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

Monday, January 21, 2019

Advice to Hosts About Arizona Airbnb Loans

Airbnb is now offering loans to prospective hosts. These Arizona Airbnb Loans can be used for renovation as well as construction from the ground up.

Airbnb is taking an active role in ensuring that the homes they offer to rent on their site are pleasant to stay in. In order to accomplish this, they have begun offering hosts Arizona Airbnb Loans for home improvement and have gone so far as to partner with a host for construction of an apartment block in Florida. From the origins of Airbnb as a site connecting holiday travelers with a room that a host has to rent, to a site that is an alternative to traditional hotels, Airbnb is moving further away from its origins. This has also triggered questions by regulators worldwide and irritating hosts who maintained a laissez-faire attitude. The regulators further question Airbnb about the company’s precise nature of its business.

The Arizona Airbnb Loan program is tailored by the company to offer home improvement loans to hosts. This Arizona Airbnb Loan program has been dubbed by the company as “Airbnb Select.” Airbnb identifies homes and hosts that are more likely to appeal to travelers desirous of a hotel-like experience coupled with high quality. Airbnb will highlight these homes in their portfolio. Airbnb offers advice on cosmetic improvements such as shooting the best eye appealing photographs to loans which are repaid through future bookings on the property.

In an effort to create more standardized offerings, Airbnb educates their hosts in the art of showing a room or home in its best light. That may include suggesting they place rolled up towels in a basket in the bathroom to cleaning the counters and placing their own products there. Hosts are urged to explore and learn from high quality hotel bathrooms. They also note that too many pictures of your dogs may make the guest(s) uncomfortable.

Airbnb as Partners

Airbnb is attempting to convert their offerings to a more “Hotel Like” experience. In some locations, Airbnb is partnering with the hosts in order to create this. Airbnb partnering with hosts from the time of construction allows the hosts to offer luxury apartment building perks such as swimming pools to visitors as well as other communal areas without violating the building’s regulations. Through the partnership between landlords and developers, Airbnb can create value to better serve its tenants.

Airbnb is, in essence, asking hosts to take on more hotel-like responsibilities. The changes they are implementing risks the chance that the existing hosts rebel.

Airbnb has shifted complying with the myriad of local regulations for short term stays to the hosts. Some localities have welcomed the shifting of complying with local ordinances to the hosts while, in some instances, the local authorities have fought strongly against this. In New York City, the city council passed a law making it illegal to advertise unlawful rentals. Airbnb wound up suing New York City for passing this bill. Airbnb has been able to stay on the right side of the law in most localities. If you are looking to get into your first Airbnb rental, give us a call at Setabay. We work with hundreds of investors, some of which specialize in this lucrative investment strategy.

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.

Sunday, January 20, 2019

100% LTV Hard Money Loans in Arizona

Finding the right lender is your first step in starting your real estate investment portfolio. There are 100% loan-to-value (LTV) Hard Money Loans in Arizona—you just need to know where to look.

It has been said that you have to have a ton of cash to get started in real estate. On the contrary, below are some options to get your deal funded without having to lay out massive cash amounts. If you are one of those people with money sitting in the bank and earning 2% interest and inflation at 3%, then the true value of your money is that you are losing 1% each year. If you want to keep up with inflation, high yield savings accounts cannot do the job.

On the other hand, if you seek out An Arizona Hard Money Lenderor private lender, the interest rate is often going to be in the range of 12% to 15% for a Hard Money Loans in Arizona. To approach one of these lenders and acquire the funds you need to break into the real estate market, you will need to know how to approach them and present your project. Develop a business plan of your project, explaining how you have worked out the details. Make sure to give enough information to answer a lender’s questions.

A private Hard Money Loans in Arizona is secured by real estate. When writing the business plan, make sure you emphasize that your maximum loan to value is 75%. Conventional Arizona Hard Money Lenders have a much tougher standard for securing a loan. This is a win-win situation because you do not need to dole out cash while the investor (lender) makes 12% to 15% for taking the risk.

Financing by Seller

If you are seeking 100% seller financing, then you need to search for a motivated seller with a property they want to unload. Understand that the property they are looking eagerly to sell will be in poor condition, but if you are handy you may be able to make a subpar property into a great investment. If the seller is utilizing the services of a Real Estate Agent, this house will be competing with a move-in-ready house. The property may be on the market for a considerable time and, if the property sells, the owner of the property will have to pay approximately a 6% commission. If the seller carries the mortgage they benefit because of the renovation of the house. The seller carrying the mortgage also gets paid a higher interest rate. When the house sells, the investor and seller both make money from the sale of the house resulting in a win-win for both parties.

Obtaining a Line of Credit from a business is another option to securing financing.

If you have an established business or a newly formed company, obtaining a line of credit is another way to secure 100% financing. Seek out a loan company that has no restrictions on how the money can be used. Most hard money lenders require that 10 to 30% be put down for a Hard Money Loans in Arizona. If you are an experienced rehabber, there may be some 100% lenders out there, but you will have to pay 3 or 4 points and 15% interest and may even have to split the profit after the sale of the property. At Setabay, our success is your success which is why our rates start as low as 5.99% with flexible terms that range from 3 to 60 months. Call us for a no-obligation quote.

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

How to Obtain Your First Arizona Fix and Flip Loan

Getting in on the fix and flip real estate model can be a very lucrative investment strategy. Knowing who to turn to and which Arizona Fix and Flip Loan is right for you is often the biggest hurdle to successful entry.

If you are looking to change careers and seeking a healthy income, you may want to look at flipping houses as a business. According to reality TV shows on flipping houses, you don’t need an extensive education and it is relatively easy to do. In reality, it isn’t quite as easy as “reality” shows lead you to believe. Technical knowhow and proper planning are essential; however, one of the greatest roadblocks is obtaining funding for the project. Remember the old axiom, “It takes money to make money.”

So, you have setup your company, created your business plan, and are left wondering how to get the money to start your project. One approach that is particularly helpful for first time fix-and-flippers is to ask friends and family for start-up money. You may also want to approach private investors and Arizona Hard Money Lenders, which are some of the best sources for funding for flipping houses. Compared to traditional banks, they ask for a lot less paperwork, fund in days instead of months, and offer flexible terms with no pre-payment penalties. They look at the property and take into account before and after repair values as well as your ability to complete the project successfully.

Other investors consider taking out a mortgage loan. While rates from traditional lenders can be relatively inexpensive for investment properties, loans from traditional lenders are not always practical. When starting out, a mortgage loan may not be your best option. Traditional lenders are quite slow in closing a fix and flip loan. If your strategy includes short sales and foreclosures, traditional lenders are not always the speediest way to go and the delay can cost you prime property. Traditional lenders are also seeking W-2 or paystubs to verify income and, if you are a real estate investor or self-employed, your verifiable income may not be what the traditional bank is looking for.

After-Repair Value (ARV)

The traditional lender only looks at the appraised value and not the “after repair value” or ARV of the property you are seeking to flip. If you are flipping a house, the appraised value will be much lower than the after-repair value. Traditional lenders require that you have strong credit to get approved for your Arizona Fix and Flip Loan while alternative lenders, such as private and hard money, are less concerned with your credit and will look closer at the property you are seeking to flip.

If you are starting out, it may seem as though it is impossible to find any Arizona Hard Money Lenders that will offer you a loan, but, as Newt Gingrich once said, “Perseverance is the hard work you do after you get tired of doing the hard work you already did.” Hang in there and persevere.

When you finally obtain the Arizona Fix and Flip Loan you are seeking from An Arizona Hard Money Lender, you will face interest rates from 5 to 20 percent and may have to pay points from 1 to 10 percent upfront. Once you have established a relationship with a lender and you’re in business longer, the two of you will be able to negotiate future deals. You may also be offered interest only payments and there should be no prepayment penalty. Call us at Setabay for a no-obligation quote. Our rates start as low as 5.99 percent.

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

What are Arizona Bridge Loans and How Do They Work?

In certain types of real estate markets, Arizona Bridge Loans are popular and serve both investors and home owners. If you are currently in an existing home and want to purchase another home before your existing one sells, this type of loan offers an optimum short-term loan that can help you achieve this goal.

Understand that Arizona Bridge Loans are not without risk. These loans are not permanent loans. They are meant to be short term in nature and, as the name implies, “bridge” the gap between the existing home and the new home mortgage. They are secured by the existing residence. In reality, you are borrowing your down payment.

Set guidelines are not established by all lenders, such as minimum FICO score and debt to equity ratios. Funding of the loan is approached by underwriting as lenders determine if the loan “makes sense.” The key to the loan is that long term financing is obtained on the new home. The loan payment may be excluded by some lenders for qualifying purposes. Most borrowers have an existing loan on the current residence; so many lenders will add the two mortgage payments together. Most buyers are going to close on the new home before they sell their existing residence.

Higher debt to equity would be accepted by a lender if the mortgage for the new home is a conforming loan. If the new home is a jumbo mortgage, then the lender will restrict the buyer to a 50% debt to equity ratio. There are fees associated with Arizona Bridge Loans. Interest rates can fluctuate and vary depending on lender and location. Some of the fees that a borrower will need to pay are:

1. Administration fee

2. Appraisal

3. Escrow

4. Title Policy

5. Wiring Fee

6. Notary Fee

Based on the amount of the loan, there may be an origination fee. There may be points charge of 1% of the loan or more.

Risks and Rewards Associated with Arizona Bridge Loans

In a “move up” home, if you are tight on cash and your existing home has not sold, you can finance the down payment by taking out a home equity loan or a bridge loan. In a tight market, waiting until your home sells can result in the loss of your dream home that just hit the market. After all, buyers will prefer a full offer over one that contains a contingency. If you proceed in purchasing a home before the existing one sells, then be prepared to pay two mortgages. Bridge loan benefits include the following:

· You can buy without restrictions and immediately put your existing home on the market

· You may be given a few months grace period on a bridge loan before the first payment is due

· When you place the bid for the new home, you remove the contingency when making the offer for the new home

Bridge loan drawbacks include:

· Home line of credit costs less than Arizona Bridge Loans

· A stringent requirement that the buyer may not qualify for is that they can meet the financial requirement to pay two mortgages

At Setabay, we offer Arizona Bridge Loans as well as construction, fix and flip, and Arizona Airbnb Loans.

As with all loans, various lenders, particularly private and Arizona Hard Money Lenders, offer various rates and terms along with underwriting processes and qualifying demands. At Setabay, we have streamlined the process and can let you know the status of your application in as little as 24 hours. Call us for a no-obligation quote.

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

The Basics for Getting an Arizona Airbnb Loan

An increasing number of investors are purchasing property that they then turn around and rent via Airbnb. Find an Arizona Airbnb Loan in order to get into this lucrative investment strategy.

By 2017, the leisure industry had expanded with 25% of leisure travelers booking at least one stay at an Airbnb property. Since 2016, stays at Airbnb properties increased 19% according to a research report from Morgan Stanley. Airbnb has over 4 million listings in 191 countries. Leisure travelers prefer to book a stay at an Airbnb property than a motel.

Entrepreneurs seeking additional income will seek to rent out a house, apartment, or some other space by listing their property on Airbnb. Estimates are that some 650,000 people list to rent their property out on Airbnb and revenues for Airbnb have topped $2.6 billion with a typical host realizing, on average, $924 a month. Some hosts are realizing enough revenue that they are able to quit their jobs. Any Airbnb host must realize that there are costs associated with hosting, some of these are the costs associated with acquiring the property you want to rent, increased taxes, paying a commission, local regulations, property insurance, and the obvious cleaning and keeping your property well stocked.

You will need capital to get started and involved with Airbnb property. The costs associated to become an Airbnb host can be varied. One of the most obvious is the property itself. If you rent your property on Airbnb for more than 14 days per year, then you will need to report the money earned. Your best bet is to talk to a tax professional before you begin to rent a property on Airbnb to realize how this will affect your personal tax situation.

Considerations Before Becoming an Airbnb Host

Take into account these considerations before becoming an Airbnb host:

· Calculate the three percent charge Airbnb places on any payment and how this fee is going to affect your profit margin.

· Calculate the supplies needed for your listing, such as sheets, towels, and other household items. Do not forget that you may have to purchase additional electronics and furniture in order to make your house “Airbnb worthy.”

· You will need to be the housekeeper for the property or hire a service to clean. This is an added expense that your will need to calculate into your profit margin.

· Lastly, you will need to research insurance. For American hosts, Airbnb provides insurance such as basic liability and property protection. This may not be sufficient to protect your property. Call your insurance agent to discuss the proper coverage for this type of situation.

You are now spending thousands of dollars before you ever book a guest. It’s best to look for Arizona Airbnb Loans with a private money lender before you spend more money than you originally anticipated.

There also are challenges for an Airbnb rental by local laws or city ordinances. Banks will not lend on properties listed on Airbnb since localities restrict the listing of your property. Banks are reluctant to lend to a business that is “illegal” due to local ordinances that prohibit the listing. Although obtaining Arizona Airbnb Loans can be challenging, you may be able to find great options to get your foot in the door. At Setabay, we work with hundreds of private investors, some of which specialize in Arizona Airbnb Loans. We may very well be able to find the right loan for your first Airbnb property.

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

Saturday, January 19, 2019

What are Fix and Flip Loans?

The fix and flip investment strategy involves purchasing the ideal property that is ripe for renovation or a quick turnaround. There are several types of Arizona Fix and Flip Loans that can help make your dream a reality.

The fix and flip real estate investment strategy involves purchasing property that is in need of either minor renovation or major construction. After improving the property, you then sell it for a profit. As simple as it sounds, there are many moving parts and areas that require a certain depth of knowledge. Let’s dig a little deeper.

You purchase a property through an auction or a foreclosure or, lastly, a bank foreclosure sale. At that point, depending on the property, you may choose to sell it “as is.” A true fix and flip, however, involves improving the property first, adding value, and then selling it. Improving the property can range from small but important updates to the kitchen and bathrooms to a complete renovation of a home.

A successful fix and flip involves many components. As a Fix-and-Flipper, you must be able to acquire a property at a price that allows you to do the renovations and make a profit. You, as an acquirer, must know your market, as a project manager, you must be able to manage the various contractors to execute the improvements, and, finally, you need to be able to secure funding for your project. One major hurdle is obtaining financing from a bank. You will find that this process may too long and costly. For example:

· Typically, the fix and flipper is opportunistic and purchases distressed properties. This means that time is of the essence and a lengthy and cumbersome bank loan will delay the process.

· The bank route depends heavily on the buyer’s credit history. Your track record and expertise in fix and flip investments is usually discounted by banks.

· The bank route may not lend for improvement costs for a fix and flip property.

Fix and Flip Loans—The Bridge Loan

Loans for fix and flip investments are typically known as Arizona Bridge Loans. The bridge loan is the “bridge” between the sale of the purchased property once renovated. These loans are short term in nature and secured by the real estate. The number and type of Arizona Fix and Flip Loans are varied. Some of the different types are:

· Purchase the property: A seller has a distressed property and the buyer has the opportunity to purchase the property at a deep discount, make some minor renovations, and then sell it.

· Renovation loan: A buyer has the opportunity to purchase a single-family home. The borrower will renovate the home to make it more eye appealing and modernize it with a new kitchen, bathroom, painting, and landscape, and then put the property up for sale.

· Arizona construction loan: A vacant piece of land is available with a dilapidated single-family home. The borrower demolishes it, replaces it with a 2-unit duplex and then sells it.

At Setabay, we work with hundreds of private Arizona Hard Money Lenders, many of which specialize in fix-and-flip loans. Our interest rates start as low as 5.99 percent with terms that range from 3 to 60 months.

The cause of capital inefficiencies in the lending market allows Arizona Hard Money Lenders the opportunity to provide liquidity while the borrower pays higher interest, organizational costs, and points. These loans are collateralized by the property or land involved in the project. The term of the loans is usually 12-24 months. An individual who invests in Arizona Fix and Flip Loans has their money going directly to the originator who then provides their clients with the working capital to fund their projects. At Setabay, we offer some of the best interest rates in the market. Call us for a no-obligation quote.

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