Setabay Private Hard Money Lender

Sunday, January 20, 2019

Tips For Finding Quality Hard Money Lenders in Arizona

Getting a bank loan is complicated but finding the bank is never very difficult. But not many consumers know how to find good Hard Money Lenders in Arizona.

When you are looking for a traditional loan, it is as simple as a few minutes on the Internet or even looking at the snail mail that is piled on the table to find an ad from a local or national bank. But finding good Hard Money Lenders in Arizona can require a bit more work. But following just a few tips will ensure that you find the lender that you need and can move forward with your hard money request.

The Internet is a good place to start when seeking Hard Money Lenders in Arizona. But you will want to do further research before narrowing your pool of potential lenders. Especially new borrowers will want to be certain that the lender specializes in hard money loans. This is because you will want an experienced professional lender to guide you through this process a few times. Reputable lenders will want to work hand in hand with you to ensure that you understand the process. This is how they will forge a long-term relationship with you for continued business, and this is what will be your foundation for long-term hard money lending. Along these lines, a local lender is always your best selection when you are new to the process. This makes learning the loan process much easier for both you and the lender.

As with any business associate or service provider, you will also want to verify that the lender is licensed and is in good standing with the Better Business Bureau as well as past clients. Asking for a list of references can be helpful but you should also do a bit more digging in financial chat rooms or with other real estate investor groups. This first-hand knowledge from other borrowers is important.

Get Terms In Writing

It can be complicated comparing all of the different options for hard money loans. But you need to work through each lenders terms and fees to know the total cost of each loan offer. Any legitimate lender will provide you with a full fee schedule in writing to allow you to verify the loan cost. If a lender is not willing to provide this information, then clearly, you should seek other options.

Due Diligence

Selecting Hard Money Lenders in Arizona is just like selecting any other service provider. You need to invest some time and effort to learn about the lender, his or her business practices and the terms of the loan that is offered to you. Having all of this information will allow you to select the lender who will best meet your needs for affordability as well as the level of service being offered. As you gain experience in this form of lending, your need for hands-on service might diminish or you might even be willing to work with a remote lender. But always do your research to know who you are working with and what to expect.

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.

Everything You Do and Do Not Want to Know About Arizona Construction Loans

There are numerous types of Arizona construction loans that can get you started as a contractor. Understand which one is best for your business before you start your first project.

If you are thinking about building your home instead of purchasing an existing one, you will not be getting a traditional mortgage. What you will be getting is a Arizona construction loan. If you go the route to secure a Arizona construction loan for your new home, then you will be faced with a loan that has higher interest rates and a shorter term. This type of loan can be used for rehabilitating your home or building it from the ground up. The projected value of the home upon completion is what the Arizona construction loan is based on. This differs from conventional loans which are based on fair market value.

The different types of Arizona construction loans are narrowed down to three types, which are;

· Construction to permanent loans: If you have construction plans for your new home then these loans are perfect. The builder of the project is paid based upon completion of the loan, also known as progress payments. You are able to lock in your interest rate at closing. The remaining costs are converted into a mortgage at closing. By locking in the interest rate, you are assured a steady payment.

· Construction only loans: Once your project is completed then the loan must be paid off. If you have a large cash reserve, then this is a good choice. The proceeds from the sale will enable you to cover the costs of a new build. If your new project will need a mortgage, you will need to search for a lender yourself and go through the approval process once again.

· Arizona construction loans for renovation: If you are searching for a fixer upper then this is the type of loan you want to use. Any renovations that you will be doing, and the purchase price will be wrapped up in the mortgage.

Arizona construction loans differ from conventional loans since conventional mortgage loans are paid out in one lump sum while Arizona construction loans are paid out in progress payments or installments. Once the project is finished, the full cost of the project is transferred to you.

What are Draws?

Progress payments are called draws. The builder is paid in installments, “draws” based on the project scheduled of building you laid out in your plans for the project. In most cases. you will need enough cash to pay for the cost upfront before the bank inspects the project to make sure the builder has completed that part of the project to qualify for the draw. You will need a builder that is dependable. The budgeting and scheduling of the project is vital and must work within the timeline both of you have established at the beginning of the project. Buyer beware, do your research on the lender before you begin the project.

There are many advantages of Arizona construction loans which include interest only loans, flexible terms, and structure that is added by additional scrutiny.

The disadvantages are that the Arizona construction loan is harder to qualify for, higher interest rates may apply, and shorter-term loans are much riskier. At Setabay, we are able to offer low interest rates with terms that range from 3 to 60 months. Call us today for a no-obligation quote.

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

What are Arizona Bridge Loans and How Do They Work?

In certain types of real estate markets, Arizona Bridge Loans are popular and serve both investors and home owners. If you are currently in an existing home and want to purchase another home before your existing one sells, this type of loan offers an optimum short-term loan that can help you achieve this goal.

Understand that Arizona Bridge Loans are not without risk. These loans are not permanent loans. They are meant to be short term in nature and, as the name implies, “bridge” the gap between the existing home and the new home mortgage. They are secured by the existing residence. In reality, you are borrowing your down payment.

Set guidelines are not established by all lenders, such as minimum FICO score and debt to equity ratios. Funding of the loan is approached by underwriting as lenders determine if the loan “makes sense.” The key to the loan is that long term financing is obtained on the new home. The loan payment may be excluded by some lenders for qualifying purposes. Most borrowers have an existing loan on the current residence; so many lenders will add the two mortgage payments together. Most buyers are going to close on the new home before they sell their existing residence.

Higher debt to equity would be accepted by a lender if the mortgage for the new home is a conforming loan. If the new home is a jumbo mortgage, then the lender will restrict the buyer to a 50% debt to equity ratio. There are fees associated with Arizona Bridge Loans. Interest rates can fluctuate and vary depending on lender and location. Some of the fees that a borrower will need to pay are:

1. Administration fee

2. Appraisal

3. Escrow

4. Title Policy

5. Wiring Fee

6. Notary Fee

Based on the amount of the loan, there may be an origination fee. There may be points charge of 1% of the loan or more.

Risks and Rewards Associated with Arizona Bridge Loans

In a “move up” home, if you are tight on cash and your existing home has not sold, you can finance the down payment by taking out a home equity loan or a bridge loan. In a tight market, waiting until your home sells can result in the loss of your dream home that just hit the market. After all, buyers will prefer a full offer over one that contains a contingency. If you proceed in purchasing a home before the existing one sells, then be prepared to pay two mortgages. Bridge loan benefits include the following:

· You can buy without restrictions and immediately put your existing home on the market

· You may be given a few months grace period on a bridge loan before the first payment is due

· When you place the bid for the new home, you remove the contingency when making the offer for the new home

Bridge loan drawbacks include:

· Home line of credit costs less than Arizona Bridge Loans

· A stringent requirement that the buyer may not qualify for is that they can meet the financial requirement to pay two mortgages

At Setabay, we offer Arizona Bridge Loans as well as construction, fix and flip, and Arizona Airbnb Loans.

As with all loans, various lenders, particularly private and Arizona Hard Money Lenders, offer various rates and terms along with underwriting processes and qualifying demands. At Setabay, we have streamlined the process and can let you know the status of your application in as little as 24 hours. Call us for a no-obligation quote.

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

The Basics for Getting an Arizona Airbnb Loan

An increasing number of investors are purchasing property that they then turn around and rent via Airbnb. Find an Arizona Airbnb Loan in order to get into this lucrative investment strategy.

By 2017, the leisure industry had expanded with 25% of leisure travelers booking at least one stay at an Airbnb property. Since 2016, stays at Airbnb properties increased 19% according to a research report from Morgan Stanley. Airbnb has over 4 million listings in 191 countries. Leisure travelers prefer to book a stay at an Airbnb property than a motel.

Entrepreneurs seeking additional income will seek to rent out a house, apartment, or some other space by listing their property on Airbnb. Estimates are that some 650,000 people list to rent their property out on Airbnb and revenues for Airbnb have topped $2.6 billion with a typical host realizing, on average, $924 a month. Some hosts are realizing enough revenue that they are able to quit their jobs. Any Airbnb host must realize that there are costs associated with hosting, some of these are the costs associated with acquiring the property you want to rent, increased taxes, paying a commission, local regulations, property insurance, and the obvious cleaning and keeping your property well stocked.

You will need capital to get started and involved with Airbnb property. The costs associated to become an Airbnb host can be varied. One of the most obvious is the property itself. If you rent your property on Airbnb for more than 14 days per year, then you will need to report the money earned. Your best bet is to talk to a tax professional before you begin to rent a property on Airbnb to realize how this will affect your personal tax situation.

Considerations Before Becoming an Airbnb Host

Take into account these considerations before becoming an Airbnb host:

· Calculate the three percent charge Airbnb places on any payment and how this fee is going to affect your profit margin.

· Calculate the supplies needed for your listing, such as sheets, towels, and other household items. Do not forget that you may have to purchase additional electronics and furniture in order to make your house “Airbnb worthy.”

· You will need to be the housekeeper for the property or hire a service to clean. This is an added expense that your will need to calculate into your profit margin.

· Lastly, you will need to research insurance. For American hosts, Airbnb provides insurance such as basic liability and property protection. This may not be sufficient to protect your property. Call your insurance agent to discuss the proper coverage for this type of situation.

You are now spending thousands of dollars before you ever book a guest. It’s best to look for Arizona Airbnb Loans with a private money lender before you spend more money than you originally anticipated.

There also are challenges for an Airbnb rental by local laws or city ordinances. Banks will not lend on properties listed on Airbnb since localities restrict the listing of your property. Banks are reluctant to lend to a business that is “illegal” due to local ordinances that prohibit the listing. Although obtaining Arizona Airbnb Loans can be challenging, you may be able to find great options to get your foot in the door. At Setabay, we work with hundreds of private investors, some of which specialize in Arizona Airbnb Loans. We may very well be able to find the right loan for your first Airbnb property.

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

Three Reasons to Use Hard Money Loans

Understanding the benefits of Arizona Hard Money Loan will help borrowers justify the cost of using hard money. There is a price to be paid for everything that offers this many benefits.

Arizona Hard Money Loan are certainly more expensive than traditional loans. And because they are more expensive, many borrowers question what could be a good reason to use hard money. And the simple answer is that there are several reasons that hard money is a great option for many borrowers. Arizona Hard Money Loans can eliminate many of the issues that borrowers face when working with a traditional lender.

Anyone who has worked with a bank or mortgage company to secure a loan will tell you that there is nothing fast or simple about the process. You are required to complete long forms and submit a huge pile of documents before the lending institution will even consider loaning you any money. But because the focus of a hard money loan is on the collateral and not the borrower’s credit rating, there is far less information and documentation required to apply for the loan. In addition, the application evaluation process is much faster. Lenders are not required to evaluate as much information and can decide on the approval much more quickly. And with the request approved, funding is normally completed in just a few days. All of this speed is definitely worth the higher cost of hard money loans.

Another complaint from many borrowers is that traditional lenders are not at all flexible. They follow a specific process and will write loans on their terms only. If you do not meet their criteria, or if you are looking for a slightly different set of terms, then they are not interested in working with you. But being private allows hard money lenders more freedom in their processes as well as the terms for the loans that they fund. This less than standardized underwriting process allows borrowers to negotiate terms with the lender and actually end up with a semi-custom loan. And as we all know, anything that is customized is worth paying more for.

Approval is Key

If you are unable to qualify for a traditional loan, then it is a simple decision to pay a little bit higher interest rate to secure hard money. Hard money lenders are even willing to work with borrowers who have a foreclosure on their credit history. So this is a great opportunity for borrowers to begin to rebuild their credit while also enjoying all of the other benefits of owning a property. The easier approval process and requirements are two of the benefits that most borrowers are happy to pay a little more for.

Added Benefits

When you have no other loan options, paying a higher interest rate and higher fees is a small price to pay to secure a loan. Borrowers who are in need of a fast loan process are also often willing to pay the higher rates associated with hard money to secure a great property. And borrowers who are seeking unique loan terms or who need to negotiate the loan terms are happy to pay a private lender for the ability to tailor a loan to fit their needs.

Three Benefits of Hard Money Loans

Arizona Hard Money Loans are a great financing tool when used correctly. Understanding the loans benefits can help you to begin a very successful real estate investment career.

Arizona Hard Money Loans offer many benefits to borrowers and real estate investors. That is why seasoned professionals use these loans on a regular basis to purchase commercial properties, rental properties and fix and flips. But the novice investor needs to be educated to avoid misuse of these types of loans which can result in a financial disaster. Understanding the benefits will also help new users understand the best ways to uses hard money loans.

The speed of hard money is one of its greatest benefits. Not only is the application process much less complex than that of a traditional loan, but the approval and funding stages are also more expedient. This allows real estate investors to make an offer on a great property and know that they can close quickly and secure the property before another buyer comes along and starts a bidding war. This fast turnaround is certainly good but it comes at a higher interest rate than traditional loans. So smart borrowers know that hard money is best suited for fast projects. The application and approval are fast, the project is short-term and the higher interest rate is paid for only a short time so the loan is still rather affordable.

Part of the reason for the faster processing of hard money is that the qualifications are different than a traditional loan. Hard money is also called asset-based because the loan is secured with collateral rather than the borrower's creditworthiness. This makes it much easier for the lender to evaluate the property and determine if he or she will fund the loan. This qualification system makes it much easier for a person with low credit to secure a loan as well.

Flexibility Is Important

Hard money is offered by private lenders which makes these loans great for anyone who is looking to finance a rather unusual project. Most banks are not willing to finance fix and flip projects due to the risk as well as the short term of the loan. Private lenders can also be more open to funding a loan on a property that is in very poor condition as they can evaluate the potential of the property when the renovations are completed. A traditional lender is not willing to take that chance on a loan.

Understand Hard Money’s Purpose

Understanding that Arizona Hard Money Loans are designed for short-term projects and projects that are not going to fit into traditional lenders standards is critical to using the loans correctly. The higher cost is not really as big a deterrent as some borrowers might believe. Paying a little bit more is always better than not getting funded at all and missing out on an opportunity. Borrowers simply need to read the loan agreement completely and understand all of the terms and conditions of the agreement before signing it.

Setabay Private Hard Money Lender

Sunday, January 20, 2019

Tips For Finding Quality Hard Money Lenders in Arizona

Getting a bank loan is complicated but finding the bank is never very difficult. But not many consumers know how to find good Hard Money Lenders in Arizona.

Get Terms In Writing

Due Diligence

Everything You Do and Do Not Want to Know About Arizona Construction Loans

What are Draws?

What are Arizona Bridge Loans and How Do They Work?

Risks and Rewards Associated with Arizona Bridge Loans

At Setabay, we offer Arizona Bridge Loans as well as construction, fix and flip, and Arizona Airbnb Loans.

The Basics for Getting an Arizona Airbnb Loan

Considerations Before Becoming an Airbnb Host

Three Reasons to Use Hard Money Loans

Understanding the benefits of Arizona Hard Money Loan will help borrowers justify the cost of using hard money. There is a price to be paid for everything that offers this many benefits.

Approval is Key

Added Benefits

Three Benefits of Hard Money Loans

Arizona Hard Money Loans are a great financing tool when used correctly. Understanding the loans benefits can help you to begin a very successful real estate investment career.

Flexibility Is Important

Understand Hard Money’s Purpose

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