be a strong year for those who work in fix-and-holds with residential Hard Money Lenders in Arizona, particularly when it comes to multi-family units.

Alternative lending is a boon for savvy entrepreneurs ready to capitalize on the changing market.

Due to diminished stock and increasing competition for affordable homes, home rehab pros will need to move quickly to grab up properties before the competition does. Negotiating better deals will also become more important due to the slower value gains. Those who work with residential Hard Money Lenders in Arizona will be at a distinct advantage in both these areas, as sellers will want sure bets with mortgage approvals being down and cash-in-hand will be king when sealing deals.

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

Why Don’t Most Lenders Offer Owner Occupied Hard Money?

Finding someone who will provide Owner Occupied Hard Money In Arizona isn’t always easy. However, it’s still out there and you can get financed if you know where to look.

In order to understand why Owner Occupied Hard Money In Arizona is harder to come by, you have to break down what exactly it is, how it works, and who uses it. Unlike traditional loans which are essentially offered on a promise to repay and are based on a borrower’s good standing, hard money is collateral-based. That means the borrower has something of value and that item is used to secure the loan. In most cases, it’s a home or commercial property. Because of this, things like the borrower’s credit don’t impact approval a whole lot, so the loans are leveraged quite a bit by small-business owners and real estate investors.

The other big difference is that the funding typically comes from private investors rather than big banks, so the terms will be different as well. Oftentimes, alternative funding opens up doors for people because the terms are far more flexible than traditional loans.

The catch comes in when the owner intends to live on the property. That means it’s no longer a commercial loan for business purposes, but is more along the lines of a traditional mortgage. As such, the loan is subject to more regulations than it otherwise might have been. For example, a third party has to verify that the borrower has enough income to repay the loan, there’s greater tax and insurance oversight, and the full disclosure process must be seen to. This means that that’s normally a simple process that can be seen to in a matter of days could take a month or longer, and the work a lender must do is amplified quite a bit. So, it’s totally understandable that a whole lot of alternative lenders don’t want to get involved with them.

If You Have a Business Purpose, it’s Easier to Get Alternative Financing

That said, there are times you may still really want to use Owner Occupied Hard Money In Arizona. For example, if you’re doing a fix-and-flip, but plan to live in the home while you’re doing the work. It’s times like these that your project may genuinely be considered a commercial one, in which case, it’s easier to qualify.

Work with a broker who understands your goals and regulations to improve your chances of getting funded.

Although it may be harder to get Owner Occupied Hard Money In Arizona, it’s not unheard of. A seasoned broker will explore lots of options and will find a funding source that works for your needs. From going with a standard fix-and-flip loan through options like bridge loans and blanket loans, there are many methods to get your project off the ground, even if you plan to live in the house for the duration of the loan. Start by finding a broker who knows the industry well and works with a number of lenders and you’ll find a solution that’s right for you.

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

How Get an Airbnb Loan in Arizona and Work at Home in 2019

If you’ve always wanted to work at home, 2019 is the year to make it happen. Using an Airbnb Loan in Arizona, you can cash in on the trend and earn a solid income in short-term rentals.

Your future profits will hinge upon finding the ideal property, so start looking early. If you live in an area with lots of tourism, do your searches during the slow times, when homeowners aren’t likely to be using vacation properties and they won’t be rented out. This will give you more time to check out the inside of each and will give you a bit more wiggle room when negotiating a better purchase price. In most areas, the summer is tops for tourism, so you’ll want to start your research at the start of the year. The same rules apply even if you’re looking at properties in neighborhoods, as home sales peak during the summer because families tend to move when school is not in session.

Get to know the areas you’re considering. People who are only staying for a short period of time like to be close to activities and necessities. Check out how close each property is to things like airports, convention centers, cultural activities, entertainment venues, grocery stores, and the like. Whenever possible, visit the area at various times of the day to get a feel for what your renters will experience.

Check out the house and decide on a plan of action. You’ll have a myriad of options here, from determining what, if any, renovations you’ll make through how you’ll handle the upkeep. Nowadays, there are numerous services designed to clean and prepare rental homes for guests, but you can hire your own team or take care of the transitions on your own to keep more money in-house. You’ll also need to verify what kind of Airbnb Loan in Arizona you want. Bear in mind, banks will consider this a second property for your or will look at is as a commercial property, so you may need to have an alternative funding source, like a hard money lender, lined up to make the purchase.

If You Want an Extra $21,000+ Per Year, You Can Get It Through Vacation Rentals

According to research from Savills, the average income achieved through a second home is $21,000 per year. To be clear, that’s almost exactly what someone working full-time on minimum wage will earn in 2019 ($21,528) and is only a couple thousand shy of what the average part-time employee earns ($27,284). In other words, your Airbnb Loan in Arizona can give you the opportunity to almost effortlessly earn what other people make in their careers, all while sitting in your pajamas and sitting at your computer.

Work from home and build a successful portfolio to increase your wealth exponentially.

If the average vacation rental is netting its owner $21,000 per year, imagine what the top earners are getting or what you could get by operating several. When you’re ready to get approval for your first Airbnb Loan in Arizona, take time to create a comprehensive business plan, complete with details about the property, how it will generate cash, how much it will earn, and what your plans are for operation are. With a little bit of effort, you can create a solid secondary stream of income or wholly work from home in 2019, all through vacation rentals.

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

Sunday, January 13, 2019

3 Things TV Shows Don’t Tell You About Rehabs & Fix and flip loans in Arizona

While home rehab TV shows can be great entertainment and provide some insights into the industry, they don’t show the full picture. They’re missing key details on fix and flip loans in Arizona and projects that might change the way you look at the field.

1. Market research matters. In all fairness, someone scouring spreadsheets and pulling up data online doesn’t make for particularly good entertainment, so it’s no surprise most TV shows leave this component out. However, a significant portion of any project’s success is completed before the rehabber even sets foot on a property or picks up a hammer. A successful rehabber invests time in researching which cities and neighborhoods are best, then explores the needs and potential of several properties before digging in.

2. Not all restorations provide ROI. We all love seeing a gorgeous house with wow-factor and curb appeal. Potential buyers love it too. It’s the little touches a rehabber adds that create an emotional connection with buyers, so they picture themselves living in it and are willing to pay more for the home. However, there are many things that will not result in profits. According to MoneyWise, adding a backyard patio or sunroom will return less than half your investment to you. Adding an upscale master suite or bath will only give you 55-56% of your investment back. A full kitchen remodel will, in all likelihood, only give you 59% returns at best. These are things you’ll commonly see done in TV shows, but they don’t typically result in real-world profits.

3. Finding financing isn’t always straightforward when you’re not a celeb. It’s pretty rare for TV shows to even talk about financing. That may be because it rarely adds entertainment value or it could be because it’s just not a concern for them. In some cases, the network funds the flips, while in others, the stars have income from the show, so they can either pay for the projects outright or can use their cash flows to demonstrate they have the bandwidth to pay a conventional mortgage. In the real world, many rehabbers use fix and flip loans in Arizona, which are relatively easy to get, even if you don’t have celebrity income, a network funding you, or great credit.

If You Can Address the Behind-the-Scenes Issues, You Will Be More Successful

Even though TV shows don’t usually cover the legwork done before a project starts, it’s things like fix and flip loans in Arizona and crunching the numbers associated with ROI and market conditions hat play a major role in the outcome of a project. If you’re just getting into the biz, you’ll need to do some homework to ensure your rehab project is profitable.

Build a team of pros who are there when you need them.

One thing shows get right, however, is that it takes a team to make things happen. Shows like to highlight the unique dynamics of each relationship because it adds drama and entertainment value. In some cases, the disputes between parties keeps viewers tuned in, while the dynamics of a happy couple seeing to a joint project gives the empowering feeling that anyone can achieve the same. The latter is more true to life, but the real team expands beyond those seen on screen. There are always contractors, subcontractors, brokers, lenders of fix and flip loans in Arizona, and more involved, so if you’re getting into the biz, building your dream team is a good place to start.

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

Setabay Private Hard Money Lender

Monday, January 14, 2019

How to Start Flipping Houses

Where can I find OPM?

Things to consider when thinking of flipping houses in Arizona

Red Flags On Loans To Flip Houses in Arizona

Less Than Helpful Lenders

Follow Your Gut

How to Make Money with Residential Hard Money Lenders in Arizona in 2019

Have you heard the housing market is cooling off? Freddie Mac’s Chief Economist says this isn’t so, meaning the outlook is good for those working with residential Hard Money Lenders in Arizona.

Projections Suggest a Shift in Strategy Will Lead to Greater Success

Alternative lending is a boon for savvy entrepreneurs ready to capitalize on the changing market.

Why Don’t Most Lenders Offer Owner Occupied Hard Money?

Finding someone who will provide Owner Occupied Hard Money In Arizona isn’t always easy. However, it’s still out there and you can get financed if you know where to look.

If You Have a Business Purpose, it’s Easier to Get Alternative Financing

Work with a broker who understands your goals and regulations to improve your chances of getting funded.

How Get an Airbnb Loan in Arizona and Work at Home in 2019

If you’ve always wanted to work at home, 2019 is the year to make it happen. Using an Airbnb Loan in Arizona, you can cash in on the trend and earn a solid income in short-term rentals.

If You Want an Extra $21,000+ Per Year, You Can Get It Through Vacation Rentals

Work from home and build a successful portfolio to increase your wealth exponentially.

Sunday, January 13, 2019

3 Things TV Shows Don’t Tell You About Rehabs & Fix and flip loans in Arizona

While home rehab TV shows can be great entertainment and provide some insights into the industry, they don’t show the full picture. They’re missing key details on fix and flip loans in Arizona and projects that might change the way you look at the field.

If You Can Address the Behind-the-Scenes Issues, You Will Be More Successful

Build a team of pros who are there when you need them.

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