Setabay Private Hard Money Lender

Monday, January 21, 2019

Advice to Hosts About Arizona Airbnb Loans

Airbnb is now offering loans to prospective hosts. These Arizona Airbnb Loans can be used for renovation as well as construction from the ground up.

Airbnb is taking an active role in ensuring that the homes they offer to rent on their site are pleasant to stay in. In order to accomplish this, they have begun offering hosts Arizona Airbnb Loans for home improvement and have gone so far as to partner with a host for construction of an apartment block in Florida. From the origins of Airbnb as a site connecting holiday travelers with a room that a host has to rent, to a site that is an alternative to traditional hotels, Airbnb is moving further away from its origins. This has also triggered questions by regulators worldwide and irritating hosts who maintained a laissez-faire attitude. The regulators further question Airbnb about the company’s precise nature of its business.

The Arizona Airbnb Loan program is tailored by the company to offer home improvement loans to hosts. This Arizona Airbnb Loan program has been dubbed by the company as “Airbnb Select.” Airbnb identifies homes and hosts that are more likely to appeal to travelers desirous of a hotel-like experience coupled with high quality. Airbnb will highlight these homes in their portfolio. Airbnb offers advice on cosmetic improvements such as shooting the best eye appealing photographs to loans which are repaid through future bookings on the property.

In an effort to create more standardized offerings, Airbnb educates their hosts in the art of showing a room or home in its best light. That may include suggesting they place rolled up towels in a basket in the bathroom to cleaning the counters and placing their own products there. Hosts are urged to explore and learn from high quality hotel bathrooms. They also note that too many pictures of your dogs may make the guest(s) uncomfortable.

Airbnb as Partners

Airbnb is attempting to convert their offerings to a more “Hotel Like” experience. In some locations, Airbnb is partnering with the hosts in order to create this. Airbnb partnering with hosts from the time of construction allows the hosts to offer luxury apartment building perks such as swimming pools to visitors as well as other communal areas without violating the building’s regulations. Through the partnership between landlords and developers, Airbnb can create value to better serve its tenants.

Airbnb is, in essence, asking hosts to take on more hotel-like responsibilities. The changes they are implementing risks the chance that the existing hosts rebel.

Airbnb has shifted complying with the myriad of local regulations for short term stays to the hosts. Some localities have welcomed the shifting of complying with local ordinances to the hosts while, in some instances, the local authorities have fought strongly against this. In New York City, the city council passed a law making it illegal to advertise unlawful rentals. Airbnb wound up suing New York City for passing this bill. Airbnb has been able to stay on the right side of the law in most localities. If you are looking to get into your first Airbnb rental, give us a call at Setabay. We work with hundreds of investors, some of which specialize in this lucrative investment strategy.

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.

What Are The Best Arizona Fix And Flip Loans?

A traditional loan is not the best choice for a fix and flip project. But there are some options that are options that are great for Arizona Fix And Flip Loans.

Fix and flip projects are normally short-term projects that real investors look for to turn a fast profit on a property that is not in perfect condition. The investor purchases the property with the intention of renovating and repairing issues so that the property becomes more desirable and more valuable. The key to success is finding the right property at the right price and quickly purchasing it before another investor becomes interested and a bidding war ensues.

The speed of Arizona Hard Money Loans make these privately funded loans perfect Arizona Fix And Flip Loans. The time frame of a hard money loan is normally six months to a few years but that can vary depending on the needs of the borrower. Being that the lender is a private individual or lending group, the terms of Arizona Hard Money Loans are much more flexible than those of a traditional lender. In many cases, private lenders can fund a fix and flip loan in as little as 15 days.

In addition, hard money is an asset-based loan, meaning that the loan qualification is based primarily on the value of the property and not on the borrower's person creditworthiness. This allows borrowers with lower credit scores or no credit history to obtain a fix and flip loan to begin a new career in real estate investing. The borrower just needs to know the value of the property that he or she is purchasing as well as the cost of the needed renovations to create a realistic fix and flip budget and to determine the down payment needed for the project.

Refinance Your Home

Because investment property loans, including Arizona Fix And Flip Loans, do not offer mortgage insurance borrowers will need to have 20% or even 25% of the purchase price to make the down payment. One of the easiest ways to secure that much money is to refinance your personal home and liquidate the equity for the Arizona Fix And Flip Loans down payment. A home equity line of credit is another way to tap into the equity in your home to begin a fix and flip project.

The Nature Of Fix and Flips

Almost all fix and flip projects are designed to be very fast. The buyer does not want to carry the mortgage on the property any longer than necessary. So the repairs and renovations are carefully scheduled to be completed as quickly and efficiently as possible. Then the property is placed on the market at a competitive price in the hope that it sells quickly. Knowing this, investors are willing to pay the higher interest rate on a hard money loan because this loan funds quickly and allows for a fast purchase to begin the renovation project. Of all of the short-term options available, hard money is often the one which suits a fix and flip project the best.

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 Private Money Lenders

Most borrowers are only familiar with traditional lending resources such as banks or other lending institutions. But there is another option which is to use are the numerous Arizona Private Money Lenders.

Traditional lenders are the banks and other lending institutions that everyone has been using since they opened their first savings account as a kid. These are businesses which make a profit by loaning money to borrowers for a fee, which can include interest, service fees, and even late fees. And as large businesses, they have a specific process for applications, approvals and the criteria needed to qualify for a loan. The reason for all of these processes is that the lender has determined them to select only the lowers risk borrowers. In short, it is a qualification process to ensure that the lending institution continues to make money. But these qualifications eliminate the opportunity to borrow for a large percentage of the population. This is why Arizona Private Money Lenders are becoming more popular.

Also known as Hard Money Lenders in Arizona, private lenders are non-traditional lenders, meaning not banks or lending institutions. This allows the lenders to set less stringent loan qualifications as well as tailoring the terms of the loan. These freedoms not only make the lending process less complex for the lender but they also offer many great benefits to the borrower.

Most borrowers who are not able to qualify for a traditional loan fail the application process because of a low credit score or no real credit history. A credit score below 650 will be required by many traditional lenders and will cause the borrower to pay a fairly high-interest rate. But Arizona Private Money Lenders are likely to fund loans for borrowers with credit scores as low as 550.

Less Red Tape

Private lenders eliminate a great deal of the stress that borrowers normally face during the loan application process. This is because private lenders are basing the loan on the value of the property being purchased and not the borrower’s credit score. Far less paperwork is required which is great for both the lender and the borrower. In addition, this lack of a long application process greatly reduces the length of time required to apply, be approved and get a loan funded.

Many Benefits, But At A Cost

Arizona Private Money Lenders are a great alternative for borrowers who have poor credit or no credit as well as borrowers who are in need of a fast application and approval process. What borrowers need to understand that is that private lenders are still in business to make money, and because it is a business, there will be interest and other fees for using the lender’s money. The interest rates are not regulated as they are with traditional lenders so rates can vary a great deal as can the other fees and terms associated with the loan. But the loan is still very legitimate and the loan agreement is legally binding. Though there are some differences, private loans are a good choice for someone who is not in a position to secure traditional funding.

Sunday, January 20, 2019

100% LTV Hard Money Loans in Arizona

Finding the right lender is your first step in starting your real estate investment portfolio. There are 100% loan-to-value (LTV) Hard Money Loans in Arizona—you just need to know where to look.

It has been said that you have to have a ton of cash to get started in real estate. On the contrary, below are some options to get your deal funded without having to lay out massive cash amounts. If you are one of those people with money sitting in the bank and earning 2% interest and inflation at 3%, then the true value of your money is that you are losing 1% each year. If you want to keep up with inflation, high yield savings accounts cannot do the job.

On the other hand, if you seek out An Arizona Hard Money Lenderor private lender, the interest rate is often going to be in the range of 12% to 15% for a Hard Money Loans in Arizona. To approach one of these lenders and acquire the funds you need to break into the real estate market, you will need to know how to approach them and present your project. Develop a business plan of your project, explaining how you have worked out the details. Make sure to give enough information to answer a lender’s questions.

A private Hard Money Loans in Arizona is secured by real estate. When writing the business plan, make sure you emphasize that your maximum loan to value is 75%. Conventional Arizona Hard Money Lenders have a much tougher standard for securing a loan. This is a win-win situation because you do not need to dole out cash while the investor (lender) makes 12% to 15% for taking the risk.

Financing by Seller

If you are seeking 100% seller financing, then you need to search for a motivated seller with a property they want to unload. Understand that the property they are looking eagerly to sell will be in poor condition, but if you are handy you may be able to make a subpar property into a great investment. If the seller is utilizing the services of a Real Estate Agent, this house will be competing with a move-in-ready house. The property may be on the market for a considerable time and, if the property sells, the owner of the property will have to pay approximately a 6% commission. If the seller carries the mortgage they benefit because of the renovation of the house. The seller carrying the mortgage also gets paid a higher interest rate. When the house sells, the investor and seller both make money from the sale of the house resulting in a win-win for both parties.

Obtaining a Line of Credit from a business is another option to securing financing.

If you have an established business or a newly formed company, obtaining a line of credit is another way to secure 100% financing. Seek out a loan company that has no restrictions on how the money can be used. Most hard money lenders require that 10 to 30% be put down for a Hard Money Loans in Arizona. If you are an experienced rehabber, there may be some 100% lenders out there, but you will have to pay 3 or 4 points and 15% interest and may even have to split the profit after the sale of the property. At Setabay, our success is your success which is why our rates start as low as 5.99% with flexible terms that range from 3 to 60 months. 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

How to Obtain Your First Arizona Fix and Flip Loan

Getting in on the fix and flip real estate model can be a very lucrative investment strategy. Knowing who to turn to and which Arizona Fix and Flip Loan is right for you is often the biggest hurdle to successful entry.

If you are looking to change careers and seeking a healthy income, you may want to look at flipping houses as a business. According to reality TV shows on flipping houses, you don’t need an extensive education and it is relatively easy to do. In reality, it isn’t quite as easy as “reality” shows lead you to believe. Technical knowhow and proper planning are essential; however, one of the greatest roadblocks is obtaining funding for the project. Remember the old axiom, “It takes money to make money.”

So, you have setup your company, created your business plan, and are left wondering how to get the money to start your project. One approach that is particularly helpful for first time fix-and-flippers is to ask friends and family for start-up money. You may also want to approach private investors and Arizona Hard Money Lenders, which are some of the best sources for funding for flipping houses. Compared to traditional banks, they ask for a lot less paperwork, fund in days instead of months, and offer flexible terms with no pre-payment penalties. They look at the property and take into account before and after repair values as well as your ability to complete the project successfully.

Other investors consider taking out a mortgage loan. While rates from traditional lenders can be relatively inexpensive for investment properties, loans from traditional lenders are not always practical. When starting out, a mortgage loan may not be your best option. Traditional lenders are quite slow in closing a fix and flip loan. If your strategy includes short sales and foreclosures, traditional lenders are not always the speediest way to go and the delay can cost you prime property. Traditional lenders are also seeking W-2 or paystubs to verify income and, if you are a real estate investor or self-employed, your verifiable income may not be what the traditional bank is looking for.

After-Repair Value (ARV)

The traditional lender only looks at the appraised value and not the “after repair value” or ARV of the property you are seeking to flip. If you are flipping a house, the appraised value will be much lower than the after-repair value. Traditional lenders require that you have strong credit to get approved for your Arizona Fix and Flip Loan while alternative lenders, such as private and hard money, are less concerned with your credit and will look closer at the property you are seeking to flip.

If you are starting out, it may seem as though it is impossible to find any Arizona Hard Money Lenders that will offer you a loan, but, as Newt Gingrich once said, “Perseverance is the hard work you do after you get tired of doing the hard work you already did.” Hang in there and persevere.

When you finally obtain the Arizona Fix and Flip Loan you are seeking from An Arizona Hard Money Lender, you will face interest rates from 5 to 20 percent and may have to pay points from 1 to 10 percent upfront. Once you have established a relationship with a lender and you’re in business longer, the two of you will be able to negotiate future deals. You may also be offered interest only payments and there should be no prepayment penalty. Call us at Setabay for a no-obligation quote. Our rates start as low as 5.99 percent.

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

Tips For Negotiating With Hard Money Lenders in Arizona

Negotiating with traditional lenders is not always an option. But using a few tips, you can successfully negotiate with Hard Money Lenders in Arizona.

Arizona Hard Money Loans are unique because they are offered by private lenders who are often much more willing to work with potential borrowers. But it is important for borrowers to understand that these lenders are in business to make money. So borrowers must be savvy in order to take full advantage of the negotiation process with Hard Money Lenders in Arizona. If a borrower is not careful, he or she could end up paying way too much for a hard money loan.

It is important to know the lenders that you are working with and understand the criteria that each lender requires to fund a hard money loan. Doing some simple research will let you evaluate all of the potential lenders to determine which one will best meet your needs while also offering the best total cost on the loan that you need. Knowing the interest rate as well as any fees that the lender charges are the very least that a borrower should know. Asking about the repayment terms, any early repayment penalties and the determined time frame for a forfeiture are also important and should be researched.

What many borrowers do not understand is that Hard Money Lenders in Arizona are free to negotiate all of the terms of a loan, unlike a traditional lender. So borrowers can ask for the payment schedule to be amended, a grace period for late payments or even interest-only payments for the first few months of the loan. But the borrower must also understand that all of these custom terms can cost more than a traditional loan. But being able to easily afford the loan payments can be worth paying a little bit more interest.

Good Requests

Because Arizona Hard Money Loans are expensive, it is wise to negotiate as many points as your hard money lender is willing to allow. Always ask that there be no early repayment penalty. This can save you a great deal of money if you are fortunate and can pay the loan off early. With no penalty, you are actually saving the cost of some of the interest but the penalty is often as much as the savings on interest. In addition, ask for any administrative fees to be waived or reduced as that is just an added-money maker for the lender.

Give And Take

As you negotiate with Hard Money Lenders in Arizona, it is important for you to decide which is more valuable to you, time or money. If time is more important, then ask for a longer repayment schedule. But understand that you will be paying more interest on the borrowed money. If your budget is very tight, then ask for a shorter term on the loan to help reduce the amount of interest that you will be paying. Both you and the lender are in business to make money and the only way you will both accomplish that is to agree to some give and take in the negotiation process.

Setabay Private Hard Money Lender

Monday, January 21, 2019

Advice to Hosts About Arizona Airbnb Loans

Airbnb as Partners

What Are The Best Arizona Fix And Flip Loans?

A traditional loan is not the best choice for a fix and flip project. But there are some options that are options that are great for Arizona Fix And Flip Loans.

Refinance Your Home

The Nature Of Fix and Flips

What Are Arizona Private Money Lenders

Most borrowers are only familiar with traditional lending resources such as banks or other lending institutions. But there is another option which is to use are the numerous Arizona Private Money Lenders.

Less Red Tape

Many Benefits, But At A Cost

Sunday, January 20, 2019

100% LTV Hard Money Loans in Arizona

Financing by Seller

Obtaining a Line of Credit from a business is another option to securing financing.

How to Obtain Your First Arizona Fix and Flip Loan

After-Repair Value (ARV)

Tips For Negotiating With Hard Money Lenders in Arizona

Negotiating with traditional lenders is not always an option. But using a few tips, you can successfully negotiate with Hard Money Lenders in Arizona.

Good Requests

Give And Take

About Me

Total Pageviews