Setabay Private Hard Money Lender

Sunday, March 24, 2019

Funding Your Arizona fix and flip loan and Expenses

A Arizona fix and flip loan is one that doesn’t conform to traditional lending criteria and payoff terms. Read below to find out why a these special loans have investors smiling.

Whether you’re new to fixing and flipping or a seasoned flipper, it’s an exciting adventure! It might not be as glamorous as television portrays the process, but it’s still an investment journey that can bring in the cash and give you creative freedom!

For a first time flipper, there are some expenses beyond your Arizona fix and flip loan that you may not be aware of so we’ve created a list so you can be prepared!

• Loan costs

• Insurance

• Property Taxes

• HOA

• Maintenance beyond repairs such as yard

• Selling costs

Each of these are going to run a different amount depending on where you’re buying and what you’re buying, but it’s a good rule of thump to have money set aside for each of these.

For example, if you purchase a home today, it might take you a month to fix it and a month to flip it. That means you’ll need money to cover two months worth of HOA fees and yard maintenance.

Beyond those typical costs, the costs of your flip are going to depend on the condition of the home and the necessary repairs and ideal upgrades. Having a solid financial plan for your flip is the first step you need to take so that you don’t go over budget and end up coming out on top once you sell the home.

Once you have your financial plan in place, you can contact a Arizona Hard Money Lender for your Arizona fix and flip loan. They will go over your plan with you and examine your budget to determine if it’s a good loan for them to make.

Once they’ve decided that your financial plan is solid and well thought out, they can decide to fund your Arizona fix and flip loan! Funding is quick through Arizona Hard Money Lenders so you can make your purchase and get started on your renovations as soon as possible.

Level 4 Funding specializes in Arizona fix and flip loans and would love to hear about your latest project. Give us a call today to speak with someone about your investment dream!

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.

Saturday, March 23, 2019

Make That Purchase Happen with Arizona Special Home Financing

When conventional loans aren’t an option, Arizona Special Home Financing might be the way to go.

Conventional loans and FHA loans are the typical way for home buyers to obtain financing, but the requirements can be strict and unforgiving. We all go through times in our lives that may force us to turn to credit to stay afloat and during the time you’re paying down that credit, it can be difficult to get a home loan.

Here are some tips for paying down your debt so that you can obtain a traditional loan:

Budget, Budget, Budget!

The best first step is to create a budget. List out every single expense you have each month such as rent, car payment, insurance, phone bill, gas, and groceries. If you don’t have a good idea of where your money needs to go every month, you won’t have a good idea of where you can save to put money aside to pay down debt.

Start High, Finish Low

It may be tempting to pay off the lowest debts first, but financial professionals will tell you to pay off the debt with the highest interest rate first so that you can still make minimum payments on the other debt with lower interest rates.

Balance Transfers are Your Friend

This is a great way to navigate around those high interest rates so that you can make a bigger dent in your debt. This is an advantage to you if you can pay off the amount before the higher interest rate kicks in after the transfer.

Most importantly, if you need to purchase a home in the meantime, Arizona Special Home Financing might be the way to go for you. With flexible terms it can mean being approved and funded while you’re paying down your debt in order to obtain conventional financing on your home.

Call Level 4 Funding today to learn more!

7 Options for Arizona Rental Property Loans

Many new real estate investors are unaware of their options for borrowing. But exploring these seven options will allow borrowers much more flexibility when securing Arizona Rental Property Loans.

As a new or prospective real estate investor, you might not have any idea that there are over half a dozen options for you to consider when you are seeking Arizona Rental Property Loans. But for the savvy investor, there are a lot of options besides the standard conventional mortgage from a traditional bank or mortgage company. Which is very good because banks often have very stringent criteria for lending' which makes it difficult to get a bank loan for an investment property.

A fix and flip loan is a short term loan that is often used for an investment property. These loans are not as difficult to secure as a traditional mortgage because the property is used to secure the loan. But the lender does still look at the borrower's credit score to determine if the borrower will qualify for the loan. Arizona Private Money Lenders are another resource that is very similar to the fix and flip loan. These are people who make loans based on the value of the real estate being purchased rather than the borrower's credit score. These are also short term loans, but they are much easier to qualify for.

Seller financing is another great option for Arizona Rental Property Loans. In this case, the buyer is making an agreement with the seller to make monthly payments on the property. The terms of the contract are similar to a traditional loan, but a loan from a seller can be more flexible with some of the terms. If the seller is not interested in providing financing then you might also want to consider a real estate partnership. In this case, you can determine who to partner with, and what that person’s contribution will be. Some partners only provide cash and remain silent regarding the function of the business, while others are actively involved in the investment business.

Finance Yourself

If you own a home then you also have the option to finance a loan to yourself. In this process, you would secure a home equity loan against your personal home or a home equity line of credit. This is like getting either a second mortgage on your home to use the equity or a new mortgage if your home is paid off. Finally, many 401K accounts are structured to allow you to take out a loan against your retirement savings. If you have a 401K that offers this feature, then that is the perfect way to finance a rental property as you are paying the interest to yourself as you pay back the loan.

Explore All The Options For Arizona Rental Property Loans

As a real estate investor, the only priority that you have is to get the best deal possible on a loan so that you increase your profits. No one type of loan is perfect or will fit every borrower’s needs. Investing time in research will pay off when it comes time to calculate your return on investment so that you can make an additional purchase and grow your business.

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.

What Are 90% Arizona Hard Money Loans?

If you are not familiar with Arizona Hard Money Loans then the term 90% Arizona Hard Money Loans is sure to be confusing. But with just a little information you will learn how these loans can help you make a great deal of money.

Many borrowers are under the misguided conception that Arizona Hard Money Loans are loans that operate on the fringe of legality and are considered shady at best. But that could not be further from the truth. A hard money loan is simply a short term loan which is offered by a private lender. Unlike traditional loans from a bank or mortgage company, Arizona Hard Money Loans are asset-based loans. This means that the qualification for the loan is not solely based on the borrower's credit score. In the case of hard money, the loan to value ratio, or LTV, is actually more important than any other factor.

The loan to value ratio is a means of measuring the percentage of a property’s value that’s being financed with the loan. The amount of the loan is divided by the property’s appraised value to determine the LTV. Most Arizona Hard Money Lenders have an LTV rate that they are comfortable funding on the average property. In many cases that number is about 75% of the value of the property. This limit is built-in protection for the lender in the event of the borrower defaulting on the loan. If the loan is never more than 75% of the value of the property, then the lender is relatively certain to be able to recover all of his or her investment should it become necessary to take possession of the property due to default on the payments.

The remaining 25% of the value of the property is basically the equity that the borrower paid in a down payment. This is also good for the borrower as the instant equity can be used to secure funding for renovations in the case of a fix and flip. The equity also represents less money that the borrower is paying interest on.

90% Arizona Hard Money Loans

In the case of 90% Arizona Hard Money Loans, these are a great deal for borrowers because they are offered the opportunity to borrow a full 90% of the value of the real estate that they are purchasing. These loans often have a bit higher interest rate due to the higher LTV, but many borrowers are willing to pay more interest. These loans are typically very appealing to first-time real estate investors who do not have a large sum of cash to use for a 25% down payment.

Great For First Time Buyers

Another group that benefits from 90% Arizona Hard Money Loans are first time buyers. These loans allow first-time buyers to finance 90% of their purchase and have the money quickly. Then the buyer has the opportunity to shop around to secure a traditional mortgage or to refinance for a longer term with the private lender. Being able to finance such a large percentage of a real estate purchase with a private lender can offer many huge benefits to a wide variety of borrowers.

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.

Prime Vacation Properties for Arizona Rental Property Loans

(There are many great options for different properties when you are considering investing in a vacation rental. Determining the best property for you will help you know the best type of Arizona Rental Property Loans to research.)

Vacation rental properties are a very high-interest investment currently. Not only are real estate investors finding that vacationers enjoy the features of a less commercial hotel experience, but investors are also enjoying the benefit of having a vacation rental of their own to visit. The location of your rental can sometimes dictate the type or size of the property that you are seeking but many times it is the preference of the investor and the amount of the Arizona Rental Property Loans mortgage that dictates the choice.

Condos are very popular as vacation rental properties because they offer renters many amenities that are not found in single-family homes. Access to abundant parking, swimming pools, a community gym, and even shops and restaurants can be huge benefits to renters on vacation. And you will find that many guests prefer to have the features within walking distance so as not to have to drive in a new city. Condos are also a good investment as the exterior maintenance, and sometimes the interior care as well, are covered by the association. This eliminates the need for yard care and other expenses associated with a single-family home vacation rental property. And with fewer expenses, you can budget more for your Arizona Rental Property Loans mortgage to get a larger or more updated unit.

A single family detached home is normally going to offer the largest space but will also carry the highest operating cost. You will be paying for more maintenance and upkeep as well as a local manager to provide access to renters and handle emergency maintenance calls. In addition, the single-family homes Arizona Rental Property Loans mortgage will be the largest, making total occupancy critical. Some of the drawbacks include fewer amenities, the need for transportation in most cases and much higher rent which limits your potential renter pool.

Multiunit Properties

Owning a multiunit vacation rental property can have several benefits. You are investing about the same amount in marketing but you have the potential for more rental income for that same investment. In addition, you can rent to larger goods such as several families who each want a unit but want to be near each other. And even in t a more busy season, you have a better opportunity to visit your property which still collecting rental income from the other units.

Know The Market

There are a lot of options for vacation rental properties, and it is always best to learn which types of properties are in the highest demand in the location that interests you. In areas that attract families, larger properties might be the hot item. But in an area that attracts retirees, smaller units and condos could be the best option. Knowing these facts will help you to make a good selection that will offer the greatest return on your investment.

The 4 Best Types of Fix and Flip Loans in Arizona

Property flipping has become very popular in the last few years. But many real estate investors have no idea how to best finance Fix and Flip Loans in Arizona.

Over the last several years there have been dozens of television show demonstrating the process of buying, fixing and flipping homes. But what those shows gloss right over is the correct process for funding Fix and Flip Loans in Arizona. Not everyone has $100,000 sitting around to start a real estate investing business. But there are a few pointers that can help anyone who is interested in entering the real estate investment business when they are just starting out.

The important fact to remember is that if you are using a traditional lender, you will need to have access to enough cash to cover at least 20% of the purchase price of the property. This is because mortgage insurance does not cover investment properties. If you are using a less traditional lender, such as a private hard money lender, then the amount of your down payment will vary depending on the lender's stipulations.

Personal funding covers a lot more than just what you have sitting in savings. In some cases, you can borrow from your retirement account to fund a down payment for Fix and Flip Loans in Arizona. In other cases, you could use a personal loan, a loan from family or friends or even a home equity line of credit on your personal home. Other real estate investors partner with someone who will do nothing more than provide funding while they do the work on the house flipping.

A Professional Loan

If you have created a business to do your house flips, then you might also be able to secure a small business loan to use for funding down payments and other expenses. You could also secure a business line of credit that would allow you to keep the credit available for future purchases. Hard money is another option that is very popular for Fix and Flip Loans in Arizona. These are short term loans that are offered by private lenders. The loan is secured with the property that you are purchasing rather than your personal creditworthiness. Because hard money is asset-based, these loans are much easier to qualify for and will fund in as short as a week or two. Many borrowers also like to work with Arizona Private Money Lenders because they are able to customize the terms of the loan to best meet their specific needs.

Do Your Homework

There are many different options available to fund a house flipping business. And not all of the loans are going to be from a traditional lender or even from a professional lender. Using your personal resources such as friends and family, as well as your personal credit can often be enough money to get the down payment for your first flip property. Then you just need to be diligent and remain on schedule to complete the property and sell it to fund your next fix and flip.

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.