Setabay Private Hard Money Lender

Thursday, January 31, 2019

Hotels Are Losing Money: Investors Earn an Extra Buck with an Arizona Airbnb Loan

Arizona Airbnbs are helping small investors eke out a living by taking businesses from the goliath of the hotel industry. Backed by the tech firepower of Arizona Airbnb applications, little guys are rope-a-doping giants.

In the past, hotels were the way people vacationed in the States. Families would plan a vacation to a remote and exotic region, do research about that particular area noting the touristic attractions, and finally book a hotel that was of a reasonable name, rating, and price. For years, this was the ritualistic pattern: In the prehistoric Age of Analog, travel agents, salespeople, and a vast amount of phone calls were needed to go on vacations, buy things, do things, stay places. The process was arduously long, may have taken months to plan, and possibly a good chunk of change to set in motion.

Then, from the obscure depths of algorithms, turning machines, and half-mad scientist and mathematicians, the computer emerged. Next, a labyrinth of networks—then, networks of networks leading up to the internet. Al Gore claims to have created it. People could now talk to each other over vast distances. Businesses could now post product prices online. Travel agents fell out of vogue. Middlemen and their commissions lessened. Software caused fluctuating market standards.

The year—2008. Enter Airbnb. Arizona Airbnb created a software platform that allows people to rent out houses for a fraction of the cost of a hotel room. Arizona Airbnb at first was a small threat to hotels and vacation rental companies. Then it grew, exponentially.

The year—2018—the present. Arizona Airbnb has reached a value of $30 billion plus. The hotel industry is now running scared. It has lost billions of dollars over the past few years. Not only is Arizona Airbnb making a lot of money, but people using Arizona Airbnb are incentivized to make money by renting out property. Quid quo pro. People are using services that fill their own pockets. Though a tech giant, Arizona Airbnb helps the little guy rake in some more dough.

Arizona Airbnb Loan for an Arizona Airbnb Business

How are people renting out property? Well, many individuals already have a mortgage on a home. Maybe they have a guest room or guest house to rent out. Renting out rooms helps them pay their mortgage off faster. However, there is another category: those looking to make an Arizona Airbnb business with an Arizona Airbnb loan. By using hard money brokers and lenders, these individuals find an attractive vacation rental property with a favorable occupancy rate. Next, they find a hard money lender who is willing to give them an Arizona Airbnb Loan at a favorable LTV percentage. Occasionally distressed property is renovated to save money on acquiring a rental property.

Start an Arizona Airbnb business with an Arizona Airbnb loan.

In the end, a property is purchased and rented out ideally earning more per annum than the debt owed to the hard money lender. With an evident and favorable return percentage this step may be repeated. An Arizona Airbnb loan forms a vacation rental chain with a decent return may be established.

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.

Advantages of Commercial Texas Hard Money Lenders for Your First Fix and Flip

Choosing the next big investment is never easy—hours of binging HGTV doesn’t necessarily prepare you for what goes on behind the scenes. If you’re interested in learning more about the loan process for fixer uppers, pause HGTV and read more below!

It’s no question that the major personalities on HGTV today have the money to afford fixer uppers, with more than a little wiggle room for error. But what about the average person looking to break into the biz for the first time? Their wiggle room is certainly smaller, and their chances for error greater. So where do they go when they need to obtain funds fast for a fix and flip?

Oftentimes, people will turn to commercial Texas Hard Money Lenders. Commercial Texas Hard Money Lenders are untraditional alternatives to public lenders like banks and credit unions. What these untraditional, private investors do is evaluate the potential and collateral of the property. In this way, private investors are able to approve a wider range of people compared to public lenders because they highly consider the property’s potential profit line first. Though your financial history will be relevant to them, collateral comes first.

How Fixer Uppers Inherently Lend Themselves to Hard Money

Speed is one characteristic of hard money that can come in handy when obtaining a property off a competitive market. The ability to obtain the property with all of the ideal characteristics for a fixer upper will be ideal. Committing to a home that won’t provide any nasty surprises after the purchase will lead to more success in the long run. Being able to get funds fast may just allow you to get that ideal property for flipping. Commercial Hard Money Lenders allow for this and flexibility. Because they are more likely to approve you for a loan than a bank, it is also more likely that they will allow a little flexibility when it comes to repayment. The repayment period of hard money loans is short. This lends itself to fixer uppers because the goal is to fix, flip and sell quickly.

What You Need to Know Before You Move Forward with a Private Investor

While the short-repayment period and the fast funds make hard money a great option for people looking to flip, there are a few things to know about Texas Hard Money Lenders before diving in. First, Texas Hard Money Lenders have high interest rates. Their ability to approve a wider variety of borrowers is balanced by their higher interest rates. Coupled with a short-repayment period, this option may not be ideal for everyone, though there are benefits to consider. Second revolves around reliability. Reliable commercial Hard Money Lenders are out there, but so are unreliable agencies. Being confident that your lender supports the project and won’t pull out at the last minute is obviously going to be a concern to have. Researching their past clients and projects is one way to go about ensuring they are legit, but so is hiring a real estate attorney. A real estate attorney will be able to evaluate and determine if they are really a reputable agency and if they have any hidden fees and stipulations you may have missed. Doing thorough research will help you determine if Texas Hard Money Lenders are right for you and your personal financial situation, even though their process and typical benefits lend themselves to those fixing and flipping properties.

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.

Do Private Money Lenders Work Like Traditional Loan Lenders?

Considering a private money lender is a common evaluation for anyone deciding on the best loan choice for them. It certainly was for Brianna and David when they didn’t qualify for a traditional public loan and learned the major differences between private and public lenders.

Brianna and David wanted to invest in a fixer upper. When they approached their local public lender, their nearby credit union, they found that they did not qualify for a major public loan. To do so, they needed a strong credit score and a solid debt to income ratio. Unfortunately, to seek out their dream of flipping a house, they would need to seek untraditional options.

Brianna and David were certainly a little wary of Colorado Hard Money Lenders—they were unsure what to expect, and the promise of an easy approval process made them suspicious. As they began to learn of their options, they became aware that private money lenders could offer a few things: money and speed.

Finding Success with a Hard Money Lender

Brianna and David didn’t rely on speed when it came to obtaining their loan. They weren’t working to prevent a foreclosure and their property wasn’t particularly competitive. Still, the prospect of speed was attractive. They found that their hard money lender could begin the loan process as soon as a day—something banks couldn’t get close to matching. Public lenders typically need a month to begin the loan process. As Brianna and David discussed prospects with their private money lender, they learned of their lender’s flexibility. For one, their lender could approve their loan request based on the potential of their property—and since the loan would be going toward a project that would be reaping benefits and a high probability of making a profit, they were able to qualify. Second, their lender was also open to expanding the terms of their loan agreement. Hard money loans work best with people seeking out funding for short-term projects, but they can sometimes be expanded with the right lender. Brianna and David were happy to learn their lender believed in their circumstances to support an extension.

Effects of Eligibility

Brianna and David were thrilled to come to an agreement with their private money lender. However, as they looked over the terms to the agreement, the major differences between a private and public lender were much more apparent. For example, private lenders have high fees and interest rates incorporated into the loan. This is something that banks do not do, and private lenders do this to weed out potential clients, and help ensure the reliability of their borrower, if it isn’t immediately reflected in their credit score or debt to income ratio. The high costs combined with the comparatively steep interest rates often weed out a lot of potential borrowers because, while the easy approval process may deem private lenders “affordable,” the hidden costs reveal they are not. Brianna and David weren’t thrilled about the fees, but found that, with some work, they could afford them provided their property didn’t come with any unfortunate surprises. Fortunately for Brianna and David, their hard money lender was a great option for their first fixer upper. Though it was costlier than they expected, they were able to complete their project successfully.

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.

Wednesday, January 30, 2019

Why Colorado Private Money Lenders Can Get You Money Fast

Who are private money lenders—and should you borrow from one? Read more below to find out the advantages of their speed and if they are the best choice for you.

Private money lenders are untraditional and alternative options to public lenders. They usually consist of private companies and investors. Traditional public lenders usually consist of banks and credit unions. The process of borrowing from private and public lenders is a little different, based on the requirements each type have. Typically, people who cannot qualify for a loan with a private money lender will be referred to a private lender who offers hard money. Colorado Hard Money Lenders evaluate the value of the property first. Then, they evaluate the prospective borrower. Because of this, they are able to approve more people for loans than traditional public lenders. While they are able to provide a rapid approval that is unmatched by banks, there are a few things to know before committing to a private lender.

Expectations of Colorado Hard Money Lenders

Private money lenders are a great alternative option, but it is important to know that their speed is accompanied by high costs. The ability to approve borrowers with credit that doesn’t meet typical standards is paralleled by the assurance they provide themselves by requiring their own high rates. These rates can be 5 percent higher than those on the average loan market. Additionally, the short repayment period is something that should be considered heavily. In combination with the high rates, repayment may not be as feasible as you think. Hard money lends itself to short-term scenarios. So, even if you can get approved by a private lender while you are struggling to be approved by a bank, it doesn’t mean it’s the best option for you.

Evaluating Your Loan Eligibility Successfully

Even though private lenders offer many benefits, like speed and flexibility, it is important to understand how other factors may affect the balance of the lending process. For example, it’s important to know other situations people turn to hard money. They turn to hard money when they need it fast, but they also turn to it for short-term projects. These short-term projects should also have solid plans, with little wiggle room for wavering, so that if you are hit with the unexpected, you can afford it. If you are unsure if you’re a great candidate for a hard money loan from a private investor, you can always turn to a real estate attorney. Real estate attorneys can help you analyze the terms of the loan agreement so you’re understanding of all expectations, and any possible hidden fees or stipulations. This would be one great way of moving forward with a private lender confidently. If you are wary of the situation, it is likely that is not the best option for you. Colorado Hard Money Lenders are there to help make your dreams come true—you just have to put in the evaluation and research to know if they are the ones who will help provide you a happy ending, or another alternative option with similar benefits.

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 Really Qualify for Texas Hard Money Loans?

Interested in obtaining funding with an alternative loan but unsure if it’s for you? Continue reading to learn more about how you can be successful with hard money, and if it is right for you.

Hard money loans are offered by untraditional lenders. Untraditional lenders are usually private companies and investors. Normally, a traditional loan can be obtained from a bank or credit union. However, because traditional lenders have qualification standards, not everyone can receive traditional loan funding. This is why many turn to Texas Hard Money Lenders, and why you may be interested in learning more about hard money yourself. Hard Money Lenders utilize the property’s potential when approving borrowers for loans. The value of the property, its potential profits, and collateral are the overall determining factors. And while financial history is important, it doesn’t play as big a factor as the property’s value will.

Qualifying for hard money loans will certainly be exciting, especially if you have been turned down in the past by other lenders. Though before moving forward, you will need to consider a few things before accepting and signing the terms to your loan agreement.

What to Know if You’re Eligible for Private Hard Money

Private lenders have high interest rates and loan fees that accompany the terms of private hard money. The rates can be as high as 15 percent and meant to protect the lender for possibly risky loans and unreliable lenders. It is not uncommon, either, to see ill-intentioned individuals hide under the premise of these loans. Doing your research and feeling confident in the reliability of your lender is going to be as important as proving yourself a reliable borrower. It’s not unheard of to have lenders pull deals out at the last minute. Understanding their past success with previous clients will give you an idea if you make a good fit with the kind of work they are intending to do, but you should also be aware of common situations when hard money is completely ideal.

Is Hard Money Right for You and Your Situation?

The short repayment period of hard money loans usually means it is most ideal for short-term projects. Examples of this include: renovating a fixer upper, obtaining money fast to prevent a home from foreclosing or to grab it quickly off of a competitive market. Fixer uppers are great for hard money because the loan can be used for renovations before the home is sold for a profit, in a very short-term scenario. Using the loan for something like the necessities of a rental property, which involves a profit after obtaining a tenant long-term, would not be ideal. 12 months are usually given for the repayment period, unless another deal is compromised with your lender. Timelines are extremely important. It’s one thing to obtain funding, but it’s another to not be able to work with the given circumstances of the agreement. Knowing how the timeline of hard money functions within your own personal timeline will determine if you will find success with hard money.

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.

Reap the Returns: Arizona Spec Home Financing Helps Builders to Meet Market Demand

In a bullish housing market, Arizona Spec Home Financing is helping builders acquire greater returns.

Spec homes are hot, “like Africa hot.” According to a recent article from the Washington Post, “home buyers across the country are scrambling for properties, and real estate professionals are begging for more houses to be built to answer the high demand.” That’s right, the demand for homes is so high that people are “begging” for more homes to be built. While this may be difficult for some niche real estate investors, conversely more demand for homes is phenomenal news for those involved in building and selling homes.

Where chaos strikes a market, the opportunity for increased returns arises. More individuals buying homes leads to a scarcity of available houses. Thus, higher prices are charged to produce homes that are in short supply. For spec home investors, this means a possibly of shorter intermediary periods between investment and return. Confirming this, the Post’s article continues to state, “in today’s hot housing market . . . most houses selling fast . . . . Builders [are] building houses as fast as the lots are developed.”

Why such a demand for spec homes? Well, with a growing housing market and a growing number of individuals selling homes from positive equity positions, there is an influx of individuals looking to move immediately into a new and reliable housing after selling their former properties. Spec homes, according to the same article, are fulfilling this niche. Since spec homes are based off of a generic, reliable, and cost-effective plan, individuals itching to find a new home within a short amount of time tend to find spec homes to be secure, new, and reasonably priced answer to their market demands.

Arizona Spec Home Financing for Real Estate Developers is Fast, Easy, and Attractive

While this is great news, while there is a growing market for building these types of homes, where does one acquire Arizona spec home financing? Great question. Arizona Spec Home Financing is available through Arizona Hard Money Lenders. Many spec home builders use Arizona Hard Money Lenders as a Arizona Spec Home Financing source because conventional lenders are fickle when it comes to granting loans on lots of land devoid of buildings. Though hard money may have a higher interest rate than a conventional loan, it is quick and painless to set in motion as a funding source and many times the only available financing source to be found.

Arizona Hard Money Lenders form a funding base for those looking for spec home financing.

Join many spec home investors in acquiring Arizona spec home financing. Talk to your hard money broker today at Setabay to see what rates and terms apply to any foreseeable spec home investments on the horizon.