Setabay Private Hard Money Lender

Thursday, May 2, 2019

Five Tips for Finding Arizona Hard Money Lenders

When you are looking for a hard money loan it is not as simple as walking into a bank. But these tips will help you to locate reliable Arizona hard money lenders.

When fast turnaround time is critical, hard money can be a great option. But to make use of this financial tool, borrowers need to know how and where to find Texas hard money lenders. And unlike traditional loans, hard money is provided by a private lender. This means that a borrower does not just walk into a hard money bank and get the loan in one quick stop. But the good news is that there are a lot of Texas Hard Money Lenders out there once borrowers know where to look for them.

Not all lenders work in hard money. And because these loans are different from traditional loans, it is always best to seek and lender who focuses on hard money. This will ensure that you are working with a lender who is very familiar with the legalities of hard money and is also very accustomed to dealing with the terms and conditions and terms of hard money.

Looking for a local lender is also a good idea. This allows you to meet face to face and discuss the potential terms of the loan as well as providing added ease throughout the lift of the loan if you need to meet with the lender for any reason. This can be especially critical for a borrower who is new to the world of hard money and would like to learn the process from a local professional who can answer questions and be a resource for learning as well as lending.

Get To Know Your Lender

Texas Hard Money Lenders should be licensed within their state by the Department of Real Estate and should have a current Real Estate Brokers License. This is the first step in determining that you are working with a professional and not someone who is out to scam you and never provide you with the money that you need. In addition, verify that the lender offers full transparency into the loan process and the terms of the loan prior to signing any documentation. A legitimate lender will provide you with a written breakdown of all fees and charges associated with the loan that you are requesting prior to asking you to sign the loan docs.

Know What You Need

Not all Arizona Hard Money Loans are the same and not all deals are a good match for any type of hard money loan. It is important that you know what your needs are before you begin to search for a lender. Many lenders specialize in a certain type of Arizona Hard Money Loans such as land purchase, commercial property or only single-family residential loans. Knowing this will save you a great deal of time when you are looking for the perfect lender to meet your needs. Also, never rush the process of selecting a lender when you are uncomfortable about any of the loan terms or the process of securing the loan. A reliable lender will patiently work through all of your questions and concerns.

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.

Wednesday, May 1, 2019

5 Reasons You Need Hard Money Loans

If you are unfamiliar with Arizona Hard Money Loans then you probably don’t know the six signs that you need a hard money loan. But this could answer some serious questions for you.

Arizona Hard Money Loans are loans that are offered by private lenders and are actually based on the value of the collateral that you are using for the loan more than they are based on your credit score. This means that people who are having issues with their credit or have had issues in the past can still qualify for a loan. But because these loans often represent a greater risk for the lender, the cost for hard money and the interest rate on the loan are going to be higher than a traditional bank loan. However, if you are seeing the following signs, hard money could be the answer to your issues.

If you need money fast for a real estate investment, or you will risk losing a great deal, then hard money is perfect for you. Because the loan is coming from a private lender, the process is much faster and less stressful than going to a bank. In some cases, banks will take months to approve and fund a loan but a hard money lender can often complete the entire process in less than two weeks.

If you need flexibility in your loan terms, then again, hard money could be your perfect solution. Private lenders are free to customize the terms of your loan including the repayment schedule, the length of the loan, the interest rate and some will even defer your interest payments until the end of the loan term. No bank will offer those features. And with terms for as little as just a few months, you are certain to be able to get all that you need working with a private lender.

You Don’t Want to Be Cash Poor

You might have a good amount of cash on hand, but you never know when added expenses will pop up. That is another great reason to use hard money loans. Unlike a traditional bank loan, you can take out the short term loan and know that even if there are unexpected expenses, you will still be able to complete the project.

You Are Funding A Fix and Flip

Arizona Hard Money Loans are the perfect financial tool for almost every fix and flip project. The term can be customized to match the timeline for your renovation and without the worries of a long term traditional mortgage or all of the hassles that are involved in the paperwork. In many cases, you can request a loan from a hard money lender and have the loan approved, funded and the project half done before a traditional bank will even provide a response to your request. And even with the higher interest rate, the lower stress level and the fast funding make hard money the best option for a borrower who is doing quick projects and lots of them.

Why Use Arizona Hard Money Lenders

Not all deals are right for hard money. But knowing when to use Arizona Hard Money Lenders will help you to increase your profit on your next deal.

Arizona Hard Money Lenders normally loan money to real estate investors as hard money cannot be used for an owner-occupied property purchase. There are many reasons that investors choose to use hard money over traditional bank loans, even though the Arizona Hard Money Loans have a higher cost.

Being new to the real estate investing business presents a huge number of challenges. Everything from learning about the local real estate market to the contractors and the current trends can be a challenge But by far the greatest challenge facing many new real estate investors is finding funding. Traditional banks often require a great deal of personal financial information as well as a great credit score and virtually no personal debt. In addition, they normally want to see w2 verified income to prove that the investor can make the loan payments. All of this is impossible for a new investor who is struggling to start and grow a new business. But Texas Hard Money Lenders are going to base the approval of a loan request on the value of the property being used as collateral with only a minor glance at the borrower's personal finances.

Because hard money is asset-based, the process to evaluate a loan request is much less complex than the process that a bank goes through when vetting a new borrower. This means that Texas Hard Money Lenders can evaluate and approve Arizona Hard Money Loans in just a fraction of the time needed to evaluate a traditional bank loan. Borrowers know that when they find a great property and need to move quickly, hard money is the way to go. Then they always have the option to refinance to a more traditional, lower cost loan once they own the property.

The Terms Are A Perfect Fit

Flipping houses has become a huge segment of the real estate industry, and hard money terms are the perfect fit for a fast flip project. In most cases, hard money terms are less than one year. That allows a flipper to make a fast purchase and then complete the needed work on the property and sell it before the term of the loan is over. Flipping and hard money have both benefited greatly from one another and are very popular among real estate investors.

It’s Easy and Less Stressful

Getting a loan from a bank can be a long and stressful process. There are mountains of forms and paperwork that must be completed and then you must sit and wait for a response. In many cases, it can take more than a month from the time the request is submitted to even hear that the loan is approved. But using hard money, real estate investors can forget about all of the paperwork and stress. They complete the request and then have an answer in just a few days and cash in hand in just a few more days. Investors know that time is just as important as money in some cases and hard money is a great way to save time.

10 Questions To Ask Hard Money Lenders

It is important to have a list of questions to ask all of the Arizona Hard Money Lenders that you are considering. The answers will help you to make the best selection for your needs.

When interviewing hard money lenders, it is critical that you have a list of questions for each to answer so that you have a means of comparing all of your options. With the following list of questions, you will gather all of the information that you will need to make a good selection for your next hard money loan.

One of the first questions to ask is how long it will take to process the request and fund a loan. This will give you an idea of the when to expect the funding so that you can inform the property owner. Most lenders will offer to fund in under two weeks. Knowing that information, you should then determine what the interest rate will be to borrow the money. This is a very important factor, especially if your budget is tight on the project. And finally, you will need to know the maximum loan to value that each lender will offer. Knowing this tells you how your down payment will be.

Loan terms can also make or break a deal. You will need to know how long the term of the loan will be and also what are all of the costs and fees that you will need to pay. It is a good idea to have these items listed in writing and also when you request the loan, ask for the total cost of the loan so that you are assured of no hidden fees. This is also a good time to ask Arizona Hard Money Lenders to verify the down payment that is required.

Other Terms

Most Arizona Hard Money Lenders will not prohibit the use of the loan fund for repairs but you should ask each lender just to be certain. This is also a good time to ask each lender if they are willing to defer the interest payments until the end of the loan. Some lenders require monthly interest payments while others could defer some or all of the interest until the end of the loan term. You should also ask if there are any ways that you could get a lower interest rate. In some cases, a lender will lower your interest rate if you make a larger down payment or if you can increase your credit score before the actual time of the loan request.

Compare Apples to Apples

Having a list of questions prepared to ask all of your potential lenders will help you to get all of the information that you need to make a well-informed decision. In some cases, it could be worth paying a little more for a loan that offers a longer term or other benefits such as deferred interest or a faster funding time. But you will only learn about this information if you ask the right questions.

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Tuesday, April 30, 2019

4 Reasons Investors Like Arizona Hard Money Loans

While not all investors understand hard money loans, those who do know that when used correctly there is a great potential for return on investment. Below are four of the biggest benefits of these loans.

Not every loan is right for every type of property, and in some cases, a property can be in a condition that makes it difficult to secure any loan at all. But smart real estate investors know that Texas Hard Money Loans can be a great resource because of all the great benefits that they offer over a traditional bank loan. These asset-based loans open up a lot of doors for credit challenged investors as well as investors who have a great many projects running in succession.

By far, one of the biggest benefits of Arizona Hard Money Loans is the fact that the entire process is far less stressful and much faster than a traditional bank loan application. The bank will require a myriad of documents to prove your financial status, but Arizona Hard Money Lenders are only interested in a few tax returns to make sure that you can keep up on the loan payments. And once the bank has all of your documentation, they pour over it for weeks before making a decision. A hard money lender is likely to review your documents and the property information and respond within a day or two.

An additional benefit of Arizona Hard Money Loans is that the terms are all negotiable. This included the interest rate, the length of the loan and even the loan amount. Banks have set terms for all of this and are never willing to negotiate. But working with a private lender means that you can get the customized loan that you need, not the loan that some banker wants to give you.

Long Term Working Relationship

As a real estate investor, you are going to need loans for each project that you undertake. The benefit of working with a hard money lender is that you can cultivate and grow the relationship to benefit you both. A bank could have a dozen loan officers but you will not see a new face with each loan when using a long time hard money lender. And as your history and relationship grow, so will the benefits and the comfort level of requesting a loan. That is a huge stress reduction for any business person.

Great For New Investors

As a new real estate investor, you will find it very difficult to meet the loan criteria of a traditional bank. They will require a stellar credit score, a minimal debt to income ratio and years’ worth of tax and banking statements to even consider lending you the money you need. But a hard money lender will just ask for tax docs and the particulars on the property that you are looking to buy. If you have made a wise selection and the deal looks profitable, then the hard money lender is going to be willing to take a chance on you. So, it is clear to see why many investors favor using hard money for their projects.

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Top 5 Criteria Arizona Hard Money Lenders Are Looking For

Securing loans from Arizona Hard Money Lenders is not like getting a loan from a bank. Knowing what these lenders are looking for is critical to a borrowers success.

There are numerous benefits to hard money loans, but unless borrowers are aware of the five main criteria that Arizona Hard Money Lenders are looking for, they will miss out on these great loan opportunities. A simple application process is definitely one of the biggest benefits to hard money, but lenders still will require some information and documentation to approve a loan.

Even though Arizona Hard Money Lenders base a large part of the decision on the value of the collateral, there is still some interest in the financial health of the borrower. Lenders are not really worried about the borrower's credit score as much as they are interested in the borrower’s ability to make the payments on the loan and to pay the carrying costs of the property. Most lenders will ask to see two year's tax returns to verify income. The tax returns are a good way to see overall income and that also benefits any investors who are self-employed and do not have check stubs or a w2. In addition, most lenders will ask for a personal financial statement to evaluate the borrower's debt to income ratio. Again, having the ability to make the payments is all that the lender cares about.

The value of the property is a major concern and consideration for lenders. They want to see that the property holds the potential for a good resale that will turn a profit for the borrower. Again, this is a security measure for the lender and assures that he or she will get repaid. Along these lines, it is also important to note that most lenders who offer hard money will require that they are the first lien holder to ensure that they get repaid.

Borrowers Need Experience

An experienced borrower represents a lower risk that someone who has never flipped and investment property before. Lenders are willing to take a certain amount of risk for a set level of profit. But if the borrower has no experience, then the level of risk increases, as does the interest rates and the likelihood of a default on the loan. Lenders don’t want the hassle of trying to sell a property to recover their money. They want payments on time and easy interest. So having an experienced borrower is a huge advantage and one that will secure a hard money loan.

Professionalism Counts Too

As with any business transaction, professionalism is a clear benefit. Lenders are looking for borrowers who are well prepared and have their documentation ready when they submit a loan request. Documents such as LLC organizational documents, lists of previous purchases and completed projects, plans for the current project and a timeline and exit strategy will all demonstrate that the borrower is experienced in the process and knows how to get a project completed on time and on budget. Meeting these five main criteria will all but guarantee that Arizona Hard Money Lenders are going to be eager to fund your request for hard money.

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