Dennis Dahlberg - It Can't Get Better Than This!

Thursday, January 17, 2019

The Real Deal on Airbnb Loans

Airbnb hosting is a tempting opportunity for homeowners—make money off the property you own as a vacation rental.

Hosting an Airbnb can be quite a nice chunk of added revenue stream. Currently, close to 3 million people have listed their homes as Airbnbs. Location will depend on the profit homeowners make with their rental. However, the average homeowner brings in close to $20,000 per year in additional income.

Don’t expect to make much profit if you live in a small middle of nowhere town. However, a beach city such as San Diego or a city like Phoenix, who hosts MLB Spring Ball, are the types of cities that can get rental property owners a lot of money.

Time is another factor in the equation of Airbnb. How much time will you have? Will you clean after your guests depart or will you hire a service? What if the dishwasher floods the kitchen—is it you running across town to fix it or do you have a handy man? Each time you hire someone that will affect your profit.

Location and time are important when factoring in the idea of owning an Airbnb. However, the big question is—how will you finance a vacation home that you can legally rent out?

Taking out a hard money loan for your rental property investment can really help you get the ball rolling. Hard money lenders base their loans in equity rather than on your financial history, allowing borrowers with even the worst of credit to get approved.

Check out some hard money lenders near you to learn more about the process and see if it’s right for you.

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 and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

5 Reasons to Use Arizona Hard Money

There are a plethora of reasons to use Arizona Hard Money Loans, the top advantages being speed and flexibility. With that in mind, Arizona hard money loans are a financing tool all investors should utilize.

Choosing a lender for your investment is an extremely important decision. Make sure your lender can accommodate your needs before signing on the dotted line. Listed below are some of the top reasons Arizona Hard Money Loans are becoming more and more popular for investors.

1. Flexibility— Conventional Bank loans are known for their rigid regulations. These regulations often prevent borrowers from acquiring approval. Hard money lenders have their own criteria for approval, but it is much more lenient than a traditional bank loan. For example, most banks won’t even entertain a borrower with a credit score below 650. Although your typical hard money lenders want to see borrowers in the mid 500’s, there is flexibility.

2. Faster Approval—Applying for a conventional bank loan requires lengthy applications and it can easily take weeks to hear if you are approved. With a hard money loan borrowers can receive a conditional approval within ten minutes. Waiting weeks to hear if you are approved means your property could be taken by another buyer. Once a borrower is approved the loan is typically funded within two weeks. Bank loans can take up to two months even with the process runs smoothly.

3. Simpler Underwriting— As rigid as the banks are with their regulations, their underwriting is just as strict. Conventional lenders have exact underwriting guidelines that are based on loan size, location and market trends. Because hard money lenders are private institutions, they are not restricted to any specific guidelines, meaning that they are allowed to approve any project they see can benefit them.

4. Make the borrower’s offer stronger— Using an Arizona hard money loan will strengthen your offer. If a property has more than one offer, and those buyers are using conventional loans, a seller will gravitate towards the buyer with a hard money loan. Why? Anyone involved in real estate knows about bank loans; it is not uncommon for a bank to pull the loan during escrow. Hard money lenders are known as being solid lenders, which helps make sellers more comfortable and secure in their deals.

5. No Prepayment Penalties— Conventional bank loans will penalize a borrower for paying the loan off early with excessive fees. They want to collect all their interest; paying a loan off early deducts that extra interest that the loan accrues. Hard money lenders don’t penalize a borrower for being successful because they want you to succeed. They will set up your loan with no prepayment penalties.

Building a relationship with borrowers is at the top of a hard money lender’s agenda.

Flexibility, faster approval, simpler underwriting, helping a borrower’s offer become stronger and no prepayment penalties are all great reasons to work with a hard money lender instead of a conventional bank, but the most significant reason is building a trusted relationship with an individual. You will know your lender and they will work as your partner. This personal relationship allows them to accommodate your needs much better than a bank.

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.

Wednesday, January 16, 2019

Expectations of Arizona Fix and Flip Loans

Lina was a divorced mother of three living paycheck to paycheck until she started flipping houses. Here is her story.

In March of 2009 Lina Jerome’s life felt like it was falling apart. Her husband had left her and their 3 daughters. Not left as in living in separate houses—left as in left the country not to be heard from again.

Lina had worked as a teacher’s assistant and her husband had been the bread winner. After he had left her financial world began to crumble. All three of her girls were in different extra-curricular activities and all three went to different private schools. She had to pull them all out of their schools and return them to public schools. Many dinners were Top Ramen and grilled cheese. Times were tough, and as Lina looked toward their future she didn’t see change coming.

DREAMS DO COME TRUE

After months of struggling and worrying Lina saw a “We Buy Ugly Houses” flyer on her front door. Her house wasn’t ugly, but Lina was curious about the sign.

When she inquired, she was given the run down on flipping houses. She figured she could flip houses. And she did. Her bank would not finance her due to her present financial issues and her lack of monthly income. Traditional banks are less than comfortable lending you money while you transition financially.

After being turned down by her bank of 20 years, she found a private lender, also known as a hard money lender. In April of 2010 she found a perfect property. Then price tag was $109,000—with about $6,000 worth of rehabbing. Lina was approved for $116,000 Arizona Fix and Flip loan within 15 minutes; her funds were dispersed in 13 days. She worked with a contractor and had the house rehabbed within 6 months. During that 6 months she paid only interest on the loan. The newly renovated home went on the market and was sold within a week. Lina’s loan was $116,000; she sold the home for $205,000—making Lina an $89,000 profit in less than 7 months. After paying the interest on the loan, the fees associated with the loan and her contractor she still walked away with close to $50,000 in profit.

Not only did this change Lina and her daughters’ lives completely, but she found that she loved waking up and going to work each day. Today Lina flips three to four houses a year and averages close to $200,000 in profit.

“Yes, Lina’s story is inspiring—but I don’t have the money to do that and I definitely don’t have the credit to flip houses in Arizona.”

That is the beauty of a hard money loan. It is an asset backed loan; the lender is far more concerned with your hard assets than your revenue stream or credit. If the borrower defaults on the loan the lender has the option to foreclose on their assets (mainly real estate). Where there is a will there is always a way- you can flip houses in Arizona. Find an Arizona local hard money lender and start making your financial dreams your financial future.

Expectations of Residential Arizona Hard Money Loans

Whether you want to rent out duplexes or buy a Arizona fix and flip property, finding financing can be quite difficult.

It isn’t just borrowers with bad credit that find themselves in an uphill situation when looking for financing. Even qualified borrowers find themselves struggling to secure the loans they need. What do you do when the bank turns you down and you have exhausted your options? That is where Arizona hard money loans come to into play. These loans are an attainable option for residential buyers with unique needs.

Residential Arizona hard money loans are also called equity-based or private money loans. Typically, these loans are used by real estate investors that want to purchase properties that the bank won’t finance. Many borrowers aren’t aware that these loans can also be used on homes, as well. The terms are different than a traditional bank loan.

TERMS OF ARIZONA HARD MONEY LOANS

These loans not only help buyers that have run into credit problems, they also work well for borrowers who need approval quickly. Arizona hard money loans are a more flexible option. Arizona hard money loans do not have to follow federal guidelines, as banks are required to do. They have their own underwriting department which allows this flexibility.

Typically, Arizona hard money loans have:

* Term: 1-3 years

* Rates: 7-12%

* Lender Fees: 1-10 points

Who uses residential Arizona Hard Money Loans?

Arizona hard money loans are utilized by a variety of different borrowers. Often, investors, purchasing a quick Arizona fix and flip property, use these loans because they can be financed so fast. Here are some examples of when a Arizona hard money loan is necessary:

1. Buyers have a mortgage on another property.

2. Property doesn’t meet the requirements of FHA lenders.

3. Buyers need to finance quickly.

4. Banks are unwilling to finance.

5. Buyer has poor credit.

6. Buyer has a recent foreclosure or bankruptcy.

7. Buyer has a recent short sale

8. Buyer has less than 2 years of employment history with their current employer.

If you want to find a hard money lender, find a local lender. Having a lender that you can see versus working with one thousands of miles away has benefits. Developing a relationship with your lender is important when it comes to any hiccups. Typically, local lenders are very easy to find, especially if you are already in the industry. Many sponsor local networking events. You can also find a local chapter of the Real Estate Investors. Another option is to look at Yelp and find one closest to you with good reviews.

Where does hard money come from?

Make sure when you meet with you hard money lender you ask how they are funded. A lender that is not privately funded is most likely going to be funded using institutional funding. Institutional funding will be subject to the same underwriting as a bank. What that means is the approval requirements will be stricter and the loan will not close as quickly as with a privately funded lender.

When searching for a residential loan, it is crucial you know everything about your lender and feel comfortable.

What Is an Arizona Fix and Flip Loan?

What exactly is house flipping? Simply put, it is when a real estate investor buys houses, repairs them and sells them for a profit.

The definition of house flipping may be simple, but it is not as easy as it may sound. If it is done correctly, it can turn a handsome profit. There are two essentials when flipping: property and money.

To find the rehab property that matches what you’re looking for there are a few options:

1. Search MLS: The Multiple Listing Service (MLS) is a database put together by real estate brokers that lists property according to geographic region. Licensed real estate agents are the only ones that have access to MLS. You will need to connect with an agent to be privy to MLS.

2. Auctions: Auctions are a fantastic opportunity to find a property at a very low price. Most auctioneers will require you to put 10% of the purchase price at the time of winning the bid. After 30 days you will lose your down payment and property if you have not settled.

3. Wholesalers: Wholesaler’s business is finding rehab properties, getting them under contract and then finding a buyer who will flip it. Basically, you will be paying an extra fee for the wholesaler to find the property.

BEFORE APPLYING FOR A FIX AND FLIP LOAN IN ARIZONA

There are a few things that all potential flippers must understand before seeking the funding for their investment; understanding these things will speed up the process and make your lender believe you know what you’re doing, which will benefit you when it comes to approval time.

1. Create a Business Plan: This is a thorough analysis of your property that contains—the exact address of the property, comparable sale prices for nearby homes, your strategy, timeline and financial projections; this is called the ‘scope of work.’

2. Estimate Renovation Costs: Your entire project will fail if you don’t borrow enough from your lender. To get a realistic grasp on your renovation costs you will need the help of an appraiser and contractor.

Finding the right lender is the most important component of your Arizona Fix and Flip loan.

Hard money lenders have proven to be the best option for Arizona fix and flip financing. House flipping in Arizona in a short amount of time is the main reason Arizona hard money loans work most effectively for these projects.

Arizona hard money loans are short-term loans secured by real estate. They are also referred to as rehab loans. One attractive part of these loans is their lower qualifications for approval. Borrowers can receive approval and funding in as little as 2 weeks. Hard money lenders concern lies in the property and potential value than about the borrower’s credit and monthly income.

These loans do have higher interest rates; however, they can not only finance the property, but can also finance the renovations. Lender fees and closing costs are typically taken out of the loan. Borrowers can reduce their overall financing costs by paying back the loan early because these loans are not known to have a prepayment penalty.

Arizona hard money loans can work for a variety of people. When an investor requires a fast closing, an investor has poor credit or when more money is needed than a bank is willing to approval. Regardless of your situation a hard money lender will be able to finance you much quicker than a traditional lender.

Tuesday, January 15, 2019

Things to Consider Before Taking Out a Rental Property Loan

Purchasing n Arizona rental property is a smart way to add passive income to your portfolio. But, how do you finance it?

If you are a home owner you may believe that purchasing a rental home will be as simple as getting a mortgage for your home. Unfortunately, it’s not always that easy. Walking away from your home, in times of a financial hardship, would be difficult for most. However, lenders are aware that in those same financial troubles, walking away from an Arizona investment property would be much easier. For this reason, it is more difficult to secure a loan on an Arizona rental property.

WHAT YOU NEED TO KNOW ABOUT FINANCING A ARIZONA RENTAL PROPERTY

Borrowers are able to get FHA loans with credit as low as 500 when buying for their principal residence. However, when purchasing a rental property in Arizona be prepared to have a minimum of 620; and to get lower interest rates a borrower needs to be closer to 660. You will also face higher interest rates on a rental property; usually, rental property in Arizona loans will come in at about 1 percent to 1.5 higher than an owner-occupied property.

A large down payment will usually be necessary on a rental property in Arizona. Most lenders require at least 20% down. All conventional loans use the Freddie Mac or Fannie Mae seller guidelines. These seller guidelines are what establish underwriting guidelines; however, loan services will usually add on their own overlays.

Higher cash reserves are liquid assets; they can be checking and savings accounts, retirement account assets and investments in mutual funds to name a few. Cash reserves are assets that can become available for your mortgage in cases of financial hardship. Lenders will want to see a potential buyer have higher cash reserves than that of a principal residence.

How to determine which type of lender is best for you will depend on many factors. Below are options.

1. Community Banks/ Credit Unions: A smaller bank will typically be more willing to work with you than a larger broker. They will keep the loan in-house versus sell it off to an investor. However, they may only approve you for the geographic area they are located and this can limit you.

2. Conventional Bank Loan: These are the loans that must conform to strict guidelines established by Freddie Mac and Fannie Mae. A higher down payment will be required. However, equity will build faster. That large down payment may make it difficult for a first time investor. Conventional bank loans may be a better option for experienced investors who have the money to put down.

3. Hard Money Loans: This is a loan that is issued by a private investor or investment company. Hard money lenders are less concerned in a borrowers credit and more interested in their assets. This type of loan will always be backed by property. Approval times are much faster and some lenders will lend 100 percent of the purchase price.

Rental properties in Arizona have always been looked at as a simple way to achieve wealth. It is important that the borrower considers all the risks of being a landlord. Take your time and find the right lender that can make this dream a reality.

Thursday, January 17, 2019

The Real Deal on Airbnb Loans

Airbnb hosting is a tempting opportunity for homeowners—make money off the property you own as a vacation rental.

5 Reasons to Use Arizona Hard Money

There are a plethora of reasons to use Arizona Hard Money Loans, the top advantages being speed and flexibility. With that in mind, Arizona hard money loans are a financing tool all investors should utilize.

Building a relationship with borrowers is at the top of a hard money lender’s agenda.

Dennis DahlbergBroker/RI/CEO/MLOLevel 4 Funding LLC Hard Money LenderHard Money LoansHard Money LoanArizona Tel: (623) 582-4444Texas Tel: (512) 516-1177Dennis@level4funding.com Dennis Dahlberg Broker/RI/CEO

Wednesday, January 16, 2019

Expectations of Arizona Fix and Flip Loans

Lina was a divorced mother of three living paycheck to paycheck until she started flipping houses. Here is her story.

DREAMS DO COME TRUE

“Yes, Lina’s story is inspiring—but I don’t have the money to do that and I definitely don’t have the credit to flip houses in Arizona.”

Expectations of Residential Arizona Hard Money Loans

Whether you want to rent out duplexes or buy a Arizona fix and flip property, finding financing can be quite difficult.

TERMS OF ARIZONA HARD MONEY LOANS

Typically, Arizona hard money loans have:

Who uses residential Arizona Hard Money Loans?

Where does hard money come from?

What Is an Arizona Fix and Flip Loan?

What exactly is house flipping? Simply put, it is when a real estate investor buys houses, repairs them and sells them for a profit.

BEFORE APPLYING FOR A FIX AND FLIP LOAN IN ARIZONA

Finding the right lender is the most important component of your Arizona Fix and Flip loan.

Tuesday, January 15, 2019

Things to Consider Before Taking Out a Rental Property Loan

WHAT YOU NEED TO KNOW ABOUT FINANCING A ARIZONA RENTAL PROPERTY

How to determine which type of lender is best for you will depend on many factors. Below are options.

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