Setabay Private Hard Money Lender

Tuesday, January 29, 2019

Crowdfunding: A New Era of Arizona Private Money Lenders?

The concepts of crowdfunding have been around for a long, long time. Printing presses, credit unions, governments, bonds, religions leading up to GoFundMe, blockchain, Uber, Airbnb, etc. . . . With the internet overwhelming the four corners of the earth, crowdfunding has risen to a global stage, a stage that entices many to invest, fund, or support the efforts of others. Curiously enough, crowdfunding has even seeped into real estate investment acting in virtue of a horde of micro Arizona Private Money Lenders.

Crowdfunding, or gathering small amounts of money from large groups of people in order to achieve a purpose has been going on for a very long time. In the past say 1439, after the beginning of the printing press, when paper, materials, ink, and machinery were more expensive, writing was still expensive despite innovation. Becoming a writer alone usually required someone of great monetary means whose patronage could support an individual of literary talent. However, to acquire more business, many writers employed methods of subscription to fund further literary works. With enough written confirmation of individuals willing to buy the book, publishers would feel comfortable undertaking the risk of printing.

Aside from writers and printers, religions, charitable organizations, credit unions, and even bonds have implemented crowd funding principles. However, after the advent of the internet and the spread of personal computers, crowdfunding evolved taking the nation and the world by surprise. Napster in 1999, for example was an early attempt. eBay, soon followed along with Airbnb, Cryptocurrency, Uber, Spotify, Citi Bike, and a myriad of mobile scooters paying individuals up to $20 per to charge each unit. Crowdfunding and its principles are wide-reaching, theoretically founding or funding many successful companies.

Some are interested in crowdfunding for its ability to help those in need, offer unique services to many people, or build economic infrastructure in third-world countries. Others enjoy these benefits but are also able to harness crowdfunding to create, build, and secure returns.

Micro or Macro?—The Future Source of Arizona Private Money Lenders

The possibilities of crowd funding are unforeseeable and promising. Instead of gathering the funds of one huge entity, it allows companies to harness the power of many Arizona Private Money Lenders. E pluribus unum. Micro Arizona Private Money Lenders continue to move mountains with the widow’s mite. Surreal.

Will conventional hard and Arizona Private Money Lenders be affected by crowdfunding? Stay tuned . . .

There are now over 75 crowdfunding real estate entities in the US. Many ponder the implications of crowdfunding entering into the real estate industry and the effects it will have on hard and Arizona Private Money Lender. Only time will tell how crowdfunding will work out, whether or not legal mandates will push it out of the lending sector or will allow it to remain.

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.

4 Benefits of Using Arizona Private Money Lenders

Who are Arizona Private Money Lenders, and why should they matter to you?

Arizona Private Money Lenders are individual investors who are separate from federal institutions. Aside from conventional lenders who receive institutional money, rates, and regulations in order to lend money, private lenders loan out their own money to the individuals they see fit to loan to. They are small entities with their own interests and their own agendas, not an extension of the bureaucratic arm of federal lending.

There are several benefits to using private lenders. First off, generally speaking, Arizona Private Money Lenders tend to finance real estate that needs to be repaired. They are okay with borrowers purchasing property that has been run down, that has extensive damage, or that can be fixed within a short period of time. This is because these types of property, if the numbers are crunched correctly, can bring in a healthy return, benefiting both lender and buyer. Because of this, fix and flip investors frequently tend to deal with private lenders for a variety of lending scenarios: acquiring a profitable piece or real estate that may be distressed; financing only a portion of the renovation process such as cement, paint, etc.; or financing equipment that can be used for renovations.

Second, reduced lending requirements. Arizona Private Money Lenders do not require lengthy verification requirements and can be funded within a matter of a few days at the quickest. The speed and the reduced application and funding requirements make private money popular for individuals purchasing wholesale, foreclosed, or short-sold properties, many of such purchases needing to be funded within a short amount of time opposed to the lengthy, 40-day-plus period that a conventional loan would take.

What Do Private Lenders Require?

Third, Arizona Private Money Lenders tend to look at equity positions and business success over past bankruptcies, foreclosures, and delinquencies. Many recipients of Arizona Private Money Lenders are contractors, leasers, and flippers who purchase property to get a return on money. A primary concern for Arizona Private Money Lenders is what the loan-to-value (LTV) and the after-repair-value (ARV) will figure out to be. By calculating both of these factors, a private money is able to calculate risk in the advent of foreclosure. Other factors included when financing real estate investors are: how many jobs has the investor completed, and how well has his or her investing business held up.

Arizona Private Money Lenders are local lenders who tend to have a personal relationship with borrowers.

Fourth, Arizona Private Money Lenders are generally local lenders. Aside from equity and work history, Arizona Private Money Lenders tend to lend to people in a close-knit community. Instead of calling an obscure entity from a “1-800” number that is directed through a myriad of phone lines and codes just to hopefully get a bank representative, Arizona Private Money Lenders are accessible, personable, and available. By building local investment ventures, they indirectly build communities, small businesses, local infrastructures, and community jobs. Though finding Arizona Private Money Lenders is not as easy as other lending outlets, it is a comfortable and a less regulated lending form that continues to help many small business and individuals get their start.

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 and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Microlending: Peer-to-Peer Arizona Private Money Lenders

The peer-to-peer to peer economy is backed by popular demand. Companies like Spotify, Airbnb, eBay, Uber, and more have changed the way business are done, especially with elaborate applications, software, and websites. Will microlending change the way Arizona Private Money Lenders or conventional lenders do business in the near future? Stay tuned . . .

Microlending. A word that has incited criticism, curiosity, charity, and praise in recent years. Microlending is the concept of gathering and pooling small funds from a multitude of individual investors in order to finance commercial ventures. Though the concept of microlending, or gathering many small funds from the masses, has been around for a long time, it has recently made headway with the birth of the internet and the rise of peer-to-peer businesses.

As of late, the peer-to-peer business model has boomed. If the term is unfamiliar, think Airbnb, Uber, Lyft, Spotify, eBay. These are businesses that create an interface, application, or website that allows users to communicate directly with each other. There are no middlemen, just the site, it’s users, and communication between these parties. So, back to microlending. After the advent of peer-to-peer software and the explosion of the tech industry, microlending emerged. Fusing peer-to-peer tech with microlending allowed not just a remote area of individuals to participate in microlending, but the whole wide world.

Individuals began to gather on microlending sites. Micro Arizona Private Money Lenders and borrowers searched for one another, funding was lent and received. Microlending became attractive for the above market interest required due to risk. Also, the fact that it typically was lent to third-world countries whose currency valued less than the US dollar allowed individuals lend as low as $25, though many argue that initial investment should be more.

Potential and Foreseeable Challenges for Peer-to-Peer Arizona Private Money Lenders

Some of the challenges for peer-to-peer, Arizona Private Money Lenders include risk in lending to individuals from various regions of the world who may or may not repay. Though credit scores, credit histories, credentials, and background checks are documented on microlending sites, a lack of collateral of collateral is typically the norm. Though less money is needed to invest, there is greater risk, due to the fact that many loans are not backed by collateral. Adding to the challenges of microlending, recently institutional lenders have made their way into peer-to-peer lending. This has increased competition—Goldman Sachs versus the world of micro Arizona Private Money Lenders.

Are micro Arizona Private Money Lenders the future of the finance industry? Only time can tell.

Despite these challenges some micro Arizona Private Money Lenders who spread the risks of their profiles and find consistent investment amounts report a possible average return of 7% interest. Others view that institutional intervention is a testament of the profitability of microlending. As many continue to watch the microlending market, waiting is the only option, for only time will tell what this niche of financing has in store. Opportunity, stagnation, or demise.

Monday, January 28, 2019

6 Reasons Why You Should Use Arizona Hard Money Lenders

Banks are not always the answer. Sometimes, other financial resources can be a godsent. Arizona Hard Money Lenders are here to help you secure the lending source you need to complete the goals and investments that are important to you.

Hard money is money pooled together by private investors or groups of investors. These private investors lend money out at an interest rate securing comfortable returns. Once pooled, hard money is lent out in two ways: either directly from private lender to borrower, or through an intermediary known as a hard money broker, who gathers and loans out the funds of Arizona Private Money Lenders. Typical hard money borrowers include: new real estate investors unable to secure conventional lending; investors with poor credit or little cash down; investors falling short of income stipulations or possessing limited work history; investors dealing with multiple mortgages; investors purchasing distressed property within a short period of time; and investors renting and renovating.

Hard money has many attractive benefits to these and many other types of borrowers. First, there is more opportunity to participate in more deals: Sometimes, getting a foot into the real estate investment business is tough. When conventional lending shuns new investors, other financial means are needed. Arizona Hard Money Lenders offer borrowers a chance when banks say no. Furthermore, hard money offers experienced investors creative solutions such as financing multiple properties, refinancing exciting properties, or renovating older properties. Second, it is easier to get financed. Do towers of paperwork delineating obscure legal stipulations scare you? If so, good news, Arizona Hard Money Lenders have less paperwork the banks.

Third, Fast approvals. Some real estate investors don’t have the luxury of waiting months for conventional lenders to give the green light. Wholesalers, flippers, and renovators vying for limited distressed properties may need money fast to scoop up properties at auction. Sometimes, the answer is hard money. Arizona Hard Money Lenders can secure in days what conventional lenders can secure in months. Though hard money may have higher interest rate, they present opportunity and allows for acquisitions and returns.

Arizona Hard Money Lenders Help You Secure a Loan that Fits Your Needs.

Forth, you can negotiate a payment plan. Do banks make you feel like an insignificant minnow in a sea of paper? Do you miss the old days when you could talk to people face to face? Great. Arizona Hard Money Lenders are personable and able to set a financing plan in motion that suits your needs. Fifth, no prepayment fees. If you pay off your loan too soon, there is no problem at all.

If Arizona Hard Money Lenders are the financial lending source you are looking for, contact your hard money broker at Level 4 Funding today. Secure the cash you need to further the investments that matter to you.

Sixth, you can get approved with bad credit. Arizona Hard Money Lenders are not so much as focused with credit worthiness as are conventional lenders. Instead, they are interested in loan-to-value, equity, property value, and after repair value. These factors give Arizona Hard Money Lenders an indicator of risk and security. This great news for individuals whose credit has been ransacked after a divorce, destroyed after a bankruptcy, or marred by past delinquencies.

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.

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.