Setabay Private Hard Money Lender

Tuesday, May 14, 2019

ARIZONA HARD MONEY LENDERS

What is an Arizona hard money lender? When would you need to use an Arizona hard money lender?

I’m sure you have heard the term, but what exactly is a hard money lender? What do they do and why do they matter?

There are times that you need cash and you need it quickly. We have all been there. If you are fortunate enough you may have a family member throw you some dinero. But, the majority of us aren’t that lucky. There are also situations in which you may not have the qualifications for a bank loan or any type of loan at all. So, if you need cash yesterday, what do you do today?

Let’s say you want to purchase a house in a short time period. When it comes to real estate speed of execution is key. The faster the deal happens, the more likely you will end up with that property. However, if you are borrowing from any type of lender they will require some sort of security on the loan. For example, the bank will require your credit score and income just to start the process. Trust me, if you get pre-approved there will be a ton more paperwork you will be sending the bank.

ASSET BASED LOANS

Arizona hard money lenders grant asset-based loans. This means they care much more about the actual property that you are using as an asset than they do you and your credit. Hard money lenders can also loan money for operational expenses for your business. You can use a hard money loan for everything from fix and flips to a start up marijuana dispensary.

Using a hard money loan for real estate purposes is the most popular type of hard money loan. These loans are used for improvements. Let’s say you buy a house for $50,000. Once you have put $7,000 in on repairs you are able to sell it for $75,000. These are called fix and flips and this is where a hard money lender becomes ultra-important.

Hard money lenders will base the loan amount on what the value of the property will be after repairs. This is called the after repair value (ARV). For example that $50,000 house will be appraised at $75,000 ARV. Most lenders approve 70% ARV, which is $52,500. Already you will have more than the listing price. Bonus! Private money lenders will also approve repairs. The $7,000 you need to rehab the property can be financed, as well. However, you will not receive these funds all at once. After an appraiser has given a quote the lender will approve what is called a draw. These draws are typically disbursed per project.

Arizona hard money lenders give ordinary people, who may have mismanaged their money and gotten into financial trouble, a chance to increase their wealth.

Arizona hard money lenders make it very feasible to start making money in the real estate game with zero money down. It is not too good to be true. It is the real deal!

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.

Monday, May 13, 2019

Arizona Hard Money Lenders: The help you need to be a successful Real Estate Investor

You might be a real estate investor going to the bank time and time again waiting too long and missing out on the best opportunities, or you might be continually looking for private investors to fund your next deal, but never finding them. If this is you learn how Arizona Hard Money Lenders might be the help you need to grow as a real-estate investor.

If you’re a real estate investor, you might have gotten frustrated with the tedium of the bank application process. Often a competitive property comes on the market, and you miss out because the bank can’t get its act together. Or you might try to finance a rehab project, and the bank denies your application without an explanation. Or you might want to own more than six properties, and the bank says you’ve exceeded your mortgage limit.

Fed up with the bank, you might try to hook up with private investors. You might find a private investor who promises to fund a time-sensitive deal but ends up scrambling trying to get their funds together causing you to miss out. If you want to take on a risky project, you might spend endless months trying to get investors on board. If you wish to acquire more investment properties, you’ll quickly run out of contacts that have money to give you.

Here's how Arizona Hard Money Lenders out-shine banks and private investors

Hard money is simply a loan based on hard assets. Unlike banks hard money providers are flexible, and unlike private investors, they're also reliable. Of course, compared to private investors and bank financing, hard money seems expensive, but consider all the things hard money can offer:

• Making full cash offers on competitive properties- No matter how great your financial situation is, it’s going to take months for the bank to approve your loan application and private investors might not have the funds to close your deal.

• With hard money, you can make full cash offers on competitive properties. Unlike banks, hard money dealers can move quickly, and unlike private investors, they have money to fund your deal.

• Funding risky projects- If your next investment property is in exceptionally poor condition, getting the bank or a private investor on board is going be challenging, to say the least. Hard money lets you take on especially risky projects because these lenders specialize in rehab. You won't face repeated denials at the bank, and you won't have to spend endless months trying to convince a private investor to get on board.

• Funding multiple deals in a short time- Banks have mortgage limits, and with private investors, you can only find so many people who can give you funding. With hard money, you can close on as many deals as you’d like, so long as each deal is sound.

What sets hard money apart is this ability close on as many deals as possible, and quickly reap considerable returns. If you use hard money to pull in 100 K over the course of two months, will even notice the higher interest payments? Probably not.

If you really want to grow as a real-estate investor you need to consider Arizona Hard Money Lenders

Unlike banks, hard money providers have flexibility; unlike individual investors they have the funding. If you want to beat the competition, take on high-risk projects or rapidly acquire new investment properties, hard money remains your best bet.

Why a Trust Deed Investment is a Better Bet than Stocks

Stock prices rise and fall like a balloon drifting on the speculations of Wall Street analysts. Do you want to invest in speculation or something you can touch and feel like real estate? Well thanks to trust deeds, you can build your financial future on a solid foundation instead of the shifting sands of the stock market. Learn the many ways a trust deed investment can outperform stocks.

Now we all know what stocks are, but what exactly are trust deeds? They sound like an inscrutable legal document, typed up in the dusky backroom of some lawyers office. But really, trust deeds are quite simple.

Think of trust deeds as mortgages, where you as an investor act as the bank. A trust deed is a loan that you give to a real-estate developer, and in exchange for your investment, the developer pays you back both interest and principal.

You might think it's wise to invest in the stock market but think again. The value of a stock is founded on speculation and hot air. A single vague news story can send a stock price plummeting.

In contrast, trust deeds are secured by real-estate. Real-estate has an inherent value, and that value rarely declines.

Here are just a few more reasons why you should think twice before you invest in stocks.

Here's how stocks fall short in comparison to a trust deed investment

• No guaranteed yield- The dividend a stock pays can change, or eliminated whenever a company chooses. Also, remember the dividends paid by stocks are usually paltry and rarely stray into the double digits.

• No guaranteed return on your initial investment- Whatever money you put into stocks, you have no assurance that you're going to get your money back. If you buy 100 K in Tesla stock, the value of that stock could plummet to five bucks in the blink of an eye.

• No right to recourse- You can’t foreclose on a company if the price of its stock falls. You won’t be able to force Elon Musk to liquidate his art collection so you can get back the 99,995 dollars you lost by investing in him.

Here's what a trust deed investment can offer you that a stock can’t

• Guaranteed yield- Unlike a board of directors, a trust deed borrower can’t just decide to stop making interest payments. In addition, you might earn a monthly return of 10 percent or more from a trust deed, which is far more than most stocks can offer you.

• Guaranteed return on your initial investment- Remember trust deeds are loans. Once a borrower signs onto a trust deed they’re obligated to pay you back, in full. Can any stock promise you that?

• Right to recourse- A borrower might be under contract to pay you back, and keep up with interest payments, but what if they don’t? Well, the answer is simple; you foreclose and liquidate the borrower's property allowing you to recoup most of your initial investment. If you lose money on a stock market, your loss complete and irreversible.

In short, trust deeds offer guarantees, guaranteed interest payments, guaranteed repayment of your initial investment and guaranteed protections.

Stocks are speculation; trust deeds are investments. So don’t waste money speculating on the stock market, instead invest in trust deeds.

Arizona spec home financing: A Brief Guide to Speculating

Many spec home builders might spend all their time speculating, and continue to speculate long after they’ve begun their projects. Learn how you can avoid these pitfalls when it comes to Arizona spec home financing.

Many first-time spec builders are tempted to, well speculate. They might buy a piece of land in the middle of the desert hoping one day to build a house there. They might plan to construct a postmodern citadel, with floor to ceiling windows, in the middle of a working-class neighborhood.

Worse they might continue to speculate well into their project, deciding against a particular set of finishes, or deciding to shift a window over three-quarters of an inch because they prefer a slightly different view.

When it comes to building spec homes, you can’t afford to speculate this way.

Here's some things you shouldn’t do with spec-home financing

• Buy Undeveloped land- You might finance the purchase of an undeveloped patch of wilderness. Spending hundreds of thousands of dollars expecting the city to come through and lay the groundwork for roads and utilities. But this might never happen, so what you’ll end up with is a useless patch of dirt and a loan you can’t pay back.

• Build Extravagant Homes-You might consider an area up and coming, and given rising home prices you might use financing to construct an extravagant home to appeal to these stylish new buyers. But if your home is listed well beyond the average price for homes in the area, the house won’t sell. The only ones moving into your home will be spiders, who aren’t going to pay back your loan.

• Changing plans- Spec financing is given out in draws; you only get so much money each month. If you spend additional funds one month to make changes, you won’t have enough money the next month to keep work going. What you’ll end up with is a half-finished home, which you can’t sell and again a loan that you can't pay back.

Follow these steps before you apply for Arizona spec home financing.

1. Find a developed parcel of land- The land you purchase needs to be connected to electricity, plumbing and road networks. Only finance the purchase of developed land. Don’t waste your money buying acres of wilderness.

2. Plan your project based on market realities- Keep your plans in line with homes nearby, because whatever features you add need to be in line with homes in the area. After your plans are in place hook up with realtors, do extensive online searches about the value of homes close to your chosen lot and find out how quickly homes in the area are selling. This data will give you a sense of whether your finished home will pay back your initial loan and how quickly you’ll be able to pay it back.

3. Develop a detailed plan and stick to it- Establish a specific schedule for how work will proceed on your project and don’t change your plans halfway through.

Following these tips will prevent you from spending thousands on useless dirt, building a home that won't sell and from running out of money in the middle of your project.

Make a plan in line with the realities of the market, and stick to that plan no matter what, because, if you want to succeed in the spec business, you need to be realistic and decisive.

Sunday, May 12, 2019

Arizona Hard Money Loans: Why you need more Debt

When it comes to Arizona Hard Money Loans, you want more debt, not less. Having more debt might not sound like good financial advice, but in the case of fix and flips, it is.

The best-laid plans of fixers and flippers often go awry.

Line by line you might have your project priced out down to the very nails you plan to use to install the kitchen cabinets. Your schedule might have a minute by minute breakdown of how work will proceed, “On April 16th, from 10:10-10:15, remove the carpet in the second bedroom, from 10:15-10:35 install new carpet,”

Maybe your plan probably won't be this detailed. But you might do a lot of homework and think you might only need so much financing, but if you do run out of funding…

It's going to be hard to get other Arizona Hard Money Lenders on board with your project if things go wrong

If you run out of money and you need more financing here's why it might be impossible to qualify:

• Title issues- If you run out of funding, a second lender will be second in line if you happen to default, which is far too risky for most lenders. So most hard money providers stipulate that they need to have clear title to a property.

• Title insurance issues- Title insurance issues will likely prevent a new lender from coming on board halfway through your project. Potential contractor liens prevent secondary lenders from qualifying for title insurance. Without title insurance, it will be nearly impossible for a second lender to get paid back if you happen to default.

• Negative stigma- You might have crossed every t, and dotted every i before you began work, but in spite of all that careful planning, you still ran out of money. Any potential lender isn't going to look at your detailed plan they'll look at the result you've produced so far. If you run out of money in the middle of your project, your results speak for themselves, and they say one thing: you're incompetent.

So let's see what could happen if you don’t apply for extra funding ahead of time.

With flips and Arizona Hard Money Loans, if you apply for too little, you won't be able to take care of unexpected difficulties.

Here are two common things you could face in any flip regardless of how thorough your plans were:

• Unexpected structural issues-Budget in hand you might go to your construction site and one of your contractors might tell you that the roof timbers are teeming with termites and the entire roof is going to need to be replaced before you can sell the house. The cost of replacing the roof is ten thousand dollars over your initial loan amount. Hat in hand you go asking lender after lender for more funding, but after your meetings, none of them ever call you back. Weeks go by, your home is unfinished, and your initial loan comes due. Obviously, you won't be able to make that final payment.

• Lazy contractors-Your contractors might sit around smoking cigarettes and listening to the radio, whenever you happen to leave the worksite. So in spite of your perfectly planned schedule, nothing is getting finished on time. So you bring in new contractors. But then all at once, your former contractors take out a lien against your property for work they never finished. So, now before you can sell your home, you need to pay them. You go to a lender, but your deal falls through because of the outstanding contractor lien. The final balloon payment comes due, and you're still unable to resell your home, and you default

What can you do to avoid these disasters? It’s simple don’t run out of money. Before starting a flip always apply for more financing than you think you might need.

Commercial Arizona Hard Money Lenders: The right help for your startup?

You might have started your business a few months back, and you might need extra funding to grow your startup. Yet time and time again the bank rejects your application. If this is you, learn how commercial Arizona Hard Money Lenders can help bring your start-up business to the next level.

Banks want businesses to have established credit scores and several years of documented cashflows. These requirements present quite a conundrum for startups.

If you can’t get credit from the bank how are you supposed to build a business credit score? If you opened your doors six months ago, how can you give the bank years of income and expense statements?

Startups can’t meet these requirements from conventional lenders.

So many startups rely on alternative financing, and there's one type that of financing that stands out when it comes to helping start-ups capture those breakthrough business opportunities.

Its a type of financing known as hard money.

Commercial Arizona Hard Money Lenders can be the help your startup needs.

Hard money is a loan secured by a hard asset. What matters to these lenders is the underlying value of your business property. If in the event of default, selling off your store-front will cover the cost of your loan, then you can qualify for hard money.

Here’s just some of the ways hard money can help startups:

• Credit score and cash flow aren't a concern- When it comes to these lenders, the most important consideration is collateral, not your businesses credit score and you don’t need years of financial documentation to qualify.

• Fast application process- With hard money the application process takes about a week. Usually, all that's needed is a quick appraisal. So when a breakthrough opportunity presents itself, you won't miss out, waiting for your loan to get approved.

• No restrictions on the use of funds- When it comes to hard money there’s no fine print concerning how you can spend the proceeds of your loan. You can use hard money financing to buy discounted inventory, create new signage for your store or anything else your heart desires, but don't get carried away. Hard money is meant to be paid off quickly, so it’s best used for short term opportunities that will generate a significant return in a matter of months.

You should use hard money for things like investing in equipment that will exponentially increase the pace at which you can do business, buying inventory that you know you can sell off quickly or moving to a location where you know there's far more foot traffic.

You shouldn’t use hard money to finance your ten-year marketing plan or any other long-term investment. But, hard money offers startups the ability to take advantage of these and other opportunity, which is something regular banks can’t offer.

Commercial Arizona Hard Money Lenders are flexible, accessible and fast, the kind of financing startups need.

Hard money helps startups capture fast-moving, short term opportunities, which means it could be precisely the type financing your startup needs to capture that big break and really take your business to the next level.