Setabay Private Hard Money Lender

Sunday, April 14, 2019

Who are Private Money Lenders and How Can They You?

Private money lenders are a godsent for many individuals in need of loans, individuals unable to size up to institutional mandates—sometimes intimidating or even momentarily impossible.

Private money lenders are individual investors who are separate from federal institutions. Aside from conventional lenders who receive institutional money, rates, and regulations in order to lend money, private lenders loan out their own money to the individuals they see fit to loan to. They are small entities with their own interests and their own agendas, not an extension of the bureaucratic arm of federal lending.

Private money lenders pool together large sums of money, multi-million-dollar sums or greater. Some private investors have access to personal wealth and invest individually, other private investors are part of an investment group who together pool sufficient funds in order to lend. Whether an individual or a group, the concept is the same: a non-institutional source of money to be invested in monetary ventures.

Private money lenders are a godsent for many individuals in need of loans, individuals unable to size up to institutional mandates—sometimes intimidating or even momentarily impossible. This is why private money lenders serve a twofold purpose: First, they invest in individual or commercial ventures in order to secure monetary returns in the form of interest. Second, they offer a line of credit in a variety of situations for those who need it. Where the proverbial door of conventional banking closes, the door of private lending stays open. This is quid-quo pro. Private money lenders get a good return on roughly 7%-14% of their investments and are covered by the LTV they wish to set. By charging more than conventional lenders they are rewarded more and offer more options to others. Real estate investors win by finding a funding niche.

Private Money Lenders Are Your Lending Advocates

Instead of calling an obscure entity from a “1-800” number that is directed through a myriad of phone lines and codes just to hopefully get a bank representative, private money lenders are accessible, personable, and available. By building local investment ventures, they indirectly build communities, small businesses, local infrastructures, and community jobs. Though finding private money lenders is not as easy as other lending outlets, it is a comfortable and a less regulated lending form that continues to help many small business and individuals get their start.

If the banks have turned you down and you need a helping hand, talk to your broker at level 4 funding. Level 4 Funding has access to a variety of private money lenders and is able to get you the funding that you need.

If the banks have turned you down and you need a helping hand, talk to your broker at level 4 funding. Level 4 Funding has access to a variety of private money lenders and is able to get you the funding that you need. Level 4 Funding has a long history of helping individuals interested in real estate investment, home acquisition, home refurbishment, bridge loans, and commercial lending. Get in touch today. Interest rates start as low as 5.99% APR.

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.

Financing For Rental Properties: Conventional Mortgage Or Hard Money?

Buying a rental property is a fantastic way to get additional income. However, it doesn’t come risk-free.

Every investment comes with risks, weighing the pros and cons of buying and managing rental properties one will see that if the market is good and the investor is skilled—rental properties are a great way to attain wealth.

Of course, before diving head first into becoming a land lord you should have enough information to decide if the income stream is a good fit for you and you need to understand the choices when it comes to financing.

Financing For Rental Properties

The first thing an investor needs to figure out is how they will obtain financing for rental properties. It is not as simple as getting approved for the mortgage on your primary residence. There is a reason lenders are skeptical of financing rental properties. Lenders know that if a borrower runs into financial difficulties they are much more likely to walk away from an investment property than their home.

If a borrower is determined to obtain financing through a conventional mortgage they must prepare themselves to put down a minimum of 20%-25% of the purchase price. Fannie Mae requires a minimum of 15% down, but the majority of lenders require even more. A borrower will also need a strong credit score and monthly income. Along with all this—borrowers will also be required to hold higher cash reserves. Reserves are liquid assets that are available after paying the down payment. Examples of these reserves could be: the cash value of insurance policies, checking and savings accounts and investments in any CD’s or stocks and bonds. Most banks will not approve borrowers if they have more than four mortgages. Also, expect when working with a traditional lending institution on rental property mortgages, to double the required documentation and paperwork as you did for your mortgage on your primary residence.

If you don’t have a 25% down payment, don’t have perfect credit, own four or more rental properties or just don’t want to deal with the paperwork from the bank there is another option.

Arizona Hard Money Lenders will lend on rental properties. Unlike banks, they are not required to follow the strict federal guidelines. A borrower does not need perfect credit. The underwriting process from an Arizona Hard Money Lender is minimal in comparison with the banks. Because Arizona Hard Money Lenders are individuals that make their own terms they are able to approve you quickly. Arizona Hard Money Lenders do not need liquid assets because they back loans using the borrowers hard assets— property. Not only can a borrower be approved within 48 hours; they are able to receive their money in two weeks or less. Arizona Hard Money Lenders are flexible and able to negotiate deals because there are no set lending requirements. An investor will likely have lower closing costs associated with the loan, as well. If you are a seasoned real estate investor, none of this is news to you. However, if you are just sticking your toe in the rental waters to see what it feels like—make sure you research all your options.

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.

Are Conventional Fix and Flip Loans Possible?

Conventional or hard money fix and flip loans? That is the question. Find out how to weight the decision that affects your business.

There are two main options for fix and flip loans. Conventional or hard money. Though difficult to acquire for many flippers, conventional loans present great opportunity to individuals possessing the right credentials. For conventional lending, first off, high credit scores are needed. The banks want to see who well the borrower has payed his or her debts in the past. Have payments been made on time? Are there any delinquencies? Have there been any foreclosures or repossessions? Essentially, to the banks, credit history indicates the risk of loaning. If there is a favorable credit score GREAT. However, that is not the end of the story. Debt to income is another indicator.

What is debt to income? Debt to income is the total debt figure divided by income. Banks use this ratio to calculate if a potential borrower is able to make payments, especially after adding any requested loans. Max debt-to-income ratio for conventional banks tends to hover between 40%-50%. Thus, borrowers must show favorable debt to income in order to indicate that they can pay off debt with the amount within the constraints of a given income.

Collateral or significant assets to back loans is another indicator conventional lenders look for when loaning out money. It is another crucial factor for receiving a conventional loan. What types of assets, general property or equity in property, does the borrower possess? Is the proposed collateral enough to buffer the lender in the unforeseen event of foreclosure? These are escape plans for the bank. The leveraged assets of a borrower form the shield of lending agencies. Finally, conventional lenders look for a history of profit, repayment, and success as good omens. What is the borrower’s track record? Has the borrower been able to repay previous flipping debts? Will the borrower continue to repay debts and remain a profitable business entity in the future?

Ditch Conventional Lenders and Get Hard Money Fix and Flip Loans

If the borrower is able to prove that he or she has a positive record in these areas, it may be likely that he or she can receive a fix and flip loans from a conventional lender. The benefit to receiving conventional money is that the borrower is able to then access some of the most competitive rates available, much lower than that of hard and private money lenders. However, the draw-back to conventional lending is the fact that the funding process takes so long. Conventional lenders take months to fund on average. There are other complications that arise with conventional lenders. Mainly, how does one obtain distressed, short sale, or foreclosed property. This is a challenge because conventional lenders are primarily interested in properties that can be lived in.

Don’t let the conventional restriction get you down. Get funded today. Level 4 Funding is here to meet your needs regarding fix and flip loans.

If you don’t fall into these categories, or if you would like another source of lending that is quick and can get the job done in a timely fashion, talk to your broker at Level 4 Funding. Level 4 Funding is here to meet your needs regarding fix and flip loans.

Saturday, April 13, 2019

Get Property Fast—Owner Occupied Hard Money Loans

Owner occupied hard money loans help individuals get the property they want when they need it. They no longer have to wait on the banks. They no longer have to bend to the mandates of immaculate credit. Get yours today through Level 4 Funding!

Owner occupied loans are loans made out to individuals looking to buy or refinance residential property. A primary requirement for receiving an owner-occupied loan is that the buyer/refinancer is going to live on said property. There are a great many reasons why individuals may seek owner occupied had money. Whether to acquire a new home, fix an existing home, or manage debt, many have felt the comfort of being able to find a financing solution and enjoy the home that they deserve.

Acquiring a home. Many times, people get tired of renting and living in a small cubical. The time comes to stretch out one’s metaphorical wings and find a new place to live. Especially now, with property shortage, internet pricing, and more individuals moving to urban areas, the cost of renting is sometimes equal to or higher than a house payment. However, many people are stuck in a renting scenario because the are unable to verify enough time on the job, have unconventional employment, or abysmal credit, maybe even all of the above.

Owner occupied hard money loans help individuals get the property they want when they need it. They no longer have to wait on the banks. They no longer have to bend to the mandates of immaculate credit. Refinancing. Sometimes, debt accumulates. Credit cards, loans, debts, interest rates. Refinancing especially with owner occupied hard money loans can consolidate debt. It can limit the amount of interest paid on a house. Aside from Acquiring and refinancing, owner occupied homes allow many to start building on property.

Owner Occupied Loans Help Real People Get the Right Property

Finally, bridge loans. These loans help owners move into a new home until the old home sells. They usually have a duration lasting between three to twelve months. Opposed to long-term funding agreements which can span years, these types of owner occupied hard money loans are concerned with providing short-term financing for acquiring property. The word bridge indicates an intermediary period between hard money and conventional lending; since bridge loans are expensive, borrowers tend to enter into such financing agreements with the mindset of paying loans off quickly or bridging to a long-term source of financing later.

Level 4 Funding is here to help you qualify for owner occupied hard money loans today. Don’t wait on the bank. Don’t let marred credit stop you from finding the home that is right for you. Owner occupied hard money loans have helped many and can help you too.

Talk to your hard money lender today at Level 4 Funding to apply for owner occupied hard money loans that are right for you. Don’t wait on the bank’s tedious process. Get approved within days.

Saved By an Arizona Bridge Loan

I had just turned 40 when my father died and I inherited his home. It was a difficult time for our family. And to add to the stress, I had just recently decided to purchase my first home.

Along with the sudden death of my father I was also thrown into a whole slew of new financial responsibility. Being an only child, with an extremely small family, I inherited my father’s home. This had been my childhood home and along with many good memories came the wear of those memories. The house hadn’t appraised for much and needed an enormous amount of rehabilitation.

Because I now owned this home that had numerous mortgages taken out on it, and still owned the bank money, I was told by the bank I would not qualify for a second mortgage and would need to sell my inherited home before applying for a mortgage. I was mortified. I had outgrown my small apartment and saved for a small down payment. I couldn’t live in my childhood home because it wasn’t even safe to live in. I had found myself in quite a pickle.

How You Can Buy A New Home Before Selling Your Old Home

After talking to more attorneys and loan officers than any sane person would want to experience—I was given some gold information. The last loan officer I spoke to asked me if I had considered an Arizona Bridge Loan. He explained that it was an interest-only loan that I could take out while making repairs and selling my father’s home. It sounded perfect and I could not believe no one had offered me this until now.

However, because of a recent bankruptcy I did not qualify for the Arizona Bridge Loan. I was so disappointed and was feeling helpless. I began Googling Arizona Bridge Loans to find out if another bank may qualify me. As I began googling I found myself reading about Arizona Hard Money Loans. I had always though Arizona Hard Money Lenders were sharks. They were the guys in all the gangster movies. Well, come to find out—they aren’t. They are actually nice, normal people that have money to loan and will do so, regardless of a borrower’s credit or income, if they believe it will make a good return. They are simply investors—just as the people that invest on Wall Street.

I was approved within 24 hours for an Arizona Bridge Loan.

Because an Arizona Hard Money Lender determines a borrower’s eligibility based on their assets versus their credit and income the approval time is very quick. I was funded within a week after finding my new home. The Arizona Hard Money Lender based his decision on my hard assets—which were my properties. I was able to pay the interest only on my father’s home which left me with enough to pay my new mortgage. I was also able to tack on financing for the rehab of my father’s home—making it possible to sell. Once, I sold my father’s home I was able to pay the Arizona Bridge Loan off without penalty and profited what was left over. If it wasn’t for my Arizona Hard Money Lender helping me, I would very easily have been living in my childhood home for many years.

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.

You Can Own Multiple Rental Properties With Less Stress

Most banks will tell you that four investment, or rental, properties is the maximum amount of properties a borrower can finance. However, that is not 100% true.

There are ways an investor can finance multiple rental properties (more than four). Banks are skeptical of lending to more than four properties. Truthfully, there are some banks that will finance more than four investment properties, but it takes a lot of energy and research to find these banks.

Technically, Fannie Mae guidelines state that investors are able to get loans on up to 10 properties. However, banks will tell you they cannot authorize a fifth mortgage, let alone a sixth or seventh. The reason behind the banks creating their loan stipulation is that beyond four mortgages is just too risky. Even if you find a bank that is willing to work with you through financing over four mortgages most banks will only allow a 70% loan to value ratio and most likely will not allow the borrower to take out any cash when or if they choose to refinance these properties.

So Where Do I Go When The Bank Says No To Financing Multiple Rental Properties?

If the bank has said no or can’t give you the terms you need and you don’t have a substantial amount of cash upfront to purchase the properties, an Arizona Hard Money Loan can open up an avenue of lending you may have not been a part of before.

Arizona Hard Money Loans are short-term loans that many investors use to finance a real estate investment project. There are many advantages in using Arizona Hard Money Loans. The convenience of the loan application process can be a project saver. Applying for a conventional mortgage is time consuming. It can easily take months to close on a loan from a traditional lending institution. After approval hard money is typically funded within 2 weeks. Along with the ease of the loan process—Arizona Hard Money Loans have flexibility. Unlike, banks Arizona Hard Money Lenders are able to use flexibility in their loan terms—meaning there can be some negation of the loan terms. An Arizona Hard Money Lender is one person. That means you are dealing with only one person versus an entire team at a bank.

Arizona Hard Money Lenders have no regulations stating how many mortgages they are allowed to approve to a borrower. As long as the borrower has the collateral they will continue to be approved by an Arizona Hard Money Lender. The collateral is typically the collateral the lender uses to secure the loan. There are some lenders that approve of retirement accounts and personal assets to secure the loan. Again, there is flexibility. Once an investor works with the Arizona Hard Money Lender, and they create a personal relationship, terms can improve—this is based on personal trust.

An Arizona Hard Money Loan allows an investor to continue to grow their portfolio.

Real estate investment is an avenue to wealth. Understanding how Arizona Hard Money Lenders operate and forming a relationship with a lender can change your financial world.

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.