Setabay Private Hard Money Lender

Saturday, May 4, 2019

When You Should Use Arizona Hard Money Loans

As you most likely have figured out by now, if you’ve been in the real estate investment business for any length of time, Arizona Hard Money Loans are not a fit for all scenarios. However, for a variety of transaction types, real estate deals, loan scenarios, and investment strategies, a private hard money lender is considered the lender of choice.

One of these lending scenarios is the fix-and-flip investment model. You’ll find that banks tend to stand clear of fix-and-flip projects from simple single-family renovations to complex commercial property and apartment building rehabs. Banks generally prefer to fund non-speculative real estate investments, cash flow positive, and up to date properties. These projects have fewer variables, are less risky, and fall within the guide lines of the highly restrictive rules for bankers since the recession of 2008. For projects of 1 to 4 units, FHA insured loans are available. If the property needs major renovations, it is almost impossible to secure a conventional loan in order to have the funds to rehab the property.

Due to the major restrictive nature of the conventional mortgage industry, one of the most popular types of loans for the fix and flips are Arizona Hard Money Loans. Since these loans are more speculative and riskier, they turn out to be one of the most profitable loans for the real estate investor. This type of loan is often the only option for a fix and flip project.

On the other hand, traditional banks will usually be able to fund your rental properties. From 2 to 4 units to 5-plus units and commercial properties, all can be funded through conventional banks. If your project needs major repairs or renovations and if your project is well under market value, damaged or neglected, you will find it very hard to find funding from a conventional bank. If you’re looking to fund the fix up costs of a property that is “as is,” a hard money lender is definitely your best chance at success. Other properties that banks tend to shy away from are multi-unit rental properties that have been mismanaged and neglected. Many Colorado Hard Money Lenders will fund the acquisition as well as renovation of the assets.

If Your Deal Needs to Close Fast

Arizona Hard Money Loans have the reputation of the ability to close fast. On the other hand, banks are associated with red tape and a long list of required documents. There are even some Colorado Hard Money Lenders that offer no doc and low doc loan options. Texas Hard Money Lenders, 9 out of 10 times, will have the ability to close fast, in some cases as little as seven days.

Other reasons to us a Hard Money Lender are, Cash Out Refinancing, Bridge Loans or Provisional Financing, No Doc or Low Doc Loans, Maxed out Conventual Mortgages, Higher Leverage Investment Strategies, and Partnership Buyout or Takeover.

As in all cases, when obtaining a Arizona Hard Money Loan, conduct due diligence, find out the transactional costs, find out the lending limit and if the lender will be able to fund your project in the town that the project is located. Lastly, once you have gotten your loan, keep a good relationship with the hard money lender so you can use them for future projects at lower costs.

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.

Friday, May 3, 2019

Separating the Arizona Hard Money Lenders From the Scam Artists

Arizona Hard Money Lenders are great resources for real estate investors. But first, you need to know the signs of the scam artists to be sure that you don’t get taken.

Texas Hard Money Lenders are often misunderstood by borrowers who are not familiar with the process of hard money lending. The thing that all Texas Hard Money Lenders are shady and just about the same as a loan shark which could not be further from the truth. But borrowers do need to know the signs of the scam artists who masquerade as legitimate lenders in order to protect themselves and their business.

As with most professions, there are rules and regulations that govern hard money. In addition, there are licenses and certifications that lenders need to procure to become a legitimate hard money lender. Borrowers need to verify that any potential lender is licensed and that he or she has a current brokerage license as well. And as with any business, being bonded and insured is just a cost of doing business. If a lender refuses to provide proof of any or all this information, then chances are, that he or she is not a legitimate lender and you should seek a person whose credentials can be verified.

If the terms of a loan appear to be too good to be true, then chances are that is the case. If a lender is offering you a very low-interest rate and no upfront costs, beware. Ask for a written explanation of all of the costs and fees for the life of the loan. In most cases, the lender will stop communicating with you and you will know that the offer was a fraud. In the same vein, if a lender requires a lot of upfront money before signing any loan agreement, beware of a scam. In some cases, fake lenders will offer a loan that sounds great and could have a very reasonable interest rate. The hitch is that you must pay a bunch of fees upfront. In these cases, the would-be lender disappears with your fees and never comes through with a loan.

Get Promises In Writing

If a lender is legitimate and really has nothing to hide, he or she will be very transparent about the entire hard money loan process. It is not uncalled for to ask for a list of all fees, expenses, and interest that will be charged on a loan prior to applying. You will not get exact dollar figures unless the lender has set flat rate fees for some tasks. But you should get a complete list of the fees so that you can roughly calculate the costs. If the lender is not willing to be transparent, then you are possibly dealing with a scam artist or at the very least a lender who will hit you with hidden fees.

Evaluate Your Options

There are many reliable and honest Arizona Hard Money Lenders out there, and you can find them simply by asking questions and verifying the credentials of the lenders that you are considering. Investing the time to choose the right lender will pay off both in peace of mind and in the cost of your loan.

Red Flags To Beware Of With Arizona Commercial Hard Money Lenders

Finding the right lender is the first major task in any commercial real estate investment. But there are some red flags to be aware of when you are interviewing Arizona Commercial Hard Money Lenders.

All borrowers have heard the horror stories of Arizona Commercial Hard Money Lenders who are nothing more than scam artists who are out to make a quick buck at the expense of new real estate investors or even seasoned pros who are not on their toes. But all of that can be easily avoided if you keep on the lookout for a few red flags during your loan and lender search.

One of the first indications that a lender might not be legit is a lack of responsiveness or inconsistent responsiveness. Real Arizona Commercial Hard Money Lenders know that they need to be at the top of their game all the time to keep new clients rolling in and profits coming in from all of the new loans that they are funding. If a lender is not returning calls or emails, then there could be a good reason. In many cases, the less than legit lenders are only going to answer a few select calls knowing that they can rip off those potential borrowers in a short period of time and then get back to the life of leisure. Unless the lender can provide a good explanation for not responding, consider that a major red flag.

If a potential lender refuses to provide you with all the terms of the loan in writing and is evasive when you are asking questions, this is generally a sign of some hidden costs in the very best case and a total scam in the worst case. An honest lender is in business to cultivate relationships with borrowers and continue to provide a loan service for many years to come. These lenders will gladly provide all of the terms and costs in writing so that the borrower is confident and knows what to expect from the first day of the application process until the day that the loan is paid in full. If you can’t get the information that you feel you need to evaluate the loan and the lenders, then move on and find someone else to borrow from.

A Resource For More Than Money

Experienced and professional Arizona Commercial Hard Money Lenders are always willing to answer questions and help new real estate investors. The only way that a lender will get repeat business from a borrower is if the borrower is successful in his or her first few transactions. Any smart and honest lender will be willing to offer information and advice about the process of borrowing hard money as well as any other aspects of real estate investing that he or she is knowledgeable about. If that is not the case, then you should consider a new lender for your next project.

Watch For Red Flags

It is understandable that any lender could have a busy day or other commitments and not be able to return a call or email right away. But if the issue continues or the lender is not forthcoming with information or help when you ask, then heed the red flags and find a lender who will help you to be as successful as possible.

Three Things To Look For In Arizona Hard Money Lenders

Selecting the best financing option is the first step in any successful real estate investment. The following three items are important as you make your choices about Arizona hard money lenders.

You always want to be certain that you have a solid foundation for your business. And one of the critical factors in real estate investing is the lender that you choose. In reality, most borrowers invest the time only once when selecting a lender, and then they continue to grow that relationship for many years to the mutual benefit of everyone involved. But that first evaluation of Arizona Hard Money Lenders can be very challenging. You should be on the lookout for these three important pieces of information.

When you are searching for Texas hard money lenders, you are actually just searching for another service provider for your business. It is no more complex are difficult than that. So, you need to be evaluating and considering what qualities are important to you and what will be your expectation throughout this loan and during the lifetime of future loans. Responsiveness should be at the top of your list. After all, fast funding is one of the main reasons that borrowers use hard money, so a lender who does not respond you your calls or emails quickly is not going to help you grow as a real estate investor.

Transparency is another critical aspect of any strong and successful business relationship. You need to be honest with your lender, but he or she also needs to be totally honest with you. All of the processes and fees need to be explained up front and honestly. The only way that you can forge a long term working relationship is through honesty and complete transparency. But in the end, these two facets of your relationship will allow you to work together long-term which will save you both time and money for years to come.

The Dollars and Cents

Offering competitive rates and terms is also critical to building a long-term working relationship with and lender or service provider. Again, this is a business relationship and the point is to make money. So fair rates and terms are a must. Not all Arizona Hard Money Lenders will offer the same terms or rates, so you need to evaluate what each lender is offering to you and how much those services are costing you. You might be willing to use a lender who funds a little more slowly but charges a lot less, however only you can decide what you are willing to pay and what you are willing to accept for the money that you are paying.

Finding Your Sweet Spot

Selecting a lender is much like selecting any other supplier. This supplier just happens to be supplying your finding. But the most important thing to remember is that the supplier you select must be the one who over all meets your needs. So you are looking for the best balance of all of the criteria and services that you feel are most necessary to your success.

Thursday, May 2, 2019

3 Questions To Ask Potential Hard Money Lenders

There are a huge number of Arizona Hard Money Lenders out there to choose from. The best way to select the lender that is right for you is to have a list of interview questions prepared to as each lender that you are considering.

With the growing popularity of hard money, there are a vast number of options for borrowers who are ready to select a lender. And the only way to know that you have made the right selection is to conduct an interview process with all of the Texas Hard Money Lenders that you are considering. And to make the process as simple and fast as possible, having a list of questions prepared will be a huge help and will also show each lender that you are well prepared, professional and ready to make a deal.

Your first concern should be that all of the Texas Hard Money Lenders are licensed, bonded and insured. You should also verify that each one holds a valid Real Estate Brokers License in the state that you are in. These documents and licenses will tell you a great deal about the professionalism, level of knowledge and level of professionalism that you can expect from the lender. In addition, it is almost certain that any lender who is licensed is not working simply to scam potential borrowers and make some easy cash.

The next concern should be the total cost to borrow money from each lender. The level of transparency of each lender is critical. A lender who is willing to provide you with a written list of all fees and finance charges is confident in his or her business and business practices. This person offers complete visibility into the loan process and loan costs and is likely to be very easy to work with and honest. A lender who is not willing to disclose information about the total cost of the loan is often doing something that might be considered underhanded or shady. And you should expect some hidden costs to appear at some point during the life of the loan.

Timing Can Be Critical

Most borrowers seek hard money because they need to get the loan quickly to close a deal. But not all lenders process the loan request at the same speed nor do they all fund as quickly as you might expect. When you are interviewing is the time to learn about each lenders application and approval process and timeline. And if that is satisfactory, then inquire about the length of time it will take to get the loan funded. Sometimes fast is good enough, but other times it is worth paying extra for a super-fast funding loan.

Find Your Perfect Balance

When you are evaluating Arizona hard money lenders, the purpose of the process is to weed out the undesirable candidates and then learn as much as possible about all of the lenders that appear to be on the up and up. With that information, you can determine which lender offers the best balance of cost and customer service to meet your needs.

How To Select Arizona Hard Money Lenders

Just as not all loans are alike, not all Arizona Hard Money Lenders are alike either. These tips will help you to select the best lender to meet your needs.

When you are shopping for a car or a new home, you would never just grab the first thing you find and not comparison shop. And when you are seeking Texas hard money lenders, you should follow the same thought process. There will be definite drawbacks and benefits to each of the different lenders and a smart borrower will always evaluate these pros and cons to determine which lender will best meet his or her unique needs.

One of the biggest benefits of hard money over a traditional loan from a bank is the fact that they often fund much more quickly. But there are no guarantees in this world, so you need to verify with each lender the time needed to process your loan request and the amount of time it will take to fund the loan once you are approved. When timing is critical, paying a little more for a faster funding loan can be a very wise choice, rather than losing out on a great opportunity due to slow finding.

The cost of the loan is always a factor for borrowers. No one wants to pay a penny more than necessary for anything, including a loan. So borrowers need to request a complete list of all of the lender’s fees and finance charges prior to signing any loan documents. This list should be given to you in writing and should show the total cost of the loan so that there are no surprises later. Reputable Arizona Hard Money Lenders are willing to provide this information up front and will not be upset when you ask for it.

Do Your Homework

No lender will admit to being hard to work with, overly demanding or very slow to return calls or correspondence. But all of this information is critical when you are selecting the best lender to meet your needs. Gather this type of information from references, testimonials, evaluation websites such as Yelp or do a Google search to see what past clients have to say about each lender. This information will tell you what you are really getting for your money in terms of professionalism and customer service.

Only Work With A Professional

Even though Arizona Hard Money Lenders are private lenders, there are rules and regulations that apply to the business processes and the actual lender. Be sure to check and make sure that each lender is licensed, bonded and insured to be working in the business. Each lender should also hold a current Real Estate Brokers License in the state that he or she is working in. verifying this information will not only help you to avoid scammers who are preying on borrowers, but it will also tell you that you are working with a reliable and knowledgeable professional who can provide you with the loan that you need as well as valuable information throughout the process.