Setabay Private Hard Money Lender

Saturday, January 26, 2019

Why Arizona Private Money Lenders Can Be a Better Option Than the Bank

Many real estate investors go directly to the bank to get their financing because that's the accepted route. But in some cases, a loan from a Arizona Private Money Lenders may be a better option.

How do you know when you should go to the bank and when you should look for private investors? To determine this, let's look at some of the ins and outs of both loans:

● A bank loan will require an in-depth rummaging through your financial history, a bright, shiny credit score, and a pretty sizable down payment. You'll probably be rejected if you've had a previous blemish on your financial track record, a credit score below 700, and an income that doesn't match their threshold.

● A private money loan is secured using collateral, so your history, income, and credit score play a much smaller role. If the collateral property — whether it's a currently owned property or one you're purchasing — passes the sniff test, you can get approved.

● Bank loans can take up to a couple months to go through the approval and granting process.

● Private loans can be in your account in a matter of weeks. The approval process is quick and the funds don't have to go through all sorts of red tape.

● Bank loans come from giant conglomerates that may or may not have a vested interest in your success.

● Private money loans use funds from individuals who hitch their wagon to your plans. Your success is their success.

Is a Arizona Private Money Lender the Right Option for You?

Now that you know some of the differences between Arizona Private Money Lenders and the bank, you'll have a better idea if it's the right move for you. If you've got amazing credit, a spotless history, and plenty of dough to plunk down on a property, the banks may be your best option. Conversely, if you need to move quickly on your investment opportunity or you've been turned down by the big financial institutions, going the private route may be the better option.

Finding an Arizona Private Money Lender in Arizona

Hard Money Loans in Arizona do come with much shorter terms and higher interest rates and that can feel scary at first blush. However, for the right situation, this arrangement can be a win-win for both the real estate dreamer and the Arizona Private Money Lenders.

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.

Why Arizona Airbnb Loans are the Hottest Thing on the Market

It’s very common to rent out a traditional home or apartment. Now, because of the new travel market, people are taking advantage of Airbnb, a service that allows people to rent out their living spaces to travelers.

Airbnb is a company that allows people to rent out their living spaces to travelers visiting the area. Compared to hotels, services offered by Airbnb can be a lot cheaper and individualized to a specific traveling party. Airbnb may also be an alternative to those traveling last minute with nowhere to stay because of booked hotels. People located in touristic cities may find it beneficial to rent out part of their living space should they be seeking extra cash or ways to add to their savings.

Most people who host their spaces through Airbnb live in it simultaneously with the traveling party, designating particular rooms or areas in the home to guests. It’s not uncommon to see Airbnb hosts interacting with guests as a type of tour guide, giving out advice on places to see, eat and explore. That experience is certainly different from that of a traditional renter-landlord partnership, and requries some customer service skills. Having the ability to impact someone’s experience in a positive way as they explore a new city is just one way this relationship will differ from traditional renting scenarios.

Things to Consider for an Arizona Airbnb Loans

The popularity of Airbnb is steadily rising, making it a great investment option. Still, there are some things to consider. Accommodations are important, as you’re aiming to offer services comparable to a hotel. Having things like extra towels, running water, and space for luggage are just a few thingsto think about. While you will likely have a majority of the needed accommodations in your home, it is important to think of your space as the service you are providing, making it comfortable and reliable so that your place is up to par with the demand of travelers. If you don’t feel your space is appropriate, you may consider Arizona Airbnb Loans for small renovations.

Taking Advantage of the Market with an Arizona Airbnb Loans

Maintaining a high score on the app will drive the demand of visitors to you, and could eventually lead to partnership with Airbnb, where you could qualify for funds offered by the company itself. In ensuring the company is offering the best services and hosts possible, they’ve begun Airbnb Select where they offer Arizona Airbnb loans. In helping you maintain a great space, they are maintaining the integrity of their company. Otherwise, things such as personal loans or other short-term loans may come in handy if any small renovations need to happen. If you are considering hosting with Airbnb, your space is likely already accommodating and, with a decent credit score, you will likely be approved by a traditional lender for a small loan. Beginning to offer services through Airbnb is definitely doable, as seen by the hundreds of thousands of listings online.

How to Get Arizona Construction Loans to Build your Dream House

Building your dream home will be a long process of planning, but it can be done with hard work. There are specific loans designed to lend you a helping hand when you need it most.

Arizona Construction Loans are short-term loans for people on the market to building a new home. They are not given out all at once, but given in increments after meetings with the borrower and home builder, and strong regards to schedule. Ultimately, the loan is given out with each progressive step of the building process. Planning is very important, and because the lender cannot view the value of the home unbuilt, budgets, schedules, and progress visits are compromised with the lender who is heavily involved in the process. Staying on schedule will be important to both you and the lender because fees may increase with missed deadlines and a slowly moving timeline.

Being approved means having a solid plan and production schedule, but also a credit score of 680 and, typically, a down payment of 20 percent. Providing a strong financial history is crucial because proving that you are capable of simultaneously paying extra bills is as important as proving the home will actually be completed.

Receiving funds from a lender may happen with a strong credit score, but it won’t happen with weak plans. Your lender will be interested in reviewing everything your builder touches before handing over a loan. This will help ensure them that the money is going to use at a solid project with qualified people. Lenders providing Arizona Construction Loans are much more involved than other lenders working with other types of loans. In this case, your lender will be very influential regarding the builder, plans, etc. Their approval of your builder and architect will be absolutely necessary. If they don’t believe in your production members, your loan may never be approved. Your lender will likely be a traditional public lender, such as a bank or credit union, whose familiarity with the community makes them a great option for borrowers looking to build in the area.

Types of Arizona Construction Loans

A construction-to-permanent loan converts the loan into a mortgage after the home is complete. With a construction-to-permanent loan, there is only one closing process. A construction only loan is the opposite. Closing costs are paid twice, because the loan is split into both construction costs and a mortgage, requiring the fee twice. Whatever your choice, repayment will begin when construction is complete.

Moving into your Dream Home

Using Arizona Construction Loans to finally move into your dream home is a great option, but one that comes with hard work. Understanding everything that goes into planning, building and scheduling is important because of the way these loans are given out. Finding a strong team of home builders will be important because architects that can’t meet deadlines will hurt you in the loan process. It’s possible to get the white picket fence, but first comes work and planning.

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

Owner-Occupied Hard Money Loans in Arizona

If any of those reasons resonate with you (or you've got your own reasons), you're probably wondering about the specifics. These types of loans are incredibly quick. The application takes minutes and the funds can be in your account much faster than a bank loan. Interest rates vary, but they are typically in the six to 12 percent range. To qualify, you'll simply need a tax return or 3 months of bank statements.

Level4Funding and Owner-Occupied Hard Money Loans in Arizona

Our owner-occupied Hard Money Loans in Arizona have no pre-payment penalty, they don't cost anything to apply for, and we guarantee the lowest rates in the business. Speak with one of our representatives or fill out one of our quick loan applications today!

How to Apply for a Residential Hard Money Loan in Arizona

Thinking about finding a Arizona Residential Hard Money Lender in Arizona to get financing for a single family home? Delving into the world of residential loans can be daunting, so let's demystify it by taking a look at the first step in the process — applying.

Hard Money Loans in Arizona use funds from private investors and individuals and are secured by collateral. As such, the application process is different than a typical bank or credit union loan. A big bank might ask for a pile of documents to verify every dime of income, show every asset, and prove that your credit score is up to snuff. With hard money, here are some of the common steps you'll go through:

Find a reputable lender. An upstanding lender will have a professional website, an easy way to contact them, and, most importantly, a proven history of funding successful residential projects.
Do your research. If you're making an investment in residential real estate, you'll want to know every detail about it — what's its growth potential? What is the market's history in the area? What will your after-repair-value (ARV) be?
Show the value of your collateral. Since collateral is the lynchpin of a Hard Money Loan in Arizona, that's where lenders will focus. You'll provide documentation that shows the value of your collateral property. This can include things like architectural plans, contractor bid sheets, detailed budgets, and plans for renovations.
Prepare other documents. In most situations, the above documentation will be all you need. In some cases, though, Hard Money Lenders in Arizona might ask for a few other documents, including paystubs, W-2s, credit history, or bank statements.

Moving Quickly on Your Residential Investment

Here's the best part about opting for a Arizona Residential Hard Money Lenders over a common bank loan — the process is really fast. Without complicated underwriting processes and all sorts of verifications, Hard Money Loans in Arizona can be approved in a matter of days and you can have the money in your account in a matter of weeks. That speed means you can move quickly on an investment opportunity. After all, the faster you can get started, the faster you can make a profit.

Apply for a Residential Hard Money Loan in Arizona Today

The application process is easier than you might think. An Arizona Residential Hard Money Lender in Arizona, like Level4Funding, can sit down with you, walk you through the process step by step, and help you get the funding you need for your project.

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.

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.