Differences in Loans to Flip Houses in Arizona

Securing loans for flipping houses can be quite a challenge for investors. There are many loan options available to flip houses. It is important to distinguish the pros and cons for each type of loan in order to decide which is your best option.

Conventional Loans

Conventional loans are loans given by banks and mortgage companies. These loans are solely based on the borrower’s FICO score and income. There are a variety of conventional loans to qualify for. These loans can be easier on your wallet than other options. The interest rates are at market level, which will be lower than most other loan options, and the payments will be spread over a longer period than other loans—usually 20 to 30 years. The down payment on a conventional loan will depend on the program a borrower qualifies for and can be anywhere between 3% and 20%. Typically, these are not given out to fix & flip houses. To qualify for these types of loans you need a great credit history—banks like to see at least a 650 FICO score, a low debt-to-income ratio and proof of income from the same place of business for at least 2 years.

Government Insured Loans

The Federal Housing Administration (FHA) offers rehab (Arizona Fix and Flip) financing through its 203k loan program. This loan covers the lender for both the property itself and the renovation costs, unlike conventional loans that only lend for the purchase of the property. These loans can be used for multi-unit property investments. The only catch is that the borrower is required to live in one of the units. This loan is a very low cost financing plan, but the government has many rules and the borrower must adhere to all those rules to get financing. These loans are only available for a limited selection of properties and there can not be extensive repair to the house. These loans are meant for properties that only need cosmetic repair.

Owner Financing

Owner financing refers to the owner of the property lending the money to the buyer of the property, takes a mortgage on the property sold and is repaid through monthly installments based on the terms between both parties. This type of “loan” is usually closed quickly, and the fees that other lenders charge are usually not included. The problem with this situation is most sellers cannot afford to maintain their lifestyle while they wait for the money, from the house they sold, to be paid in full. If the buyer defaults then the seller is forced to take them to court and add that additional headache to their life. This type of loan can get very complicated, very quickly.

Arizona Hard Money Loans

A Arizona Hard Money Loan is the most popular loan for real estate investors. This type of loan is backed by the borrower’s assets not their credit score. In fact, most hard money lenders aren’t overly concerned with a borrower’s income as long as they have the hard assets needed to cover the loan. They are interested in the return of their investment. Loans are typically closed within 3 days, down payments are negotiable, and often 100% financing is available. The interest rate is higher than other options (usually 7-15%) and they are short-term loans (3 months to 5 years).

House flipping can easily provide a healthy revenue stream.

Whichever financing method you choose make sure it is a method that will ensure you will be put you in a position to continue to invest.

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 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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

4 Simple Steps to Getting and Arizona Hard Money Loan

Getting funded through a hard money lender is much less stressful than the process of a conventional loan. Many people aren’t familiar with the process of getting a Arizona hard money loan.

First of all, if you are looking to obtain a Arizona Hard Money Loan but aren’t familiar with the process, take a deep breath. This is most straightforward and painless loan process in existence. This article will cover all the steps you need to take to get funded through a hard money lender.

1. Find lenders— You can use a hard money lender from any part of the country. You can find many lenders online and everything is done online. But, if at all possible, you want a local lender. You can find local lenders through word-of-mouth, networking at local real estate investor functions or simply preform a Google search. Make sure you find a few and then meet with them individually.

2. Have a conversation— Once you have narrowed it down to a handful of lenders, look into what terms they offer. You can usually find this information on their web site, however you will always get more information from speaking to them. The first part of the conversation will be concerning the borrower’s loan request. The lender will ask a series of questions to determine if they can fund the request. After the lender gathers the information necessary they typically can give a contingent approval and a preliminary quote. This quote is composed of the interest rate, points and any fees (such as processing or underwriting) they will charge. The next part of the conversation will be the borrower asking important questions. Some questions a borrower ought to ask a potential lender are: How long do you take to fund? Do you impose prepayment penalties? How long have you been in hard money lending? Are you a direct lender or a broker?

3. Apply— After you have chosen your lender your next step is to apply for the loan. The Arizona Hard Money Loan is very straightforward. You will have to provide documents such as: tax returns, bank statements and proof of your assets. Once the borrower is approved, the lender begins preparing loan disclosures. Some of the documents the borrower will receive are the Fair Lending Notice and the lender’s privacy policy. After the required disclosures have been received, signed and returned, the lender will prepare the loan documents. These documents typically include: Deed of Trust, Note and escrow instructions.

4. Down Payment and Escrow— After all documents have been received the borrower will send their down payment (if one is required) to escrow. As soon as escrow has verified, they have everything needed from the borrower the lender will fund the loan.

WHY USE A HARD MONEY LOAN?

There are numerous reasons to obtain a hard money loan:

1. You credit score is not high enough and your income doesn’t meet traditional lender’s requirements.

2. You don’t have enough capital to cover the renovation of the property.

3. You have a property investment but don’t have time to wait on a bank loan process.

4. You want to purchase a Arizona Fix and Flip property.

5. You don’t have enough cash to purchase a property.

How do you determine if a Arizona Hard Money Loan is right for you?

If you don’t have the time to wait for a bank loan or your credit has declined, a Arizona Hard Money Loan can fund you and get that property in your hands quickly.

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 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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

How to Get Rental Property Loans with Bad Credit

The American Dream is defined as “the ideal that every US citizen should have an equal opportunity to achieve success and prosperity through hard work, determination and initiative.”

Many people believe that the best way to reach that dream is through real estate investments. Specifically, rental properties. The most frequent obstacle that gets in the way for potential investors is poor credit. Have no fear; the American Dream can still be yours even with bad credit. There is a way around pretty much everything and that includes less than perfect credit.

Very few people have the liquid assets to buy a rental property with cash, which is why conventional bank loans are used. Unfortunately, bad credit means bank loans are not an option. The best loans typically come from a traditional mortgage because they will give you the best rates and longest terms. This makes them the most affordable choice. But, if you don’t have superior credit and enough monthly income a bank will deny your loan request. If you want multiple rental properties it is highly unlikely that you will be approved for a conventional loan. Banks are uneasy when it comes to rental properties because there is always the chance that the home will be vacant; that means the investor will have to cover the mortgage. So, without a tremendous amount of monthly income it is most likely a bank will turn you down, even with gold credit.

FIND YOURSELF A HARD MONEY LENDER

Veteran investors know hard money lenders are the avenue to take when financing rental properties, not only for investors with bad credit, but also for the quick approval and flexibility of loan terms. Hard money lenders are private individuals or groups who invest cash for real estate ventures. These lenders extend loans based on property not the individual borrower’s credit.

Because hard money lenders don’t have to adhere to federal and state regulations and policies they can lend money to any borrower they see fit. The hard money underwriting is also not nearly as rigid as a conventional bank, which therefore speeds up the approval time. Most borrowers will receive an approval within two days, unlike a bank loan that can easily take up to 45 days, even without any hiccups.

Many Americans have given up on the American Dream, but don’t give up. With the right lender to guide you, you can live the American Dream—and investing in real estate is the only way to go.

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 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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Arizona Fix and Flip Loans

Everywhere you look people are flipping houses and making a killing. It is the newest craze! I’m quite sure you’ve wondered if it’s too good to be true. How many people truly succeed at flipping houses?

Flipping houses involves two tangibles: a distressed property and money. It is a risky endeavor, as all investments are, but the payoff can be a highly remunerative move. If you are thinking of flipping a home but don’t have the finances there are options for you. The first move is finding the property.

Finding Property— The best tool for searching property is the Multiple Listing Service (MLS). It is a database put together that lists all the properties for sale by geographic region. Only licensed realtors have access to the MLS. If you do not have access to the MLS there are other sources with information about homes for sale. There are numerous sites such as realtor.com, zillow.com and trulia.com—and that is only a few of the sites available to anyone—for free. You can also search for listings by individual brokers. If you happen to be a cash buyer auctions can be a fruitful opportunity to find property with a large discounted price tag. However, if you need financing a hard money lender is absolutely your best option.

WHY HARD MONEY WORKS FOR ARIZONA FIX AND FLIP LOANS

Conventional loans require a large down payment, usually between 20-25%. Keep in mind, that loan will only be for the property. You will still need capital to cover the expenses related to the rehab of the property. In a Arizona Fix and Flip scenario a conventional loan just doesn’t make sense.

Arizona Hard Money Loans are issued by hard money lenders. These loans not only offer easier qualifications compared to other loan options, but they also have lightning speed approval time. You can get a conditional approval in less than 10 minutes and funding within two weeks.

Where the bank typically requires at least a 650 FICO score, a hard money lender can show more flexibility with their lending requirements. A hard money lenders focus is primarily on the value of the property that will serve as the collateral for the loan and the equity the borrower has in the property. This is why a hard money lender is not overly concerned with a borrower’s credit history or monthly income.

There are numerous benefits of flipping houses: making a quick profit, gaining experience, increasing your network and learning about real estate market.

Find yourself a lender you feel comfortable with and ask questions during your meeting. Ask your lender questions such as: are there other fees you will be required to pay, are there early payment penalties, are they a direct lender or a broker, how long have they been in the business, how often have they foreclosed on a lenders property? Get to know your lender and get the best Arizona Fix and Flip loan terms you can. Finding the right lender opens a large door of opportunity when it comes to flipping houses.

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 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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

The Best Loans for Airbnbs

Rental properties like Airbnbs can bring in a great deal of extra money to your household. While you may be excited to jump into the rental game, there are a few things that are important to know before purchasing your first property.

Banks are scrutinizing how properties are being used when it comes to writing new mortgages or even refinancing existing mortgages. Rental properties have historically been riskier loans for banks. Most banks will not even extend a line of credit on a property that is being used as an Airbnb rental. Although, there are instances a traditional loan will be approved for an Airbnb, it is not common at this time and a borrower will have to jump over red tape and then wait, what could be months, for approval.

Arizona Hard Money Loans have become popular routes for borrowers to follow in being approved for a vacation home mortgage. Arizona Hard Money Loans are hard asset based loans. Hard assets are usually real estate. With these loans, the lender is not worried about you monthly income or credit. Rather, they are concerned about your assets. In case of default, the lender may foreclose on your property. These loans have different terms than traditional loans, as they are meant to be short-term loans for up to 5 years. However, a borrower may refinance with a traditional institution when the term limits expire if needed. There are many options when it comes to Arizona Hard Money Loans.

An Airbnb can bring a generous amount of annual income to your family. It is imperative that you do your homework before speaking with a lender.

The top 10 cities to own an Airbnb:

1. Asheville, NC

2. Portland, OR

3. St. Louis, MO

4. Nashville, TN

5. Phoenix, AZ

6. Denver, CO

7. Austin, TX

8. Charleston, SC

9. Dallas, TX

10. San Antonio, TX

Do you live in any of these cities? If so—get yourself with a lender and start generating more income!

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 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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions