Setabay Private Hard Money Lender

Monday, April 15, 2019

How to Rig Your Credit & Why Arizona Hard Money Lenders Don’t Care

Experian is rolling out a new program that could let you rig your way to a better credit score. It won’t likely impact your ability to work with Arizona hard money lenders, but there’s some chance it could actually harm your ability to get a loan with good terms with other lenders.

If you haven’t delved deeply into credit scores before, you may be surprised to learn that you don’t have a single score. You have several. There are three big credit bureaus (FICO, Experian and Equifax) which gather data related to you and financial habits, then provide some type of score to help financing companies determine whether you’re a safe borrower or not.

Each assigns you a numerical credit score using an algorithm. Most credit reporting models are based upon FICO’s model, so your credit scores will likely be similar across all three. However, each is unique and sometimes one receives different information than the others, which naturally makes the outcome different too.

When you apply for a loan, the financing company may pull a report from any of them or all three. However, with FICO, decisions are purely based upon the credit score. If a company says you need to have a 700 to qualify and you have a 699, you’ll be denied no matter the reason. With the other two, a full report containing things like open accounts and late payments is provided, so financing companies can take circumstances into account if they so choose.

Historically, there’s been nothing a person could do if he or she had rotten credit—at least not quickly. If your past was problematic or you hadn’t established credit, those were indicators you might not be a safe bet. That makes sense. You’d have to spend years building or rebuilding to get credit from a traditional finance company. Arizona hard money lenders have always been a bit different in this respect, simply because your credit score is not a major factor in the decision to lend.

If You Can Pay at Least Some of Your Bills on Time, You Can Game the System

Experian is now going to let you cherry-pick some of what appears on your report. Under the new program, Experian Boost, you’ll be able to link Experian to your bank account and it will pull data on things like phone and utility bills. Then, it will show you each bill it can count, let you know how it will impact your score, and allow you to pick which ones to include in your score. If you decide you don’t like it, you can shut it off. While this won’t undo a bad credit history, including bills you’re a good payer on can demonstrate creditworthiness and show you’ve had credit for a longer period of time, thus potentially increasing your Experian score and getting you approval with companies which prioritize Experian. Again, Arizona Hard Money Lenders won’t necessarily care about this. The majority use a FICO score and, even then, it’s the value of the asset you’re borrowing against that matters most.

Experian’s shift could spell danger for the future of lending.

As a consumer, you’re probably excited about this change because it could be an easy way to instantly improve your credit score. Therein lies the problem for financing companies and perhaps a few Arizona Hard Money Lenders who break from the norm. While Experian says this does not change its predictive abilities, there’s some chance financing companies may stop trusting Experian or require higher scores if time proves otherwise.

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 14, 2019

Benefits of Hard Money Rental Property Loans

Forget conventional lenders. Get hard money rental property loans and start making money today!

Frankly, conventional money is hassle and is incapable of funding the large majority of the quick paced real estate investments that are constantly in motion. Hard money is a reality when it comes to rental properties, snatching the right real estate, and renovating to increase profits.

Thus, many turn to hard money lenders because hard money rental property loans have less stipulations than conventional lenders. To receive such a loan as this, a borrower must have enough cash down, 20% to 60%, to create a favorable loan-to-value situation for his or her lender. Otherwise, he or she will need to leverage current real estate assets owned to mitigate the lender’s risk. By leveraging property, especially with excellent positive equity or with no debt owed, up to 100% LTV is possible.

On top of this, previous credit issues such as bankruptcy, foreclosure, and delinquency can be overlooked in favor of an optimistic equity situation. Don’t worry about the past, it is time to live in the glory of the entrepreneurial present. Another benefit of using hard money rental property loans, is that you are able to buy distressed property. This is a benefit if you are interested in renovating to rent a house since purchasing a house is cheaper than purchasing other refurbished units in an area. Though this may take honing a few more skills and becoming one with your inner weekend warrior, many are able to get more returns by paying less in these instances. If hard money lending seems right for you, talk a hard money broker at Level 4 Funding today.

Make More Money with Rental Property Loans

Rental properties are also attractive for a number of reasons: they are a great way to establish equity, home ownership, long term cash flow, and even a retirement. Rental properties are secure in recessions when renting becomes more common. Furthermore, rental property loans to finance acquisition and renovation are not hard to come by and form a great starting point for new investors.

Talk to a hard money broker at Level 4 Funding to get your rental property loans today!

Talk to a hard money broker to find the rate, term, and loan-to-value needed for the rental investment. After acquiring the property and getting funding to renovate through rental property loans, find renters and establish a lease rate that allows for paying off the active hard money loan.

All About Arizona Hard Money Loans

What is an Arizona Hard Money Loan and who benefits from these loans?

Arizona Hard Money Loans are unlike conventional loans. They are funded by private investors that are often referred to as Arizona Hard Money Lenders. These loans are based on the value of the property that is being purchased versus the borrower’s credit worthiness. The amount of the loan can be based on either the loan-to-value ratio (LTV) or the after-repair-value (ARV). The LTV is the ratio of loan divided by the value of the property being used as collateral. The ARV is what the property will be worth after the repairs will be done. The loan terms will be different depending on the lender.

Arizona Hard Money Loans are much easier to qualify for than conventional mortgages because the approval is not solely based on the borrower and their ability to pay the loan back, but on the property and what it is worth. This is because in case the borrower defaults on the loan—the lender can repossess the property, sell it and get their money back. These loans typically have 6 months to 3 year terms; in certain situations these loans can be extended out for up to 5 years.

These loans are generally meant for real estate investors for fix and flip and construction projects. However, Arizona Hard Money Lenders can finance residential properties and small business loans as well. Arizona Hard Money Lenders have the freedom to be flexible when working with borrowers. Successful real estate investors have a lender they regularly work with. Not only will the lender often lower interest rates for a repeat customer—they are able to give quick financing when the investor comes upon a property.

Why Use An Arizona Hard Money Loan?

There are many situations in which an Arizona Hard Money Loan will benefit a borrower over traditional bank financing. When an investor comes upon a property they are able to get quick financing because funds are generally available in less than two weeks. This aids investors when competing with all cash buyers. Sellers prefer working with investors that work with Arizona Hard Money Lenders because there is security given to the seller that the deal will not fall through.

If the borrowers credit score is not sufficient to secure traditional lending or they just do not meet bank requirements, Arizona Hard Money Loans are a great alternative. Typically, Arizona Hard Money Lenders do not impose prepayment penalties; meaning, that once the borrower is able to qualify for a conventional mortgage they are able to pay off the Arizona Hard Money Loan without any penalties.

Any time a borrower does not have enough cash or access to any financing, Arizona Hard Money Loans are a great substitute for traditional lending. In this case, as the others, when the borrower finds themselves in a situation to secure traditional financing the Arizona Hard Money Loan can be paid off.

Arizona Hard Money Loans are not the answer to financing for all; however, for many borrowers, Arizona Hard Money Loans can solve their problems.

Arizona Hard Money Lenders are essentially concerned with the collateral that backs the loans. These lenders differentiate in their loan terms. Most lenders work in a certain geographic location. It is important, when researching Arizona Hard Money Lenders, that you do so in your area. Make sure once you locate a lender you ask questions. It’s not only finding a lender that will qualify that is important—it is finding one that your personality and goal mesh well together.

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 Flip Houses With No Money Down

It would be a lie to say that anyone can flip houses with no money down in Arizona and make a profit. However, it is possible with hard work.

I have flipped over 130 homes in the last 10 years. It is not easy, but once you are able to find an effective strategy it becomes easier and a whole lot of fun. I average about $25,000 in profit per flip. However, I didn’t start out making that type of money. My first house flip I profited $4,500— my second, I walked away with $8,000 in my pocket. And, on my third flip I lost $3,200. Don’t let that intimidate you—I want to be honest concerning this business. After 10 years of flipping homes, I have only lost money on five projects. That equals less than 7% of my deals resulting in losses—not too shabby.

Many people think about becoming real estate investors, but never take actions on that thought. There is a good reason for that; becoming an investor means taking risks and removing yourself out of your comfort zone. However, if you are able to make these changes it will be well worth the time. There are many ways you can flip houses with no money down in Arizona (or very little): wholesaling, buying houses that already have a loan on them and partnering with another investor. However, the most effective way to flip houses with no money down is through private money investors—commonly called hard money investors.

My first flip was actually a home I lived in. When my wife and I first met we both owned homes. Once we decided to get married we chose to sell our homes and buy a fixer upper. We lived there for two years, rehabbed it and sold the property. However, at that point we wanted purchase a nice, new home. About a year later I started getting the itch again to rehab a property. Although I had flipped a house previously—I didn’t have a whole lot of experience. We had also taken our time rehabbing the property. On average it should take about 3 months to fix and another 3-6 months to flip a home.

Hard Money Fix and Flip Loans

Arizona Hard Money Lenders will typically approve more than traditional banks. A benefit to working with an Arizona Hard Money Lender is they will approve not only the property loan but the repairs, as well. Arizona Hard Money Lenders are establishments—and occasionally individuals— who borrow money from investors at a certain interest rate and then lend that same money to real estate investors at a higher rate. Arizona Hard Money Loans are short-term loans that generally have terms from six months to three years. To fix and flip a home with no money down find a lender that will lend on the after-repair-value (ARV). Most lenders will finance at least 70% of the ARV. That means they will lend the borrower 70% of what the house will be valued at after it has been rehabbed. For example, if you buy a house for $105,000—but the ARV is $200,000—the Arizona Hard Money Lender will finance $140,000.

Have you been thinking of getting started as a real estate investor?

If flipping houses in Arizona is something you’ve daydreamed about take that step. Research local Arizona Hard Money Lenders and talk to one. For more information, contact us at level4funding.com. We would be more than happy to get you started in the right direction.

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 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.

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.