Setabay Private Hard Money Lender

Friday, March 22, 2019

Terms of Owner Occupied Hard Money Loans in Arizona

Not every real estate investor uses traditional lenders or even traditional loans to purchase rental properties. There are many ways to creatively finance Arizona Rental Property Loans.

Many investors do follow the traditional path of saving for a down payment and then securing a traditional loan from a bank or a mortgage company, but there are several other ways to creatively fund Arizona Rental Property Loans. Exploring all of your options for financing your first rental property or one later in your career is always a smart move. In some instances, you might need to be creative to land a great deal, even when you are not in a position to seek traditional funding.

Seller financing is always a great option if you can get it. In many cases, you will make a down payment to the seller, and then continue to make payments just as you would to a bank or other lender. In some cases, the lender will only carry a small part of the purchase price, and you will use traditional financing for the remaining balance of the loan. One of the big benefits of owner financing is that you can work with the individual to create loan terms that work well for both of you and are beneficial and fair to both of you.

Investment partners are another common way to fund Arizona Rental Property Loans. Many real estate investors who are new to the business just don’t have the money to cover the 20% down payment required for an investment property. This is because mortgage insurance is not offered on an investment property mortgage. So the solution is to seek a silent partner who contributes the cash for the down payment and then earns a little bit on his money. Sometimes you will even get lucky and find a partner who will contribute money and work to the project.

Fund Your Own Rental Property Purchase

Many real estate investors have a retirement account that is just sitting there waiting to be used. The account is earning interest, but it could also be used to help you start your real estate investing career. Some 401K retirement accounts will allow you to take out a loan from your account to start a business or for other financial needs. If your retirement account offers this feature, then you can fund your own down payment and possibly even the entire purchase. And the best part is that you are paying the interest on the loan to yourself.

Research Your Options

There are many creative ways that you can finance Arizona Rental Property Loans. The only really important factor is that the loan and the terms work for your immediate needs and future needs. Taking a very high-interest rate is sometimes worth the added cost to secure a property that will make you a great deal of rental income for many years to come. Explore your options, and only make your decision based on the cost of the loan and the benefits that it offers you.

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.

Tip For Success When Using Texas Hard Money Loans for Real Estate Investments

(Texas Hard Money Loans are a great tool for real estate investors. But like any tool, they must be used properly to ensure that you have the greatest potential for success and profit.)

Investing in real estate is a great way to work for yourself and build your personal wealth. Many people will enter this career field because it represents an opportunity to control their own future, work the hours that they choose and to retire much earlier than they ever thought possible. But the key to being successful is knowing how and when to use tools such as Texas Hard Money Loans to their greatest advantage.

Understanding the benefits of Texas Hard Money Loans is a critical first step. These loans are short-term and should only be used for short projects or as a fast solution for funds before you refinance to a traditional mortgage. The rates for Texas Hard Money Loans are often much higher than a traditional loan, but the benefits of the fast and simple application process make them very attractive. But never try to force a hard money loan into a long term loan, as the cost will quickly eat up any chance for a profit.

Finding a great lender is also very important to your current deal and all of your real estate investment purchases to come. Look at your hard money lender as a service provider. This person is offering you a service just as your appraiser or insurance agent does. Work with several lenders early on in your career, but select one or two that you focus on to build long term relationships with. Not only will this help to relieve some of the stress each time you need a loan but it will also provide you with a good working knowledge of the loan process for each deal.

Compare and Contrast

In the early stages of your real estate investing career, be sure to have a complete list of all of the charges, fees, and interest that you will be paying for each loan that you are requesting. Asking for this final tally in writing from each potential lender is a good way to learn to compare and contract all of your loan options. Sometimes the cheapest loan does not offer the terms that best meet your needs. Balancing cost and function will be very important to the overall success of each project.

Planning Is Key

As a new investor, it is very important that you have a detailed plan for each project as well as a contingency plan to cover events such as unexpected repairs or time delays. Having this documented will help to eliminate stress and will demonstrate to potential lenders that you are well prepared and educated about the realities of real estate investing. The more projects you successfully complete, the easier it will become to create this document but it will always be an important piece in the success of each investment project that you undertake.

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.

Creative Financing Options for Arizona Rental Property Loans

Not every real estate investor uses traditional lenders or even traditional loans to purchase rental properties. There are many ways to creatively finance Arizona Rental Property Loans.

Fund Your Own Rental Property Purchase

Research Your Options

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.

5 Tips For Success With Texas Hard Money Loans

(It is important to use every tool correctly and Texas Hard Money Loans are no different. These five tips will help to ensure your success using hard money.)

It is important for new borrowers to understand that Texas Hard Money Loans are provided by private lenders and are not required to follow the same regulations as a traditional bank or mortgage company. This means that borrowers should complete a great deal of research and compare several Texas Hard Money Lenders before selecting a lender to work with. During that selection process, the following five tips can be very helpful in your information gathering process.

The first thing to look for is a broker who is leading you to believe that he or she is a lender. This should be a part of the information that he or she discloses to you. The second tip is along the same lines and is to look for full disclosure from the lender or broker that you are speaking to. It is also important to remember that as you get further into the lending process, it is equally important for you to be completely honest with your lender.

Another red flag to be aware of is a lender who is requiring a lot of upfront fees be paid before a loan is approved. This is often a sign of a less than honest lender. Texas Hard Money Loans can require a few upfront payments for things like an appraisal but not huge fees for other documentation or processing. Ask each lender to provide you with a written copy of all fees and charges for the loan you are requesting so that you can compare the total cost of the loan from each lender.

Bait And Switch

Another issue to be concerned with is a lender who offers and price quotes on loan product but then begins to explain other options or actually starts to process a different type of loan for you. These ait and switch type moves are often to get more money from borrowers without disclosing the changes in the loan.

Know The Terms

As you speak to more lenders, you will begin to learn the common terms and conditions for Texas Hard Money Loans. The details will explain the fees and interest as well as the repayment schedule and penalties that you could be charged during the life of the loan. All lenders have the ability to create their own loan terms but beware of any very unusual terms or terms that appear to be very confusing. This can be a sign that you are dealing with a less than honest lender or even a complete scam artist. As a new borrower, it is always a good idea to request a complete copy of the loan documents to have reviewed by an attorney. If a lender is not willing to provide that copy of the documents, then it is a good indicator that he or she has something to hide and that you should find a new lender immediately.

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.

Thursday, March 21, 2019

Questions For Hard Money Lenders

(When you are comparing hard money lenders, you will want to ask all of the following important questions. This will help you to make the best selection to meet your needs.)

Hard money is a loan that is provided by a private lender which means that there are no real standards or rates that the lender needs to follow. That is not to say that Texas Hard Money Lenders are not regulated or forced to follow some guidelines, but most do not pertain to the rates and fee structures that they use. So all borrowers should have a list of questions for each potential hard money lender that they speak to. And the list should include all of the following questions.

The cost of the loan is a very big concern as that will have a hand in determining your profit, or loss, at the end of the project. Be certain to as what the interest rate and point for the loan will be. The rates can vary from 10 to 15% for interest and up to about 4% to cover points. Also, ask about any upfront fees to know the total cost of the loan. And the final fee that you should not is the early payment penalty that you would incur if you pay the loan off early.

The next major concern is about the other term of the loan. This can include things like the payment schedule, and the length of the loan itself. You should also ask if you have the option to extend the term of the loan or refinance it if you have not completed your project when the loan comes due.

Down Payments

The next question can vary a great deal because you are working with a private lender and each one has his or her own preference. But you need to know how large a down payment the lender requires. This is a way for the lender to add to his or her security because you have some of your own money tied up in the deal. The more risky the deal looks on paper, the higher the down payment is likely to be. Texas Hard Money Lenders like to know that the borrower has some skin in the game to remain focused and motivated to complete the project and repay the loan.

The Details

Your last questions for Texas Hard Money Lenders will revolve around the final details of the deal. You will want to know how long it would take each lender to be ready to close the deal and also how long until you will have the funding for the loan. In some cases, it is worth paying a little bit more in fees and interest to work with a lender who can close more quickly and have the money in your hands faster. The purpose of asking all of the same questions of all lenders is to have a fair way to compare each offer and to be able to determine which lender will best meet your needs on loan terms as well as the total cost of the loan.

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.

Critical Information for Newbies Seeking Arizona Rental Property Loans

Not all types of loans are the same and that can make seeking Arizona Rental Property Loans a bit scary for new investors. But these few bits of information can be a great help in the learning curve.

Acquiring a first rental property is both exciting and in some ways very trying. The excitement comes from knowing that this first rental property could be the start of a very lucrative real estate investing career. But the trying part begins when the new investor begins to realize that Arizona Rental Property Loans are not the same as a traditional home mortgage.

The first hurdle that most borrowers face is the fact that lenders are much stricter on a loan for an investment property, and they also require a larger down payment. All of this is because Arizona Rental Property Loans and all investment property purchases represent more risk than a mortgage for an owner-occupied property. The biggest reason there is more risk is that a borrower will default on an investment loan long before he or she will default on the loan for the place that he or she is living.

This higher risk means that lenders are going to look a little deeper on loan applications, and they are also going to want to get paid more to lend to the higher risk borrower. The biggest difference that borrowers are going to notice is in the interest rate. If an owner-occupied property loan is charging 4% then expect to pay 7% or even 8% for Arizona Rental Property Loans. In addition, lenders tend to charge a more in points and other fees to process an investment property loan. This can mean an extra point, or it could be additional fees for application processing, appraisal fees or even funding fees.

Your Credit Is a Huge Factor

As with all property loans and mortgages, your credit score is important. In the world of investment property loans, a credit score of 740 or lower is the point when lenders begin to charge higher interest rates. A score of 741 or up will likely get you the best rates that the lender offers. If you are very interested in getting the best interest rate possible, but your score is just a tad under the magic number of 740, then there is often the option to buy down your interest rate. You can request a quote with the best interest rate and the buy-down fees, as well as the rate that you qualify for and do the math to decide which offer works best for you.

More Magic Numbers

Even though you are just beginning the process of your first rental property purchase, it is important to know that most mortgage companies will not even consider a borrower who is already carrying four property mortgages. There are a few options to acquire more mortgages, but you need to have a very large cash reserve, a down payment of 25% and have a credit score of over 720. Knowing these pieces of information will help you to understand the expectations that you will need to meet for your rental property mortgage, as well as what to expect as you grow your real estate investment portfolio.

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.

Setabay Private Hard Money Lender

Friday, March 22, 2019

Terms of Owner Occupied Hard Money Loans in Arizona

Fund Your Own Rental Property Purchase

Research Your Options

Tip For Success When Using Texas Hard Money Loans for Real Estate Investments

Creative Financing Options for Arizona Rental Property Loans

Fund Your Own Rental Property Purchase

Research Your Options

5 Tips For Success With Texas Hard Money Loans

(It is important to use every tool correctly and Texas Hard Money Loans are no different. These five tips will help to ensure your success using hard money.)

Bait And Switch

Know The Terms

Thursday, March 21, 2019

Questions For Hard Money Lenders

Critical Information for Newbies Seeking Arizona Rental Property Loans

Your Credit Is a Huge Factor

More Magic Numbers

About Me

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