Setabay Private Hard Money Lender

Saturday, June 1, 2019

Hard Money Lenders: See Beyond the Reputation

Texas Hard Money Lenders have received a negative rap because of some bad apples. Here’s the good, the bad, and the ugly truth about Arizona Hard Money Lenders.

Loans are hard enough to understand whether it’s a typical mortgage or auto loan. There’s so much legal jargon, red tape, and requirements that make it seem like Latin to consumers.

Texas Hard Money Lenders get a bad rap because they’re even harder to understand and aren’t regulated like big banks so Lenders vary from one to the next. Here’s some information so you can feel confident approaching Texas Hard Money Lenders.

The Good

Texas Hard Money Lenders are diligently fighting against the stigma that they face every day. That means the ‘good’ ones are going to be transparent with their borrowers to ensure they have good business relationships and can set adequate expectations in order to avoid miscommunications about the loan.

The Bad

There are some Arizona Hard Money Lenders who will have large prepayment penalties or hidden fees that end up costing the borrower in the long run. That’s why it’s important to review your loan documents thoroughly and you may want a lawyer to take a look as well.

The Ugly

There have been Arizona Hard Money Lenders who are misleading and prey upon investors who are new to borrowing. Those stories permeate the lending industry and become the storyline for all Texas Hard Money Lenders. Unfortunately all it takes is a few bad apples to spoil the bunch.

When you’re looking into a Texas Hard Money Loan for your investment, take your time in interviewing Arizona Hard Money Lenders. Speak to previous clients. Ask the hard questions. You want your money to be handled properly and know that you’re in good hands.

To set up a consultation with a transparent, honest, and reliable hard money Lender , call Level 4 Funding today! We would be more than happy to review your business plan, answer all your questions, and see how we can make your investment dreams come true!

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.

DANGER: How to Scare Off a Hard Money Lender

A hard money Lender needs certain things from you, as an investor, to approve your loan. Here are some things to avoid when providing your business plan.

Any Arizona Hard Money Lender that you approach to fund your loan is going to have things they needs to see and discuss before approving your proposal. They will require documentation that shows your plan, you’ve prepared for potential problems, and have selected a property that will enable you to return on your investment and therefore pay your Lender back.

BUT there are things you should avoid so that you don’t scare off your potential Lender .

Prepare Your Plan

It is encouraged for you to reach our to your potential Arizona Hard Money Lender to get the list of documents and information you’ll need to provide in order to be approved. This list can vary by Lender so you’ll present exactly the information they need by obtaining that list of requirements before hand.

Provide Necessary Information and NO MORE

You want to provide to your Arizona Hard Money Lender a complete business plan that really explains your strategy for turning your loan into a thriving venture, whether that is with a fix and flip property or a Arizona Commercial investment property.

Be Ready for Questions

If you’re not ready to field questions from your Lender you are going to present yourself as unprepared and unknowledgeable. Arizona Hard Money Lender interviews are a back and forth conversation between Lender and borrower so you’ll need to be able to explain your business plan well, and also know the potential risks while being able to describe how you’ll navigate them if or when they happen.

Now it’s time to present your business plan. You may have to present to more than one Lender before you get an approval and it also gives you the opportunity to shop around to make sure you’re getting the best loan for your investment. This needs to be a good match financially so both sides are benefiting from the transaction.

Call Level 4 Funding today to learn more!

Who are Commercial Hard Money Lenders?

Borrowers seeking out loans will have the opportunity to work with either public or private lenders? But what’s the difference? And how can you make the most of those differences in your personal situation?

Public lenders are traditional loan lenders composed of banks and credit unions. They are regulated strictly, and approval does not always come easy. Great credit score, debt to income ratio, and financial history are all key things that will play a role in whether or not you qualify. Paystubs, job history, taxes, debt, and properties are all things you will discuss when meeting with your local public lender. If you find, however, you have an imperfect financial history, you may be referred to a private money lender.

Arizona Private Money Lenders are untraditional lenders composed of individual companies and investors who aren’t as regulated as banks. When you meet with your local private money lender, you will find you won’t have to provide as much documentation. Their focus will be on the collateral of the property they are investing in. They do want to know you are a reliable candidate with potential, but they won’t disqualify you for imperfect credit scores.

What You Need to Know About Private Lenders

Private lenders offer hard money. These commercial Arizona Hard Money Lenders aren’t strictly regulated, however, they do have a few strict specifications to their loan agreement. For example, they offer hard money, a short-term loan with high interest rates and fees. The expense is high—and with a quick turnaround, too! Commercial hard money lenders, though, are very personable. They get to know you, your property, and your situation. If you need a loan extension, they are likely to offer you one. Usually, hard money is expected to be paid off within a year or less, though it is not uncommon for private lenders to extend the loan as long as five years. Because of the timeline, many borrowers of hard money use it for fixer uppers. The goal of a fixer upper is to fix, flip and sell—quickly. A successful flip literally lends itself to the timeline of hard money. Preventing foreclosures is another common use of hard money because commercial Arizona Hard Money Lenders can offer speed. A public lender may need as long as a month to get the process going, but a private lender may only need a week. Speed is never a bad thing—especially when budgets and timelines play such strong factors in your success.

How to Know What’s Right for You

If you are interested in hard money, research local private lenders in your area. Find out what kinds of projects your lender has done and what kind of success their clients have had. Remember to take your time! Speed is a good thing when the process gets going, but there is never any need to rush your decisions. Take time finding the right private lender for you, and take your time discovering the right property. A first-timer into the housing market will want to make decisions that are low-risk, and you will only know what that means to you and your plans by putting in the time, energy and research to find success.

Who are Commercial Hard Money Lenders?

Borrowers seeking out loans will have the opportunity to work with either public or private lenders? But what’s the difference? And how can you make the most of those differences in your personal situation?

What You Need to Know About Private Lenders

How to Know What’s Right for You

Friday, May 31, 2019

When to Turn to Commercial Hard Money Lenders

When borrowers seek out loans, they may consider both traditional and untraditional methods of borrowing. But what kind of borrowing works best? And when is one option better than the other?

Borrowers may turn away from traditional loan lenders because they don’t qualify and there are options with more potential elsewhere. Traditional loan lenders are composed of public lenders like banks and credit unions. In these cases, the standards to be a borrower are high. You must supply paystubs, financial and job history, as well as tax and credit reports. Great significance is placed on your financial history, and it can make or break you when qualifying for a loan with a traditional lender. Fortunately, there are other options. Many people turn to Arizona Hard Money Loans when they don’t qualify through traditional means.

Arizona Hard Money Loans are offered by untraditional, private lenders. Private lenders are individuals or companies who invest based on collateral. This means that they focus on the potential of the property as well as your ability to make a profit with your plans for it. In this way, commercial Arizona Hard Money Lenders can offer an extremely personal and transparent experience that public lenders can’t. They also offer speed. Their ability to begin the loan approval process is 4x faster than pubic lenders who can take as long as a month. Taking advantage of the speed they can offer is never a bad thing!

Things to Consider

While commercial Arizona Hard Money Lenders offer many benefits, there are a few things to consider. One is their high interest rates and fees. These interest rates can be as high as five percent more than average rates on the market. Additionally, they have a short-term repayment period, usually lasting six months to one year. Because Arizona Hard Money Lenders work on a much more individualized basis, it is not uncommon to obtain a loan extension from anywhere between two to five years. However, coupled with the high interest rates, it may not be the best decision for you. Being realistic is going to save you a lot of pain and misfortune in the long run, even if it seems a lot of your issues can be solved by speed.

Are Commercial Arizona Hard Money Lenders Right for You?

Every situation is different, as is every private money lender. If you are interested in pursuing a loan with a private lender, put in the research. Determine what lenders are local to your area, and research the kinds of projects they have worked on. Consider how your project functions in relation to your lender. Moving forward with the project will require that you provide documents outlining your property, plans and financial history. Go to your lender prepared. You will have to prove to them that you are capable of turning a profit—just make sure before you go you are confident in that yourself.

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.

Setabay Private Hard Money Lender

Saturday, June 1, 2019

Hard Money Lenders: See Beyond the Reputation

Texas Hard Money Lenders have received a negative rap because of some bad apples. Here’s the good, the bad, and the ugly truth about Arizona Hard Money Lenders.

The Good

The Bad

The Ugly

DANGER: How to Scare Off a Hard Money Lender

A hard money Lender needs certain things from you, as an investor, to approve your loan. Here are some things to avoid when providing your business plan.

Prepare Your Plan

Provide Necessary Information and NO MORE

Be Ready for Questions

Who are Commercial Hard Money Lenders?

Borrowers seeking out loans will have the opportunity to work with either public or private lenders? But what’s the difference? And how can you make the most of those differences in your personal situation?

What You Need to Know About Private Lenders

How to Know What’s Right for You

Who are Commercial Hard Money Lenders?

Borrowers seeking out loans will have the opportunity to work with either public or private lenders? But what’s the difference? And how can you make the most of those differences in your personal situation?

What You Need to Know About Private Lenders

How to Know What’s Right for You

Friday, May 31, 2019

When to Turn to Commercial Hard Money Lenders

When borrowers seek out loans, they may consider both traditional and untraditional methods of borrowing. But what kind of borrowing works best? And when is one option better than the other?

Are Commercial Arizona Hard Money Lenders Right for You?

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?

What You Need to Know About Arizona Hard Money Lenders

Becoming a Successful Borrower

About Me

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