Setabay Private Hard Money Lender

Tuesday, June 4, 2019

Arizona Hard Money Loan Funding: A Step By Step Look

The Arizona Hard Money Loan process goes step by step. Here’s a look into the roadmap of funding a Arizona Hard Money Loan.

Arizona Hard Money Loans vary from Lender to Lender , but the process will be very similar no matter who you’re working with. It’s a similar process to getting a traditional loan funded, but without the strict guidelines for credit and debt to income.

There will be tweaks and differences between a Arizona Hard Money Loan and a traditional loan. Here’s the step by step process of a Arizona Hard Money Loan from beginning to end.

Introduction

You’ll first speak with a Lender about your idea for the Arizona Hard Money Loan. This will include a project pitch that will introduce them to your plan so they can decide if it’s an investment that they want to make. Not only will they ask about your renovation plans, but they will also want to know about your portfolio as an investor, asking about things like past fix and flips or financial investment history.

Underwriting

This is where you’re going to see the nuances between a traditional loan and a Arizona Hard Money Loan. Rather than taking 30+ days to fund, a Arizona Hard Money Loan moves much quicker. The underwriting process is fast so you’ll need to provide things like your completed loan application and scope of work for the flip as soon as possible.

At this point they will also be evaluating the property with an appraisal and title review. That way they have all of the background information on the home before making a decision.

Closing

Documents will be signed and funds will be disbursed so that you can officially purchase the home and the Lender can complete the loan settlement. Closings can be different depending on the complexity of the loan, but some will close in as little as a week. That’s the draw of a Arizona Hard Money Loan - quick payout.

Following your closing you’ll receive funds to pay your contractors for the rehab. Lenders can work with you to pay as the work is done, ensuring their investment is being used responsibly and work is being completed as stated in the business plan.

Once your rehab is complete you’ll pay off the loan and can move onto your next investment opportunity!

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, June 3, 2019

Arizona Commercial Mortgage Lending 101

Arizona Commercial investment is great to boost your portfolio in a big, big way. Here’s what you need to know to get started.

Arizona Commercial mortgage lending allows investors to expand their portfolio by purchasing a property that can be leased out for business purposes. Arizona Commercial investment can be a huge income stream, much higher than single family residential.

There are four main types of Arizona Commercial investment that you should be aware of when you make your decision to step into the Arizona Commercial sector and begin to seek Arizona Commercial mortgage lending opportunities.

Retail

From strip malls to restaurants, retail Arizona Commercial investment that can be a big money maker in a big city like Phoenix.

Industrial

Phoenix is an urban city with lots of opportunity in the industrial sphere. Warehouses and manufacturing plants are all over the valley.

Office

This is the most common type of Arizona Commercial real estate and can vary widely in size and use. The size can range from single-tenant properties to multistory skyscrapers that can bring in a large number of renters.

Multifamily

This type of Arizona Commercial investment is like a single family residential opportunity, but on a much larger scale. Apartment complexes, condo towers, and four plexes all qualify under the umbrella of multifamily Arizona Commercial investment.

Just like with residential real estate investment, you’ll need to have a business plan for your Arizona Commercial mortgage lending application. Due to the higher dollar amount, Arizona Commercial mortgage lending requires lots of research and evaluation on the part of the investor and the Lender .

If you’re interested in jumping into the Arizona Commercial real estate pool, give Level 4 Funding a call today!

Raise Your ROI by Investing in Desirably Located Homes

Location is one of the most important factors when selecting your investment property. Here are some things you should look for before choosing a property to present when you apply for a Arizona Hard Money Loan)

One of the biggest mistakes an investor can make is not researching the location of a property before starting a fix and flip or using the home as a rental. It’s important to look at the geographical location to determine if it’s going to be desirable for a potential buyer or renter.

Your Arizona Hard Money Loan is going to help you repair and upgrade the property, but it’s not going to be able to fix where it is. You can have the most beautiful home in the neighborhood but if it’s not a neighborhood that people want to live you’re going to have a hard time selling or renting.

Here are some things you should research about the location before applying for your Arizona Hard Money Loan:

Public Transportation

Many people rely on public transportation to get to work, school, to shop, and get around the city. Is the home close to a bus stop? Can they easily get to the light rail for their commute? These are important factors to consider.

Local Employers

Phoenix is home to some large companies that draw employees to move to the valley from all over the country. Finding a home with a short commute to some of those employers is ideal when it comes to attracting a buyer or renter.

Things to Do

Another thing that renters and buyers look for is how they’ll be spending their free time. Phoenix has plenty of opportunity for sporting events such as Spring Training, football, basketball, and major league baseball. The areas around the arenas usually have great shopping and restaurants so that makes them desirable areas. Downtown Phoenix has a huge list of top restaurants as well. That makes it top contender for favorite valley areas for buyers and renters.

Considering each of these things will help you find a great property in a great location that will be sure to sell or rent quickly!

The Fix and Flip Lingo You Need to Know

If you’re new to the world of fix and flip you’ll need to become familiar with some terms that you will hear when working with a hard money Lender .

Fix and flip professionals have tons of verbiage, acronyms, and terms that you may not be familiar with if you’re new to the investment world. Each of these terms is important because they explain bits and pieces of the process and information that you’ll need to be successful at fixing and flipping.

A Arizona Hard Money Lender will throw some of these terms around as well so knowing them before you apply for your loan will give you a leg up. When you’re applying here are some terms your Arizona Hard Money Lender may use:

ARV

This stands for the After Repair Value. It’s the number your property is expected to be worth after you complete repairs and upgrades.

HVAC

This is one you’ll hear often and stands for heating, ventilating, and air conditioning.

CMA

A Competitive Market Analysis is what you can use to come up with your ARV based on other comparable homes in the area.

ROI

Your return on investment is the amount you’re expected gain from your fix and flip after paying off all loans and purchasing necessary tools and project materials.

MAO

This is the maximum allowable offer - or what you’re willing to pay for a property. Your Arizona Hard Money Lender will need to know this number before approving your loan.

SOW

A scope of work lets your Arizona Hard Money Lender know what your plans are for repairing and upgrading the property. It’s a comprehensive list of work will show you have a plan set up for your investment property.

As a novice fix and flipper you’re going to run into terms and acronyms that you don’t know, but learning the ones listed above is a great place to start. A Arizona Hard Money Lender will want to know that you’ve done your research and you’re prepared to make a sound investment and be able to repay your loan.

Sunday, June 2, 2019

What You Need to Get Your Arizona Hard Money Loan Approved Quickly

Arizona Hard Money Lenders will require certain things in order to approve your loan. Here’s a list of things you should have ready before you apply.

Each Arizona Hard Money Lender is different from the last, but there are certain things that they will ask for across the board. These things will need to be provided when applying for the Arizona Hard Money Loan so having these in hand will help you get your loan approved faster so you can get to work on your investment property.

Purchase Contract

If you’re buying a property for fix and flip you want to have the purchase contract ready so it can be submitted as soon as your loan is ready for funding. You can lose valuable time by waiting until the last minute to get this done.

Title Report

When you’re applying for your Arizona Hard Money Loan the Lender can get their hands on the title report, but it’s better to come with that in hand.

Contractor Bids

The Lender will want to know what their Arizona Hard Money Loan is going to fund. Having written bids from your contractors will give them a detailed look at what is going to be done to the property and how much it is going to cost.

Proof of Insurance

Just like a title report, the Lender will want to see proof of insurance. With contractors working on the home and potential hazards waiting, they want their investment to be covered.

These are four important things that you will want to have prepared when you meet to apply for your Arizona Hard Money Loan. Without them your chances of getting funded drop and the time it will take to get approved will extend, possibly making you miss out on your investment opportunity.

If you have these things in hand and want to know more about our loans, please call Level 4 Funding today!

Sellers Turn to Arizona Hard Money Loans for Fix Ups

It’s a seller’s market, but the competition is stiff. Sellers are using Arizona Hard Money Loans to boost their home value.

Today’s real estate climate is in favor of sellers. They’re getting top dollar for their homes and inventory is low. Sellers are finding themselves with multiple offers and bidding wars often times, but what if your house isn’t selling as quickly as others?

Home owners who want quick money to make updates on their homes turn to Arizona Hard Money Loans to make updates and upgrades that can make their house more appealing to buyers. They can then turn around and pay off their Arizona Hard Money Loan after the sale of their home.

Here are some ideas of how to use your Arizona Hard Money Loan to get the best return on your investment:

New Flooring

Flooring is one of the first things buyers look at when they enter the home. Gone are the days where carpeting in living areas is a plus. With cheaper alternatives to real hardwood floors like laminate and tile you can easily, and cheaply, update your flooring to something more modern.

Fresh Coat of Paint

Paint comes in a close second to flooring for buyers appeal. Neutral tones such as beige and grey will enable visiting buyers to picture their belongings in the home. Touches of color can be added with wall art and pillows to spruce up the place.

Landscaping

If you have a dirt yard or dead grass it’s going to lessen the curb appeal of your home. Buyers with kids will want a place that their children can run around and if the yard is in disarray it will be hard for them to envision that. Putting in trees or shrubs to give the yard some life is a quick fix for tired landscaping.

If you’re having trouble selling your home and want to consider using a Arizona Hard Money Loan to make some fixes, attract buyers, and bring top dollar on your sale a Arizona Hard Money Lender like Level 4 Funding can do just that. Give us a call today to discuss loan terms and funding opportunities!