Setabay Private Hard Money Lender

Wednesday, March 27, 2019

Residential Arizona Hard Money Lenders: Why Are They Better Than Traditional Lenders?

If you need investment funding, why not let your home, apartment, or townhouse help you get it? These type loans are not the easiest to acquire, but have definite advantages over more traditional ones.

Residential Arizona Hard Money Lenders offer funding that is normally defined as a non-bankable loan on whatever property a borrower is offering, ex. a single family duplex or other hard asset. This type loan can close in a short a time as three to five days as opposed to traditional lenders whose process can take three to six months (or more) and be held up by any glitch that shows up in the background checking that is being done into your credit history. Time is money, after all.

Some additional reasons for taking this road to funding include: the buyer(s) hold a mortgage already on another property; debt to income ratio appears here because, bluntly speaking, the more money you already owe, the less your chances of repayment, so thinks the standard lender. Traditional lenders generally refuse to set up a fix-and-flip loan—they are strictly interested in the property’s value on the current market. The property is not a conventional type home and again this fact will get in the way of regular funding approval.

The list can go on and on with reasons that never occur to a borrower—a standard lender can and will take into consideration all of these things and more. Arizona Hard Money Lenders don’t view these things in the same light.

Are these type lenders something I should seriously check into?

Also these type loans can be stretched out to a longer period of prepayment than most standard loans—traditional lenders are hidebound by a certain set of rules and requirements their borrowers are obliged to follow.

Residential Hard Money Lenders in Arizona often charge no upfront fees or down payments, a real asset when you are already strapped for cash while trying to get everything off the ground.

Residential Hard Money Lenders in Arizona are much more interested in the value of the collateral you presently have than an absolutely ‘perfect’ credit history in the financial ratings community. They prefer that you have on average of around 40% equity in the home.

Success in your first venture through this type of funding has many advantages—making professional contacts in your chosen field, building a solid reputation by living up to your end of the bargain and having a portfolio of successful investments to show when you try to take on a larger project.

Make certain that you learn all the facts—pro and con--before you decide to go with this type of lender.

Talk to people you already know who are based in the real estate field. Find out what the traditional route of borrowing requires ion order to be able to intelligently compare the two areas. Make your decision based on the facts and go after what you want.

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.

Dude, are you have trouble Financing you investment property?

Having trouble financing that real estate project you just know is a winner? Read Peter Allen’s story of how a Arizona Hard Money Loan gave him a helping hand when he needed one.

Maybe my bright idea isn’t so bright after all, Peter Allen thought as he read through the third letter from a bank rejecting his application for a real estate development loan. The mortgage companies were not any better, wanting absolutely perfect credit, proof of income that was the 9-5 weekly type and no holes like a loan modification. His credit was decent, but he was self-employed and awhile back, it was request a loan modification or not pay off what he owed. That had been a rough year, but he was back on his feet now with money coming in from small freelance projects and most of his debts paid. Still he wasn’t getting anywhere with conventional lenders.

It felt like a sunny day after a thunderstorm when he had noticed that vacant lot near where he once worked. The sewer lines were in good shape, new water lines less than a year old, power lines strung and it was located near a busy industrial area. It was just waiting for a good building that could be a restaurant, a club, something that would benefit local workers who didn’t want to drive long distances for lunch or settle for fast food joints. Someone was going to make good on that land—why shouldn’t it be him?

Tossing the letter, Peter picked up the phone book to call his brother’s office and an ad caught his eye that said: ‘Having trouble borrowing money for that great idea you have? Get in touch with Landon Funding—we offer deals that the banks can’t.’ He had heard of private financing, but never investigated it. What the heck, he thought and called for an appointment.

“Well, I see your problem, Mr. Allen,” Ken Landon said after hearing about Peter’s background and plans. “Banks and mortgage companies have a lot of rules and they have to follow them all. And if everything was perfect, it would still take six to eight months. That’s just the way they work. Arizona Hard Money Loans can be there when you need them. Do you own your home--is it paid off? Can you pay every month and once the project’s completed, pay off the remainder in one payment? Can you provide me with tax returns that will show an average of what you make every year?”

“Yes, my house is paid off. I have proof of past payments made on time even when I wasn’t working.” He smiled then. “I believe in records. My tax returns date back five years since I am self –employed. It helps when dealing with the IRS.”

“Great, get that stuff to me as fast as you can,” the man across him said. “Give me a couple of weeks. With your business plan, I believe we can make your dreams a reality.”

Peter drove home with a smile on his face, planning to call his brother over for dinner. He could hardly wait to give Frank good news for a change.

A Arizona Hard Money Loan was Peter’s answer. A month later, the loan had closed, papers were signed and money was in the bank. An ad in the local paper had already brought in a couple of construction bids and the Philly Homestyle restaurant group had called to see what he could offer, stating they were interested in the area. Check it out for yourself—they may be exactly what you need.

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.

Arizona Hard Money Lenders: What Can They Do For Your Financing Needs?

There are a ton of people out there saying they are the best lender, can get you financed no matter what, would love to work with you … but which one is really best for you? Know the details surrounding these lenders as well as the traditional financiers before you go further.

After a period where the term ‘Arizona Hard Money Lender’ was used to describe an individual whom you dealt out of desperation or not at all due to a few persons whose methods darkened everyone’s reputation, the good news is that today’s lenders who specialize in these type of loans rank up there with other well known respectable traditional lenders. They simply work from a different perspective and utilize methods that may be easier for your individual financing needs.

This type loan, obtained through private investors or independent companies, is basically one where the borrower gets his/her funding and it is secured by real property value—something the customer already owns or is acquiring. The borrower will have to provide a well-written schematic describing their plans for the property and how they intend to repay the funding received. Terms can range from twelve months up to five years; the customer normally pays interest and a portion of principal every month and a balloon payment at the end of the term.

What are the advantages of using these types of loans?

As per the usual, Arizona Hard Money Loans are designed to aid borrowers who happen to have issues that cannot be resolved by using conventional lenders. Self-employed persons as a rule generally have more difficulty obtaining a loan than those with a 9-5 job and a steady company-dispensed income. A recent foreclosure or any other credit glitch makes things difficult, if not impossible, in the traditional route as well. Banks and mortgage companies also take a long period of time to process a loan application.

One or more of these areas could stop your application cold, costing you the amount of time you have already spent in this effort. Now there is the prospect of starting over with possibly the same result looming on the horizon. That is where Arizona Hard Money Lenders could be the answer to your problem. They tend to look at your collateral and ability to repay rather than your credit report, past income history and the steadiness of your current employment and sometimes can close a loan in less than two weeks.

See if your dreams can come true—find a lender today who can help you.

Do the digging in order to find out all you can about these loans and arm yourself with information on both the positive and the negative aspects involved—funds that are obtained through an Arizona Hard Money Lender come packaged with a higher interest rate than conventional ones. Contact lenders, both traditional and nontraditional, and find out what terms they offer. Once you have all the needed information, take a deep breath and set out making your real estate dream a reality.

What is a Arizona Speculative Home Loan and how can it help you?

Simply put, this kind of loan is what industry defines as a loan or financing on a speculative property that has not been sold yet. These type loans are only a small percentage of the construction loan market. You may wonder how can I qualify for this type of loan, being mainly familiar with more conventional ones in the market.

Your project needs to have a strong potential to come through—this type financing requires a good bit of ‘walking around’ on the part of the borrower. Do the following things in order to give yourself a better chance of receiving the funding you need.

--Find a lot which is defined as ‘improved’, meaning it already has sewers installed, curbs poured and set, water lines in place and available power lines hanging. This will raise your chances of getting a buyer, and possibly reduce the amount of money actually needed for the project. Raw property will not have all of these advantages and sometimes not any of them.

--Location: property that is near urban population centers increases your chances of finding a buyer for the project you have in mind. For example, a popular restaurant setting up near a large business district has a much better chance of being bought since it would draw clients who don’t want to drive long distance to shop and eat and work if they don’t have to.

What else can you to increase your chances of getting a spec loan?

Since you are may be new to this, it is advisable to stay with projects that can be completed quickly in order to minimize the lender’s risk factor. These loans are generally short-term setups with low payments; once the project is completed however, the remaining principle comes due immediately. Occasionally a mortgage will need to be taken out on the property to finish off the remainder of the balance at the end of term.

Using possible equity in land is another option that can help you out. Some lenders will even require a borrower to do this before lending any money on a property. By using the property as a down payment, it sets the loan up as secured, again reducing the lender’s chances of losing money and increasing your chances of getting the funding.

Partners can be brought in on an arrangement like this, particularly if they have a better credit history, lower debt-to-income ratio and can aid with the down payment. The downside is that this cuts into your profits.

It is always good to look into all your options for a loan, including the conventional brokers and large banks that can carry these loans. Non-traditional lenders are often the answer since they emphasize collateral and your ability to pay more than high credit scores, straight line income and a glitch-free past.

Is a Arizona Speculative Home Loan your best bet? Investigate these type loans thoroughly before going ahead, then make an appointment with lenders. Arm yourself with documentation that shows your financial history, all the information about the property that you can collect and a budget with draw schedules to show.

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.

Tuesday, March 26, 2019

Arizona Rental Property Loans: Can I Borrow Against This Type of Property?

If you have rental property you want to borrow against and traditional investors are holding you up for whatever reason, there are other options. Check into for Arizona rental property loans obtained through hard money sources in order to find out if this can clear the way for you.

Money, generally speaking, is the key to making money—you have to have it to make it and buying property—any kind--calls for a lot of it. Traditional mortgage lenders, banks and the like will lend, but they will go through your credit history one item at a time, tie you up with procuring documentation of all sorts and bring the whole process to a grinding half if any bumps appear long the way. This will put you back to the place you originally began, minus a great deal of effort on your part and considerable time loss.

Say you have an apartment complex you would like to use as collateral, but it needs major renovations, roofing, windows, flooring, et al. Traditional financiers won’t lend money on property that needs renovation on any large scale; their emphasis centers on the value of the property as is and damaged property is not an encouraging sign to a conventional lender. You have reached that point when other options should be investigated.

Although most people say that traditional loans are the way to invest in rental property, there are times when an Arizona rental property loan via hard money and designed for rental property may just be the answer to your problem.

What can a hard money property loan do for me?

Three positive reasons for this type of loan are fast processing of the actual loan application. First you will get your money sooner, something everyone wants. Secondly, you may be able to borrow a larger amount of money and cover more of your desired project quicker. Finally, you can grow your real estate portfolio and have something to show on down the road when another investment catches your eye. If you have kept up your end of the deal and repaid the loan in a timely manner, the established relationship with your lender could aid you in your next project.

Another very pleasant reason Arizona rental property loans are a good form of financing to follow is that these type loans don’t require a down payment like most banks. The least most traditional lenders generally require begins at around 20 percent of the property’s value.

Customers do, however, end up paying much more for the loan in fees, interest rates and the like for this particular kind of funding.

Let your rental homes or apartments pay off in ways never imagined.

This type loan is not for everyone, but it’s definitely worth looking into. Roll up your sleeves and start investigating this possibility that could aid you in making your dream investment into a reality.

Avoid Scams: Use a Reputable Arizona Hard Money Lender

Vet your Arizona Hard Money Lender to ensure you’re not being taken for a ride.

We live in a time where scams run rampant. We receive calls asking for personal information from illegitimate sources. We get emails phishing for our data. We have to live in a diligent manner in order to avoid the pitfalls of scammers.

Unfortunately, Arizona Hard Money Lenders fall into this category. While it’s not the norm, one bad apple can spoil the bunch. That’s why we’re here to tell you that places like Level 4 Funding are dedicated to providing clear and concise loan information so that you can feel comfortable funding your project with one of our loans.

Here are some ways to detect an illegitimate Arizona Hard Money Lender:

Too Good to Be True

We learn this from a young age and see it time and time again. There’s always fine print so you want to review any and all paperwork and contracts for the fine print that could get you into hot water. Things like large prepayment penalties may be hiding in the fine print, waiting to sneak up if you’re not prepared.

You Vet Them, They Vet You

Would you loan a stranger a large sum of money without knowing their background? Neither will a legitimate Arizona Hard Money Lender. They are handing over thousands of dollars and need to know that it’s going to someone who can handle the responsibility and plan their investment properly.

Extra Up Front Fees

While Arizona Hard Money Lenders may require a loan origination fee or a smaller sum of money as a sort of earnest deposit, if you’re being asked to hand over what seems like an unreasonably large amount of money before your loan is funded, beware!

Word of mouth is a great way to make sure you’re going to work with a tried and true lender. Speak to former clients and look up reviews. There are forums that you can find where investors talk about their experiences with certain Arizona Hard Money Lenders. If you’re seeing a lot of negative experiences, it might not be the lender for you.

Contact Level 4 Funding today to learn about our funding with no hidden fees or terms.

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.