Setabay Private Hard Money Lender

Wednesday, May 29, 2019

Triple Your Chances of Qualifying for Loans with Private Money Lenders in Phoenix

If you don’t qualify for loans with traditional lenders, there are other options that are much faster and work on an individualized basis. While untraditional lenders can pose risks, they may offer just what you need to complete your project. Read more below to find out if they are right for you!

The loan process can be a long one—even before you officially qualify. Depending on your project, you may spend months planning and researching before you even really get started. When it comes time to seek a loan lender, the loan process won’t even begin immediately—it can take as long as a month or more to get things rolling. So, what should you do when you don’t qualify for a loan from your traditional lender? Easy—seek out other lenders.

What kinds of lenders are there, though? And what type of lender is best for you? Usually it comes down to understanding the difference between public and private lenders and the types of loans they offer.

The Benefits of Working with Untraditional Lenders

Traditional lenders are usually compromised of local banks and credit unions. They have high standards when it comes to borrowing money. They value experience, reliability, and reputability. A great credit score, financial history and debt to income ratio will all be important things they consider before approving you for a loan—any or all of these things can make or break you. Fortunately, there are untraditional lenders who put collateral before financial history, and therefore give greater chances to people who otherwise wouldn’t qualify with traditional lenders. Untraditional lenders, or private money lenders, focus on you, your property and your plans. They are generally blunt with you, and if they don’t support your plans they will tell you. The transparency they offer is part of the individualism that isn’t always present with public lenders. In addition to the opportunity they offer through their selection process, Arizona Private Money Lenders also allow opportunity through their speed. A traditional lender may take a month or more to get the process going—a private lender can get the process going as soon as a week and, sometimes, the day of. Every situation and project is difference, but speed is never a bad thing.

Are the Risks Worth the Benefits?

If you aren’t eligible for traditional loans, private lenders offer a few benefits you won’t see elsewhere. However, there are some risks of working with Private Money Lenders. For one, they have high interest rates and fees. Unlike the rest of the market, the costs of private lenders can be up to five percent higher. Not only that, but they have short repayment periods. Depending on what you need your loan for, this may not be the best option. Private lenders offer hard money that is expected to be paid back fast. Generally, this makes hard money ideal for cases of fixer uppers and foreclosures. Determining if a hard money lender is right for you will require you to evaluate your situation. Just because they can get you the money faster or at all, compared to other lenders doesn’t mean they are the best option.

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.

How Private Money Lenders in Arizona Can Help You

Are you struggling to obtain a loan or find it difficult to qualify with traditional lenders? If you’re in this situation, read more below to find out what kinds of alternative options untraditional lenders can provide for you!

When it comes to obtaining a loan from a traditional lender like your local bank or credit union, approval doesn’t always come easy. Banks have high standards during the loan approval process. This means things like debt to income ratio and credit score play a large determining factor in whether or not you will be approved for a loan. If you cannot meet these standards, you may have to seek out an alternative route and work with Arizona Private Money Lenders who offer hard money.

Private Arizona Hard Money Lenders are just as they sound—private companies or individuals who invest in projects. Hard money can be a great option for people seeking out loans who are looking for other loan opportunities.

Benefits of Private Hard Money Lenders

Arizona Private Money Lenders are often referred to people who cannot obtain traditional loans because of their ability to approve a wide variety of borrowers fast. Private lenders focus on the property’s collateral instead of the borrower’s financial history. In doing this, they are able to choose projects to invest in that have high potential for success. Before approving the project, they then consider the borrower’s financial history to determine if they are a reliable client with solid plans. Another benefit of private lenders and investors is that they are generally transparent with their borrowers. Because they are working on such an individualized basis, it is not uncommon for them to be blunt with you. If they don’t support your plans, your lender will be very direct with you.

Is Arizona Hard Money Lenders Right for You?

There are many benefits of hard money lenders; however, there are also some things to consider. Arizona Private Money Lenders work short term. Depending on your situation, this may not be ideal. For example, the repayment period for Arizona Hard Money Loans is typically a year which makes them absolutely ideal for fixer uppers. Working on a fixer upper generally means a successful renovation and a quick sale with a profit which would help contribute to any outstanding loans or fees. Private lenders can still be options for people who need money fast—like to prevent a foreclosure—but it’s not the most ideal situation. Additionally, private lenders have high interest rates. These rates can be as high as five percent more than typical rates on the market. Arizona Hard Money Lenders may sound ideal, but may not represent all of your needs on paper. When you dive into the housing market, you want to make decisions based on what is best for you in the long run—not only what will satisfy short term solutions.

Tuesday, May 28, 2019

Can You Really Make a 12% Return with a Trust Deed Investing?

Banks give you crumbs now and the stock market can be volatile, so many are turning to Trust Deed Investments to make a nice return on their money. How does it work and how much can you expect to make? Let's take a look.

Figuring out the best place to put your money can be a challenge. You want your money to work for you but you don't want anything too volatile. These days, the average interest rate for banks clocks in at under 1%. With the rate of inflation, you'll lose money using this route. The stock market can be a good bet but without constant vigilance and a solid plan, you can end up losing everything.

What if I told you there was a way to invest in real estate without actually investing in real estate? It's called Trust Deed Investment. It's been around for a long time but doesn't get a whole lot of press. With this type of Investing, you can enjoy the healthy returns of real estate without having to get involved with finding, buying, fixing or selling real estate.

What is Trust Deed Investing?

Here's how it works in a nutshell. A buyer gets a loan to buy a property but doesn't use a traditional bank but instead uses an asset-based loan. The borrower agrees to pay back the loan and the lender holds the deed to the property that's securing the loan. If the borrower fails to live up to the terms of the loan, the lender can look into that property to recover the money.

Now, you can be the lender and work directly with the borrower to set up terms. However, most investing is done through a "middle man" who does the legwork of the lending. As the investor, you would just look at the opportunity this middle man is offering, make your investment and collect your payments. The middle man may take a small fee, but that is typically paid by the borrower. By dividing things this way, you reduce your risk, the lender has funds to lend and the borrower has funds to use in their real estate endeavor.

How Much Can You Make from Trust Deed Investing?

At Level 4 Funding, we bring you opportunities for Trust Deed Investing. Your rate of return can vary between 9% and 29%, but the usual rate is 12% for 1st Trust Deed (meaning you're in the first position to get paid). You can take your payments in nearly any schedule that works best for you. So how do you get started? Give us a call or fill out the form on our site and we can talk about how you can start your Investing.

How to Use a Commercial Arizona Hard Money Loan to Start a Cannabis Business

There's no question about it — cannabis the nation's next (and current) big boom industry. The stakes are high and so is the buy in, but that doesn't mean you can't cash in on this massive trend with a commercial Arizona Hard Money Loan.

Cannabis is becoming big business. That may be the understatement of the century. According to Statista, medical marijuana alone made $4.5 billion dollars in 2018. Impressive right? Wait for it; the same statistics group estimates that medical and recreational marijuana will bring in a combined $37.3 billion by 2024. That's just five years away. And CBD, the non-psychoactive mood aid? Rolling Stone predicts sales will hit $22 billion by 2022.

Let's throw even more numbers at you. Since recreational marijuana became a thing not that many years ago, some 28,000 cannabis businesses have popped up around the country. The average price for an ounce of marijuana in the U.S. is $320. In California, a little over 23 people per 1,000 are medical marijuana patients.

You get the idea; cannabis, CBD, and medical marijuana is a good business to get into if you want to ride this wave. But how do you go about getting funding for one? Let's take a look at your options.

Getting Funding for a Cannabis Business

You could go through the bank and get a traditional bank loan. Rates will be low, but many banks are more conservative and reticent to get into what they perceive as a legal gray area. Even if they're willing, you need a stellar credit score, amazing credentials and a spotless history.

Commercial Arizona Hard Money Loans, on the other hand, would be secured with collateral, so your scores, numbers and financial history are less important. Still part of the equation, but less so than the banks. Approval can happen in a day and funds can be yours in as little as a week.

Using Level 4 Funding for a Commercial Arizona Hard Money Loan

I not only have years of experience in the commercial Arizona Hard Money Loan business, but I've also had years of experience in the cannabis industry, working for grow houses when things were just beginning to take off in California. Let me put that expertise to work for you — give me a call today to talk about starting your cannabis business!

Wish You Could Create Passive Income? Try a AZ Hard Money Loan to Start an Airbnb

It's everyone's not-so-secret desire to generate income that doesn't require clocking in and out at a miserable job. For some, Airbnb can provide that passive income boon and even people with not-so-great credit can do thanks to Arizona Hard Money Loans.

Make no mistake, we are living in the era of the gig economy. Gone are the days of working for one company your entire life and retiring with a gold watch and a goodbye party. People are taking jobs on TaskRabbit, driving for Uber and watching people's dogs on Rover. The undisputed king of the gig economy, though, is Airbnb. People can turn their rental properties into high-end vacation rentals or even transform their basement or mother-in-law suite into a money-making juggernaut.

Travel + Leisure magazine reports that some people are making more than $10,000 a month with Airbnb and, while that's at the high end of the spectrum, the average monthly take for Airbnb hosts is $924. While that's not going to pay all the bills, it's a healthy chunk of change that's fairly simple to make.

Overcoming the Obstacles to Airbnb Hosting

Here's the one caveat — in order to have an Airbnb, most people need to purchase a property, rehab a property and/or do some upgrades to a property to get it ready to rent out. You can use a traditional bank loan, but if you've got bad credit or a questionable financial past, you probably won't get past their stringent gatekeepers.

That's where Arizona Hard Money Loans for Airbnbs come in. These loans use private money and are secured by collateral (usually a property). Because they aren't as heavily regulated, you can usually get one, even if you'd had some issues or your credit score isn't perfect. And, these types of loans typically come in quickly so you can get started with a renovation and start making money as soon as possible.

If you're buying a property to rent out, hard money might be perfect as a bridge loan until you get conventional funding. If you just need to do a rehab, you can use hard money and then pay it back quickly using the Airbnb rental money.

Getting a Hard Money Loan for an Airbnb in Arizona

Ready to start earning relatively passive income on an Airbnb rental here in Arizona? Here at Level 4 Funding, we offer Arizona Hard Money Loans with highly competitive rates, flexible terms and decades of experience in the business. Let's talk about how we can help you make this extra income a reality — give us a call now!

Monday, May 27, 2019

Some Advice for Increasing Your Chances with Commercial AZ Hard Money Lenders

Applying for any type of loan can be daunting, but commercial loans can be even more nerve-wracking. That's why we've decided to devote a post to helping you get prepared for dealing with commercial Arizona Hard Money Lenders. Let's get to it.

Let's face it — no one enjoys applying for a loan. It's just one of those necessary evils you've got to pass through to get the funding you need. Thankfully, there are a number of ways you can make the process as quick and painless as possible. Let's look at a few here:

Know your stuff. In other words, come in prepared. Have a budget. Know how much you're going to need and add a cushion to it. Check out comps. Factor in incidentals. Add in fees, insurance and all those little things that can bust your budget. Consider emergency plans.
Use your experience. If you're going in for a loan so you can buy a property and rent it, it helps to show the lender that you have experience managing a property. If you're doing a fix and flip, you'll want to bring up instances where you've successfully rehabbed and resold a place for a profit in a reasonable time frame. If you want to build a property, it's helpful to have experience as a builder or working with builders.
Be liquid. Lenders want to see that you've got some liquidity. If you have to scrape together every penny you have to muster the down payment, you may not have the cushion to make payments if an emergency arrives. This varies by lender, but most like to see anywhere from 10% to 20% liquidity.

The Number One Thing That Makes Commercial Loans Easier

The best thing you can do to make your loan application process easier? Ditch the banks. Going through the banks means jumping through countless hoops, burying yourself in paperwork, and waiting weeks on pins and needles to hear back. Commercial Arizona Hard Money Lenders, on the other hand, are much easier to work with. You come in with a plan, a bit of experience, some liquidity and a viable asset and you may walk out with a loan. There's minimal paperwork and you can get approved in a matter of a day.

Commercial Hard Money Lenders in Arizona

Now that you know what you need, you can sit down with a commercial Arizona Hard Money Lender in Arizona to fund your next warehouse, multi-family, office or industrial real estate project. Level 4 Funding offers commercial loans of up to 90 LTV, super fast processing and terms from three to 60 months. Call us today to get started!