Setabay Private Hard Money Lender

Tuesday, April 30, 2019

Self Employed? Here's How You Can Still Get the Loan You Need

Think you can't get a home loan if you're self-employed? You actually can, and it's easier and cheaper than you might think. Let's look at Colorado Self-employed Home Loans.

In the old days before the recession, you could walk into a bank, verbally tell them how much you make, and walk out approved for a home loan. These days, things have changed. Of course, this is generally a good thing — it will keep people who can't afford to make payments from taking on too big of a house. This, in turn, should keep the housing market from disintegrating the way it did 10 years ago.

However, there's one group of people who have been left out in the cold by the new Dodd-Frank regulations — the self-employed. You can have spotless credit and a healthy down payment, but if you don't have those official pay stubs, the bank could slam the door in your face.

A lot of self-employed people give up there, assuming that there's no way they can get the funds they need for their home purchase. Thankfully, there is another route.

Home Loans for the Self Employed

Colorado Self-employed Home Loans do exist but you won't find them at the bank. Where you will find them is with private lenders. Private lenders work outside the conventional banking system, so they aren't as beholden to the regulations as the banks. That means they can choose to take on a risk and loan money to a home buyer if they want to.

There are a few distinct advantages to this approach. The biggest is that you don't have to produce pay stubs; you can show a bank statement or a tax return instead. You can also get approved much quicker (as little as 1-2 days) and get the money much quicker (sometimes as little as a week). And, because it's private money, the lender is flexible; you can work together to find terms that work for both of you.

Self-Employed Home Loans in Colorado

Looking for a self-employed home loan in the state of Colorado? You've come to the right place! We specialize in these types of loans and offer some of the best terms in the business, including credit qualifications down to 620, rates as low as 4.99 percent, and no prepayment penalties. Give us a call today to find out how we can help!

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 and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

How To Qualify For Arizona Hard money Loans

Texas Hard Money Loans are not as tough to get as borrowers often think. The name is actually very misleading once you understand what it takes to really qualify for hard money.

The term Arizona Hard Money Loans is somewhat misleading as it makes most borrowers think that it is very difficult to get these loans. But what the word hard is actually referring to is the hard collateral or real estate, that is being used to secure the loan. There is really nothing hard or difficult about qualifying for these asset-based loans.

Asset-based lending is quite different than traditional lending in that the approval for a loan request is based on the value of the collateral for the loan. In most cases, the collateral is the property that is being purchased but in some cases, the loan could be secured with another property that the borrower owns outright. Unlike a traditional loan, where the credit history and current debt load of the borrower are the main criteria for qualifying for a loan. But there are a few other points that a lender will take into consideration when evaluating Arizona hard money loans.

In most cases, the lender will provide up to about 70% of the money required for the purchase of the property. This means that the borrower needs to have a down payment of up to 30% of the cost of the property. Lenders will require that the borrower show proof of the funds that will cover the down payment before the loan is approved and funded. Not only does this motivate the borrower as he or she has personal funds invested but it also creates instant equity in the property. This is a security feature for the lender. In the event that the borrower defaults on the loan, the lender will be able to take possession of the property and sell it for at least as much as the outstanding loan balance.

Cash Reserves And Stability

In addition to proof of the down payment funds, the lender will require proof of financial stability and the ability to make the loan payments and other carrying costs associated with the property. If the borrower has a good amount of reserve cash, then the lender is more likely to approve the loan and could even offer a better interest rate as the loan represents less risk. Too many real estate projects grind to a halt when unexpected costs or issues arise and the investor is not able to pay the added costs. In these cases, the loan often falls into default and the lender is forced to try to sell the property to recover his or her investment.

Experience Counts

The real estate investment business can be very challenging. Lenders know that this business can derail many new investors who think that property flips are a great way to make some fast cash. One of the critical ingredients for a successful investment is a borrower who has experience with Texas Hard Money Loans and with real estate investing. These borrowers are far more likely to be successful and also far more likely to secure a loan with a reasonable interest rate. Meeting these three criteria will pretty much assure a borrower that his or her loan request will be approved.

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.

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Monday, April 29, 2019

Arizona Commercial Hard Money Lenders VS. A Bank

Not all borrowers are familiar with the benefits of Arizona Commercial Hard Money Lenders. Knowing the difference between bank loans and Texas Hard Money Loans is very important when seeking a loan.

Many borrowers hear the phrase Arizona Commercial Hard Money Lenders and they picture a group of unsavory characters who are doing business in dark alleys and in the basement of old condemned buildings. But that is not even remotely accurate. Arizona Hard Money Lenders are just private lenders who are offering loans based on the value of the collateral being offered rather than the credit score and credit history of the borrower. And as you might guess, adding in the word commercial simply refers to the type of property.

Because the lenders are private and not traditional, meaning banks and mortgage companies, they are free to finalize the terms of any loan in any manner that they see fit. But there are some general terms and numbers that can be used when comparing these private lenders to traditional lenders. In the past, when private lending was not as popular, the terms and rates were less generally accepted, but in today’s competitive market and with larger numbers of Arizona Commercial Hard Money Lenders, the terms are very similar.

When seeking a loan from a bank, the approval is based on the borrower’s income, credit score, tax returns, and other personal financial information. A private lender is basing the loan approval primarily on the value of the real estate being used as collateral for the loan. So, for the borrowers with a FICO score under 700 who get turned down by more banks, hard money is a great option. In addition, traditional lenders require a huge mountain of documentation to verify all of the borrower’s financial information, but a private lender only needs to get some very basic personal information and then some details on the collateral property.

Time Is Money

In the world of real estate, time is a very, very valuable commodity. And unfortunately, nothing in the traditional lending world moves quickly. A bank or mortgage company will require a loan committee review all the borrower’s documents and financials to determine if the loan application will be approved. But a private lender can quickly and efficiently review the collateral property’s information and determine if the loan can be funded and the exact amount of the loan. A bank or mortgage company is likely to drag out the loan approval and funding process for as long as three months while a private lender will often times have the loan funded in under ten days.

Upfront Fees

A traditional lender is going to charge fees regardless of the decision to fund or reject a loan application. There could be inspection, appraisal, application and research fees that must be paid even before the first document is reviewed. But Arizona Commercial Hard Money Lenders are going to be much more likely to charge only a minimal fee is any at all before determining if the application will be granted or rejected. Understanding the differences between working with a traditional bank and a private lender will certainly help borrowers to make a more well-informed choice when seeking a loan.

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.

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Get in on a Hot Industry with Cannabis Loans

With more and more states legalizing marijuana for recreational and medicinal use, the cannabis industry is exploding. Learn how to get in on this burgeoning industry with Colorado Cannabis Business Loans.

Today, marijuana is legal for recreational use in nine states and is legal for medicinal use in 30 states, including Colorado. If you're looking to get into the business, there are a few steps you can take first.

Find out if your county or city is currently allowing applications for licenses. Because the government is trying to control the number of new cannabis dispensaries that pop up, some cities and counties limit the licenses they award.
Make a corporate structure for your new marijuana business. Build a corporate structure that's compliant with the state's regulations.
Have a solid business plan. Do your research and come up with a business plan that includes projections and pro forma financials.
Apply for all the necessary licenses. Keep in mind that the application fee can be in the thousands of dollars and that you may have to show proof that you have at least $150,000 in a financial institution.
Contract cultivators and growers. Or, if you're proficient, you can grow your own.

Getting Funding for a Cannabis Business

Starting a cannabis business isn't cheap. There are a wide variety of upfront costs, including application fees, rent, and utilities for your storefront, and advertising to make people aware of your business. Plus, as we detailed above, your state may require you to have $150,000 in a bank just to apply.

So where do you get funding for a cannabis business? Some banks may be willing to help, but they're usually pretty averse to risk, and a cannabis business is riskier than most because it walks a line in terms of legality.

Another option is a hard money Colorado Cannabis Business Loan. Hard money is much easier to qualify for than a bank loan. There's no begging, jumping through hoops, or having your entire history dug up. Interest rates can be higher and the terms can be shorter, but there are also fewer fees and you can get the money in a matter of a week or two.

Cannabis Loans in Colorado

Need a Cannabis Business Loan in Colorado? We have extensive experience in both the lending industry and the marijuana industry, so we are in a unique position to help prospective cannabis business owners succeed. Give us a call today and we can talk about the details!

What's the Difference Between Hard Money and Conventional Construction Loans?

Just like the real estate business, the lending business has changed a lot over the last several years, but one thing is always constant: investors need funding for their construction projects. So which route should you go: conventional bank loans or Colorado Hard Money Construction Loans? Let's look at which one is best for you.

Here's what you need to consider when you're looking at a traditional or a Colorado Hard Money Loan for a construction project:

How fast do you need your money? When you're building, sticking to the budget and schedule are two of the most important elements to success. With a bank or credit union loan, you might wait over 30 days to get your funds, and that's not including the application ordeal (which we all know can be a nightmare). The application process for Colorado Hard Money Loans takes 1-2 days and the funds can be in your account in a week or two.
What do you qualify for? Banks don't want to take on much risk, especially after the new restrictions that were put in place after the recession. Plus, they have complicated underwriting processes, so they put institution requirements in place for borrowers to qualify. They want you to have a certain credit score, they want you to have a healthy cash flow, and they want you to have a nearly spotless history. Colorado Hard Money Construction Loans come from private sources and are secured with collateral, so lenders aren't as worried about your credit score and financial history.
What loan structure do you want? With banks, loans are a one-size-fits-all affair. With hard money, lenders can tailor the loan to fit your needs, both in terms of collateral release and repayment terms.

Which Type of Loan is Right for You?

The answer depends on a range of factors. If you've been told no by the banks, a Colorado Hard Money Loan might just be the way to get your project the funds it needs to get off the ground. If you have the time to wait and don't mind the less flexible loan terms, the bank may be a better option. Ultimately, the right loan will depend on your priorities. Weigh the pros and cons carefully.

Hard Money Construction Loans in Colorado

If you feel like a Colorado Hard Money Construction Loan is the right move for you (or if you want to find out more), give us a call today! We offer loan values up to 90 percent LTV, 24 months interest only and rates from 9.5 percent.

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.

Understanding How To Make Arizona Hard Money Loans Work For You

Borrowers need to understand how Arizona Hard Money Loans work to take full advantage of their benefit. Used correctly these loans can provide a huge ROI.

Arizona Hard Money Loans are simply another name for asset-based loans. What this means for borrowers is that the loan approval is based on the value of the property being used as collateral and not so much on the creditworthiness of the borrower. In addition, these loans are not funded by a traditional bank. Instead, they are offered by private lenders who are in business to make money from the interest on the loans that they make. And being that these loans are from private lenders, the terms, while normally shorter in term, can be much more flexible than a loan from a traditional bank.

Asset-based loans can be used to purchase just about any type of property including single-family and multi-family residential, commercial, land or even industrial property. It can be important to know what types of loans a given hard money lender specializes in, or if he or she will fund any type of property loan. The only stipulation is that Arizona Hard Money Lenders will not fund a loan for an owner-occupied property because of the additional rules and regulations on those types of loans.

Because these loans cannot be used for owner-occupied properties, these loans are normally used by real estate investors. Investors appreciate that hard money will fund much more quickly than a traditional loan and that the lenders are often far more flexible on the terms of the loan. In addition, because the loan approval is based on the collateral value and not the borrower's personal credit or credit history, borrowers can carry many Arizona Hard Money Loans which are not often possible in the case of a traditional lender.

Best Deals For Hard Money

Arizona Hard Money Loans are not the best choice for every deal, but they are tailor-made for some types of deals. The terms and process of funding hard money make them the perfect resource for real estate investors who are interested in fix and flip properties, land or construction loans or when there is a great deal of competition for a property. The fast funding allows the borrower to secure the property and then refinance to a longer-term loan.

The Fine Print

As a rule, hard money is normally a tool used for higher risk loans. And as such, the cost of the loan is a bit higher than a traditional loan. The rates will vary from state to state. Areas with more Arizona Hard Money Lenders will tend to offer more competitive rates as opposed to areas with fewer lenders. Typically, borrowers can expect to pay between 10-15% interest on hard money as well as 2 to 4% of the total loan in points. But for a fast approval process and less strict credit requirements, hard money is a great option for borrowers who understand these loans and know how to use them properly.

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.

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