Setabay Private Hard Money Lender

Tuesday, March 26, 2019

Owner Occupied Arizona Hard Money Loans: Do the Advantages Overrule the Requirements for Borrowers?

Thinking of financing your latest project by using your current home as the collateral? Do some research into the area of owner occupied Arizona Hard Money Loans and learn the pros and cons of this route to funding your venture.

While you are wracking your brain in order to find collateral that will satisfy the bank or whatever conventional lender you may have chosen, you may not realize that that you are literally sitting on what might be the best thing for you.

An owner occupied Hard Money Loan in Arizona could be exactly what you need, but these loans have strict specifications set up through the Truth in Lending Act –indeed a lot of people think they are illegal. This is not true, but they are in a class by themselves being stricter than other hard-money related loans.

What kind of requirements do these loans have?

In California, the majority of this type funding must be earmarked for a business investment ranging from increasing your business itself to setting up an office for you to work from in your house. They cannot be for household, personal or family usage. Laws, however, vary from state to state.

Another requirement is that the borrower’s income must be verified through a third-party source.

If the loan ends up being defined as a ‘high-cost loan’, both hazard insurance and property taxes have to be paid in on the first year of the loan. This is termed an ‘impound’ and can only be cancelled by the borrower.

The borrower has to be given a full disclosure statement regarding all of the terms of the loan he/she is taking out. This process is the same as if the customer were dealing with a stand loan through a bank.

Requirements can be strict, but closing can be completed in less than two weeks. Poor credit, a recent foreclosure and/or a loan modification will not automatically keep you from receiving funding. Being self-employed is not the stumbling block it often is with bankers and other traditional lenders either.

These are not the only requirements that owner-occupied Hard Money Loans in Arizona have attached to them, but are a short list of the basics and provide an outline of the structure of this type of funding.

Point: the strict requirements may put some people off, but a point worth noticing is loans that have closed through this process have been approved for customers whose credit score was lower than 600. Another positive area is that proof of income can be shown through methods other than the normal ones demanded. On the average, there are no prepayment fees when a customer pays off the loan before the required time period runs out.

Let your current home work for you in ways you never imagined. Investigate your owner-occupied Hard Money Loan options in Arizona today!

Remember the Devil really is in the details. Do your homework, read the fine print and find out where you stand in regards to the requirements.

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.

No Credit? No Problem for Arizona Hard Money Lenders

Whether you have bad credit or no credit, Arizona Hard Money Lenders can look beyond that to see the potential for a great investment.

There’s a lot of talk about bad credit these days. When people fall on hard times it can be the only way to get by, but it comes back to haunt you if you are unable to pay it off in a timely manner.

But what about those who don’t have credit? There’s an especially satisfying feeling being able to make large purchases without putting it on your credit. People work and save to be able to do just that. However, not having credit can sometimes be a roadblock just like bad credit can be when it comes to home loans.

Here’s why traditional lenders don’t follow in the footsteps of Arizona Hard Money Lenders when it comes to credit requirements.

Why Credit Matters

Credit shows your ability to budget your money and pay off large purchases. Banks use this as a gauge for how you will treat their loan should they fund it. Having bad credit shows that you haven’t been responsible with money in the past and taints your ability to secure funding.

No credit means there’s no record of your money management at all. Unfortunately that’s the best way to prove to lenders that you can fulfill financial responsibilities. A clean slate, in this case, isn’t good.

While Arizona Hard Money Lenders can look beyond not having credit, it’s beneficial to have some sort of credit history because it is an important part of many life events like applying for a job or student loans. You can get a secure credit card to begin building your credit history and display your ability to manage your money wisely.

Bypass the Credit Requirements

If you’re looking to fund an investment and don’t have the savings to do so, speak with a Arizona Hard Money Lender to see what your options are. Level 4 Funding, for example, has a proven track record of funding loans for investors with no credit or bad credit, enabling them to make their investment dreams come true!

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.

Are You Eligible For An Arizona Fix and Flip Loan?

This real estate loan is exactly what it sounds like –the buyer purchases a home with the intent to fix it up to sell at a profit as soon as possible. Make certain you know the advantages and disadvantages of these loans before you take one out.

Since an Arizona Fix and Flip Loan is basically a short-term loan, most investors use an Arizona Hard Money Loan letting them buy, repair and sell off a property within a year’s time. Private investors and people you already know are your best bet. They will be evaluating the property value both before and after the renovation is done as well as your ability to complete the project.

This takes much less time that traditional bankers and lenders who go through your background with a very careful eye. If something turns up that is negative, hold up the entire process in order for more proof that you are a good risk according to the rules they have set up for borrowers.

Traditional loans also only look at home’s current value, but they are less expensive than other types of funding. Standard loans also require very strong credit for loans while other types of investor are more interested in past and current projects than your actual numerical credit rating.

When first starting out, finding money may be difficult and borrowing against private assets and setting up an escrow account to use might be required. Interest rates can often range from 10 to 20 percent per year.

So, is this type of loan the way for me to take?

Your traditional lenders—banks, mortgage companies, most finance companies--will not lend money if there is a health or safety issue with the house. Arizona Fix and Flip Loans are not restricted by this concern.

Arizona Hard Money Loans can be closed within a week if you end up with a good professional lender. These lenders are looking at recovery for themselves however—they want to feel assured that you can renovate the house and sell it as quickly as possible in order for them to recover their money. Liens on the property are attached so if a sale falls through they can be assured of getting their money back.

The longer you are in business, the less you’ll pay for a loan—sometimes a borrower may can receive 100 percent and have several projects running at once depending on past performance.

Find out all the details, advantages and disadvantages, beforehand instead of just jumping in over your head first thing.

Be a detective before going down this road—Arizona Fix and Flip Loans are not the answer for everyone. It will pay you to be as certain as possible that you will be able to perform in this area--the adage ‘knowledge is power’ is very true.

Use a Hard Money Loan to Ensure Funding for Your Flip

A Arizona Hard Money Loan is a quick and easy way to fund your fix and flip investment, ensuring you don’t run out of money to finish the job.

One of the worst mistakes and fix and flip investor can make is not having the funds to purchase and rehab the home up front. It’s risky to rely on a previous flip to sell for enough to fund your next flip that’s already in progress.

Using a hard money loan can give you peace of mind that you’re not going to run out of money before the job is completed. You most definitely don’t want to be half way through the rehab and realize you can’t afford the rest. That’s the easiest way to stall a flip and lose money, lots of money.

Budget, Budget, Budget!

When you’re planning your flip you want to budget for things to go wrong. You may want to just replace an out-dated sink, but when the plumber begins the installation they may find mold or other plumbing issues that will need to be fixed. It’s rare to rehab a home and not have unexpected expenses. It’s the nature of the beast!

Your Arizona Hard Money Loan should allow for those unforeseen circumstances. The last thing you want to have to do is take out a secondary loan because you can’t cover the rehab with your first round of funding.

If you have proper inspections done you should be able to have a good idea of what you’re in for beyond the typical aesthetic upgrades. It’s an up front cost that will most definitely pay off in the long run.

Don’t Put Yourself at Risk!

Having to sell a partially completed home is worst case scenario. You’re fighting a losing battle trying to find someone willing to take on a partially completed project and that takes out a huge chunk of buyers who will only purchase move in ready homes.

As stated above, trying to secure a secondary loan can be difficult, and sometime impossible. Lenders don’t want to be second in line as that puts their funding at risk.

Speak with a lender about a Arizona Hard Money Loan and discuss having your project funded, with a little wiggle room so you can complete a successful rehab project and grow your 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.

Monday, March 25, 2019

Residential Arizona Hard Money Lenders Compete for Business

Residential Arizona Hard Money Loans are, in fact, a great way for buyers to lock down funding without the tough qualifications required by traditional lenders.

Shopping for a residential Arizona Hard Money Loan is like shopping for a car. You can get the same vehicle at multiple dealerships, but you want to vet them out and pick the right one for you. Here are the items you should know about your residential Arizona Hard Money Loan servicer before applying for a loan:

Rates

Rates can vary from lender to lender and the rate is going to make a big difference in the amount that you pay.

Loan Length

How long is the life of your loan? How long do you have to pay it back?

Prepayment Penalties

If you are able to pay your loan back quicker you will want to know if there are prepayment penalties that will be levied against you.

Origination Fees

Much like the interest rate, the origination fee can vary from lender to lender. This is cost that needs to be included in your investment budget.

Loan-to-Value Percentage

Depending on the home you want to purchase and the amount that you have to put down for the loan, your LTV percentage will change. You’ll want to check the residential Arizona Hard Money Loan terms to see if your purchase qualifies for their LTV restrictions.

Call a Arizona Hard Money Lender like Level 4 Funding to get this information so that you can be prepared for your investment and apply for your loan with all of the necessary information.

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.

Arizona Bridge Loans: How Can I Tell If This Funding Is Right For Me?

The financial market is filled with numerous types of loans. Take time to learn the advantages and disadvantages of Arizona Bridge Loans before you go any further.

The world of financing is filled with numerous types of funding ventures, conventional bank and mortgage loans, private loans, revolving money accounts and that is just to name a few. Confused? Most people are, but we can lend you a helping hand in understanding this particular kind of funding. Here are the basics involving these particular loans and why you might want to consider this route in your quest for financing.

An Arizona Bridge Loan is normally taken out by an individual who needs funding for the difference between a cost of a new home and the money he/she will receive from the sale of their present home in the event that the closing has not occurred before that time.

Do you wish that you could close while your current property is still on the market? Providing conditions are met, these loans can entitle a seller to go ahead and purchase the desired new property before an existing property is sold.

Sometimes an Arizona Bridge Loan allows a few months that free you up of any payments on the new home, something most buyers find highly desirable.

While a home equity loan is less expensive than these types, some lenders will not make an equity loan if the home is currently on the market.

The contingency to sell (meaning that the buyer’s first home must sell before the second home can be purchased) can be removed. The purchase of the new property can be forwarded if the buyer has made a contingent offer and the seller issues a notice to perform. This avoids a long drawn-out escrow process and the possible discovery that the seller has no intention of completing the sale. California is the only state that legally requires an action like this, but it is used in other states as well.

What should I do in order to know if this type of loan is the one I should make?

Be wary of moving too fast, however, there are other things to consider when taking out an Arizona Bridge Loan. First, they are much more expensive than most standard loans. Secondly, the purchaser must meet the qualifications set by a lender to own both homes and requirements are normally pretty strict for this.

Decide if this particular loan is the best kind for your situation and find a lender that works for you and your needs.

Other than-standard loans are not right for everyone—do your homework and find out what pitfalls there are in this type funding. Working without all the facts in this instance can often be costly and time consuming, two things you are trying to avoid by going this route. Get out there, take in all the things you need to consider and find the best thing for you!