Setabay Private Hard Money Lender

Monday, April 8, 2019

How to Make Money with Arizona Fix and Flip Loans

It’s no doubt the resurgence of people looking to fix and flip properties is based on the numerous shows about fixer uppers on HGTV—but how can you do it successfully?

There are a few things all the stars of HGTV have in common: money and experience. To the average viewer watching at home, fixing and flipping homes may just be interesting; to another set of viewers, it may become a new interest and passion that needs to find fruition. While the housing market is one you may be eager to get into, there are a few tips you could follow when seeking Arizona Fix and Flip Loans if you are wanting to pursue a new chapter of home renovating in your life.

Fixing and flipping entails a lot that is often glammed up on TV: finding a potential property, obtaining it and a loan, renovating it with few surprises, and making a sale quickly—with a profit. All the factors may be overwhelming, and it may make sense to seek a “traditional route.” However, what not many people realize, is that untraditional lenders literally “lend” themselves to the fix and flip process.

Seeking Out Hard Money Lenders

Seeking out a hard money lender after you’ve sought out your potential property is a great option when pursuing Arizona Fix and Flip Loans. First, Arizona Hard Money Lenders are able to do what banks cannot: approve a wide variety of borrowers. If you are lacking experience and a good credit score, it’s unlikely that a bank will approve you for a loan, even if you’ve put in the time and effort into your planning and research. However, Arizona Hard Money Lenders are different. Instead of considering the borrower’s reliability first, they consider the property’s potential. This includes things like plans, and whether or not it would be a good investment for them. Arizona Hard Money Lenders are usually great options for fixer uppers because of their ability to approve borrowers, but for their ability to do it fast. Sometime they can get the loan process started as soon as the day of, which can be essential when bidding on a competitive property. Additionally, they only offer short repayment periods, which falls into the timeline of fixing and flipping a property, should you be able to flip the property without problems, and sell immediately.

Dangers of Fixing and Flipping

While Arizona Hard Money Lenders can be great resources to obtain your Arizona Fix and Flip Loans, it’s important to consider a few things. Despite the fact that Arizona Hard Money Lenders work well within the timeline of a fixer upper, their fees are more expensive than traditional lenders. Coupled with the risks that come with any property during the renovation process, Arizona Hard Money Lenders may not be the best option for everyone. Making money off the fixer upper definitely won’t happen if you aren’t able to provide yourself a financial buffer. Not only that, but you must be confident in the reliability of your lender—this is not a one-way street. The reliability of a loan lender, especially untraditional lenders, are just as important as your own factor as a reliable borrower. It’s possible to make money off of fixer uppers, but you have to put in the thorough research and be confident about what option is best for you. If you are unsure if Arizona Hard Money Lenders are right for you, you can always reach out to a real estate attorney who can help you move forward confidently.

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.

Sunday, April 7, 2019

4 Types of Investors Who Can Get an Advantage with Private Money Loans

Arizona Private money loans aren't always the best option, but there are several scenarios where they actually give the borrower a clear advantage. Here are four situations where private funds eclipse traditional loans.

Before we look at how private money beats bank funds, let's define what private money is exactly. In short, Arizona Private Money Lenders issue short-term loans, typically for flipping properties, buying commercial real estate or getting quick cash. They are often just individuals who are looking for people to invest in, so they aren't subject to the same rules and regulations are the big banks. So who can benefit from this type of funding the most?

Fix and flippers. Fix and flippers are people who are looking for a run-down or outdated property to buy, renovate and sell for a profit. Private money loans can be tailored specifically to their needs in terms of the length, rates and repayment plans. For instance, since a flip might take 5 months to complete, a flipper might take out a private loan for 8 months with no early repayment penalties. That way, when they sell the property, they pay off the loan, keep the profit and walk away.
Long-term investors who don't qualify for a mortgage. These are investors who want to buy a property but don't fit into the bank's box, perhaps because of lack of income proof, a past foreclosure or a not-so-shiny credit score.
Buy and hold investors. Buy and hold investors purchase a property to let it appreciate on the market for a while. Many like the easier qualifications of a private loan for the initial purchase. They then rent the property out to make money while they wait or refinance the property with a conventional loan.
Any investor who needs funding fast. Since private money exists outside the traditional system, there's no complicated underwriting steps, third-party verifications and hoop-jumping like at the banks. In fact, investors can get approved in a day or so and have funds in a week, letting them move faster on a great deal.

Are There Any Cons to Private Money Lending?

Arizona Private money loans offer convenience, flexibility and speed, but there is one area where they can't usually compete with bank loans — the rates. Interest rates are typically higher with these types of loans because of the risk. You'll also need to be able to put up an asset like a property (this can be the property you're purchasing) as collateral.

Private Money Loans in Arizona

If you fall into one of the above categories, a Arizona private money loan might be the answer to your real estate prayers. All it takes is a phone call to Level 4 Funding to find out!

Find Colorado Private Money Lenders for Flips

Colorado Private Money Lenders are here to help you eke out a living through profitable investment. Talk to your private money broker at Level 4 Funding for more information.

John Meredith was a car salesman. He worked 10 to 12 hours a day talking to the interested customers in his small town. Every morning, he woke up to the Arizona sun gently entering his window. Every morning, he ate the same breakfast comprised of three eggs. With his shoes covered in a fresh coat of polish and his shirt ironed, every morning he’d make the same 20-minute drive to work.

Opposed to the shady salesman archetype, John had a very calm, open, and helpful demeanor. His method of salesmanship was showing people the facts, the book values, the information… Transparency. Negotiation. Closure. Trust. The sale. Return customers, asking for him. With 4 years in the business, he had started to see many return customers. He’d watch them stroll onto the lot from the sales building’s window. The problem with the building was that it faced the east causing the mid-morning sun to glare his view. With a customer on the lot, he would stroll out, greet, question, and calmly guide. Calmly address concerns, objections, anger, bliss. Selling was chaos. It was an infinite cycle of addressing objection and responding with fact. Responding with reason. Coming out of the void of uncertainty with answers, assurance, and mutual benefit.

John sold cars by calming the horde of frustrated clients. After closing a deal, he would slowly move to the window and watch for another customer. Watch the sun cook the concrete and the blacktop. John had a friend who wanted to flip a house. His name was Jimmy Anderson. Knowing a few Colorado Private Money Lenders in the area, Jimmy was interested in taking out a loan to flip a house. The problem was that the Colorado Private Money Lenders would only fund based on a 60% of the loan-to-value amount. Meaning, to flip he needed John to match his investment amount.

Earn More Money Today Using Colorado Private Money Lenders

Jimmy had experience flipping, John had seen his success in flipping homes and was interested in investing. Within a week, they had received funds from local Colorado Private Money Lenders and had acquired a promising piece of property. What followed was not the easiest project. It required many hours after work and weekends. Many parts of the flip went well. Other parts were difficult: lackluster contractors, unexpected property damage, city laws, bureaucratic appeasement, marketing, sales, commissions, interest rates.

Find Colorado Private Money Lenders for your ventures. Talk to your private money broker today at level for funding to find the loan type, interest rate, and terms that are right for you.

However, with everything said and done, their side hustle earned an extra dollar and the effort in the end seemed worthwhile, a means to a monetary end. All of this was possible thanks to John’s friend’s insight and the funds from Colorado Private Money Lenders. Thanks to John and Jimmie’s private money broker at Level 4 Funding this opportunity was made possible.

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.

Buy a New Home Before Selling - Get a Colorado Bridge Loan

2018 has brought with it an accelerated real estate industry: an upward trend in the market and a multitude of eager buyers at hand. The result has been a shortage of available homes across the board, a pressing demand for available homes, an increased value of rental properties, and a burgeoning demand for construction. Even despite the slowing growth in housing prices and the difficulties of mounting federal interest rates, the housing market remains strong and home equity has risen substantially. These elements are enticing many home owners to sell their current properties.

Of the many individuals who are eager to sell there home, there exists a subcategory of sellers who are interested in acquiring a new home before their old home sells, otherwise known as bridging or applying for a Colorado Bridge Loan. There are many reasons why a Colorado Bridge Loan may be useful. Selling a home in order to relocate for work purposes is a common cause. New job opportunities await, and the hypothetically ideal property is found in a new area. Why wait? Perhaps, while in the prosses of selling, an individual encounters a home at auction. Perhaps, they encounter a home near work, school, the grocery store, the yoga studio, etc. The perfect home in the perfect place, at the right price, and at possibly at the right time.

A Colorado Bridge Loan can help you capitalize on opportunity. It lets you establish financing to acquire a new home without selling the older home in a matter of days, possibly less. This is great news, for many who would not be able to acquire the right property—should they be left to conventional lending institutions and their stringent underwriting processes. The heart of the matter is this: conventional lenders are regulated by the mandates of the Fed. They take months to finance and are difficult to appease. A Colorado Bridge Loan is fast and is used to acquire property in the immediate future until conventional lenders come along in the future at lower rates.

Seize Market Opportunity with a Colorado Bridge Loan

A Colorado Bridge Loan is a short-term loan usually ranging anywhere from 3 to 24 months. These types of loans require possessing equity in a home that is for sell. Interest rates on a Colorado Bridge Loan may start as low as 7.99% an have up to 90% loan-to-value.

“Don’t wait! Talk to your broker at Level 4 Funding for a Colorado Bridge Loan today.”

Talk to your hard money broker at Level 4 Funding to find the Colorado Bridge Loan and interest rate that is right for you. Take advantage of the opportunities of purchasing a home in the neighborhood that is right for you. Level 4 Funding has history of helping buyers acquire the assets they need when they need them.

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.

Why Are Owner Occupied Arizona Hard Money Loans So Rare?

If you've ever tried to find an owner occupied Arizona Hard Money Loan in Arizona, you know how rare they are. Don't fret — they do exist, but you might have to get a little creative to make one work.

To explain why these loans are so hard to come by, it's important to understand what they are exactly. Unlike bank loans, where you're essentially just agreeing to pay the money back based on your good financial standing, Arizona Hard Money Loans are based on collateral. In other words, you take a personal asset (like a home or commercial property) and put it up to secure the loan.

Also, hard money typically comes from private investors instead of massive financial institutions, making the terms more flexible. That's why real estate investors and business owners use them the most.

Where we hit a snag is when the borrower intends to live at the property in question. Why? The loan is no longer intended for a commercial property or to bring in income, which puts it into more conventional mortgage territory. Being in that territory makes it subject to stricter regulations, more oversight from the IRS and third-party verification — all things that alternative lenders don't typically have to deal with.

With the extra hoops to jump through and the increased hassle, it's no wonder hard money lenders often don't want to touch them.

How to Get an Owner Occupied Arizona Hard Money Loan

Despite all this, some lenders are still willing to do owner occupied Arizona Hard Money Loans. And, there are often workarounds. For example, if you want to flip a home and live there at the same time, that can be configured as a "business purpose" which make the process infinitely easier. This is where your choice of lender is important.

The Right Lender Can Make All the Difference

These types of loans are rare, yes. But they're not impossible. Choosing the right lender can increase your chances of getting approved. In fact, it can mean the difference between getting an owner occupied Arizona Hard Money Loan to realize your real estate dreams and being left out in the cold. At Level 4 Funding, we have decades of experience and know the Arizona market backward and forward. Put our creativity and experience to work for you — give us a call or chat with us today to get started!

Make More Money with Colorado Rental Property Loans: Rental Trends 2019

Overall, the experts claim that now is a good time to invest in the rental market. For many, investment in rental property requires a lending source. Conventional lenders for many are out of the question or incapable of meeting the demand of real estate investment. Hard money is the favored alternative for real estate investors. Hard money Colorado rental property loans are able to help you take advantage of the rental market.

Trends in rental property investment:

Many people are renting rather than purchasing homes: Millennials are a substantial cause of the rise in renting. Many look back to the Great Recession as the cause. The Great Recession has led to a greater cost of tuition leading to greater debt in order to attend college. These debts along with an economy with less employment opportunities as past generations have delayed millennials from making decisions such as home ownership. With less millennials purchasing homes, the renting rates have seen a gradual rise over the past several years. The younger generation is not the only generation that is renting. Recent trends suggest that the retired and elderly are more likely to rent. Here are some of the reasons for the renting trend. First, downsizing. Many are finding that they no longer need the room like they once did. Aside from this, relocating to be closer to family members as well as selling property to avoid maintenance.

Rent is rising faster than income: With a steady rise in rental demand, the prices of rental properties are rising as well. While, this is not too surprising, it has become a challenge for many, especially since “half of all renters pay more than 30 percent of their income” according to curbed.com.

Shortage of homes on the market: A shortage of homes on the market has led to a rise in the price of housing. Due to this scenario, many households are renting instead of buying a home. The demand for homes along with the demand for rentals are simultaneously on the rise. While this is the general case in the US, it should be noted that in certain areas, newer homes are reducing the cost of rent, despite many years of upward movement. This is because in certain areas homes are being developed at a fast enough pace enticing home ownership over renting.

Increase Earning Potential with Colorado rental property loans

Strong rental market.

“Apply for Colorado rental property loans today.”

For more information on Colorado rental property loans, talk to your broker at Level 4 Funding. Level 4 Funding has the direct hard money private lending options at competitive rates. Having funded over $40,000,000 Level 4 Funding has the experience and the expertise to meet your real estate lending needs. Apply for Colorado rental property loans today.

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.