Setabay Private Hard Money Lender

Wednesday, November 27, 2019

How to Choose an Arizona Hard Money Lender

Arizona Hard money lenders are loan companies who help you make the most out of your money. Here’s a step by step guide to choosing your hard money lender.)

Your first question might be, “What is an Arizona Hard Money Lender?” Let’s start there. Hard money lenders are, in so many words, banks that help you make more money using your own assets. Do you have property that you can use as collateral? Do you need money quickly? Traditional loans can take weeks or months to be approved and funded, but Arizona Hard Money Lenders know that you need money now so you can make more cash. They understand that your livelihood depends on timeliness and loan approval that won’t hinge on your credit score.

So what are the things you should be looking for in an Arizona Hard Money Lender? We’ve broken it down into 5 easy to follow steps to help you make that decision.

Step 1: Do your research

The best thing you can do is get to know the Arizona Hard Money Lenders in your area. There are plenty of Arizona Hard Money Lenders in Phoenix, but how do you know which one is right for you? Borrowing large sums of money can be daunting and you don’t want to begin that financial relationship with just anyone. Look up reviews and real stories from people who have used a Phoenix Arizona Hard Money Lender. See what they have to say and then see it for yourself, which leads us to the next step.

Step 2: Interview the Arizona Hard Money Lender

Nobody says that you have to make your decision on your lender without actually speaking with them. In fact, you should do so. Whether it’s your first or fifth time borrowing, you need to feel comfortable with who is backing your investment. You also don’t need to stay with the same lender if you’ve had a bad experience. This relationship should feel secure and comfortable so that you know you’re in good hands.

Step 3: Ask the right questions

Do you know what to ask the Arizona Hard Money Lender when you get them on the phone? Here are some things you will want to understand about the lender:

· Approval rates – What is the likelihood you will be approved for a hard money loan?

· Speed – How quickly do most loans get paid out?

· Flexibility – What are the repayment schedules like?

All of these will need to line up with your financial goals in order to make this relationship a successful one between lender and recipient.

Think about the first time you purchased a car or a home. Did you rush into your decision or did you take some time to think about what you wanted and how you wanted to get it? Every loan you receive should go through the same vetting process no matter how many times you’ve used an Arizona Hard Money Lender. Phoenix gives you a wide array of choices, but that doesn’t mean every lender will be the right fit for you.

Level 4 Funding is dedicated to helping you reach that comfort level and then helping you reach your financial goals through hard money loans. We are here to answer any and all of your questions so you feel confident using us as your lender for your Phoenix investments.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: 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.
© 2019 Level 4 Funding LLC. All Rights Reserved.

Tuesday, November 26, 2019

Spending Money to Make Money: Arizona Airbnb Loans

Earn passive income using an Arizona Airbnb loan to secure an investment property that can bring in money each month. Boost your chances of a higher monthly income with the right real estate investment and idyllic upgrades.

Gone are the days of staying in seedy roadside motels, trying to score a last minute reservation in an expensive resort, or shacking up on a friend’s couch when you travel. Arizona Airbnb Loans, also known as rental loans, have changed the way we think of travel, and for homeowners it has changed the way we think of making money using property assets which no longer have to rely on long-term leases or high tenant turnover with occupancy-caused maintenance.

What do you do if you don’t have an existing property to use? Of course you can rent out a room in your personal home, but why not rent out a whole home for more revenue and keep your privacy intact? Whole home rentals have a premium price and open up the possibilities for larger group sizes to use your property.

Types of Arizona Airbnb Loans

There are multiple ways to purchase a home to use as an Airbnb property, including the following popular options:

· Typical home loan (best if you already have the income to obtain a rental home)

· Short term rental loan (can provide the income to gain rental property without pulling out of your own pockets)

An Airbnb loan, or a rental loan, can provide year-round income for you and your family and there are ways to maximize your return on your investment property. Think outside of the box and you can be one of the go-to destinations for Arizona Airbnb guests, building your clientele and securing year-round reservations.

· Keep an eye on local trends to snatch up the business of out-of-towners. Buy in a central location to ensure you get the Waste Management Phoenix Open traffic. Consider a home in a suburb of Phoenix to capitalize on spring training visitors.

· Use excess funds to make improvements to the home that will enhance the property and demand a higher per-night price from your guests.

· Need ideas on how to improve your pad? Join Airbnb host community forums to get tips and tricks from other hosts. Find hosts in your area who can tell you if it’s worth the cash to install an outdoor spa or if you would be better off upgrading your kitchen.

The opportunities to make money in real estate are endless, but an Arizona Airbnb loan can enable you to make passive money with minimal time and effort on your part. Make an appointment with a financial planner today and start taking steps towards a stable financial future by taking advantage of a 21^st century moneymaking trend. An Arizona hard money lender can help you secure the funds to get yourself on the Airbnb revenue train and setting you up for the financial security you’ve always dreamed about.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Monday, November 25, 2019

CAN YOU GET A SMALL-BUSINESS LOAN WITH BAD CREDIT?

If your credit has been damaged and you want to start a business—you can still get a small-business loan with bad credit.

The biggest reason lenders turn down small-business applications is the borrower’s credit. Banks consider bad credit anything below a 620 FICO score. Because of their past, applicants with bad credit are considered a high risk for defaulting on loans. Have no fear—there are still options out there for entrepreneurs that need a small-business loan.

HOW TO FIND A PRIVATE HARD MONEY LENDER

There are lenders out there that will work with you to get a small-business loan with bad credit. There are lenders that will provide options for borrowers with shaky credit. Typically, they require a FICO score of at least 500. And, believe it or not, there are lenders that have no minimum score requirement. These lenders will look at your business and determine if it is strong enough to be successful thereby giving them confidence that you will repay the loan.

A borrower with bad credit must realize that the lower their credit score is the bigger chance they have in having a higher APR—interest rate and fees that accrue on the loan. A borrower with a low FICO score, no collateral and a brand new business should look toward the option of business credit cards and secured personal credit cards. If you want to manage your cash flow and working capital, a line of credit will be your best bet.

Hard money lenders can help with small-business loans

If you need a small-business loan—even with poor credit, but you have collateral, a hard money lender can work with you. Hard money loans are collateral-backed loans that can give easy access to small-business owners. They are secured by real estate. Hard money lenders are less concerned with a borrower’s credit and more concerned with their hard assets. If a borrower defaults on a loan the lender can foreclose on their property.

Hard money loans offer an execution that is fast. A borrower can be approved within 24 hours and have funds in as little as 10 days. They also don’t have the regulations that traditional banks do. While a traditional bank must adhere to state and federal regulations, a hard money lender creates their own regulations. These lenders still have an underwriting criteria; they are just more lenient.

Why a hard money small-business loan may be for you

If you are an entrepreneur with a vision and you have collateral, but unfortunately your credit is damaged a hard money small-business loan may be the best option. Along with speedier approval and closing time, hard money lenders work with each borrower individually. They have more leeway with underwriting and the repayment schedule. All in all a hard money lender can be more flexible than a traditional bank loan. These private lenders are entrepreneurs themselves and want to help others with that same entrepreneurial spirit.

Sunday, November 24, 2019

WHICH PRIVATE MONEY LENDER IS BEST

The definition of a private money lender is a non-institutional individual or company that loans money. This money is secured by a note and deed of property for the funding of a real estate transaction.

Private money lenders care more about the deal than they do about your credit. Unlike traditional banks, their money is secured by a hard asset (real estate). They are protected by the deed of trust—the mortgage—on your property. Private money lenders also like to see a good track record. A lender is more willing to work with a borrower that understands the game.

What does that mean for a newbie with no track record? That’s where hard money lenders come into play. A hard money lender is one type of private money lender in Arizona and is more willing to loan to a brand new investor. It benefits the new investor working with the hard money lender by doing deals and gaining experience. A hard money lender can help a new investor start their portfolio.

THE DIFFERENCES BETWEEN PRIVATE MONEY LENDERS

There are 3 types of private money lenders:

* Primary Circle— This circle is made up of friends and family, the people that are closest to you. When an investor starts out in real estate he will most likely go to his friends and family because he feels safe there; and, more than likely, if they have the money, they will invest. Unfortunately, there is a huge downside to investing within your primary circle. They may not have experience in real estate and won’t know the difference between a good and bad deal. Also, if you lose money in the deal it may easily strain a personal relationship. Make sure you are clear about the risks when proposing money lending to your primary circle—just as in any investment this is a risk.

* Secondary Circle— This circle is your professional associates and colleagues of your primary circle. You know when you are on Facebook and you see “People You May Know”? That is your secondary circle. The negative part of working within your secondary circle is there is a lesser chance they will say yes. For this circle you will need a presentation ready. They will want details on this investment—they don’t know you well enough to just trust you the way your primary circle does.

* Third Party Circle: These are people found through advertising, through networking and also, accredited investors—such as hard money lenders. This is the circle that a borrower has no personal ties. This circle will have the largest pool of possible lenders.

Types of properties that private money loans fund

Private money loans can fund a variety of properties in both residential and commercial properties, such as:

* Apartments

* Condos

* Single-family homes

* Commercial real estate

* multi-unit properties (duplexes)

How quickly you need funding, what your hard assets equate, and your network will determine which circle of private money investors will work best for you.

Saturday, November 23, 2019

Becoming a Good House Flipper

You’ve heard all seen it all over television—buy a distressed house and turn it into a valuable piece of property. All the while turning quite the handsome profit. But, what exactly is house flipping and how can you become a house flipper?

HGTV makes it look so simple. You simply find a distressed house—which is relatively inexpensive, get a loan, put the work in and tah dah— you turn a huge profit— and become a house flipper In reality, becoming a house flipper—a successful one— isn’t quite that simple. As with any huge potential, it comes with risk. But, if you truly understand the steps, enjoy the process and put the time in you will be a success.

Last year, while I was at a convention, I met Steven. Steven had been selling real estate for about 15 years. He had done well, but hadn’t reached the financial goals he had set for himself. However, while working as a realtor, he had learned about home renovation. At that time he was working with investors that were flipping houses. He figured he would give it a shot. He found a perfect property and went straight to the bank. The problem was he had shaky credit. The bank turned him down. But, he was on a mission—and he refused to let the bank crush his brilliant idea.

THE BEST LENDERS FOR BAD CREDIT

After some research, he found that a hard money lender would work best in his situation. Although, he had never worked a deal that included a hard money lender, he gave it a go.

Hard money lenders offer loans for flippers on different terms than banks. These loans are specifically designed for people who don’t have great credit but need money to renovate a property. They are short-term loans that typically need to be repaid with one to three years and is secured by real estate. Some lenders will require a down payment, but there are lenders that will fund 100% of the property cost. Generally, at the end of the loan terms a borrower can refinance with a traditional loan if necessary.

So, Steven did his research. He spoke to agents and brokers in his profession. He found a hard money lender that would give him an 7.99% interest rate upon approval. Before speaking with the lender, he created a clear financial plan for his project. When he went to his meeting, he brought along the last 3 years of his tax returns, his 1099’s and his bank statements. Steven asked questions and the lender reassured while explaining the loan terms. He was approved in less than 24 hours and his funds were available the next week.

Hard money loans will benefit a house flipper

Generally, these loans have lower qualifications for approval. House flippers will typically be in competition with all cash buyers and they will need approval and funding quickly. Depending on the lender and the borrower available financing can be up to 100%, but more typically it is up to 90% of loan-to-value; and loan terms are shorter—usually between 1-3 years. It may not be as simple as HGTV’s Desert Flippers, but with the right lender it will be a very smooth process

Friday, November 22, 2019

HOW TO FINANCE AN AIRBNB LOAN

It’s the new fad—Airbnb. Hotels and motels are trending out and Airbnbs are in. Don’t miss out on creating a handsome profit with a vacation home.

Sarah and Jim Nelson had finally retired. They had looked forward to traveling the world, to spoiling their grandchildren and to enjoying the rest of their lives. Unfortunately, they had both spent their professional careers as teachers. Their state pension met their living expenses; they would be able to pay their bills and live close to their pre-retirement standard of living. Their mortgage was reasonable, and they had thoughts of selling their home that had tripled in value. But, they loved their home and they didn’t want to give it up. Thoughts of starting a small business had been an option until they realized opening up a tutoring business was about the only thing, they were confident in running. After over 25 years of teaching that was the last thing, they wanted to do the rest of their lives. They wanted to have fun and feel free after years of a regimen of predictability.

EAGER TO FINANCE AN AIRBNB LOAN

As soon as school had let out on that final school day, for the Nelson’s, they took off to the wine country of Napa Valley, California. They thought they would try something new; and so they stayed at an Airbnb. Their children had recently skipped the sameness of hotels and motels and begun staying at Airbnbs when they traveled. So, mom and dad followed suit. It was fabulous. They spent a little more than they had previously on hotels and ended up in a 2 bedroom 2 bathroom condo in the heart of the wine country.

Sarah and Jim began discussing buying another home in Santa Barbara, where they resided. Their thoughts were on simply buying a small condo and renting it out as all these other people had done. How hard could it be? They knew they would make enough to make the mortgage—at least to start—and the sky would be the limit. As soon as they arrived home they went to the bank to discuss a second home.

Their dreams were immediately crushed. They were informed that their options for buying a house to start an Airbnb were impossible. Because they already had a mortgage on their primary residence they had only two options: a second-home loan and a non-owner occupied loan. On a second-home loan they would be defaulting on the loan terms if they ever rented it out. And, a non-owner occupied loan would require a 33% down payment. Neither of these options would work for the Nelsons.

Finance an Airbnb loan and reap the benefits

The Nelsons started hearing about hard money lenders. They had heard of them before, but knew nothing about the process. Hard money lenders are private money lenders. What this meant for the Nelsons was that they could take a loan out for very little down because the hard money lenders were aware of the demand for Airbnbs in Santa Barbara and felt confident giving the retired couple the loan. They found a beautiful property and brought the details to the lender. Along with that the lender needed: a Note, a Deed of Trust (of their asset), the last 3 years of their tax returns, proof of income, and proof they had access to sufficient cash to preform proposed property renovations. Their lender worked with them and made it possible to turn their retirement dreams into a reality. Today the Nelsons own four Airbnbs and are traveling the world, spoiling their grand children and enjoying their freedom!