Setabay Private Hard Money Lender

Friday, March 22, 2019

Tips On Success With Rental Property Loans

(Owning a rental property is a great way to create passive income. But many investors are not sure how to secure Arizona Rental Property Loans.)

There are many people who are figuring out that rental income is a great way to boost their finances and even consider early retirement or a career change to something that they really enjoy rather than being a slave to a high paying but also high-stress job. But what they are not sure about is how to best go about getting Arizona Rental Property Loans or how to ensure success in this new business venture.

One of the best pieces of advice, as you start to move forward with your plan to purchase a rental property, is to be working on your finances early. This means checking out all of your options for loans such as a traditional lender, borrowing from a 401k or HELCO or working with a non-traditional hard money lender. By doing the research early, you will know your options and know what each will cost when you find the perfect property to buy. This can eliminate a great deal of stress and can help to secure your financing quickly to ensure that you get the property that you want.

It is also a good idea to consider buying a duplex or other multiunit property so that you can reduce your living expenses and pay off the property more quickly. In the case of a duplex, your tenant could very well be paying most or even all of the mortgage, allowing you to save a great deal of money personally, which you can reinvest in extra mortgage payments. Or after a few years of saving, you could be in a position to purchase a second income property much sooner. This would be a huge jump in your passive income. And with a large down payment and equity in your first rental property, you would have little trouble when you began looking for Arizona Rental Property Loans for the new purchase.

Consider Potential Tenants

When you are searching for a rental income property, try to think like your tenant. The things that are desirable could include outdoor space such as a yard or large patio or deck area, off street parking or a garage, an open floorplan, and a very functional kitchen. Having all of these features will help to attract good candidates to rent your property. Having a quality tenant is the most important long term goal any landlord should have.

Find The Right Balance for You

Not all Arizona Rental Property Loans will be the same or even similar. But you need to balance the cost of the loan with the terms that best meet your current needs. This might mean paying a little more for a loan with a longer term or paying more for the fast funding of a hard money loan. All aspects of the loan need to be evaluated to choose the option that offers you the best opportunity for success and a strong return on your investment.

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.

The 4 Best Types of Fix and Flip Loans in Arizona

In most cases hard money is used to purchase an investment property. But there are cases when owner-occupied Arizona Hard Money Loans are funded by some lenders.

Not everyone has the credit history or even the documentable income to qualify for a traditional loan from a bank or a mortgage company. But these consumers need a place to live and can grow very tired of renting a property. Most people look at renting as paying a mortgage for the property owner and improving the property owners financial future rather than their own. As a result, many of these renters look for alternative resources which will allow them to purchase a home and begin to build their own financial security. Owner-occupied Arizona Hard Money Loans are one way to finance a home purchase that is truly creative.

If you are unable to verify your income or to show a stable and regular income level, then securing a traditional loan will be nearly impossible. It can also be a challenge to get a loan when you have no credit history or a bad credit history. But Arizona Hard Money Lenders are more interested in the value of the property that you are buying and less concerned with your personal credit. Asset-based lending is all about the property condition and value. The loan to value ratio is used to determine how much the lender is willing to offer you, and the property you are purchasing is used to secure that loan. The qualifications are much easier than those of a bank loan.

Because owner-occupied Arizona Hard Money Loans are provided by private lenders, the terms of your loan could vary but there are some fairly standard terms that you should expect. The down payment is normally between 20 – 30%. This is to create instant equity and help to protect the borrower's investment. Some lenders will also allow co-signers on Arizona Hard Money Loans. Some Arizona Hard Money Lenders are also willing to work with you to allow for seller financing on the down payment so that you do not need to have such a large amount of cash to close the deal. And when you begin to see offers, expect to see the interest rate at just under 10% at best. Depending on the LTV, the condition of the property and your current financial health, the rate can be several points above the 10% mark.

Other Reasons for Owner Occupied Arizona Hard Money Loans

Some hard money borrowers are first time home buyers who just need to build a credit history. Others have poor credit and need the opportunity to rebuild good credit. Other borrowers just want to refinance an existing loan or need to refinance for some reason. Refinancing might be the only way to make needed repairs or to remodel the property. While other borrowers are looking for a way to consolidate their debt.

Do Your Homework

Using hard money to finance the home that you are living in could be costly, but it certainly has several benefits over continuing to rent and pay someone else ’s mortgage and build their equity. As with any financial choice, do your research and only make a decision when you feel that you fully understand all of your options and have found the one that best meets your needs.

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.

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.

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.

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

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.

Setabay Private Hard Money Lender

Friday, March 22, 2019

Tips On Success With Rental Property Loans

The 4 Best Types of Fix and Flip Loans in Arizona

Other Reasons for Owner Occupied Arizona Hard Money Loans

Do Your Homework

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

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