Setabay Private Hard Money Lender

Sunday, January 27, 2019

6 Reasons Why You Should Get An Arizona Bridge Loan

Conventional lending may be the GOLIATH of loans. While secure, grandiose, and abundant in low rates, it is also SLOW. Don’t let the banks stop you. Get the financing you need, FAST, with An Arizona Bridge Loan through Level 4 Funding.

When conventional lenders say “no,” An Arizona Bridge Loan meets temporary financing needs, provides needed capital, and sets plans into motion. “No” does not mean no, it means “not yet.” Don’t let the banks and their tedious stipulations bully you. Apply today and see if you qualify for An Arizona Bridge Loan through your hard money broker at Level 4 Funding.

The reasons for acquiring An Arizona Bridge Loan are legion:

1. Move into new home before selling the old one: Many times, for those interested in residential property, selling and buying homes can be a difficult process. Selling a home, especially, can be a long, tedious, and cash consuming process. An Arizona Bridge Loan eases this, allotting individuals the financial support they need to purchase and move into the new home of their choice before their old home even sells.

2. Refinancing: Tired? Over encumbered? Overburdened by too many loans. Escape the riptide of financial burden. Refinance, consolidate, and build credit.

3. Remodel or refurbish: Is your property looking a little shabby? Increase the value of your property by refurbishing. Bridge loans have helped borrowers improve the value of their homes.

4. Use asset to buy new assets: No cash down? No problem. Use assets to acquire more assets.

5. Acquire real estate: Conventional lending may be the GOLIATH of loans. While secure, grandiose, and abundant in low rates, it is also slow. However, in real estate investment, fast is often needed. The nimble and quick-witted reap the benefits of distressed, wholesale, short-sale, and foreclosed properties. Where banking takes months to finance, a hard money bridge loan secures acquisitions, investments, profits—fast.

6. Finance initial construction: So, you want a loan on a lot of land. Too bad, the bank says no. The bank does not like lending on lots. No worries. You happen to know a hard money broker at Level 4 Funding. You can get the financial backing you need to acquire a lot of land and perhaps even the funding to finance all or a needed portion of your building ventures.

Don’t Except “No” for an Answer from the Banks: You Can Get An Arizona Bridge Loan

If you fall into any of these categories and are interested in An Arizona Bridge Loan, get a quote today at Level 4 Funding. Find the financing you need until conventional lending comes around.

Get An Arizona Bridge Loan today through Level 4 Funding

Though rates and terms vary per borrower, these are the general range of potential stipulations to be expected: Up to 90% LTV may be available. Typically, An Arizona Bridge Loan will span a term of 3 to 24 months. Bridge loans are interest only loans. Minimum rate of 7.99% APR

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.

Start a Successful Company with Arizona Cannabis Business Loans

Progressive reforms in the United States are gradually making the legal cannabis industry a more viable investment. The hesitation of conventional lenders and larger distributors to invest or fund cannabis operations is creating a positive situation for smaller, commercial investors looking to enter the cannabis industry and meet the ever-growing demand. Where conventional lenders reject commercial cannabis investors, Arizona Hard Money Lenders offer solutions in the form of Arizona Cannabis Business Loans.

Cannabis reigns in the States. The 2017, US cannabis market reached $8.5 billion in worth, 90% of the world market. The current and future projections of the legal cannabis industry remain enticing to both consumers and investors with predictions suggesting that the US cannabis market will continue to grow reaching $24.1 billion by 2025. No small chunk of change.

As a main contributor to such growth, legislation trends over the past thirty years in the US have resulted in regional approval of medicinal, recreational, and commercial use of marijuana. Furthermore, with a growth in regional approval, a reduction or removal of criminal charges, and an overall growth in public interest in cannabis related products, the demand for legal cannabis continues to rise. For instance, many consumers are transitioning from illicit to legal use of marijuana avoiding legal confrontation and transferring money that would traditionally have gone into the pockets of criminal organizations instead to local businesses, communities, and state funds. Others seeking the medicinal and therapeutic benefits of cannabis or seeking to satiate curiosity after seeing advertisements or hearing of others who have tried cannabis in their community also increase the overall demand for cannabis.

More consumption can mean more money. Huge market leaps and mass consumption of legal cannabis is a favorable omen for some investors. Typical investments in the cannabis may include: agricultural, clinical, mechanical devices, or commercial real estate.

Successful Niches: Arizona Cannabis Business Loans Help the Little Guy

While certain legal limitations still exist in the United States, ironically opportunity is present for small commercial outfits eager to meet the growing demand for legal cannabis. Currently, federal limitation decreasing the willingness of conventional lenders and larger distributors to invest or fund cannabis operations has created a positive situation for smaller, commercial investors looking to enter the cannabis industry and meet the ever-growing demand. Where fewer individuals are able to enter the commercial cannabis business, others are making a niche for themselves, especially by using hard money Arizona Cannabis Business Loans.

Level 4 Funding is here to help you with Arizona Cannabis Business Loans that fit your commercial needs.

If the big banks say “no,” don’t worry about it. Hard money Arizona Cannabis Business Loans allow individuals to get a business up and running with interest rates as low as 7.99%. Where other investors are hesitant to take advantage of the commercial cannabis industry, opportunity is on the horizon. Talk to your hard money broker today at Level 4 Funding for the Arizona Cannabis Business Loans that are right for you.

How Does ARV Determine Risk for Arizona Hard Money Lenders and Borrowers?

When Arizona Hard Money Lenders consider granting a loan amount, they generally consider LTV and ARV. These two indicators help them analyze equity, risk, and return.

First, there is LTV. LTV is a loan-to-value ratio used to determine the amount of money a lender will lend. For example, say a home is worth $100,000 in each market. A borrower receives an acquisition loan from Arizona Hard Money Lenders for $50,000. In order to acquire the property, the borrower must match the lent amount of $50,000 with $50,000 of his or her own money. This establishes the LTV at 50%. Should, God forbid, the borrower fail to pay the lender and the property is foreclosed upon, then the lender will be buffered from loss upon liquidating the asset.

ARV, or after repair value, calculates the value of a distressed home after renovation. This ARV value helps Arizona Hard Money Lenders determine risk and equity regarding a property not only by understanding the current loan-to-value (LTV), but by looking at the after repair value (ARV). ARV is calculated by adding a property’s current value plus the value of renovations. To do this, one looks at the average price of similar homes in a neighborhood. These homes should have similar acres, rooms, features, and amenities. After this, the cost of renovating the house is evaluated, and finally the prices of renovated properties in the area are taken into account. As an example of this, say that there is a house worth $50,000 in a given neighborhood, and it will only cost $20,000 to repair it, summing up to $70,000 in total costs. However, after the renovations to the house, the property will be worth $100,000. This puts the ARV of the home at $100,000. The hypothetical profit is $30,000.

How Both Arizona Hard Money Lenders and Borrowers Benefit from ARV

Arizona Hard Money Lenders use ARV to set a cap for the amount they are able to lend. Generally, 70% of ARV is the maximum loan amount for Arizona Hard Money Lenders. Lending out more than this amount creates far too much risk for lenders. Nonetheless, the ARV establishes a ballpark idea of what lenders are able to lend by understanding how much is too much.

What is the maximum amount Arizona Hard Money Lenders will loan?

Aside from lenders, LTV and ARV help real estate investors calculate how much they can expect to receive from a hard money lender, how much they will need to put down, and how much risk they will face when trying to secure a profit. After looking at the figures, real estate investors will have a better idea if the investment is worth it to them. Will it give a good return on what they have put in? Will there be enough buffer room for them after the lender gets a cut of interest? Are the efforts of producing the renovations and marketing the property worth it in the end? Risk is at the heart of lending and borrowing hard money.

The Pitfalls of the Past: Dodd-Frank and Arizona Hard Money Loans

How has the Dodd-Frank Act influenced Arizona Hard Money Loans during and after the Great Recession?

It’s the mid-2000s. The housing market is on the rise as the price of homes increases. Due to this favorable uptick, more people are looking to acquire loans to buy houses. Lucky for them, there are less banking restrictions, and many people with subprime credit are getting funded. It seems great. The housing market continues to boom. Prices continue to rise. The economy’s strong. All of a sudden, Freddie Mac won’t accept dicey, subprime mortgages. This decision leads to peril for some major lending institutions who find themselves unable to get returns on their investments. Bankruptcy soon follows. As banks struggle and closely watch subprime borrowers, indirectly, the value of homes begins to fall. More banks go under, the housing market collapses, and the stock market takes a nose dive. Cue the Great Recession. So, in attempt to learn from history, or avoid the fate of repeating history, what does the government legislate? Answer: the Dodd-Frank Act.

Dodd-Frank changes the lending game, especially regarding Arizona Hard Money Loans. A portion of the Dodd-Frank Act lays out the Mortgage Reform and Anti-Predatory Lending Act. This act restricts the circumstances in which Arizona Hard Money Lenders may lend money to individuals desiring to purchase personal residential property. Other restrictions for residential loans are added as well. Those giving out Arizona Hard Money Loans must verify if the borrower is able to repay their loan.

As a result of this, Arizona Hard Money Lenders shift to focus on investors looking to rent, sell, or commercialize real estate. Mainly because the Dodd-Frank Act does not limit businesses in regard to hard money, instead, it is interested in protecting the US economy from experiencing another subprime and residential lending apocalypse.

Post Dodd-Frank: Arizona Hard Money Loans

While this creates challenges for individuals looking to receive help after struggling with bankruptcy, subprime scores, or foreclosure, it has become a boon for real estate developers, especially where conventional lending was scares in the past.

Who are some of the main recipients of Arizona Hard Money Loans today?

So, post-Dodd-Frank, if residential lending is limited, who uses Arizona Hard Money Loans today? Well, to start, flippers use Arizona Hard Money Lenders to finance renovations on outdated homes. Many flippers use hard money to cover acquisition costs of property. Other flippers purchase property with their own money and use Arizona Hard Money Loans to cover the cost of renovation, or a particular portion of renovation such as roofing, cement, or plumbing. After completing the flip, the property goes to market, hopefully bringing in a good return.

The next category of individuals is those who are looking to renovate to rent property. These individuals, like flippers, use Arizona Hard Money Loans to acquire properties or finance costly portions of the renovation process. Once the property is completed, it is marketed to the public in order to rent. After this category of borrowers, there are contractors who look to build and sell property and businesses that look to expand their property or projects.

Loans from Residential Arizona Hard Money Lenders

Securing a loan from a bank can be impossible if you have rotten credit. But if you need money fast there are alternative sources you can go to, such as private investors that lend hard money.

Going to the bank for a loan can be intimidating. They have high standards and strict qualifications. Someone with imperfect credit history may not even make it to the bank. If you know your financial history isn’t up to par for public lenders, perhaps your situation lends itself to private investors, like local companies that offer hard money.

Residential Arizona Hard Money Lenders are local, private companies who can offer flexible relationships for people with low credit scores. They offer individualized, transparent relationships that generally lend themselves to easy approval. Their flexibility is often unmatched by banks. Banks tend to focus solely on your debt to income ratio and credit score before approving a loan, while Arizona Hard Money Lenders focus on the property’s collateral. The property’s value, or potential in cases of fixer uppers, are the driving force behind acceptance and rejection.

Unlike banks, Arizona Hard Money Lenders offer the benefits of speed. Because they can begin the loan process quite quickly, people working to prevent a foreclosure, bidding in a competitive real estate market, or renovating in a fast-paced environment find private lenders appealing. Banks can take as long as a month or more to get the process started—and that’s if you even meet their qualifications.

Things to Consider for a Hard Money Loan

Residential Arizona Hard Money Lenders often have high interest rates and fees because of the “risks” they are taking with the borrower. While they can usually provide money for you fast, they also have high rates. Depending on your situation, this may not be ideal for you. Additionally, they have short repayment periods. For experienced people working on fixer uppers, this can be perfect. Renovating the home successfully followed by a quick resale make for an easy payback period. However, a short repayment period may not accommodate everyone’s plans well. If the bank rejected your loan because of your debt to income ratio, it’s possible that a short repayment period may not make for the best financial situation for you.

Borrowing Successfully

The short repayment period and high rates are the biggest drawbacks of residential Arizona Hard Money Lenders. Of course, the decision on whether or not to move forward depends on your personal situation, and ultimate plans for the property. Researching your hard money lender will also be important. Arizona Hard Money Lenders are common and referred to people often, but not all hard money loan agencies are legitimate. Real estate attorneys are great sources to help confirm the reliability of your lender, or to help you understand the complete loan agreements. Some lenders may be legitimate, but have hidden fees within the contract of the loan. Analysis and evaluation of both yourself and the lender will lead to success. Borrowing successfully is possible, but is tailored to each individual. Be sure to know your situation well before making any decisions.

Take Advantage of Market Demand with Arizona Cannabis Business Loans

Arizona Cannabis Business Loans help many meet the growing demand for legal marijuana in the United States.

“Come senators, congressmen, please heed the call.

Don't stand in the doorway, don't block up the hall.”

—Bob Dylan

Change. The DEA, federal mandate, seizure of property, and legal seesaw determining states’ rights. At the epicenter of public, regional, and national debate, marijuana has slowly ameliorated, slowly gained greater public acceptance. Today, particularly in the US, ten states now have legalized recreational use and licensed commercial distribution of marijuana: Alaska, Nevada, California, Colorado, Maine, Massachusetts, Michigan, Oregon, Vermont, and Washington. Not to mention on top of this, 13 states have decriminalized marijuana, including the District of Columbia and other territories.

Marijuana has come a long way in a short amount of time. In the US, most prohibition began at the beginning of the 20th century. By 1937, the Marijuana Tax Act passed, federally prohibiting the use of marijuana, not necessarily medicinal use. Next, 1970 brought along the Controlled Substances Act federally prohibiting any use of marijuana, be it recreational or medicinal.

However, from the mid-1970s to 1990, laws pertaining to marijuana began to change and for the most part lessen on the state level with ten states decriminalizing cannabis: Alaska, California, Colorado, Maine, Minnesota, New York, North Carolina, Ohio, Oregon, and Nebraska. After the decriminalization of marijuana in many states, the years 1996 to 2012 brought about the beginning of the age of medical marijuana with thirteen states approving medicinal cannabis. It didn’t end there. As stated above, ten states approved not only medicinal but recreational marijuana from 2012 up until now, 2018. Though gradual, the change has been consistent from the beginning of the 1900s. The legal trends as of present have tended to favor laws upholding recreational, commercial, and medicinal use of marijuana. This legal trend does not seem to be letting up in the near future. Though marijuana has emerged from a prohibitory period, such as alcohol, the future is seemingly green.

Dreams Come True with Arizona Cannabis Business Loans

With an ever more favorable legal scenario and a more positive public reception, the amount of legal cannabis consumers is on the rise, and with a demand of consumers comes a greater need to supply services, facilities, and products related to cannabis and its projected multibillion-dollar-market worth—in the US alone. Many individuals are familiar with cannabis, its medicinal usage, or its favorable extracts and are interested in starting cannabis business. However, they lack proper funding since conventional lenders tend to shy away from cannabis or other business loans. Despite these setbacks, hard money Arizona Cannabis Business Loans have become a viable solution.

Level 4 Funding is here to support your ventures with Arizona Cannabis Business Loans. Talk to a hard money broker today!

Today, hard money Arizona Cannabis Business Loans are available and have helped many meet the growing demand for legal marijuana in the United States. Hard money brokers are here to find the rates and terms to help individuals qualify. Starting rates as low as 7.99% for qualifying borrowers. Cut through the red tape and get started today with Arizona Cannabis Business Loans.