Setabay Private Hard Money Lender

Friday, May 31, 2019

How to Make a Profit with Arizona Spec Home Financing

It’s possible to obtain funding for projects from both public and private lenders—but what’s the difference between them? How do you know what the best option is for you?

Public lenders like banks and credit unions are traditional loan options. They generally have strict requirements when it comes to qualifying for a loan, and it can be overwhelming if you know your financial history is imperfect. Unlike public lenders, private lenders are untraditional options that are less regulated. Many people who don’t qualify with traditional lenders seek out the benefits of private money lenders.

Arizona Private Money Lenders offer hard money. The process is quick and handled with much more transparency than public lenders. If you are seeking out a loan for Arizona spec home financing, maybe borrowing from private Arizona Hard Money Lenders is right for you.

What You Need to Know About Arizona Hard Money Lenders

While the benefits to working with a private lender on your Arizona spec home financing project, there are a few things to consider first. The most important thing to know is that they offer short-term loans with interest rates that can be five percent higher than most on the market. Sometimes there can even be extra fees, though that depends on who your lender is. All Arizona Private Money Lenders are different, but it’s definitely possible to get an extension. It’s not uncommon to get an extension for two to five years. In this way, private Arizona Hard Money Lenders are very individualized. However, they focus on you as the individual in another way: during the loan approval process, they significantly weigh the property’s collateral and your ability over your financial history. Focus is drawn to the property’s potential, your plans, and what you can do. Finances will play a small factor, but it definitely won’t make or break you—especially if you’ve put in the time, energy and research.

Becoming a Successful Borrower

If this is your first time funding a project with Arizona spec home financing, take small steps. Start by finding a local lender and an “improved” property. It doesn’t matter how great the property is, most lenders are only interested in projects within their geographical location. An improved property will already have key features including curbs, water and power lines, and sewers. Raw properties will not have these advantageous characteristics, and will require you to spend more money in the long run. Additionally, these characteristics look great to potential buyers. When you’re considering potential lots, you also want to consider its location in terms to nearby business districts. Homes close to restaurants and local businesses are more marketable than more remote locations. Whatever you do, don’t rush your decisions. Take your time in seeking out both your lot and your lender. Make decisions that support you, your finances and your plans. Investing in properties that have low-risk factors is always a great choice for the first-time spec home investor. Do your research and bring it when it’s time to meet your lender. Proving you are capable of the project will be a major part of the journey as a borrower with a private hard money lender.

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.

Taking Advantage of Arizona Spec Home Financing

Traditional and untraditional money lenders are regulated in different ways. These differences allow for borrowers to have different options when seeking out loans. So, how can you take advantage of these differences?

The difference between traditional and untraditional lenders is the difference between public and private. Banks and credit unions are examples of public lenders, and individual companies and investors are examples of private lenders. Arizona Private Money Lenders have less requirements and regulations when it comes to approving borrowers for loans, making them a great option for those who may need it.

Arizona Private Money Lenders offer hard money. They can offer it fast and with more transparency than banks. If you are seeking out a loan for Arizona spec home financing, perhaps a private hard money lender in Arizona is right for you!

The Basics of Arizona spec home financing

Before jumping into a Arizona spec home financing agreement with your local private hard money lender in Arizona, you need to understand how a few things work first. You need to know if a short-term high interest loan is right for you. Compared to other loans on the market, the interest rate can be as high as five percent more than average. The expected timeline of these loans is six to twelve months, but it is not uncommon to get an extension for up to five years. Working with your lender will be super individualized, especially compared to the bank. Legitimate private lenders are known for being generally transparent and personable. The goal is to invest in the potential of you and your project—and if they aren’t feeling it, they will tell you. When you meet with your lender you will want to provide a business plan, tax returns, bank statements and a marketing plan for your spec home. The ultimate goal of the spec home is to turn a profit—and you need to be able to prove to your lender you will be able to do so.

Tips and Tricks

Funding plans for Arizona spec home financing usually begins with finding a local lender. Most lenders only want to work on projects in their location. The lot should also be considered an “improved” lot. This simply means it is more than just an empty lot. It should have curbs, power and water lines, and sewers which will help increase its chances of getting a buyer. Your lot should also be near a populated area. Being close to local businesses and restaurants increases the appeal for potential clients who want the social opportunities. If it’s your first spec home, you also want to make sure you choose a project with low risk factors. Being feasible and realistic throughout the process will help ensure you’re successful, and have the opportunity again to profit off another project in the future. In general, private lenders can be great options because they emphasize collateral and your ability to complete the project, instead of a possibly imperfect financial history. If you are interested in utilizing a private lender for your spec home, research local lenders near you. Bring to them your documents showcasing your financial history, property information, and detailed plans so that you can start your dream project!

Thursday, May 30, 2019

How Borrowers Are Reaping the Benefits of Arizona Hard Money Loans

There are tons of options when it comes to seeking out loans. Both public and private lenders will have options for your investment, but only Arizona Private Money Lenders can offer the benefits of hard money. Though, what is hard money—and is it right for you?

A traditional lender is a public lender, like your local bank or credit union. Traditional lenders have high standards. They consider everything from your paystubs, job history, debts, and anything that could and can impact your current financial standing. Untraditional lenders, like hard money lenders, work a little differently. Arizona Hard Money Lenders are private companies or investors. They evaluate your eligibility with slight emphasis on your financial history. Collateral is the most important factor, which qualifies more people. Not only that, but they can offer speed and transparency which can play a large part on your success as a borrower.

Eligibility and Benefits

Because Arizona Hard Money Lenders accept borrowers on a different basis than traditional lenders, more people are eligible. When approved for hard money, your lender may be able to begin the loan process as soon as the day of. The speed is unparalleled to traditional lenders, who can take up to a month. If your lender isn’t speedy enough to get you your funds within the day, it usually takes about a week. The extra time can be key, especially if you are bidding on a competitive market and seeking out a property with potential. If you choose to move quickly! forward with Arizona Hard Money Loans, you will have the opportunity to work with lenders who are usually very transparent. They will be direct with you about your plans, and will be able to individualize the process for you. Private investors work for themselves, and when they invest in you and your project, they can focus on the best interests of you!

Specifics of Hard Money

Arizona Hard Money Loans have lots of benefits, but there are a few things you may want to consider first before blindly signing the terms to your loan agreement. First, you need to know that there are high interest rates associated with hard money. These rates can be five percent higher than those on the average market. Additionally, there can be extra fees. Depending on who you are and what your situation is, the fees may be affordable—and it may be worth it! However, the other thing to consider is the short timeline of Arizona Hard Money Loans. Because Arizona Hard Money Lenders can work on an individualized basis, it may be possible to extend the timeline, but usually hard money is expected to be paid off within a year. A two to five year extension isn’t uncommon to ask and obtain—especially when working with private, personable lenders. If you are interested in working with a private money lender, research local lenders in your area. Find out what their portfolio looks like and, once you have all your information in line, schedule a day to meet with them and determine if they really are what’s best for you.

Things to Consider Before Risking it all with Arizona Hard Money Loans

Hard money can be a great option if you need money fast and want to work with a transparent lender. There are some things to know about hard money, however, before you find yourself in an agreement that isn’t what’s right for you and your situation.

Arizona Hard Money Loans are offered by private money lenders. Arizona Private Money Lenders are untraditional, alternative options and can be great choices for people who don’t qualify for loans offered by traditional lenders. The high standards of traditional lenders, like local banks or credit unions, often disqualify many people. A great credit score, debt to income ratio, and financial history are all things that impact your eligibility. Traditional lenders will look at your taxes, paystubs, current financial standing, and even how long you’ve been at your job, just to name a few! Arizona Private Money Lenders don’t focus on all of those details as much. They will consider it, but the most important factor to them is the property’s collateral and potential. If you have an imperfect financial history, perhaps Arizona Hard Money Lenders are the right solution for you!

How Arizona Hard Money Lenders Can Help You

Arizona Hard Money Lenders are generally very direct and transparent. They are usually private companies and investors who can offer a much more personalized and individualized relationship than public lenders can. As you share your plans, budget, and research, they will be blunt with you. Not only that, but they can get the process going fast—much faster than a bank can and, sometimes, the day of. A bank may take as long as a month. Your local hard money lender may only need a week. Speed is great asset to have when approaching your project, and may even be necessary to obtain your desired property off the market. Arizona Hard Money Loans offer transparency and speed that can make all the difference.

How to Know if the Risks Are Worth It

Arizona Hard Money Loans can be great solutions. However, there are a few specifics to know that aren’t ideal in every situation. For example, there are high interest rates and sometimes more fees than traditional lenders. This seems to be the literal cost of their speed! Additionally, they work on a short timeline. Fixer uppers are generally fantastic opportunities to use hard money because the timeline of a fixer upper is just as fast. Ideally, you want to renovate and sell the home as fast as possible—while making a profit. Compared to using hard money as a loan for a long-term source of profit—like a rental property—fixer uppers are the superior choice. Only you know what you need best. If you meet with a hard money lender and don’t understand the complete terms of the loan agreement, you can always hire a real estate attorney to help break them down so you can go into it confidently or not at all—whatever is best for the investment of you and your project.

Pros and Cons of Working with Arizona Hard Money Lenders in Phoenix

If you don’t qualify for a traditional loan, you may be referred to an untraditional lender who offers hard money—but, are they right for you? Read more below to find out what you need to know before signing a loan agreement with a private money lender.

Not qualifying for a loan with a traditional lender, like your local bank or credit union, is not the end all be all. There are always untraditional options. This means seeking out a private company or investor who offer hard money. The qualification process for Arizona Hard Money Lenders is a little different. Usually the process is fast, transparent and individualized—which are all very important things to borrowers.

Pros of Working with Private Investors

Because Arizona Hard Money Lenders offer speed, there is greater opportunity to obtain your property. On a competitive market, the last thing you want is to have to settle on another, less promising property just because you weren’t able to obtain the funds fast enough. Obtaining funds can happen as soon as the week of, if you are approved by your lender. In more extreme and exciting cases, the process can begin the day of. Either way, this is much faster than the traditional lender who needs at least a month to get things rolling. Two other great characteristics of private lenders are transparency and individualization. The ability to work honestly with your lender will be extremely beneficial. Because Arizona Private Money Lenders approve borrowers based on the property, instead of financial history, they are able to focus on you and your project—this includes the plans and potential. Your financial history is still of some importance—they do want to know you can be reliable—but it doesn’t bear the same weight it does at the bank.

Cons to Consider

Arizona Private Money Lenders may sound too good to be true. They can offer you money, and they can offer it fast, but at what cost? Literally, at what cost? Well, first, higher interest rates—as much as five percent higher—and, sometimes, fees. Like any new endeavor, you need to tread carefully. The same energy and research you are putting into your actual project should also be put into the search for your lender. Remember that, like lenders can reject you as a borrower, you, as a borrower, can reject lenders. Work with the team who transparently supports you and your project and, if you don’t feel confident in the terms to your loan agreement, hire a real estate attorney to look over the conditions with you before you make your decision—or, better yet, begin your search again. Focusing on what is best for you is going to be what’s better for you in the long run if you want to complete a successful project and make a profit. Lastly, you want to consider the timeline of your lender Arizona Hard Money Lenders work on the short term. If you are in the throes of working on a fixer upper, with a quick renovation process and resale, or need to act fast in the situation of a foreclosure they may be just for you.

Wednesday, May 29, 2019

How to Make Money with Arizona Hard Money Lenders in Phoenix

A few hours of binge watching HGTV can easily turn into hours of inspiration on how to renovate your own fixer upper. However, it’s not always that easy and, without the guidance of one of the Gaines or a flashy camera crew, who knows how best to make the most of your options. Read more below for some tips and tricks!

Getting swept away by the dazzling before and after HGTV showcases on their many shows is easy. From beautiful gardens, contemporary color palettes, and updated cosmetics, renovating a home may seem easy—and it is, at least visually.

Renovating a fixer upper successful is possible. You must be realistic, plan, and work with a reliable team. As a new person to the housing market, you will have to do your research, but a solid foundation of research could equate to the solid, physical foundation of the house.

Benefits of Using Arizona Hard Money Lenders for Your Fixer Upper

If you want to renovate a home, you are likely going to need a large chunk of cash. When it comes to fixer uppers, many people use private money lenders. Arizona Private Money Lenders are untraditional lenders who offer hard money. Hard money is one way to get cash fast—which is absolutely ideal in cases of fixer uppers. You want the opportunity to bid and obtain a property fast, and you won’t be able to do that without cash. Some Arizona Hard Money Lenders can lend you funds within the week, which is several weeks sooner than your local bank would be able to. Additionally, hard money has a short repayment period. This falls right in line with the timeline of your fixer upper. Ideally, you want to obtain a property, flip and sell successfully. A successful renovation literally lends itself to the timeline of hard money.

Tips on “Fixing Up” the Housing Market

Making the most of Arizona Hard Money Lenders is one step. As you continue making your way through the housing market, you want to play it safe—especially if this is your first major project. You want to be working with a reliable team who can take on the needs of the project. Not only that, but you and your team need to be realistic. Think about what you can realistically accomplish in the timeframe you have. Another thing to consider is marketability. How will you market your fixer upper, and what kinds of things are people interested in investing in? You may have a vision for something particular, but you may need to adapt your vision into something that can be sold to bring in the big bucks. Ultimately, you are renovating to make a profit. Follow deadlines, put in the research, and make informed decisions. If you are working with a team and lender who believes in you and the project, renovating successfully won’t just be the thing of TV.