Setabay Private Hard Money Lender

Monday, January 28, 2019

Arizona Fix and Flip Loans: Hard Money v. Conventional Loans

Looking for money? Are you eligible to receive a conventional Arizona fix and flip loan?

Though difficult to acquire for many flippers, mortgage loans present opportunity for borrowers possessing the following:

· High credit scores: Creditworthiness is a big indicator for conventional banks. They will want to see a borrower’s track record in regard to Arizona fix and flip loans. Has the borrower payed bills well in the past? Has the borrower had any delinquencies such as missed payments? Have there been any foreclosures or repossessions? Essentially, to the banks, credit history indicates the risk of loaning.

· Favorable debt-to-income ratios: This is the total debt figure divided by income. Banks use this ratio to calculate if a potential borrower is able to make payments, especially after adding any requested loans. Max debt-to-income ratio for conventional banks tends to hover between 40%-50%.

· Considerable or significant assets: Collateral is another crucial factor for receiving a conventional loan. What types of assets, general property or equity in property, does the borrower possess? Is the proposed collateral enough to buffer the lender in the unforeseen event of foreclosure?

· Completed jobs: Conventional lenders look for a history of profit, repayment, and success as good omens. What is the borrower’s track record? Has the borrower been able to repay previous flipping debts?

If the borrower has a favorable history in many of these areas, he or she is more likely to receive funding for Arizona fix and flip loans. The upside to receiving a traditional home loan is, for one, a very low interest rate, some of the lowest. On top of this, the loan-to-value (LTV) can reach up to 80%. On the downside, conventional Arizona fix and flip loans may not be a great choice for individuals who are new to the fix and flip market and thus have a limited amount of completed flips.

Do to the drawn-out nature of submitting and reviewing credit applications, typically taking months to complete, conventional lending presents complications for those looking to bid on wholesale, foreclosed, or short-sell property, which may need a quicker source of financing to acquire. Finally, the challenge of acquiring distressed or hazardous property—conventional lenders are typically interested in property that can be lived in. If there is neglect, structural issues, or other issues that prevent this, the bank is likely to withhold funding.

Rotten Credit? Hard Money Arizona fix and flip loans May Be an Alternative

Though many potential borrowers do not fit the rigorous credit archetype delineated by conventional lenders, there are still other options. Arizona Hard Money Lenders have formed a safe haven for entrepreneurs possessing a rocky credit history, limited experience, or limited assets. They have also provided opportune funding for those looking to purchase property quickly.

Bad credit, limited experience, or few assets?

Hard money Arizona fix and flip loans may be right for you.

Need help flipping a home? To receive more information regarding hard money lending, talk to a hard money broker today at Setabay.

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.

Residential versus Arizona Commercial Real Estate Loans

While home loans are intended to help buyers settle into residential properties and have long-term durations of usually 30 years, Arizona Commercial Real Estate Loans differ with a duration of 3 to 60 months

Residential or home loans are amortized loans, or loans with scheduled payment periods comprised of principal and interest. Principle, interest, and term are calculated to arrive at the scheduled payment amount. Towards the beginning of an amortized loan, a greater portion of scheduled payments goes towards paying off interest. As more payments are made and the interest portion of the loan decreases, gradually, more of the principle is payed off until the amortized loan, both principle and interest, is payed in full.

There are two main types of amortized loans: fixed and variable interest rate loans. First, fixed rate loans have set interest rates throughout the loan’s entire duration. Market fluctuation or economic changes do not influence this rate. It is fixed, set, locked. Fixed rates are favorable when interest rates are at a low and buyer credit is in good standing. Locking the interest rate for a long duration of time at a favorably low interest rate is beneficial for the borrower, especially when interest could possibly rise. Second, variable rate loans have interest rates that fluctuate with the market and federal rates. They benefit individuals with poorer credit or who are not looking to stay in a home for an extended period of time. After choosing between fixed and variable types, the option of conventional or government-insured loans exists. Opposed to conventional lending, FHA, VA, and USDA loans are all government insured loans that offer different financing options to first time buyers, veterans, or individuals in rural areas.

While home loans are intended to help buyers settle into residential properties and have long-term durations of usually 30 years, Arizona Commercial Real Estate Loans differ with a duration of 3 to 60 months. Arizona Commercial Real Estate Loans have shorter terms than residential loans but longer amortization rates. This allows the commercial borrower to make lower payments throughout the loan’s duration, payments based on say a 30-year amortization period, and then pay the lump sum of the loan at the end of the term. Longer amortization periods are beneficial because they allow commercial entities to maintain cash flow.

Fuel Success with Arizona Commercial Real Estate Loans

Finally, LTV. Residential loans typically have lower LTV rates than Arizona Commercial Real Estate Loans. Though residential loans can have an LTV in the 80%-90% range, Arizona Commercial Real Estate Loans may have an LTV rate of 40%-90% depending on the borrower, stipulation, property, and lender. In conclusion, Arizona Commercial Real Estate Loans may have smaller terms, longer amortization rates, lower LTV, and higher interest than a typical residential loan.

Arizona Commercial Real Estate Loans are there when you need them at Level 4 Funding

If commercial lending is right for you talk to your broker at Level 4 Funding. Financing for Arizona Commercial Real Estate Loans are fast, competitive, and effective. Funding up to $50,000,000 available to qualifying borrowers.

Secure Returns: Loans to Flip Houses in Arizona Help Flippers Earn More Money

Need cash to get into the flipping game? Hard money loans to flip houses in Arizona may be right for you.

Flipping homes offers many benefits to real estate investors. One of the main appeals to flipping houses is it offers investors a return within a short amount of time. Within a few months to under a year, investors locate, purchase, and renovate a property presenting a return potential. The return on investing in a flip home is large, usually close to 50% and sometimes even higher. Not bad.

But where do flippers start? Typically, investors purchase properties during a booming housing market, a time when real estate prices are on the rise. (Like right now, when flipping is at its highest since the mid-2000s.) The rising cost of homes indicates a rise in equity and an increased possibility of a good return. With this in mind, flippers tend to find distressed property in a neighborhood where renovated homes are selling well. They will do their homework and look at the “comp” or comparable sales. After locating a distressed property, flippers take into account the “perceived” renovation costs, how much will renovation cost to receive a return similar to that of other renovated houses in a given neighborhood. The trick is finding a property that would hypothetically receive a greater return for less work. Renovations could be as simple as reflooring, landscaping, and painting a few rooms. Other times, it might be necessary to delve into more complex renovations to receive a return. Either way, the main questions remain: Do the ends justify the means? Can a decent profit be made for all of the labor? If yes, “you may pass GO.”

So, a flipper has found a house, done the homework, and taken into account all of the perceived costs. Great. The next step is funding. Since many Americans don’t have too much cash to blow, funding is a very important step. To finance their projects, flippers often go to lenders, generally ones that gives loans to flip houses in Arizona.

Arizona Hard Money Lenders Offer Less Restrictions for Those Looking for Loans to Flip Houses

Arizona Hard Money Lenders typically grant loans to flip houses. This is due to the fact that conventional lending is practically restrictive when it comes to loaning to real estate investors new to the business, with low credit scores, and with a history of subprime credit or past delinquencies.

Cut through the red tape! Talk to your hard money broker to get loans to flip houses in Arizona today.

For this reason, many new flippers enjoy the face-to-face, hands-free approach to hard money loans to flip houses. They find it a way to cut through the red tape of bureaucracy and start their new path of securing the returns that they need. If eligible, rates may start as low as 7.99% for terms extending from 3 to 60 months. Applications processes are short. Funding up to 90% LTV is available through certain lending programs for borrowers meeting collateral requirements.

Conventional Versus Hard Money Arizona Commercial Real Estate Loans

When it comes to commercial lending, conventional and private lending reign. But which to choose? Weigh the pros and the cons of each to find the ideal financing situation for your business’ needs. Discover the Arizona Commercial Real Estate Loans that are right for your company.

Commercial real estate is property intended to generate income for a business, opposed to residential usage. Most often, commercial real estate is obtained through a finance source known as Arizona Commercial Real Estate Loans. Through Arizona Commercial Real Estate Loans, acquisition, renovation, and construction of commercial property is made possible as a means of establishing short or long-term returns.

Arizona Commercial Real Estate Loans are not residential loans. Where residential real estate loans are intended to purchase a home for individuals, commercial lending is solely intended for entities who acquire real estate to secure returns. Contrasting a thirty-year residential loan, commercial loans have a duration of 3 to 60 months.

Both independent and conventional lending sources fund Arizona Commercial Real Estate Loans. In part, conventional lending institutions grant loans based on a business’ credit history. Should the latter be too short or nonexistent, then credit worthiness is established by analyzing the credit scores of a business’ owners. After establishing credit worthiness, several other risk-contributing factors are assessed: a suitable period of finance records, tax returns, loan-to-value assessments, debts, etc. With suitable credit, finance, history, and collateral established, conventional loans are an option. For some businesses meeting the previous credentials, The SBA U.S. Small Business Administration offers favorable lending scenarios with mitigated risk and less cash down to those exhibiting a high credit score, satisfactory financial standing, and enough collateral.

Try Hard Money Arizona Commercial Real Estate Loans

If not, there is no need to worry. If conventional lending is not an option, hard money Arizona Commercial Real Estate Loans are available and have helped many businesses get the start that they need. Hard money commercial real estate lending provides the financing for real estate projects such as multi-family units, warehouses, industrial properties, and office facilities. It is fast, competitive, and effective. Hard money commercial lending avoids the hoops and red tape associated with conventional lending. Where months of credit analysis, stipulations, and federal mandates hedge up the funding process, commercial hard money loans can be secured within shorter, more favorable time frames.

Fund your next development with Arizona Commercial Real Estate Loans—Talk to your hard money broker at Level 4 Funding today.

If you are struggling establishing the financing you need, or if you need to establish financing quickly for your upcoming development, talk to your hard money broker at Level 4 Funding, here to help you secure the financing your business needs. Loans for up to 90% LTV and $50,000,000 available to qualifying borrowers.

Avoid Putting Cash Down: 100% LTV Commercial Real Estate Financing for Your Business

100% LTV Commercial Real Estate Loans Help Businesses Maintain Cash Flow.

The supply and demand, the wax and wane of the market. Day in day and day out, you’ve ground out a living building a business on main street America. You’ve done the time and the homework; you’ve put in the hours to build a business from the ground up. Now, you want to expand your operation. You’ve seen your profit potential and are happy where things sit. However, you know that you can create more and have reached the point of wanting more property to create more profit. Perhaps, you’ve got the money to do it, but perhaps you don’t want to cut into your cashflow—the beating heart of your organization and many investments.

It takes money to make money, and you have money. But, you understand that keeping cash flow intact and borrowing money in order to acquire more property creates less risk. Also, it may present you with a better chance of dealing with the inevitability of market shifts.

You look to conventional lenders but seem to have been rejected due to previous credit history, federal restrictions on property acquisition, or other cumbersome stipulations. After a bit of research, you come across information relating to 100% LTV Commercial Real Estate Financing. Questions enter your mind: What is it? Do you qualify? What are the requirements and respective rates for such a loan?

Can You Qualify for 100% LTV Commercial Real Estate Financing?

After doing a few more Google searches, you come to understand that 100% LTV commercial real estate financing is made possible with Arizona Hard Money Loans, and you see that hard money acquired by leveraging equity in real estate possessed by a business or business owner. While traditional lenders have a hawk’s eye for looking at an individual’s creditworthiness, credit history, or compliance with the hoard of federal lending requirements, you see that Arizona Hard Money Lenders are able to base loans on real estate value rather than credit. The catch is that you must have a significant amount of equity built into your collateral, either by owning property out-right, having a considerable increase in positive equity, or having equity that is greater than the loan amount to be requested. Without the proper equity, you realize that you would have to have a sufficient amount of cash down to buffer the hard money lender in the unforeseeable advent of foreclosure.

Talk to your hard money broker and see if you qualify for 100% LTV commercial real estate financing.

The good news is that you have built up a considerable amount of equity by paying off nearly all of your business’s property. On top of that, the recent rise in real estate prices has considerably increased the value of your equity. Nice! Now the next step is getting a hold of your hard money broker or lender to find out if your property qualifies you to receive 100% LTV commercial real estate financing.

Yes, You Can: Secure Conventional Lending Through An Arizona Bridge Loan

Life happens. Unforeseeable business demands, events, or market opportunities materialize out of nowhere. Action may be needed, and quick. An Arizona Bridge Loan is here to save the day. Right now, you have the power to secure the cash flow, to acquire the assets you need. Get financed through the banks later, act now.

An Arizona Bridge Loan helps individuals, developers, businesses, investors, and buyers receive funds in order to secure desirable property for investment or residential purposes, needed equipment for commercial expansion, or sufficient materials to renovate. This type of loan is temporary, lasting generally anywhere from three to twelve months. An Arizona Bridge Loan is not a means of long-term financing, but rather a means of providing needed and short-term cash flow to complete a financial objective or acquire an asset until conventional lending is made available at a lower rate. Hence, the word bridge indicates an intermediary period between hard money and conventional lending.

Though possessing innately higher interest rates, the benefits of An Arizona Bridge Loan are speed, accessibility, and reliability. Since An Arizona Bridge Loan is made available through hard money brokers or lenders, the process of acquiring a hard money bridge loan is much shorter than the months needed to secure a conventional loan. This speed is due to the fact that a hard money bridge loan is backed by collateral, usually real estate. An Arizona Bridge Loan is accessible via hard money brokers who able to secure the rates and terms in a reliable and comfortable time frame.

Conventional lenders may offer the lowest available rates, but they are slow, very slow. Conventional lenders are the optimal long-term method of financing, which is great. However, it is not always a simple process jumping into a long-term conventional loan. Credit analyses, screenings, federal regulations, and hordes of stipulations stand guard. Sometimes, the months needed to secure this kind of financing are not available. Unforeseeable business demands, life events, or market opportunities materialize out of nowhere. Action may be needed, and quick. Right now, you have the power to secure the cash flow to acquire the assets you need. Get financed through the banks later.

5 Common Bridge Loan Scenarios

1. Businesses needing to buy real estate or purchase equipment quickly and at a high interest rate until they can secure low interest financing through conventional lenders.

2. Individuals seeking to purchase and move into a new home before their original home sells. In this case, the equity of the original home is used as collateral to acquire a hard money bridge loan to secure the newer home.

3. Developers who need a loan to continue construction while preparing to meet long-term financing stipulations.

4. Investors needing the funds to secure, purchase, and renovate real estate.

5. Buyers needing quick money to purchase an ideal piece of real estate.

Talk to your hard money broker at Level 4 Funding and secure An Arizona Bridge Loan today!

Should any of these categories describe your current financing needs, talk to your broker at Level 4 Funding today. Take hold of the commercial or residential assets you need with a hard money bridge loan.