Setabay Private Hard Money Lender

Thursday, April 11, 2019

Wholesale for Money, Invest with Hard Money Lenders Afterwards

Find wholesale properties until you can earn enough money to invest in real estate with the help of hard money lenders. Make extra money each month and build up a base upon which you can begin to invest and make more money today.

Sometimes you just don’t have money to break into the real estate industry or even cough up the loan-to-value to tap into money from hard money lenders. Not to worry. Many times, it takes people years of saving or a bit of hustle to get into the real estate industry. Being too short on savings to invest drives many to find wholesale-real-estate units to sell to other real estate investors. Finding homes to wholesale is a great way to break into the real estate industry because it builds an understanding of supply and demand, market value, and networking.

What is a wholesale home? Well, when it comes to real estate investment, wholesale homes are homes that can be bought under average market value, be renovated, and be rented or sold for a profit. Usually a wholesale home is a distressed home that needs some tender loving care. Finding these distressed homes takes work—but offers rewards.

Where to start. One of the ways many people start finding wholesale property is by “driving for dollars.” Driving for dollars means cursing your neighborhood to find homes that have need of repair, have no inhabitants, and have elderly residents tired up upkeeping. Maybe add to the list individuals who rent out properties that are tired of driving long distance to manage. Nice. Sometimes finding these individuals takes looking at property tax records to find the owner, Facebook ads soliciting renters, and more. Nonetheless, the method doesn’t change. Drive, search, locate, and send a friendly message. Say that you are a real estate investor interested in acquiring property, and you are interested in offering a price for said property. Many wholesalers drive and send a personal letter to the owner with a name and number to contact:

Dear John Doe,

You are. You buy real estate locally. You’d like to offer a cash value for the 1111

CAMBRIDGE RD property in Phoenix, AZ. After negotiations, can close as quickly

as 10 days. If you are interested in selling, please call or text us at (XXX) XXX-XXXX.

Wholesale to Secure Investment Funds for Hard Money Lenders

Upon response, the wholesaler has a researched offer to give to the owner. Upon negotiation, if the amount is not accepted, or closely reached, many wholesalers will leave the offer on the table and walk away. Walking away gives the owner time to think about the money presented before them and come to a conclusion. Many times, leaving an offer on the table results in a sell down the road. If you get the approval, make sure you have researched local real estate investors who are willing to purchase the property. Mark the property up several thousands of dollars to compensate your effort, then repeat.

Save money, wholesale, and invest with hard money lenders.

Over time, and with a sufficient number of wholesale clients, you may just have enough money to start to invest in real estate on your own. Enough money to contact hard money lenders who can help you into the real estate industry. And that’s the gist: save money, wholesale, and invest with hard money lenders.

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.

The Real Deal on Flipping Houses in Arizona

Most people believe that you need money to make money. For the most part, that is accurate. However, there is a way to fix and flip a house with no money down—you just need the right lender.

Investors typically achieve flipping houses in Arizona with no money down by wholesaling properties and using their own money. Good news! That is not the only way. Another way to flip a house with no money down is to find a lender that offers 100% financing. Hard money investors are the “go to” when it comes to rehabbing a property. Their application process is simple—usually a borrower can apply online and be approved within 24 hours. Once approved, funds are typically available within 10 business days.

How Can I Flip A House With Zero Down?

Many people new to flipping houses in Arizona believe they have to have a large amount of money saved to get started. However, that is absolutely not true. The only absolute you must have is funding. Arizona Hard Money Lenders make it very easy to borrow money to rehab and sell a property.

Arizona Hard Money Lenders are lenders who have liquid capital and they are looking for profitable investments. However, there won’t be investors calling you on the phone and knocking on your door. You have to find them and approach them with your investment proposal.

Arizona Hard Money Lenders will typically loan with a higher interest rate than a traditional bank and their loan terms are much shorter. Most Arizona Hard Money Lender’s terms are 12 months to 3 years at between 7.99% to 15% interest. They base their lending on a loan-to-value ratio. Arizona Hard Money Lenders are a fantastic place to start your real estate career.

It is important you evaluate your tolerance for risk before taking out a loan from an Arizona Hard Money Lender. Have a plan B ready in case the house doesn’t sell as quickly as you hoped. Do your research on local real estate costs, rehab costs and permits needed. Flipping houses in Arizona has four basic parts: find the property, purchase the property, rehab the property, sell the property. An Arizona Hard Money Lender will work with you on funding all parts of the process.

It is possible to flip houses with no money down. Thousands of new real estate investors start this venture yearly.

It is true that many people have oversimplified the house flipping goldmine. Data proves that very few house flippers are using their own cash—the majority are taking out loans and many of them with 100% financing. Each case is different and each lender is different. If flipping houses in Arizona is something that has sparked your curiosity, find an Arizona Hard Money Lender and see if you can qualify for no money down. One major benefit is Arizona Hard Money Lenders do not focus on a borrower’s credit worthiness or monthly income. The loan is based on hard assets—property. Flipping houses in Arizona is highly profitable when done correctly.

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.

How to Get the Real Deal When It Comes to 100 Percent Texas Fix and Flip Loans

Getting 100 percent Texas Hard Money Loans for flips might seem as difficult as catching a unicorn, but in reality it isn't. Getting such a deal just requires a little out of the box thinking and some negotiation on your part.

If a lender is offering 100 percent financing, you have to ask, 100 percent financing for what? Few if any lenders want to take on 100 percent of the risk by offering a true no money down deals up front. They will either fully cover the cost of purchasing a property, or rehabbing it, but not both.

You want both these costs covered, so what can you do so you can pay nothing for your next flip?

To cover both the cost of purchasing and rehab you need to work within the terms initially offered by your lender.

Simple tactics to get "real," 100 percent Texas Hard Money Loans for your next flip:

• Lower your initial bid: If your lender is offering 100 percent financing on the initial purchase price, lower your initial bid, so that your loan can pay for the rehab costs as well.

The less you pay for a property up-front, the more financing you'll have on hand for repairs and the less money you'll need to pay out of pocket.

Say your lender is offering you the full purchase price of a property listed at 100 K, and repairs will cost you ten thousand. In this case you’d simply lower your offer by ten thousand.

The math, in this case, works out as follows:

90 (to purchase the property)+10 in repair cost-100 in hard money= basically a free flip.

This simple formula will always work regardless of how much financing your lender is offering up front:

Purchase Price + Cost of Repairs = Funding Offered

Not every seller will be so kind as to lower their initial sales price by thousands of dollars for the sake of your own profit and convenience, so

• Take out a small loan to make up the difference: If you encounter, an intransigent seller unwilling to give you the required discount is your hope of getting 100% financing lost? No, all you need to do is take out a small credit line to make up the difference.

Getting 100 percent Texas Fix and Flip Loans comes down to following a simple formula.

The first thing you should look for is the largest amount of financing possible. The more financing you have, the more wiggle room you have when it comes to negotiating the purchase price of your flip.

So get a significant loan first then buy the property at a low enough cost so that your loan covers the cost of rehab. Working within the formula:

Purchase Price + Cost of Repairs = Funding Offered

Using this simple method you can flip for free regardless of the amount of money that your lender initially offers you. Remember you can always plug any shortfall in terms of financing with a small credit line.

If you can manage to make the numbers work you can pay nothing for your next flip.

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.

Who are Residential Hard Money Lenders?

Fred wanted to renovate a home and put in the market for profit, but he didn’t know where to go. He was experienced in home renovations and knowledgeable about the housing market, but he had poor credit. Read more below to find out how he was able to get approved by a residential hard money lender to get funding for his project.

Fred did what most people do first: seek out a local bank or credit union. Banks are traditional lenders, but they have high standards when it comes to loans. You have to have a great credit score and debt to income ratio, and really prove yourself as a reliable borrower. Fred, however, could not. So, he began to seek out untraditional options and came across residential hard money lenders.

Fred found that, while technically considered alternative and private options, these lenders were able to offer money fast and approve a wide variety of borrowers. He began to research local lenders near him to find out more.

The Benefits of residential hard money lenders

When Fred met with his local lender, he learned that the collateral of the property he wanted to obtain was considered before his financial history. The plans for the property and the overall investment potential posed greater risks to his lender than his finances. His lender was able to overlook an imperfect finance history for the investment value of Fred’s plans. Fred was relieved to learn he qualified for a loan with his residential hard money lender. Before he sealed the deal, however, he had to consider the risks—even if the possibility of receiving a loan with a 75 percent LTV loan to value ratio seemed like a dream come true.

The Risks residential hard money lenders

Before diving into a deal with your lender, you need to consider their reliability. Lenders and borrowers work on two way streets, and your reliability is just as important as your lenders. Additionally, it is essential to consider the high interest rates. When Fred first saw his lender’s rates, he couldn’t believe they were as high as 5 percent more than others on the market. However, Fred saw potential in his lender. Because he was working on a fixer upper, the short repayment period didn’t scare him. He was experienced in renovations and believed the property would sell when it was on the market, making the short repayment period easy to deal with. Not only that, but Fred found it key to work with his lender to obtain the funds—and therefore his property—fast. Even banks couldn’t offer the speed of his lender. Banks could take more than a month, but Fred’s lender only needed a week to get going. While there were risks associated with private hard money lenders, sometimes the pros outweigh the cons. Fred found it essential to work with his lender on his fixer upper, though he noted they wouldn’t be ideal in every situation. Fortunately, the speed of his lender was able to help him obtain his property, as well as renovate and sell successfully.

Texas Fix and Flip Loans: How Much Should You Spend On Rehab?

With Texas Fix and Flip Loans, you might wonder just how much you need to spend on rehab. Should you spend a lot or a little? What’s the right balance?

Let us consider the following story, of 3 flippers in one neighborhood, to answer that question.

When it comes to Texas Fix and Flip Loans and rehab budgets, should you go overboard, or should you skimp out to make more money?

Our first flipper in this story has plenty of savings on hand to spend a boatload on repairs. She knows there's a bunch of cash-rich yuppies moving into the area, and given the market she decides to go all out.

She adds marble countertops imported from the Florentine hillside, custom plumbing fixtures from a French sculptor whose name no one can pronounce. She sources old Victorian paneling in mint condition and wood floors made from near-endangered Brazilian trees.

She assumes all these posh amenities are what is needed to meet the expectations of buyers in the area. The open house is abuzz with camera flash as photos are taken of the Instagram worthy interior. But no one puts in an earnest offer. Buyers complain that there is a far more reasonably priced house just around the corner.

Which bring us to our next flipper who is just down the corner. This flipper took out a small loan and thus spent very little on repairs.

After a quick walkthrough of their home, they notice the post-apocalyptic carpet and decide to spend their limited funds replacing it. However, they don't have the funds to replace the avocado green countertops and mustard yellow cabinetry, but in the end, the house is livable right?

They list the house at the median sales price in the area, but potential buyers complain, "well there's a house up the block going for a little more, and its uh, more modern."

When it comes to Texas Fix and Flip Loans and rehab budgets; plan your project so that your flip matches houses nearby.

The last flipper in this tale is listing that other house. Before they started work they did some walkthroughs of homes for sale nearby, all the while recording the features and amenities common to homes in the area. When they repaired their house, they kept their vision in line with what they've seen in other nearby houses.

They bring the countertops into the 21st century, color the walls in a neutral shade, and put down sturdy laminate flooring. In the end, buyers are impressed both by the houses' modern amenities and its reasonable price.

This investor wisely repaired the house so that it was similar to homes nearby and applied for just enough financing to bring the house up to a marketable standard. By making reasonable repairs, they were in turn able to list the house at a reasonable price.

So in this tale of three flippers whose house sold first? The last one.

Unlike the first flipper mentioned, they didn't make assumptions about the market. They also had a sense of the features that were standard in the neighborhood, so unlike the second flipper, they didn't skimp out.

When it comes to flipping, don't waste money bringing a house up to "magazine standard," because no one in the neighborhood will be able to afford it. Don't skimp out and just bring a house up to a "livable," standard, buyers won't be impressed.

The standard you should achieve with every flip is the "market standard."

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.

Considering Owner Occupied Hard Money Loans

If you have rotten credit, you may have been referred to a hard money lender—but what is hard money, and what situations work best for it? Read more below to find out!

Arizona Hard Money Lenders are private lender. They are alternative options to traditional lenders like banks and credit unions. Traditional lenders have high standards when it comes to the loan approving process. A great credit score and debt to income ratio can make or break you when it comes to qualifying. Arizona Hard Money Lenders are there for you when you cannot meet these high standards or have an imperfect financial history.

The value of the property comes first when it comes to the approval process of hard money. Private investors want to know the plans and potential. Then they will consider your financial history. It’s not as important here, but it will still be considered. When people aren’t turning to Arizona Hard Money Lenders for their ability to approve them, it’s for their ability to be speedy when it comes to starting the loan process.

Borrowing Hard Money

If you are considering owner occupied hard money loans, it is likely because you need to fund some basic home renovations, like repairing the roof. Owner occupied Texas Hard Money Loans refer to the fact that the borrower is funding a lived-in property and working on something that needs an immediate fix. Renovations are the most common reason to use hard money, whether it’s owner occupied or for another reason like a fixer upper. Fixer uppers are actually the most common reason people borrow hard money. The speedy loan process and the short repayment period compliment the timeline of obtaining a competitive property off of the market fast and selling quickly with a hopeful profit. While the short timeline works well for fixer uppers, you really want to consider your options before diving into hard money for your current home.

Risks of Hard Money

Arizona Hard Money Lenders are great solutions to bad credit and short timelines. However, before seeking them out as your alternative lender, there are a few things you should consider. First, most Arizona Hard Money Lenders have high interest rates—much higher than the average lender on the market—and some are known for hiding fees within the terms to their loan agreement. You need to know the lender you are working with is reliable, and you don’t want someone whose only goal is to rack up as many fees as possible. If you want reassurance, you can always go to a real estate attorney who can help you look over the terms of the loan agreement if you have doubt. The other thing you want to consider is the short timeline. Coupled with the interest rates, Arizona Hard Money Lenders may not be a great idea. Extensions can be given to these loans, but owner occupied Texas Hard Money Loans may not be the best if you don’t know how you will begin to approach the repayment period. Some extensions can be given, as Arizona Hard Money Lenders are generally transparent with their borrowers, but you really need to consider what’s best for you in the long run.