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Saturday, May 25, 2019

Can Builders Still Get Arizona spec home financing?

Getting Arizona spec home financing might not be as easy as it was in the past, but it's still within reach, even if your financial situation isn't stellar. Let's look at how to get started and examine a few things to think about.

We harp on it a lot in this blog, but the housing crisis — and the subsequent Dodd-Frank Act — was a monumental turning point in the industry. New regulations designed to prevent another recession made big financial institutions really wary of taking risks. In spec home construction, that's meant funding has become really difficult to come by, at least through traditional routes.

Does that mean that getting Arizona spec home financing is impossible these days? Nope. But you may have to get creative or think outside the box to make it happen. It's not as daunting as it seems — Texas Hard Money Loans in Arizona may be able to help you through the process.

How to Get Hard Money Arizona spec home financing

One of the advantages of going with a Arizona Hard Money Lender is that, unlike the banks, you can sit down with an actual human being who has the power to make decisions. If you're looking for a spec home loan, use this to your advantage by talking about some of these topics:

● Discuss your options. A Arizona Hard Money Lenders will listen to your plan and brainstorm ideas to help make it happen.

● Discuss the process. Talk about how the process will go, from the initial meeting and the application procedures to how fast you'll have funding and when you'll need to start paying it back.

● Discuss the terms of the loan. Texas Hard Money Loans aren't bound by the same restrictions of the bank, so they have wiggle room to structure the loan in a way that makes sense for both of you.

● Discuss fees and interest rates. Good, honest lenders will tell you upfront how much everything is going to cost, including the interest rates, points and any requisite fees.

Getting Spec Home Financing in Arizona

The new housing market in Arizona is booming, so it's a fantastic time for builders to cash in on the trend. If you're thinking about building a spec home or you need Arizona spec home financing to help finish a spec home project, you've come to the right place. Give Level 4 Funding a call today to talk about your options!

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.

Why Knowing Your Office Building's Class Can Help with Arizona Commercial Private Loan

Got an office building in your sights and need a Arizona Commercial Private Loan to make the sale happen? Knowing its class can help you in more ways than one. Here's how.

A huge part of due diligence in the real estate game — from applying for a Arizona Commercial Private Loan and putting in an offer to getting insurance and eventually listing it — is determining value. This can be even more true when it comes to commercial real estate. Things like buying in the wrong part of town or not catching a red flag can doom that commercial purchase and kill any potential profit it might have yielded.

One of the ways in which real estate professionals work to determine value is by putting commercial spaces into classes. It's a subjective process, but it's a tool to help you compare comparable buildings that will be competing for tenants. To help you get a better idea of the concept, let's look at the classifications for commercial buildings.

How Are Commercial Properties Classified?

Class A commercial properties are typically relatively large and relatively new and boast a wider range of amenities. They might have upgraded elevator systems, a concierge or security service, and technological enhancements that attract a more prestigious type of tenant. And, Class A buildings generally feature stunning architectural details and have that unnamable "wow" factor. Owners can charge a premium for the upgraded amenities and prime location.
Class B buildings are typically a bit older — perhaps 10 to 20 years — and may be a touch outdated or not equipped with the highest-end amenities. Class B buildings may feature less covered parking or be located on a side street adjacent to a main thoroughfare. This class of commercial property usually fetches the market average for rents.
Class C commercial buildings may be even older and more outdated, with previous tenants who have left their office or retail space a little rundown. Parking and security might be less present or even nonexistent, and maintenance may be lacking. This class might attract business looking for a more economical option and may get below-average rents.

Using Building Class to Get a Commercial Private Loan

There's nothing inherently "wrong" with any of these building classes, but being armed with this information is an important step in applying for a Arizona commercial private loan. Build this info into the plan and budget you present to the lender and he or she will see that you've got your ducks in a row.

Friday, May 24, 2019

Can You Get Rich Using Arizona Private Money Loans?

Even if the banks have turned you down, you may still be able to get the funding you need to realize your real estate dreams and make money. How? By going with a Arizona Private Money Loan.

Everyone's always looking for ways to get rich quick. Unfortunately, get rich quick ideas often end up making people lose money fast. So we're not here to tell you how to get rich quick, but there are millions upon millions to be made in this game and there are ways to turn a profit relatively fast with some hard work and the right funding.

And, if you're like a lot of real estate investors, you're not afraid to roll up your sleeves, get your hands dirty and put in the hard work. So that just leaves the part about finding the right funding, right? Banks are the traditional route, and many people find success that way, but there is a wealth of reasons why they aren't the best idea for everyone.

Banks are impersonal institutions that are bound by external regulations and strict internal guidelines. Anyone who's ever gone to one to see about a loan can attest to this. When they say, "jump," you say, "how high?" You'll be asked to show every bit of income and every account in your name. Your credit score will be scrutinized ad nauseam, and your financial history will get a good going over. Your rep at the bank will generally have no wiggle room to offer you a loan. And, if you don't meet their standards, they'll give you a flat no with no other recourse.

Arizona Private Money Loans as an Alternative to Bank Loan

Here's where Arizona Private Money Loans can be a great alternative to bank loans. As the name implies, this money comes from private individuals, so it's not subject to the same strict standards as the bank. That means your history and credit score don't have to decide whether you can get the funding you need. What's more, private money lenders have the flexibility to sit down with you, listen to your dreams and help you make the money you deserve.

Arizona Private Money Loans in Arizona

With a private money lender, there's a personal relationship — you can develop a rapport, hash out a plan and work together to turn a profit on that real estate investment. Not sure what a Arizona Private Money Loan can do for you? Call Level 4 Funding in Arizona today and find out!

Why Keep Jumping Through Hoops? Go the Arizona Hard Money Loan Route

Banks and traditional funding institutions are some of the fundamental pillars of our capitalist system, but they aren't the only way to get money to pay for your next investment. In fact, they may not even be the best way. Here's why Arizona Hard Money Loans might be a better option.

Our country's big financial institutions help facilitate the movement of money that keeps our economy chugging along. They're an important part of our economic system and, without them, our world would look a lot different. In fact, without a foundational system wherein people can borrow money to start businesses, buy homes and realize their dreams, this country wouldn't be the great place it is. However, it's important to understand that banks and financial behemoths aren't the only way to borrow money.

We sometimes get trapped in this thinking that there is "the system" and the only way to get through life is to go through that system. If you can't get a loan through this system, you'll be out of luck as others around you move up in the world. Let's dispel that myth right now. While banks are responsible for much of the lending that goes on in the United States, they aren't the end-all and be-all.

Arizona Hard Money Loans as an Alternative to Banks

Arizona Hard Money Loans offer a viable alternative. For some people, they're even better than going to a bank. Here's why. Because banks are so big (and they're regulated by government agencies), they can only do so much. They have very strict internal guidelines that tell them whether you are worth the risk or not. If you've had a past financial mistake; if you have a lower-than-their-threshold credit score or if you don't have enough in the bank, you're out.

Arizona Hard Money Loans work with private money, so they aren't bound by these same government restrictions and hard-as-nails internal standards. They can sit down with you, take a look at your plan, see what you have as collateral and make a choice on a human-to-human level. To them, you aren't a disembodied customer in a database; you're a human being with a dream.

Talk with a Arizona Hard Money Lender Today

At Level 4 Funding, we've helped hundreds of people realize their dreams, whether it's a commercial property, a fix-and-flip, a spec home, or anything else. If you want to see how a Arizona Hard Money Loan might work for you, give us a call or send us a message today!

Try These 3 Tactics to Get 100 LTV Arizona Hard Money Loans

In the lending industry, 100 LTV Arizona Hard Money Loans are a bit like UFOs; some people claim to have seen them, but most don't think they exist. And those people are right. Sort of. Let's look at some ways you may be able to get to 100 LTV.

For those of you who aren't familiar with the term, LTV is loan-to-value ratio. Simply put, this is the value of the loan you're getting versus the value of the property. So let's say you're buying a property worth $200,000 and you're getting a loan for $160,000. That's an 80 LTV because you're borrowing 80% of the value of the property. This ratio is important because lenders use it as a metric to assess risk. 100 LTV may be rare, but there are ways to get there. Here are a few tactics you can employ to do it:

1. Do Your Research. Many Arizona Hard Money Loans will tell you flat out that they just won't consider doing a 100 LTV Arizona Hard Money Loan. Some may post this information right on their website; others will tell you on the phone. So here's what you do: research Arizona Hard Money Loans in your area (say, Phoenix, Arizona). Peruse their websites, send them an email or give them a call and ask. It's quick; it's painless and you won't be barking up the wrong tree.

2. Build a Relationship with Your Lender. Here's where Arizona Hard Money Loans differ from the behemoth banks — they work with private funds and they're usually smaller operations. This works to your advantage and here's why. You can sit down with a Arizona Hard Money Lender and make a case for your investment. You and your lender can establish a relationship of trust and mutual gain, so he or she might not just reject your case based solely on numbers.

3. Have a Strong Background. While Arizona Hard Money Loans are less concerned with credit scores and past mistakes than banks, they also want to see that you've handled yourself well in the past. For instance, if you want to do a fix and flip, they might want to know that you've done it successfully before. Also, if you've worked with the lender before, he or she may be more inclined to take a risk.

What About 100 Percent for Rehab Expenses?

Getting 100 LTV might be a tall order, but some Arizona Hard Money Loans are willing to go 90% on as-is values and up to 100% on rehab costs. Of course, not every investor gets these terms. Like we've detailed above, you may need to have solid collateral, a good budget and a workable plan.

Finding a Hard Money Lender in Arizona

Level 4 Funding has decades of experience with hard money lending. If you're looking for a 100 LTV Arizona Hard Money Loan, give us a call today!

Thursday, May 23, 2019

Why New Builders Struggle to Get Arizona Spec Home Financing (And What You Can Do About It)

Even if you have experience as a sub-contractor, making that first step into self-employment and running your own projects can be a challenge, particularly when it comes to getting funding. The good news is, you may still qualify for Arizona Spec Home Financing regardless of whether you’ve already been denied by the banks.

To start with the basics, speculative builds are those constructed without a specific buyer in mind. You may have chosen an area where houses are selling like hotcakes and have a high degree of certainty that someone will purchase it as soon as it’s ready, or even show interest during the build, but no buyer or homeowner is involved in the process. It’s you and your team handling construction. You make all the calls related to features the property has, from the flooring to the fixtures.

This makes speculative projects a dream for many builders, but when they hit the point where they’re looking for Arizona Spec Home Financing, they come up against serious roadblocks. That’s because they usually attempt to secure funding from the typical channels, and it simply doesn’t work.

Banks are the typical first go-to. Many no longer work in the speculative arena at all, but when they do, they usually require you to have quite a bit of equity in the project and only lend on small projects, plus have stringent requirements for experience and credit. Lines of credit tend to be the next line of defense. You can, in theory, finance a whole project using a line of credit. However, this typically requires impeccable credit. Lastly, equity is an option. This means leveraging properties you already own. If you aren’t a seasoned investor, however, this means putting your own home on the line, provided you own it outright.

Private Money Can Help You When Other Options Fail

Private money isn’t like the other options. It typically comes from individual investors, groups of investors who pool their money together, or organizations. It’s designed to fill the lending gap, but what it really does is create a win-win solution for everyone. The individual investors do earn money on the deal, as opposed to feeding the banks, and you get the Arizona Spec Home Financing you need as well. Because private money isn’t subject to the same regulations, you can qualify regardless of your credit score and you don’t need to put your family’s house on the line either.

You can increase your eligibility by taking a few small steps.

So, if private investors aren’t expecting the same things as the banks, what do you need to qualify for Arizona Spec Home Financing? In short, a good property, solid plans, strong numbers, and experience. Three of those things are totally within your control. However, if this is the first project you’re running on your own, you may want to bring on a partner who has a successful track record. No doubt, you’ll find you’re running projects and qualifying entirely on your own in no time.