Setabay Private Hard Money Lender

Thursday, April 4, 2019

How Helpful Are Residential Hard Money Lenders in Texas?

Obtaining traditional funding for a loan is determined by a variety of things: credit score, debt to income ratio, reliability, creditworthiness—the list goes on. If you are seeking funding for a loan, you should be aware of all possibilities including untraditional routes like residential hard money lenders in Texas.

Texas hard money lenders usually consist of private companies and investors. They are alternative options to people who cannot receive traditional funding by public lenders like banks and credit unions. Private lenders can offer money vast on a variety of different properties including, but not limited to, residential homes, apartments, and condos.

So, what’s the deal with Texas hard money lenders? And how can they help you?

What’s so Great About Private Lenders?

Residential hard money lenders in Texas offer a few attractive qualities that are unmet by most public lenders: speed, transparency and flexibility. These Texas private money lenders are able to do what banks cannot by beginning the loan process almost immediately. If they can’t get it started the day of, it’ll only take as long as 10 days while banks usually need between one and two months to get the process started.

Additionally, Texas private money lenders offer transparency and flexibility that banks do not. Private lenders focus on the property’s collateral. This means they evaluate the property’s value and potential, and how that affects the risk in investing. Banks, however, will consider the borrower’s creditworthiness first. This consists of analyzing the borrower’s financial history and seeing if it exceeds banks standards. Private lenders also consider creditworthiness. However, private lenders consider collateral first. So, they make great options for people with an imperfect credit score who are in need of financial funding fast.

Which Scenarios Are Best for Hard Money?

Hard money is not for everyone, and, before you jump right into any hard money agreement, there are definitely a few things you should consider first. Texas hard money lenders have high interest rates—and, sometimes, they can be as five percent more than a traditional or public lender. Some people can afford this, and some people don’t mind paying the extra costs if it guarantees speed. For example, architects and home renovators rely on speed if they are bidding on a particular property on a competitive market

Additionally, hard money works great for them because of the short repayment period. With the goal being to build, renovate and then put on the market for what is hopefully a quick sale, the short repayment process lends itself perfectly to builders and renovators. However, people seeking hard money for long term projects may not find it as easy to work it into their timeline. Still, hard money can be used for other things including preventing foreclosures or working on short timelines.

If you are interested in residential hard money lenders in Texas, do a search of private investors in your area. Being rejected by a public lender, or even by a private lender, doesn’t mean you won’t find funding from another investor. Be smart about your needs as a borrower so that you can make the decision that is best for you.

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.

Using Fix and Flip Loans to Make Money Flipping Houses

There are some people out there who think that you can only make money by flipping houses with bank loans. However, not only can you make money with private fix and flip loans, there are times when they actually work better than bank loans. Let's look at how.

When most people look into flipping a house, they go to the bank to get financing. They jump through the bank's many hoops, drop a bunch of their capital on fees and sometimes wait for a month or more to get financing together. Some people do it because it works for them and some do it because they think it's the only way to go about it.

Here's the good news — going through the big, inflexible financial institutions isn't the only route. Hard money fix and flip loans are a viable option, too. Here are two major reasons why:

Arizona Hard Money Loans Are Flexible

At the bank, you'll be asked to have an almost spotless financial history, a sizable amount of money in the bank and a credit score that meets their minimum. If you don't fit in their narrow box, you're out of luck. Arizona Hard Money Loans use private money and operate largely outside the "system," so while they take some of those same things into consideration, they're not bound by them. That means a hard money lender has the freedom to work with you.

Maybe your credit score isn't great or you've got some issues in your past, but you've got a vision and experience doing flips. In the hard money business, you can make your case and get the money you need to make your vision come to fruition.

Hard Money Fix and Flip Loans Are Fast

When you go through the big banks, the red tape can be debilitating. There is all manner of regulations they have to adhere to, and they have complicated underwriting processes. As a result, you might wait a week or two to hear about your approval and then another month before you see the money in your account. Not so with hard money. With very few hoops to jump through, you can get approved in a day or two and have the cash in hand within a week or two.

And we don't have to tell you how important speed is in the flipping game! If you're interested in seeing if a hard money fix and flip loan might work for you, give us a call and discuss your options today.

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, April 3, 2019

Getting a Arizona Hard Money Loan: Advice for First-Time Borrowers

If it's your first time looking into a Arizona Hard Money Loan, you might be feeling confused or nervous about the process. Don't worry, it's a lot simpler than it seems. Let's look at some things you'll need to know for your first loan.

For our purposes, let's say you're going to do a real-estate flip. So, how would you go about getting a Arizona Hard Money Loan?

When you make your initial contact, you'll want to have some key bits of information at your fingertips. You'll need to know the location of the property, have a purchase price in mind, put together a budget for the rehab and come equipped with some idea of how much the property may appreciate. And, many hard money lenders will want to know your exit strategy.

Once you've gone over this info, the lender may want to get a feel for you as the borrower, especially if you've never partnered on a project. A lender may ask if you've done fix and flips before and inquire about your financial history. Thankfully, none of these things will disqualify you — private lenders have more flexibility when it comes to loaning money.

The Next Steps After the Initial Meeting

The application process can vary significantly from lender to lender but will typically involve a loan application and showing paperwork for some of the above-mentioned factors including the purchase contract and the budget for the repairs and renovation. The underwriter will usually do an appraisal on the property and ensure that the after repair value is in the same ballpark as the borrower's estimate. In addition, they may want to check the property insurance and title history. If everything looks good, a closing will be scheduled.

At the closing, the buyer will purchase the property and sign paperwork related to the loan. Among the documents you might be asked to review, and sign include, but aren't limited to, a personal guarantee, a security agreement, a note and an investment affidavit.

The great thing about using private money for a fix-and-flip transaction? All of this process can be completed in a matter of a week or two. By comparison, a bank loan can take up to a month or two to come through.

Finding a Arizona Hard Money Loan in Arizona

For first-timers, all of this can seem daunting, but compared to big financial institutions, the process is pretty straightforward. And, any hard money lender worth his or her salt will help walk you through every step and make sure you understand what's happening. Here at Level4Funding, we have decades of experience dealing with Arizona Hard Money Loans. Give us a call today to discuss how we can work together to make your real estate dreams come true!

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.

Can You Really Be Approved for Texas Hard Money Loans if you have Rotten Credit?

Obtaining a loan can be a difficult process if you don’t understand all of your options. If you haven’t explored the potential of private lenders, read more below to see what kind of things that offer that public money lenders don’t.

Joe and Sue were looking to fix and flip a home, but they had limited experience and an imperfect credit score. However, Joe’s experience in business school and Sue’s experience as a designer made them great candidates for successfully flipping a home. Still, their local banks wouldn’t approve their plans.

Joe and Sue began to look elsewhere, and soon found that private lenders could offer loans to people with rotten credit, and they could offer the money fast.

What are the Benefits of Working with a Private Loan Lender?

Joe and Sue research local Texas hard money lenders, and soon found a reliable private investor to meet with. They brought their plans for the home, which included blueprints, timelines, budgets and references of the small team they would be working with on the renovations.

Their private lender, Dan, loved it, noting that the risks for failure were low. Because Dan focused on the property’s potential, instead of Joe and Sue’s financial history, he was able to approve them for their Texas hard money loans. Needless to say, Joe and Sue were ecstatic and Dan was able to get that process going the very day.

Joe and Sue were shocked they hadn’t considered Texas hard money lenders sooner because of the flexibility, transparency and speed they offered. Fortunately for Joe and Sue, they put in the research to find a reliable Texas hard money lender.

What are the Possible Consequences of Working with Private Investors?

When seeking out private Texas hard money lenders, it is essential to find a reliable one. Sometimes it’s good to have a real estate attorney look over the terms of the loan agreement so that you don’t overlook any hidden and predatory fees. Other times, it just takes a little extra research to see the history of clients your lender has had. Knowing what kinds of projects and clients your lender has had success with in the past is also a good indication if they are a good candidate for your project.

Joe and Sue didn’t hire a real estate attorney to help them in their process, but because they took their time looking over the terms of the loan and asking questions, they were able to find solid ground with their lender. In some unfortunate cases with Texas hard money loans, investors have pulled out last minute. A lot of the time, the first thing people think of when borrowing money is their reliability as a borrower—but it is essential to consider your lender’s reliability. You never know what fees or stipulations they may be trying to hide in their agreements, or what they may do at the last minute—like suddenly pull out of the contract.

If you are seeking Texas hard money loans, take your time and don’t give up. There are lenders out there who may be invested in you and your project; you just have to find them.

FIX AND FLIP LOAN WITH NO MONEY DOWN

When you ask a person interested in real estate investing why they haven’t done it yet— the most common reply is they don’t have enough money.

People see that real estate can give them a comfortable life and that there are many successful real estate agents, but so many people are held back due to money issues.

Well, myth busted! It is very possible for an investor to have multiple deals going on simultaneously and never have any of their own money in the deal. There are a multitude of lenders out there that want to lend you their money for this exact purpose, as long as they know it is a safe investment.

These lenders are called Arizona Hard Money Lenders. These lenders aren’t worried about how much money you have or your employment history. They are interested in you finding a distressed property that you are willing to rehab and sell for a profit. They receive their profit from the interest they charge.

HOW CAN I GET AN ARIZONA FIX AND FLIP LOAN WITH NO MONEY DOWN

Arizona Hard Money Lenders lend use an After Repair Value (ARV). ARV is what the house will value at following renovation. Arizona Hard Money Lenders will typically finance at least 70% ARV.

Let’s say you find a property for $50,000 purchase price. Once it’s been inspected you find out it has about $20,000 worth of repairs. You need a loan for $70,000, right? Ok, but how much will it sell for if you borrow $70,000. Once it is appraised for its’ ARV you discover you will be able to sell it for $110,000.

The hard money lender will lend you 70% of the $110,000. You will be approved for $77,000. That’s $7,000 more than you need, right? Well, maybe or maybe not. That $7,000 could go toward more materials. Or maybe you could hire a contractor to help you with the repairs. Whatever it is, take the “extra” money. More than likely you will need it. What you just received was an Arizona Fix and Flip Loan with no money down.

What if you need more money for repairs? Arizona Hard Money Lenders will finance those extra repairs, as well. These are called “draws.” A draw is money financed for a certain repair. Once the hard money lender has received the proof they deem necessary concerning the repair the borrower will receive a check.

The general public doesn’t realize that you can go into real estate investing using someone else’s money.

Fix and flips are growing as the fastest way to make a profit. Don’t miss this train. If you have considered jumping into the real estate game, this is the time to do it. Please contact us at level4funding.com. We would love help you get started

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.

How to Use Hard Money for Texas Fix and Flip Loans

Jumping into the real estate business can be difficult—high risks can accompany seemingly easy decisions, and consequences can easily put you in the red instead of a rising line of profit. Read more below to see how hard money can help with the costs of your fixer upper.

The first thing most people will tell you when you’re about to renovate a home is to be smart. Doing your research and investing in a reliable team will be important so that you don’t end up in a hole of debt. Any money lender will want to know that you have solid plans and a property with potential. The last thing you want is for the home to cost you more than you can afford in finances, and accumulating interest and debt from your loan lenders.

Most of the time, people turn to their bank when seeking out loans. What a lot of people don’t know is that reliable Texas private money lenders literally “lend” themselves to cases of fixer uppers in their natural loan lending process.

What Texas private money lenders Offer that Public Lenders Don’t

In doing your research, you may find that private investors focus on the property’s value when approving borrowers. While your financial history is important, it isn’t held as highly as what they think the possible consequences of the property’s value are. If you approach a public lender, like your local bank or credit union, they will focus on your financial history. This includes things like your credit score and debt to income ratio.

If you are denied by a bank it is still possible to be approved by a local private investor for your Texas fix and flip loans. As long as your private Texas hard money lenders believe in you and your plans, it is likely they will give you the stamp of approval. Being approved by a private lender will allow you to begin the loan lending process almost immediately—as soon as the day of, in some cases. This is really attractive to borrowers who are bidding on a competitive market and want to begin fixing and flipping right away.

Costs of Using Texas private money lenders for your Texas fix and flip loans

Texas hard money lenders are great options if you need transparency, flexibility, and speed. However, it is important to know the very literal costs of borrowing hard money. First are the high interest rates, which can be as high as five percent more than traditional lenders. Second are the short repayment periods. Now, the short repayment period is actually something that lends itself well to fixed and flipped homes. Quick renovations and a successful sale are key to being able to repay your loans without stress. But, if you encounter a lot of unforeseen problems with the already high interest rates, Texas hard money lenders may not be for you. Though, they generally do work well with those looking to make a profit renovating homes, they are very pricey compared to other options.

Hard money is a great option for people looking to fund their Texas fix and flip loans that overall offer transparency, flexibility and speed, but may not be right for everyone. If you are still unsure if borrowing from a private lender is right for you, consider working with a real estate attorney to go over the terms of the loan agreement so that you can feel confident in your decision to proceed or look down another route.