Setabay Private Hard Money Lender

Thursday, March 28, 2019

Rental Property Loans: Could I use this kind of property for loan collateral?

(When conventional investment people cannot or will not help you float a loan using rental property--land, buildings, or otherwise--you might try looking into a Arizona Rental Property Loan via the hard money route in order to clear one of the biggest obstacles—financing—out of your path.

You know the old saying: you have to have money to make money. Buying property demands that you generally have a large amount of funding. Bank and mortgage companies lend money, yes, but it is a long arduous process in which your credit history is checked piece by piece. A lot of mailing, calling and in-person trips are involved to secure the documents needed. Once this process has consumed a great deal of time, if there is a bump here and there in your history, the entire process may come to a grinding halt and in a lot of instances, cause your application to be rejected.

For example, let’s say you own a storage complex on the edge of town, buildings in decent shape, but in need of some work i.e paint, new flooring and definitely new security system. You’ve had a robbery and an attempted robbery even with good locks and cameras. The police don’t have a habit of patrolling the area with any regularity either. All of the banks and financing companies you have talked with thus far have defined your property as a risk they don’t want to take. “Well, we don’t lend money on property that isn’t in good shape and the fact that you have been robbed also increases the chances we will lose money.”

Despite the widespread opinion that most people hold about traditional funding being the way to go when borrowing against any type of rental property, occasionally it is wise to seek other options and Arizona Rental Property Loans may be exactly what you need

How would this type of loan help me?

Let’s look at three ways you could benefit from this type of financing:

1. When approved you will receive your money faster, a definite advantage since you need to have funding on hand as quickly as possible.

2. A larger amount of money may be available, allowing you to cover more costs on the project you have in mind in a shorter period of time.

3. You will be able to add more to your real estate portfolio. Everyone needs something to show that their faith in themselves and their work is justified. Down the road this deal could aid you in your next project and a good relationship with the lender would be another ace in your hand.

Finally, these loans don’t require a down payment as most banks do, a very positive factor in their favor since most upfront payments charged by a conventional lender begins at 20 percent of property value.

You will, however, pay higher fees and interest rates for this form of funding. A Arizona Rental Property Loan through hard money is not necessarily for everyone, but it is certainly worth investigation. Take a deep breath, turn your computer on and look at the possibilities of letting your rental property pay off in ways you never imagined before.

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.

Wednesday, March 27, 2019

Owner Occupied Arizona Hard Money Loans: do the advantages overrule the requirements for a borrower?

(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 Arizona Hard Money Loan 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 Arizona Hard Money Loans 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 an owner-occupied Arizona Hard Money Loan option 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.

Private Money Lenders: Hard To Find, But Worth The Effort

A private money lender may be the answer to your funding problems particularly when you can’t use the more traditional types of financing. Look into these loans and find out if this path is one you should take.

You are someone who wants to invest in a good area that can make you some money and a couple of your friends suggested real estate. You think it’s a great idea, but just last year some property you had acquired when you had personal funding was foreclosed on. Since you are a private contractor with income received by the job, you are often classed as not having a steady income despite business being rather good the majority of the time. These things, as you have found out, will hold up any conventional loan application you make if not completely deny it to you altogether.

Then someone suggests that get private or hard funding, stating that Arizona private money lenders approach loans with a different focus and have numerous types of them—Arizona Bridge Loans, rehab loans, commercial loans, etc.--to offer a customer. The first thing to do is find a list of private lenders and choose several who offer the type of loan you are searching for.

What does this type of lender do that makes them a good choice for funding?

Arizona private money lenders arrange their financing through secured or collateral-based loans, mostly for property that is to be bought, renovated and then sold (termed mostly as a ‘fix-and-flip’ loan). A property lien protects the lender’s interests in the event that the borrower dies or is otherwise unable to pay back the money. It also is a benefit to both parties’ taxes as long as everything is set up correctly. A fee, generally negotiable, will be charged by the lender to the borrower.

These lenders, termed ‘relationship based investors’ can be a close friend, a professional colleague or companies (hard money and accredited) set up for just the purpose of dispensing short-term-investment loans.

You need to check into all the details of a private loan since they are set up based on individuality and have varying conditions covering everything from what type loan and the repayment time to interest amounts and down payment percentages. Set up mainly involves a down payment with the borrower making interest payments during the repayment period and paying the balance off at the end of that time. Arizona private money lenders sometimes charge prepayment fees if the loan is paid off early. However, payments might be smaller than conventional mortgages since private loans are amortized like the standard mortgage. Repayment time on the average is generally a year.

Walk to the beat of a different drummer. Look into private investors and find your own way into that better life you have been thinking of pursuing.

Be a detective—one who notes if all the i’s are dotted and the t’s are crossed--and check further into private investors. Learn where you stand, how much you have to gain and pursue your goal from there.

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.

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.

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.

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.

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.