Setabay Private Hard Money Lender

Sunday, February 3, 2019

UNDERSTANDING HARD MONEY LENDING

Even experienced borrowers often have questions about hard money lending and how it works.

Hard money refers to capital available outside of conventional lending institutions such as credit unions and traditional banks. A hard money loan is secured by the borrower’s real estate. Hard Money Loans in Arizona are typically used by real estate investors to quickly obtain the funds needed to purchase or refurbish a property. These loans can be used as bridge loans until a time when the borrower can secure more traditional financing or until they sell their property.

Hard Money Loans in Arizona are short-term loans-typically with one-year terms. Some benefits of hard money loans are the ease of the underwriting, fast approval and the emphasis on the borrower’s assets versus their credit. Texas Hard Money Lenders don’t to have to follow the same rules and regulations as conventional lending institutions, therefore allowing more flexibility in the loan terms.

WHAT ARE TEXAS HARD MONEY LENDERS?

Texas Hard Money Lenders are typically private financial groups with capital that is available for loans in certain geographical locations. These lenders have their own set underwriting policies and approve funds using a loan-to-value ratio.

Texas Hard Money Lenders are investors that are seeking better returns than typical investments allow. They approve riskier loans than conventional banks do. Because these are asset-backed loans, Texas Hard Money Lenders require much less documentation than traditional banks. Approval and funding can usually be completed within a week—unlike banks, who can easily take up to two months for funds to be available to the borrower. Texas Hard Money Lenders do not require tax returns to prove that the property is generating revenue. Many borrowers run into problems when attempting a conventional loan due to their properties not all being listed on their tax returns.

Texas Hard Money Lenders will provide funding for many types of properties, but they will not fund all types. Many Texas Hard Money Lenders will not fund owner-occupied hard money loans for residential properties— these situations are government regulated and will result in more documentation and involve federal regulations involving the borrower to meet a debt-to-income ratio. Texas Hard Money Lenders do not work on a debt-to-income ratio because they are asset-backed and do not typically lean on the lenders credit worthiness or income. However, lenders will typically approve loans for owner-occupied commercial properties. Lender rules and regulations are different in different geographic areas — and each lender can determine their own loan terms. There is a great amount of flexibility in hard money lending.

Hard money loan applications are painless and easy. There is a tremendous amount of benefits to working with a hard money lender.

Once approved, funds are dispersed in less than 10 days. A hard money loan can help when quick capital is required to obtain a deal. Perfect credit is not a necessity when applying for a hard money loan— in fact, a borrower’s credit score is not a top priority. These loans can also be used as bridge loans until a borrower can gain approval for a conventional mortgage. There are many advantages to hard money lending. Find a local hard money lender that will assess your situation and give you options.

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.

How to Choose an Exit Strategy with Hard Money Lenders

Arizona Hard Money Lenders offer short-term loans that typically last no more than five years but can sometimes be measured in months. You should have an exit strategy in mind before you get started using this form of lending to fund real estate deals, though knowing when to pivot away from your initial plans is crucial to your success.

Many people in the fix-and-flip biz work with Arizona Hard Money Lenders because it enables them to get cash fast and credit is less of a concern. In these cases, selling off the property as soon as it’s completed is the traditional route, purely because it allows the investor to collect and move onto his or her next project. Sometimes, however, a market downturn can mean selling it right after completion is not the best choice. People also use alternative lending for fix-and-holds. If the property is generating income or is expected to increase substantially in value, then it’s generally advantageous to hold onto it for some time. Neither is wrong or right; they’re merely different investment strategies based on the goals and preferences. With the fix-and-flip, selling off the property is a natural exit. With a fix-and-hold, you’ll need to evaluate whether your ideal selling point will fall within the terms of the loan or if it makes sense to refinance.

All that said, an important first step is to determine how much you’re actually paying as you hold the property. Your loan and interest are only one component, as there are always additional costs such as upkeep and property tax. Create a detailed list outlining all expenses associated with holding, so it’s easier to determine whether it’s best to sell or collect rental income.

Interest rates can also help you determine when it’s time to get your initial loan paid off. You may have one year or even five years to pay off the balance, but if interest rates on your refinancing options drop, and it’s your plan to continue holding for years to come, it may also make more sense to do the refi earlier rather than later.

Learn About Multiple Exit Options and Know How to Evaluate When it’s Time to Shift

Depending on which Arizona Hard Money Lenders you work with, there may be absolutely no penalties for doing an early payoff. Some are glad to have you pay off the balance early because it typically means you’re moving onto another project they can fund. This in mind, it’s important to do a comprehensive cost-benefit analysis before you purchase a property to identify the best time and method to exit. You’ll also need to keep an eye on market conditions and interest rates as you hold the property to make sure your initial projections are still going to provide you with the greatest amount of profit.

The more data you collect, the more successful you will be.

Experienced real estate investors don’t rely on intuition to tell them when to sell. They use hard data and build projections based on that, then keep a pulse on market and interest conditions to make sure they’re still on track. This not only helps them get top dollar on each project, but makes them more appealing to Arizona Hard Money Lenders when they go in to request funding.

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.

CAN YOU GET AN ARIZONA BRIDGE LOAN?

What exactly is a bridge loan? The definition of a bridge loan is “a sum of money lent to cover an interval between two transactions, typically the buying of one house and the selling of another.”

Basically, what this breaks down to is if you don’t have enough income to cover two mortgages at the same time, you can use a Arizona bridge loan to pay off your initial mortgage while you wait on the property to sell—all the while being able to purchase your new property. Bridge loans are short-term loans that borrowers can qualify for a mortgage on their new house before the Arizona bridge loan is paid off.

Bridge financing is a short-term method of financing that is interest-only. Typically, borrowers can receive their funds in less than one week—and very often within 48 hours of approval. It is a secured form of lending that is backed by property—meaning that if a borrower defaults on the loan their property can be repossessed by the investor. Bridge loans can be used for a variety of purposes that include both residential and commercial properties. A common Arizona bridge loan scenario is when the borrower is selling their primary residency, but has found a new home and the seller doesn’t want to wait on the sale of the initial home— a Arizona bridge loan can secure the sale. Also, many times borrowers need fast access to capital in order to obtain permission for a new development. Sometimes, a property is not inhabitable (typically, a fix-and-flip) and a traditional bank will not approve a mortgage.

Texas Hard Money Lenders will approve borrowers with poor credit for an Arizona bridge loan. Because these loans are asset-based a borrower’s credit is not as important. These loans are interest-only until the end of the loan term—meaning a borrower only pays the interest throughout the life of the loan and at the end a balloon payment is required. In case of default the lender can repossess the property and sell it in order to get their money back.

WHY GET AN ARIZONA BRIDGE LOAN?

Unlike a traditional bank, a hard money lender does not require excellent credit. However, they will look at your credit score. Texas Hard Money Lenders use collateral to secure the loan. The collateral, which is your property, reverts to the hard money lender that if the borrower defaults the home will go into foreclosure.

Borrowers usually choose a Arizona bridge loan due to the ease of the application and the speed of financing. A borrower can be approved same day and funding can be released in less than a week. However, this convenience does have a cost—slightly higher interest rates. Most borrowers don’t mind this, as they are only short-term loans. Hard money loan terms are usually around one year but can be extended up to five years.

Bridge loans are an excellent resort to a temporary situation.

When you are searching for a home and you find that perfect home—but you can’t buy it until you sell the home you already have—that can be heartbreaking. Especially, when the seller refuses to wait on the sale of your initial home. This is where a bridge loan can save the day—even with poor credit a hard money lender can help make your dreams come true!

ALL ABOUT ARIZONA CANNABIS DISPENSARY LOANS

The need for financing of cannabis marijuana business operations is booming with the legalization of medical marijuana in Arizona.

In 2016 legal recreational and medical cannabis states generated between $16 to $18 billion. By 2021 it is projected to reach $68 billion. These figures do not include other cannabis related industries such as doctors and growers. There are numerous jobs that are being created due to the legalization of recreational and medical marijuana. These people then spend their money at other businesses. This money ends up paying local and state taxes—these businesses lead to benefits for real estate and construction, as well. The bottom line— legal marijuana is a booming business and one that could result in a lucrative investment.

HOW TO GET ARIZONA CANNABIS DISPENSARY LOANS

As of today, cannabis dispensaries cannot get small business loans through FDIC insured banks due to their regulations. Even though marijuana and cannabis products are legal in many states they are still considered a Schedule I drug by the DEA and the FDIC doesn’t approve of cannabis related business. Banks that approve loans to dispensaries will be subject to prosecution on the federal level. Private money or Hard Money Loans in Arizona are seemingly the only way to get a dispensary loan, as of now. Private loans can provide dispensaries with the capital needed to grow their business. Many investors will provide funding for growing rooms, marijuana kitchens, dispensaries and even websites.

Private money lenders look at investments in a different light than do traditional banking institutions. It is common for a private money lender to look at a project in a “what is needed in the community” way versus “is this too risky.” Private money lenders are not scared to take a risk, in fact that is what their business is all about—risks paying off.

There are various loans that can provide funding for marijuana cannabis dispensaries through hard money and private money lenders. A Bridge loan is a loan you can get through a hard money lender. You can use these for short term funding in order to expand your services. A hard money lender can offer you a short term, higher interest dispensary loan that will fund your company. Many investors will also be willing to take a stake in your company, as well. This could result in your loan being a larger amount and interest rates possibly being lower. Cannabis dispensaries are also allowed to raise up to $1,000,000 per year through crowdfunding. However, equity crowdfunding is unlike normal crowdfunding. Equity crowdfunding means the investors will be financial partners in your company and will get a piece of your company. The benefit is you won’t pay interest on the funds you raise. However, the backers will continue to benefit from your profits.

Arizona is relatively new to the legal cannabis business. Opening a dispensary can be a profitable business.

Because you will be receiving funds from non-traditional sources it is important you understand that these firms are taking a huge financial risk by approving funding to a cannabis based business. It is important to find an investor that has knowledge of Arizona cannabis dispensary loans and can guide you through the process.

Saturday, February 2, 2019

The Advice I Wish I Knew Earlier About Private Money Lenders

I’ve been saving pennies trying to make my investment dreams come true. When I finally found private money lenders, I was finally able to reach my goals. Read on to discover my personal story about working with private money lenders and what I wish I had known sooner.

Don't just take our word for it about hard money lending opportunities! We've collected personal success stories from real people and are now ready to share them with you. We have kept the name anonymous but read on to discover just how much of a difference hard money lending opportunities can make. Success Story by John D.;

“After going through a terrible divorce, my credit rating and personal finances were in absolute shambles. I was bored with my day-to-day desk job and was still barely getting by. I wanted to provide for my kids and wanted them to be proud of their dad when they came to visit on the weekends. Fast forward a couple months later and I was only getting worse. I stumbled across a blog post about hard money lending opportunities in my area and at first, I was confused. How could a loan be available for a person like me with an absolutely terrible credit score?

The more I read, the more I found out that hard money lending opportunities and private money lenders are able to use the properties that are invested in as collateral. This meant that for people like me that have low credit scores, we could still get started with real estate investment. With a Arizona Hard Money Lender, I was able to purchase my first property and have the money to renovate it. While I am handy when it comes to tools, there were some factors in the property that needed to be renovated that I couldn't do on my own. The hard money loan in Dallas Texas that I used was able to give me the funding to purchase the property and have enough set aside to pay for independent contractors to make the repairs. When all was said and done, I was able to sell the flipped property for a huge profit and made a return on my investment. With that investment, I was able to purchase yet another property. The deals got bigger, the houses got more expensive, and I finally was able to pay off my credit card debt. Now, my kids are proud to call me their father."

Get Inspired and Find Private Money Lenders for Your Goals

The time is now to act with your financial goals and looking for the right lending opportunities in your area.

Opportunities like this do not last forever so it is important to get started sooner than later while the real estate market is thriving.

Private money lenders or hard money loans can give you the financial freedom you deserve to change your life and finally get started with investing in the real estate market. Imagine what a career in real estate investing could do for you and your family.

How to Make Money with Commercial Real Estate Loans

A career working in the real estate market can allow you to triple your income over time and help you dramatically change your lifestyle for the better. Learn how to make money with the right commercial real estate loans so that you can start living your best life today.

Is it accurate to say that you are hoping to put resources into property however don't have sufficiently high enough of a financial assessment or credit score to do as such? Try not to give poor credit a chance to keep you from following your aspirations or financial goals and figure out how to locate the ideal loaning options for your business or organization. An awful FICO rating or poor credit assessments does not need to totally characterize you or your business credits. Putting resources into property can become genuinely plausible without having to worry about your lower credit rating. Try not to wait in the hope of trusting that your score will rise before bouncing on your business objectives or the next great investment option. Develop your FICO assessment and accomplish your monetary objectives by discovering speculation property advances that are accessible even for people with low FICO scores.

A hard cash money lender is a legitimate alternative for some people looking for a loaning opportunity and that likewise have a poor FICO score. Since hard cash money lenders are private loan specialists, they don't work with banks. This implies you can build up an individual relationship with a lender instead of having your financial assessment and similarly your lower than average credit score represents you. There is an assortment of organizations anxious to put resources into the objectives of littler organizations and businesses! Networking with business pioneers in your general vicinity could enable you to discover private cash loaning openings in your area. These open doors could work with you without you having to be stressing over your lower FICO score. Your credit score does not have to be a burden. Look into hard money lending business partners. If you can't get positive credit without anyone else, finding a colleague might be a useful arrangement. A colleague can enable you to discover openings, for example, venture property advances, and help you with the assets or FICO score expected to pursue your objectives.

Start Growing Your Income by Choosing Commercial Real Estate Loans

Keep in mind that you can still accomplish your business dreams by paying little mind to a lower FICO score! Try not to give a poor credit a chance to score get among you and your business objectives.

Find the right lending opportunities in your area to finally turn your life around and get started with investing in real estate.

Follow your dreams by settling on better business choices and characterize a more promising time to come for yourself. Stamina and perseverance are vital to finding an effective loaning opportunity notwithstanding when you right now have a lower financial assessment.