Setabay Private Hard Money Lender

Friday, January 25, 2019

6 Reasons to Consider an Owner-Occupied Hard Money Loan in Arizona

Despite what you may have heard, some lenders still do owner-occupied Hard Money Loans in Arizona. Here are a variety of reasons to consider one for your situation.

If you've done any looking around, you've probably found that not many Hard Money Lenders in Arizona are willing to do owner-occupied loans these days. Even the ones that are willing to do them will only go forward if the funds are intended for a business purpose. That's because the regulations surrounding them can be daunting and many lenders just don't want to deal with it.

However, there are still Hard Money Lenders in Arizona who will give primary residence loans. Here are some reasons to consider one an owner-occupied Hard Money Loan in Arizona:

You've got bad credit. The banks and credit unions have turned you down because your credit score didn't fit into their little box.
You've got income that's difficult to prove. If you're self-employed or your income isn't "normal," you've probably found that typical lenders don't want to deal with you. Unfortunately, not everyone has a 9-5 desk job with a regular paycheck.
Your property is "problematic." If your primary residence has major issues, the banks may not want to let you refinance.
You just don't qualify for traditional or FHA/VA financing. There are all sorts of reasons banks turn down borrowers and you've got one or two problem areas that made you too much of a risk.
You need to do repairs. Whether it was a catastrophe or just the ravages of age, your primary residence is long overdue for repairs and refurbishment and you need an influx of cash to get it all done.
You want to pay down debt. You've got debts outside of the mortgage that are critical, and you need to pay them off at a lower interest rate.

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.

Can You Get an Airbnb Loan in Arizona with Rotten Credit?

Is it possible to get an Airbnb Loan in Arizona if your credit stinks? It might seem impossible, but there are ways to work around the system and start making your hosting dreams come true.

It's a catch-22. You've had financial problems in the past, so you're looking to bring in some extra income to help pay the bills. Airbnb is a great option because it's something you can do on the side. After all, the average host brings in an extra $924 every month. Unfortunately, the banks won't give you the financing you need to make it happen. Are you completely out of luck? Not necessarily.

If the banks and credit unions have given you a firm "no" because of a low credit score, a precarious financial situation, or a past transgression, don't worry. You still have options.

Using Hard Money to Finance an Airbnb Property

You've probably heard the term "hard money" before but you might not be completely clear on what it is. Put simply, Hard Money Loans in Arizona are loans that use funds from private investors. They offer a range of benefits that the banks can't:

● Since the money comes from private sources, they're not as heavily regulated and they don't require as much complicated underwriting. This makes the process incredibly fast. With a typical bank loan, you might wait weeks to get approved and up to a couple months to see any money in your account. Hard money Airbnb Loans in Arizona can be approved and financed in as little as two weeks.

● Hard Money Loans in Arizona are secured using collateral. This means that Hard Money Lenders in Arizona don't care as much about your credit score or any mistakes you've made in the past. If your investment is sound and your collateral is solid, you should be able to get approved.

● Hard Money Loans in Arizona come with higher rates and shorter terms — usually anywhere from six months to a year. The idea, then, is to use the proceeds from the Airbnb to pay the loan back quickly. Then you're free and clear and everything after that is profit.

Finance Your Airbnb Property Quickly

Opening an Airbnb property may be the perfect way to take advantage of the gig economy and bring in some extra money. If hosting has always appealed to you and the banks have turned down your dream, a hard money Airbnb Loan in Arizona might be the way to go. Call us, email us, or chat with us to find out how we can help fund your rental property goals.

Who Are Arizona Private Money Lenders?

Beginning a relationship with an alternative money lender may be the only option when a traditional lender won’t approve a loan. Read below to learn who they are and how they can help you with financial success.

Private investors are alternative loan sources for people who aren’t approved by traditional lenders like banks and credit unions. While most people may think of private investors involved with real estate, they can really range from any untraditional source. This may include people such as friends and family who offer a loan to professional acquaintances, crowd funders and typical Arizona Hard Money Lenders.

Typical Private Money Lenders in Arizona are private investors that differ from banks in that they can offer speed, flexibility and approval. Usually people with rotten credit or low income go to Arizona Hard Money Lenders because these types of lenders focus on the property instead of financial history. While financial history is important, as is the repayment of the loan, alternative lenders focus on property potential. Compared to a bank, private lenders have a more transparent relationship with their borrowers. When evaluating potential loans, private lenders typically evaluate the LTV loan to value or ATF after repair value; for them, collateral trumps finance history. Appraising the property’s potential will likely be the first step. One major benefit of utilizing a private lender is speed. Banks can take as long as a month or more to begin the loan process, but some private lenders can start as soon as the day of. This is attractive to people who need money to bid on competitive property or to prevent a foreclosure fast.

Who Alternative Lenders Work with Best

As mentioned, agents bidding on property or families wishing to prevent a foreclosure may benefit the most from private Arizona Hard Money Lenders. The short repayment period and speed in the loan process loans itself to these options specifically. Fixer uppers are another example of those who may take advantage of the benefits of private money lenders. Experienced and successful renovators would definitely take advantage of the short repayment period, as they are likely to resell their property and make a profit fast. Thinking outside the box into other type of private lenders such as crowd funders or family and acquaintances could be helpful if a small amount of money is needed. If the public believes in the investment or a personal connection knows you to be reliable, they are definitely options that may be more successful than a bank—especially if the rates of Arizona Hard Money Lenders are too high.

Determining the Right Option for You

Private Money Lenders in Arizona provide opportunities for many people unable to receive traditional funding. However, this does not mean they are for everyone, especially in cases of Arizona Hard Money Lenders. Determining your qualifications for both traditional and untraditional loans will help you evaluate the types of opportunities work best in your particular situation. Taking account of all variables in your situation and comparing each alternative option will likely lead you to success. Sometimes it just requires you think outside of the box.

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

Try These 4 Options for Arizona Fix and Flip Loans

Arizona Fix and Flip Loans are short-term loans that are used for purchasing and refurbishing a property before selling it for a profit. They come in a variety of forms and with a range of options; here are a few to get you started.

Cash out refinancing. A cash-out refinancing involves refinancing an existing property and using the cashed-out equity to pay for renovations. If there are any liens on the current property, they’ll need to be paid off before you can have access to the equity. Cash out refinancing loans are typically limited to 75 percent of the property’s LTV (loan to value ratio). This is a good option for people with a property that’s got a significant amount of equity.
Bridge loans. Bridge loans are exactly what they sound like — they're designed to get you from one real estate transaction to the next. Let's say you've got a property for sale and you plan to use the proceeds to buy your next flip. If an amazing deal comes along and you don't have the cash flow, you might miss out on the opportunity. Instead, you could use a bridge loan to purchase the property, then pay it off once you've sold the first property.
Permanent bank loans. Most flippers wouldn't think of doing a permanent bank loan for a fix and flip because the terms are generally too long. However, buy and hold investors who plan to fix the property over five years or more may benefit from this type of financing.
Hard Money Loans in Arizona. Hard money loans come from private investors and individuals, so they boast lower approval qualifications than any of the above options. They are also lightning fast — you can get the money in around 15 days — and they have much shorter terms, making them perfect for rehabbers who plan to refurbish and sell within a year.

Is a Hard Money Loan in Arizona Right for Your Fix and Flip?

As we detailed above, Hard Money Loans in Arizona’s are a fantastic option as Arizona Fix and Flip Loans because they offer ultra-fast approval, short loan terms, and less rigorous requirements than the bank. They also come with higher interest rates. This makes them ideal for flippers with at least a few projects under their belts or novice flippers who are working with an experienced contractor.

Where to Get a Fix and Flip Loan

Whether you're ready to dive into your first flip or you're off on your next real estate investment adventure, we offer Arizona Fix and Flip Loans that will work for you. Give us a call today!

How Arizona Bridge Loans Work

Funding your next house may not come easy—fortunately, specific loans exist for people wishing to do just that.

Arizona Bridge Loans have a variety of names. From “swing loans” to “wraps” to being referred to as “bridging the gap,” they all mean the same thing: borrowing using the down payment on your house to purchase the next. They are used when you want to make a purchase before selling your current home, and oftentimes to get out of contingencies in contracts that you must sell your current home first. The word “bridge” is the transitional metaphor of moving from one home to the next.

The benefits of Arizona Bridge Loans include the freedom of searching, buying and selling your homes, with no transition period between, allowing for the ability to move in when ready with no temporary living spaces. Other common scenarios include using these loans in scenarios of small renovations and relocations across cities. People avoiding loan contingencies are usually interested in this type of loan, while lenders are generally interested in them for their high interest rates and short-term, low-risk repayment.

How to Know if “Bridging the Gap” is Right for You

If this loan interests you, qualifying will require a great credit score and a low debt-to-income ratio. Qualifying for this loan means that you will own two properties—which means paying two mortgages. Additionally, these types of loans are short-term loans, usually being paid off in 6 to 12 months, and carry higher interest rates. Rates vary from lender to lender, but they are usually 2% higher than the market. They will also be further affected by the home’s loan-to-value LTV ratio and your personal credit history. These factors coupled with the need you’ll have of selling your house are definitely things to consider before making any fast decisions. Understanding the current housing market and how your home will fare compared to other listings will be important and cause you less stress. Sometimes loan extensions can be provided if the house isn’t selling, but it’s important to be aware of these unguaranteed factors ahead of time.

Moving Forward and Alternative Options

If Arizona Bridge Loans are right for you, finding a possible lender can be done at your local bank or credit union. If they are not the right option for you, alternative routes such as home equity loans or a 401k are other options. High credit and income is required for home equity loans, but they are common suggestions when Arizona Bridge Loans aren’t the answer. Home equity loans essentially take a second mortgage on your home that can then be used for a new loan. Personal loans are also alternatives that generally have lower interest rates. It’s not uncommon for personal loans to be small or paired with other types of loans. Evaluating all your options and understanding your long and short term goals will help you determine the decision that’s best for you. Whether or not these loans are the answer, other options are definitely able to be sought so that you can finally manage your dream 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

Are Arizona Fix and Flip Loans Realistic?

HGTV makes flipping houses look so easy—but is it? Read more below to find out what types of loans are available to you for your first successful flip.

Depending on your financial situation and history of flipping, the best loan for you may not be the best for everyone. When it comes to loans, many people are guided to private investors when approval can’t be obtained by banks. On the flip, even experienced flippers will use private investors because of the speedy process. Gaining financing for Arizona Fix and Flip Loans will be different for everyone, but it can be done if you know your situation.

Loans from banks are usually the first place people look. Because banks are traditional public lenders, they will have strong stipulations in place. Strong credit score and financial history are musts. Unfortunately, not everyone can meet these types of requirements. Those who meet these requirements will obtain a loan that functions like most typical mortgage loans.

When traditional lenders are out of the question, private investors come next. Private investors offer Arizona Hard Money Loans that have a less strict approval process. While people with imperfect credit may be able to obtain a hard money loan, they may not be able to balance the high fees and interest rates that combat the easy approval process. Those considering Arizona Hard Money Loans must also be aware of the short repayment period. Experienced, financially proficient flippers take the short repayment period as an advantage. A successful flip equates to a fast sale and the ability to repay the loan fast. Again, not everyone will see this as an advantage.

Depending on the property, a personal loan may be best. Personal loans are great if a property only needs small renovations. If the property needs a little work, they may be combined with other loans.

The Real Deal Arizona Fix and Flip Loans

Coming right down to it, the most common Arizona Fix and Flip Loans are offered by Arizona Hard Money Lenders. The short repayment period is ideal for a property that, hopefully, sells quickly. During the renovation process, however, it’s going to be important that you’re working with professionals and know what you’re dealing with. The last thing you want is a piece of property that causes more chaos than anything else. Though of course, your lender doesn’t want that either, and will offer a loan based on the loan-to-value ratio, or the LTV. Arizona Hard Money Lenders are usually able to offer around 65%.

Conclusion

Arizona Fix and Flip Loans don’t always play out in real life like they do on TV—but that doesn’t mean you still won’t find success with one. Understanding the market, renovation process, and stipulations that come with each type of lender is going to be what ensures you success based on your personal financial situation, and further goals for the fixer upper. Putting in time and research on the type that’s best for you just may be the difference between a flip and a flop.

3 Options for Getting a Loan to Flip Houses in Arizona

House flipping is as hot as ever and, for the right kind of person, it can be quite lucrative, too. Unless you're already loaded, you're going to need to find a loan to do it, so here are some tips for doing just that.

According to the research firm Attom Data, over 200,000 homes were flipped in the year 2017. The average profit on each flip? A whopping $68,143! That's a pretty good take for a three, six or even 12-month project. Of course, to get there, you need to find a great fixable property and secure financing. There are a number of ways to get loans to flip houses in Arizona, and here are three of the most popular.

Go to a friend or family member. It could be a cousin, an uncle, a parent, or a brother, but if a family member has the cash on hand, they may be interested in investing in your fix and flip property. They may charge you lower interest rates because of your personal connection, or they may want to arrange of cut of the final profits. However, you choose to proceed, make sure you get everything in writing. There's no faster way to lose a friend or family member than getting involved with a loan.
Go for a home equity line of credit (HELOC). Many banks will let you borrow against the equity of your current home. By equity, we mean the difference between your home's market value and the remaining mortgage balance. The nice thing about a HELOC is that you have a pool of funds from which to draw, and you'll only pay interest on the amount you use. The downside to a HELOC is that you must already own a home with significant equity.
Go for a Hard Money Loan in Arizona. Hard money loans use funds from private individuals and investors. The requirements for qualification are less than a bank loan because the loan is secured by collateral. Hard Money Loans in Arizona to flip houses also come through much faster (in as little as 2 weeks).

Going the Hard Money Route

Hard Money Loans in Arizona are a great option if you've been turned down by the banks or you don't have relatives who are willing to invest. Keep in mind that the terms of a Hard Money Loan in Arizona will be shorter, and the interest rates will usually be higher. That's what makes them perfect for flipping — the idea is you get your property, fix it up, and then sell it for a profit before the terms are up.

Finding a Hard Money Loan in Arizona for a Fix and Flip

Thinking about going with a Hard Money Loan in Arizona to flip houses? If you have questions about whether to qualify and how the process works, we're here to answer them. Give us a call or chat with us today to see how we can help.

Setabay Private Hard Money Lender

Friday, January 25, 2019

6 Reasons to Consider an Owner-Occupied Hard Money Loan in Arizona

Despite what you may have heard, some lenders still do owner-occupied Hard Money Loans in Arizona. Here are a variety of reasons to consider one for your situation.

Can You Get an Airbnb Loan in Arizona with Rotten Credit?

Is it possible to get an Airbnb Loan in Arizona if your credit stinks? It might seem impossible, but there are ways to work around the system and start making your hosting dreams come true.

Using Hard Money to Finance an Airbnb Property

Finance Your Airbnb Property Quickly

Who Are Arizona Private Money Lenders?

Who Alternative Lenders Work with Best

Determining the Right Option for You

Try These 4 Options for Arizona Fix and Flip Loans

Arizona Fix and Flip Loans are short-term loans that are used for purchasing and refurbishing a property before selling it for a profit. They come in a variety of forms and with a range of options; here are a few to get you started.

Is a Hard Money Loan in Arizona Right for Your Fix and Flip?

Where to Get a Fix and Flip Loan

How Arizona Bridge Loans Work

How to Know if “Bridging the Gap” is Right for You

Moving Forward and Alternative Options

Are Arizona Fix and Flip Loans Realistic?

Are Arizona Fix and Flip Loans Realistic?

The Real Deal Arizona Fix and Flip Loans

Conclusion

3 Options for Getting a Loan to Flip Houses in Arizona

House flipping is as hot as ever and, for the right kind of person, it can be quite lucrative, too. Unless you're already loaded, you're going to need to find a loan to do it, so here are some tips for doing just that.

Going the Hard Money Route

Finding a Hard Money Loan in Arizona for a Fix and Flip

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