Setabay Private Hard Money Lender

Tuesday, January 15, 2019

Arizona Private Money Lenders Are There When You Need Them

Are you eager to buy an investment property, but your credit is less than perfect? Have you been turned down by traditional lenders?

Arizona Private Money Lenders, sometimes called hard money lenders, are non-institutional lenders that issue short-term loans. Typically, these loans are for the purchase of an investment property; however, they may also be used for fix-and-flips, rehab projects and quick funding.

Arizona Private Money Lenders are less bothered with a borrower’s credit and more concerned with their hard assets: which is real estate, cash or land. A hard asset will show up on financial statements. This is opposite of a soft asset which can include: equipment, furniture, software and any other assets with a low intrinsic open market resale value. Usually, a lender wants to see a FICO score of at least 550; however, that is not always the case. The type of private money lender you choose will determine the credit score you need.

DIFFERENT TYPES OF MONEY LENDERS, LOAN QUALIFICATIONS, LOAN TERMS AND APPROVAL TIME

There are three main types of Arizona Private Money Lenders:

1) Primary circle: These are your family and close friends.

2) Secondary circle: This consists of personal friends, colleagues and professional acquaintances.

3) Third-party circle: This includes accredited investors and hard money lenders.

Borrowing money from your primary and secondary circle may be easier to obtain, but in the long run can get uncomfortable and relationships can become strained. Hard money lenders belong to your third-party circle, which is the most distant in terms of relationships. They have proven to be the best private lenders due to their reliability, professionalism, across the board interest rates, fees and loan terms. You will know exactly what you are getting into before accepting the loan. The terms don’t change.

Private money loans have much shorter loan terms than traditional loans. They have terms anywhere from a month to 5 years. Hard money lender terms are typically between 1 and 3 years; with most loan terms closer to one year. Pre-qualification can occur in as little as 10 minutes and funding typically is dispersed within two weeks.

When meeting with a hard money lender you will need to bring the last three months of your bank statements, a credit score of 550, the property location and the purchase price. If you are seeking a hard money rehab loan, lenders will also require contract bids, a renovation scope of work and a portfolio of your experience that includes prior projects.

Is a private money lender right for you?

Are you looking to purchase, renovate and sell your property within a year or less? Do you need quick financing to compete with cash only buyers? Are you looking to purchase and renovate a property before you refinance with a conventional mortgage? Or, have you been turned down for a traditional loan? If any of these scenarios describe you, a private money lender be may your answer!

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 and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Do You Wish You Could Buy An Investment Property But Your Bank Turned You Down?

You have searched high and low for that perfect Arizona investment property and finally you’ve found it! You get to your bank only to find out the property’s condition is not up to par with your bank’s mortgage conditions and your credit is less than attractive—no loan for you. But, there is a solution—a hard money loan.

Just like all loans, a hard money loan is money borrowed by a lender. The borrower receives the money and, in turn, the lender receives monthly interest on the loan until final payment has been issued. Where traditional loans are based off the borrower’s credit, hard money loans are based off the asset being purchased. If the borrower defaults on the loan, the hard money lender will foreclose on the property.

BENEFITS OF A HARD MONEY LOAN

There are a plethora of reasons to obtain a hard money loan; however, the quick approval and release of funds along with the relationships investors can make seem to be the most popular.

There are fewer hoops to jump through when you are working with a hard money lender. You will work with an individual lender versus a group of lenders at a bank. There is less paperwork and a shorter waiting period because the lender is more concerned with the Arizona investment property, not in your debt and credit scores. The property you are purchasing will be backing the loan. Working with a hard money lender you could easily have your funds available in as little as two days; unlike a traditional mortgage which could take months.

You can build a relationship with your investor. If you show that you are reliable; you pay your debt back on time or early, your investor will want to work with you again. Once your lender trusts you they may be willing to do things such as reduce the origination fee, get your funds to you faster or loan you greater amounts. Building trust with your lender will form a priceless business relationship.

You can get a hard money loan for virtually any type of property: from single family residential to commercial and industrial properties. Typically, borrowers use hard money lenders for fix and flips or to rehab a property. Some hard money lenders will not fund an owner-occupied residential property because of the extra regulations. However, there are plenty that will.

Is a hard money loan the right move for you?

Hard money loans are most ideal for:

* Fix and flips

* Construction loans

* Rehab properties

* A borrower who doesn’t have enough cash or access to private financing

* A borrower with bad credit

* Quick financing for an investor who is competing with a cash only investor

Hard money loans aren’t for every investor in every situation, but of you are just starting out they are an excellent choice. These loans allow you to purchase real estate with little, or none, of your own money.

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.

Why You Risk Less with Spec Home Financing in Arizona Today

In the past few years, Spec Home Financing in Arizona and building has been a somewhat risky proposition. However, changes in the market mean your move-in ready property won’t last long.

It’s been tough to get Spec Home Financing in Arizona in recent years, purely because there’s been no telling how long a move-in ready property would sit before a buyer might take interest. That’s a risk many lenders and builders haven’t been willing to take. After all, once money’s been invested and a home sits vacant, it costs money to maintain it. That eats into the ROI and means that investors and builders can’t move onto other projects, leaving some with no choice but to sell at a discount just to unload the property. The state of affairs has all but stopped construction, so few new homes have been hitting the market at all for the past year.

“Whatever progress has been made in new home sales since the economic recovery began,” explained Zillow Senior Economist Aaron Terrazas in a CNBC report, “recent data makes it clear that builders have been struggling to ramp up new single-family home construction for years.” At the same time, there’s been a surge in demand on the low end of the housing market, which has annihilated supplies as well.

“The housing shortage has been the one glaring villain holding back a more robust housing recovery,” said CNBC real estate reporter Diana Olick. She and the experts cited concur that more new homes are needed, but finding lots for infill in certain cities can be difficult, and this is precisely where more affordable homes are needed.

Build Affordable Homes to Be Successful in Today’s Market

Danushka Nanayakkara-Skillington, a senior economist at the National Association of Home Builders, says the trick is to be aware of what today’s homebuyers need and cater to it during the build. “Builders need to manage rising construction costs to keep their homes competitively priced for the newcomers to the housing market,” she explained. Lind Goodman, sales manager for BSI Builder Services recently echoed these sentiments in an article for the Washington Post. “Right now, we’re seeing most of the builders in our area building houses as fast as the lots are developed,” she said. “Resale inventory is so low, and builders can’t build houses as fast as they are selling, particularly at the lower-end prices.” This in mind, those leveraging Spec Home Financing in Arizona and those providing it stand to make great profits for the foreseeable future.

The market’s hot, so find an experienced broker who will help you get the best terms.

If you’ve got experience, finding Spec Home Financing in Arizona should be a breeze, thanks to the surge in demand. However, working on the lower end of the spectrum in keeping with buyers needs and expectations will naturally leave you with smaller profit margins. If you want top ROI, be sure to work with a broker who can find you the best terms possible for your endeavor.

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.

How To Qualify for a Business Loan Regardless of Your Credit

You’re tired of working for “the man.” You want to be your own boss. That comes with start up money. You’re going to need a business loan.

The hardest part of starting your own business is finding the financing. It can be problematic, but it is not impossible. There are numerous sources when looking for a business loan. The more prepared you are, the better chance you will find your funding.

HOW TO GET AN ARIZONA BUSINESS LOAN

Creating and building a business requires two things: a great idea and money. Business lenders can have incredibly strict standards. So, the more you know about what these lenders will require the easier it will be to get approved.

1. Get a business plan: There are few lenders that will fund you without a business plan. A business plan will include a written description of the future of your business. It is a detailed story of what you plan to do and step by step instructions on how you plan on doing it. This will include: your strategy, your products and services, your marketing plan, your background and your personnel’s background, and your financing needs.

2. Decide which type of loan is best for you: It can be difficult to get a business loan if you are just starting out. Often small business lenders want you to be in business for a certain amount of time and require a minimal annual revenue. If you are just starting out a personal loan or small business credit card may be something you look into. These are unsecured, so you will not be required to put up any collateral like you are with a business loan.

3. Gather documents: Business lenders will want to know if your business is a good risk before funding you. You will need to pull out all your financial statements; this will include the last three years of your bank statements, personal credit report and business and personal tax returns.

4. Check your credit: You will have more success if you have good personal credit. Your FICO score will range from 300-850. The better your credit, the lower your interest rate. The majority of borrowers range from 670-739. However, it is still possible to get a loan with poor credit.

Can you get a Arizona business loan with poor credit?

Yes, it is still possible to get a financing for your small business with poor credit. One way to do this is through a hard money business loan. These loans are meant for business owners who don’t qualify for traditional business loans. A hard money Arizona business loan is a loan that is backed by the business’s commercial real estate. A hard money loan is an asset based loan. In essence, you will be using your business’s commercial real estate as collateral for the loan. In case of default by the borrower, the property is used as protection. This is fantastic news for people with bad credit; because this loan is not based on the borrower’s FICO score. It is determined, almost completely, by the collateral you can offer to the lender. Hard money business loans are calculated by a loan-to-value ratio. The loan-to-value ratio is a percentage of the property's value. Typically, lenders will lend 70-75% of the value of the property used as collateral. These are non-traditional loans and are individuals or lending organizations. Hard money business loans are easy to apply for, easy to qualify for and borrowers will receive funds quickly.

No matter what financial situation you find yourself in, you will find funding for your business. If you are a veteran business owner (or a new business owner), don’t qualify with traditional banks’ strict standards, or need your funds available quickly— there is a lender for you.

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.

3 Reasons to Leverage Rental Property Loans In Arizona in 2019

The new year is slated to bring changes to the housing market, and chances are, your area will see a boom in rentals. Now’s a great time to start evaluating your options for Rental Property Loans In Arizona if you hope to cash in on the growing market.

1. The economy is strong. The telltale signs of a strong economy are everywhere. The Bureau of Labor Statistics (BLS) puts unemployment at just 3.7%, down form 4% last summer and 4.4% last year. Earnings are also up, and the consumer price index shows living costs are holding steady. People are more able to spend on fun things like vacations, making now a good time to great time to have a vacation home and get it listed on sites like Airbnb and HomeAway.

3. Affordable housing is drying up. One downside to the great economy is that more people have been able to get into homes. According to a new report from CNBC, the low end of the housing market has the highest demand, and also has the fewest offerings. Because of this, multi-family units and single-home rentals will continue to be solid investments.

3. The cost to own is rising. Naturally, when fewer homes are on the market, prices increase. They’ve been climbing at a steady pace for years now. Adding to this, interest rates are up; higher than they were a year ago, though certainly not at all-time highs. Those who can secure Rental Property Loans In Arizona are in a unique position to make the most of the market shifts.

Evaluate Your Market to Ensure Top ROI

Not all markets are seeing the exact same shifts, cautions the CNBC report. Coastal areas, in particular, are seeing the first shifts and are therefore hit the hardest by changing markets thus far. The trend is expected to move inland, though experts believe that more new homes will come available and relieve some of the strain. If you’re considering taking out Rental Property Loans In Arizona to fund your investments, do a comprehensive market analysis and see what new home growth has been like or perhaps focus on a strategy like fix-and-holds in inner-city areas with little opportunity for future housing growth to ensure a smart purchase today will be a wise investment tomorrow.

A diverse portfolio is key to remaining successful.

“The housing recovery may have peaked, but it isn't over. As more supply hits the market, sales will grow again,” says CNBC real estate reporter Diana Olick. The changing market being seen today is typical of a cyclical market, and the only way to ensure you always have steady revenue is to diversify your holdings. However, Olick adds that “a huge generation is aging into its homebuying years, and another huge generation is downsizing,” plus younger generations tend to favor rentals to begin with. If you’ve historically focused on fix-and-flips, now is a good time to explore your options for rental property loans in Arizona, so you can generate cash today and continue earning for life.

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.

Monday, January 14, 2019

Can You Get Private Money Lenders in Arizona to Fund Fire-Damaged Flips?

There’s an abundance of fire-damaged homes on the market today and they can make great fix-and-flips. However, you need a solid plan and a connection to the right Private Money Lenders in Arizona to help you.

With the recent surge in wildfires, a whole lot of fire-damaged properties are hitting the market. This is a great time to pick up new fix-and-flips, but because of the level of expertise needed to carry out projects, it can be a challenge to find Private Money Lenders in Arizona who are willing to invest.

If you haven’t worked on fire-damaged properties before, this is one situation where it pays to bring on expert help. Before you jump in, talk to a contractor or restoration company which specializes in fire damage. In some cases, the damage is quite superficial. Homes that are damaged mostly by smoke often need little more than treatment for the scent, cleaning, carpets replaced, and cosmetic adjustments. On the other hand, it becomes a lot more involved when the home ignited. If the fire went unchecked, there can be structural damage and entire floors needing to be gutted, and if the fire department was deployed, chances are there’s mold and water damage too. None of these things means a property can’t be flipped for profit, but if does mean the complexity of the repairs increases.

You’ll also need to pay special attention to permitting and local regulations, as failure to adhere to repair guidelines could lead to issues years down the road. For example, codes typically dictate how much of a stud can be charred without replacement. If you and your contractors are mindful of these codes and do quality repairs, you can walk away with profit and a good feeling about the work you’ve done, but shoddy contractors may try to leave pieces in place that legally and ethically need to be replaced; it’s on you to ensure it’s done right. You’ll also need to address any underlying issues. For example, if something in the home, such as an electrical problem, contributed to the burn, you’ll need to address this too. Details about the damage and the steps you took to repair it will be part of the disclosure process when you sell. That’s rarely an issue with potential buyers if you’ve done the repairs well though.

Rehab Pros Create a Win-Win Solution By Taking on Fire-Damaged Properties

It’s a challenging time for homeowners as few have the experience or expertise needed to rebuild after a fire. Many simply want to walk away and start over, but are tied down to properties they can’t get out of. Those who work in fix-and-flips are in a position to make a real difference for people during this emotional time. They have the ability to change the life of the family by allowing them to move on swiftly and can give back to communities by helping with the rebuilding process. Overseeing the rehab often works out well for the flipper too—some have seen ROI top 100%. That’s good news for private money lenders, too. When you’ve proven you have what it takes to rehab a fire-damaged property, the person who funds your deals profits alongside you and is often eager to sign up for the next project as well.

An experienced broker will find funding and terms that are right for you.

Fire-damaged homes can be great bargains and yield great profits, but because of the complexity, banks are quite wary of them and some Private Money Lenders in Arizona are standoffish too. However, if you connect with the right broker, he or she will find someone who understands the nature of what you’re doing and will find you great terms too.

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.