Setabay Private Hard Money Lender

Tuesday, January 22, 2019

The Top Five Options When Seeking a Fix and Flip Loan

Real estate investors use Arizona Fix and Flip Loans for short term financing to purchase and renovate a property with the intent of selling it for a profit. These loans are for properties with fast closing and the property is in any condition.

Hard Money Loans in Arizona are the most popular type of Arizona fix and flip loans. In some cases, you can qualify in minutes, see your rates, and get funded within in as little as one week. Hard Money Loans in Arizona are popular loans used for these types of properties. They offer short terms and are secured by real estate. This type of loan is used by investors to purchase a property, renovate the property, and then sell the property within a year. Loans geared for fix and flip properties enable you to finance a property in poor condition. With Hard Money Loans in Arizona, the threshold for approval is lower than conventional loans and funding could be in as little as one week. The concern of the lender is more about the collateral than the background of the borrower. Here are five options for Arizona Fix and Flip Loans including the hard money lender.

Hard Money Arizona Fix and Flip Loans - Perfect for novice investors as well as experienced investors with 2+ flips.

· UP TO 90% Loan-to-Value and 80% after-repair-value

· Term 1-3 years

· Approval time 24 Hours, up to 15 days for funding

· Interest Rates: 7%-12%

· Fees: 1-5% -10% lending Fee, 2% - 5% closing costs

· Qualifications: 550 minimum score, 2-3 past Rehab Projects and Possible Licensed Contractor

Cash Out Refinance - If an investor has an existing investment with 30% to 40% equity.

· Financing up to 75% loan to value

· Term 15-30 years

· Approval 30-45 days

· Interest Rates 3.99% to 6%

· Fees 0% -3% lending fee, 2% - 5% closing costs

· Qualifications 640 minimum credit score, 45% debt to income ratio, 0-6 months reserves and Existing property with 40% equity

Home Equity Line of Credit - Investors who have an owner-occupied primary residence with equity of 30% -40%.

· Financing of up to 85%

· Loan term 25-30 years

· Approval/funding time is 30-45 days

· Interest Rates 4.5% to 5.5% variable rate

· Fees 0% to 2%

· Qualifications 640 minimum credit score, 45% debt to income ratio and existing home with 30% equity

Line of Credit for Investment Property - Investors who have a rental property who wish to cash out for other purchases.

· Financing up to 80% of cost

· Loan term up 75% loan to value

· Approval time up to 30days

· Interest Rate 5.2% - 6%

· Fees $75 annual service fee and 1% -5% closing costs

Arizona Bridge Loans - If you need to close quickly and will arrange more permanent financing later.

· Financing up to 70%

· Term 2 weeks to 1 year

· Approval 15+ Days

· Interest Rates 6.2% - 9%

· Fees $500 appraisal, 1%-2% lender fees

· Qualifications- Ability to pay 2 mortgages, 20% equity in current property and an exit strategy

Clearly, there are many options when choosing a Arizona Fix and Flip Loan for your property. We work with hundreds of investors at Setabay, many of which specialize in these types of loans. We are quick to funding and can close in as little as three days.

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.

Monday, January 21, 2019

All You Need to Know About 100% LTV Commercial Real Estate Financing

100% commercial real estate financing is possible. Let’s take a look at what lenders look for when determining your eligibility.

This type of loan is used solely for income producing properties and is not for residential use. Some of the types of properties that you can obtain a 100% LTV commercial real estate financing for include shopping centers, retail malls, hotels, complexes and office buildings. Independent lenders and home mortgages are actively making loans on commercial real estate. Additional lending companies are pension funds, insurance companies, private investors and SBA loans. A small percentage of preferred lenders offer 100% LTV commercial real estate financing for owner occupied commercial properties—meaning that your business must occupy at least 51% of the property. This SBA loan is for established businesses only.

A mortgage is typically loaned to an individual borrower. Commercial real estate loans, on the other hand, provide loans to entities which include corporations, developers, funds, trusts and limited liability partnerships, all of whom are formed specifically to own commercial real estate. If the entity does not have a verifiable credit rating or financial track record, then the financial organization may want the principal’s personal guarantees. In the event of a default on the loan, the lender will look at the loan guarantors to recover the funds. If you obtain a loan without a personal guarantor, the lender cannot seek recourse with the principals.

Loan repayment schedules differ from one type of loan to the other. Residential loans are repaid over the term of the loans and are amortized over the life of the loan. Commercial loans range from five years to twenty years and the amortization period is usually longer than the loan. The lender will charge an interest rate depending on the term of the loan and the amortization schedule. Additional considerations for the interest rate are the borrower’s credit strength and the negotiable terms. Higher interest rates will normally be charged on longer term loans.

Loan to Value Ratios

Loan to value ratios are another way to differentiate commercial loans from residential. This is a figure that measures the loan to value (LTV) against the property. The lower the LTV for both commercial and residential loans, the more favorable interest rates the borrower will qualify for. The reason is that the more equity the borrower has in the acquisition property, the less risk the lender needs to assume. Commercial loan’s LTV fall into the 65% to 80% range. The rates will differ depending on the loan type, such as raw land versus rehabbed land. This means, of course, that you will usually be paying a higher interest rate for 100% LTV commercial real estate financing.

DSCR stands for Debt Service Ratio and is one of the ratios lenders consider when approving loans.

Lenders will look at the properties ability to service the debt by looking at the ability of the commercial property to service the debt, including interest. This is known as the Debt Service Ratio (DSCR). If the DSCR is less than 1 then this indicates a negative cash flow. Lenders look for loans with a DSCR of 1.25 or greater. Unlike residential loans, commercial loans carry higher interest rates. There are additional fees added to the overall cost of the loan which differs from residential loans. Some of the fees include appraisal, loan application, legal, survey fees and origination fees. Some of these costs are upfront fees. Restrictions may be built into the loan for disallowing prepayment of the loan. This is an important consideration as many investors are looking to turn properties quickly and a prepayment penalty can significantly affect the bottom line. If you’re looking for commercial real estate financing, call us at Level 4 funding 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 You Need To Secure Rental Property Loans

All lenders are slightly different and have a variety of criteria required to qualify for a loan. But the criteria for Rental Property Loans in Arizona are very similar from lender to lender.

Securing Rental Property Loans in Arizona is a bit more challenging than getting financed to purchase a home that you are going to make your primary residence. But the added obstacles are certainly worth the effort to create a passive stream of revenue to increase your personal wealth and secure your future. Understanding how to be an attractive borrower and meet lenders criteria for Rental Property Loans in Arizona can greatly reduce your stress level and increase the speed of your loan processing and approval.

Down payments are critical when purchasing a rental property or any investment property. There is no mortgage insurance on investment property loans so you will need to make a down payment of 20% or more to secure most rental property loans. But if you can make a larger down payment, that will work in your favor. You will have instant equity in the property and that will make lenders more eager to loan you the money that you are requesting. The equity represents great security for you and for the lender as well.

Credit scores are always important when seeking traditional financing. And borrowers can get a loan for a primary residence with a score as low as about 600. But investment property loans require a higher credit score to secure at a reasonable interest rate. A rate in the 700’s is certain to get a borrower a respectable interest rate and favorable loan terms. If your score is lower than 700, you might want to wait to invest in a rental property and focus on increasing your credit score by lowering your debt to income ratio and increasing your savings.

Cash Reserves

Cash reserves are always important when you are financing an investment property. The lender wants to know that you have accessible cash to cover mortgage payments in the case of a vacant property and no revenue coming in. The lender also wants to know that you can afford to make any needed repairs should issues arise. Without the reserve to cover unexpected repairs, the property could sit empty for months with no rental income, making it very difficult to pay the mortgage, taxes, and insurance.

Real Estate Investing Experience

Having experience in the real estate industry is also a big benefit for borrowers. Lenders want to know that a borrower understands all of the potential issues that can arise with a rental property or an investment property. Borrowers who understand these potential challenges will be prepared for them and will not fail to make mortgage payments or allow the property to fall into disrepair and become worthless as collateral on the loan. For new investors, it can be very helpful to create a business plan for the rental property and to submit that document to the lender with the loan application to demonstrate that you have a well thought out plan for managing the property and remaining profitable and successful.

What you Need to Know About Arizona Residential Hard Money Lenders

Opportunities in residential investments have skyrocketed these last seven years. Funding, however, is not as easy as it used to be. Find out which Arizona Residential Hard Money Lenders offer the best rates and terms.

Traditional lenders offering home loans have been scarce since the credit crisis in 2008. Arizona Residential Hard Money Lenders have filled the gap that the traditional lenders have left. These types of lenders offer residential loans at higher interest rates and low loan to value on the property. When traditional lenders are hesitant to step in, hard money lenders are a very good option. The capital from Arizona Hard Money Lenders is available to every type of customer for real estate investing.

Private lenders base their lending on the loan to value ratio; traditional lenders base their credit decision on credit scores, income tax statements, and tax returns. Arizona Residential Hard Money Lenders base their decision on the property as collateral. As a basis for the underwriting of the residential property, the lender considers the equity in the property for their decision. Some of the Arizona Hard Money Lenders deal in land estates and projects with a high equity. Arizona Residential Arizona Hard Money Lenders base their decision by the Loan to Value using the current market value.

The money from An Arizona Hard Money Lender on a residential property acts as a temporary bridge for mortgage refinancing, avoiding bankruptcy or acquisition. This is an option many investors choose when faced with giving up control of the property to financial partners or filing for bankruptcy. A Arizona Residential Hard Money Lender offers people loans for renovation of the residential property and then renting out the property or selling it. The Hard Money Loans in Arizona is based on the value of the real estate property which is also the collateral for the loan. The loan is often 60-75% of the market value of the property. Typically, hard money residential loans can be found at interest rates from 11% to 12%, with 12% the standard for second trust deeds. The loan to value is 60% maximum on improved properties and 40% for vacant land.

Traditional Versus Arizon An Arizona Hard Money Lenders

Traditional lenders offer loans based on credit reports, income statements and tax returns. Traditional lenders base the interest rates and fixed loan amounts, and other terms and conditions, on the borrower’s eligibility. Hard money residential lenders provide funding based on the value of the real estate. The documentation is much lower than traditional lenders. Eligibility is flexible, even borrowers with poor credit and little documentation are able to secure primary residence loans. The loan to value ratio runs approximately 65%.

The values are determined on the property’s current market price. The hard money lender will fix the price at which the property is sold.

If the borrower defaults on the loan, then the hard money lender will seize the property and possibly sell it. In most cases, the lender will allow the borrower a grace period of one to three months before selling the property. The bottom line: investors and home buyers often use Arizona Hard Money Lenders to access Arizona Bridge Loans for residential home mortgages. These types of loans enable buyers to “bridge” from one loan to the next. Instances when these types of loans are beneficial include when someone wants to buy a house before their existing house sells and the market is such that a contingency offer will probably be passed over. At Setabay, we offer quick-to-funding Arizona Bridge Loans at lower than average rates. 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

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

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.

Setabay Private Hard Money Lender

Tuesday, January 22, 2019

The Top Five Options When Seeking a Fix and Flip Loan

Monday, January 21, 2019

All You Need to Know About 100% LTV Commercial Real Estate Financing

100% commercial real estate financing is possible. Let’s take a look at what lenders look for when determining your eligibility.

DSCR stands for Debt Service Ratio and is one of the ratios lenders consider when approving loans.

What You Need To Secure Rental Property Loans

All lenders are slightly different and have a variety of criteria required to qualify for a loan. But the criteria for Rental Property Loans in Arizona are very similar from lender to lender.

Cash Reserves

Real Estate Investing Experience

What you Need to Know About Arizona Residential Hard Money Lenders

Traditional Versus Arizon An Arizona Hard Money Lenders

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

About Me

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