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Friday, January 25, 2019

Who Are Arizona Private Money Lenders?

Beginning a relationship with an alternative money lender may be the only option when a traditional lender won’t approve a loan. Read below to learn who they are and how they can help you with financial success.

Private investors are alternative loan sources for people who aren’t approved by traditional lenders like banks and credit unions. While most people may think of private investors involved with real estate, they can really range from any untraditional source. This may include people such as friends and family who offer a loan to professional acquaintances, crowd funders and typical Arizona Hard Money Lenders.

Typical Private Money Lenders in Arizona are private investors that differ from banks in that they can offer speed, flexibility and approval. Usually people with rotten credit or low income go to Arizona Hard Money Lenders because these types of lenders focus on the property instead of financial history. While financial history is important, as is the repayment of the loan, alternative lenders focus on property potential. Compared to a bank, private lenders have a more transparent relationship with their borrowers. When evaluating potential loans, private lenders typically evaluate the LTV loan to value or ATF after repair value; for them, collateral trumps finance history. Appraising the property’s potential will likely be the first step. One major benefit of utilizing a private lender is speed. Banks can take as long as a month or more to begin the loan process, but some private lenders can start as soon as the day of. This is attractive to people who need money to bid on competitive property or to prevent a foreclosure fast.

Who Alternative Lenders Work with Best

As mentioned, agents bidding on property or families wishing to prevent a foreclosure may benefit the most from private Arizona Hard Money Lenders. The short repayment period and speed in the loan process loans itself to these options specifically. Fixer uppers are another example of those who may take advantage of the benefits of private money lenders. Experienced and successful renovators would definitely take advantage of the short repayment period, as they are likely to resell their property and make a profit fast. Thinking outside the box into other type of private lenders such as crowd funders or family and acquaintances could be helpful if a small amount of money is needed. If the public believes in the investment or a personal connection knows you to be reliable, they are definitely options that may be more successful than a bank—especially if the rates of Arizona Hard Money Lenders are too high.

Determining the Right Option for You

Private Money Lenders in Arizona provide opportunities for many people unable to receive traditional funding. However, this does not mean they are for everyone, especially in cases of Arizona Hard Money Lenders. Determining your qualifications for both traditional and untraditional loans will help you evaluate the types of opportunities work best in your particular situation. Taking account of all variables in your situation and comparing each alternative option will likely lead you to success. Sometimes it just requires you think outside of the box.

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.

How Arizona Bridge Loans Work

Funding your next house may not come easy—fortunately, specific loans exist for people wishing to do just that.

Arizona Bridge Loans have a variety of names. From “swing loans” to “wraps” to being referred to as “bridging the gap,” they all mean the same thing: borrowing using the down payment on your house to purchase the next. They are used when you want to make a purchase before selling your current home, and oftentimes to get out of contingencies in contracts that you must sell your current home first. The word “bridge” is the transitional metaphor of moving from one home to the next.

The benefits of Arizona Bridge Loans include the freedom of searching, buying and selling your homes, with no transition period between, allowing for the ability to move in when ready with no temporary living spaces. Other common scenarios include using these loans in scenarios of small renovations and relocations across cities. People avoiding loan contingencies are usually interested in this type of loan, while lenders are generally interested in them for their high interest rates and short-term, low-risk repayment.

How to Know if “Bridging the Gap” is Right for You

If this loan interests you, qualifying will require a great credit score and a low debt-to-income ratio. Qualifying for this loan means that you will own two properties—which means paying two mortgages. Additionally, these types of loans are short-term loans, usually being paid off in 6 to 12 months, and carry higher interest rates. Rates vary from lender to lender, but they are usually 2% higher than the market. They will also be further affected by the home’s loan-to-value LTV ratio and your personal credit history. These factors coupled with the need you’ll have of selling your house are definitely things to consider before making any fast decisions. Understanding the current housing market and how your home will fare compared to other listings will be important and cause you less stress. Sometimes loan extensions can be provided if the house isn’t selling, but it’s important to be aware of these unguaranteed factors ahead of time.

Moving Forward and Alternative Options

If Arizona Bridge Loans are right for you, finding a possible lender can be done at your local bank or credit union. If they are not the right option for you, alternative routes such as home equity loans or a 401k are other options. High credit and income is required for home equity loans, but they are common suggestions when Arizona Bridge Loans aren’t the answer. Home equity loans essentially take a second mortgage on your home that can then be used for a new loan. Personal loans are also alternatives that generally have lower interest rates. It’s not uncommon for personal loans to be small or paired with other types of loans. Evaluating all your options and understanding your long and short term goals will help you determine the decision that’s best for you. Whether or not these loans are the answer, other options are definitely able to be sought so that you can finally manage your dream 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

Are Arizona Fix and Flip Loans Realistic?

HGTV makes flipping houses look so easy—but is it? Read more below to find out what types of loans are available to you for your first successful flip.

Depending on your financial situation and history of flipping, the best loan for you may not be the best for everyone. When it comes to loans, many people are guided to private investors when approval can’t be obtained by banks. On the flip, even experienced flippers will use private investors because of the speedy process. Gaining financing for Arizona Fix and Flip Loans will be different for everyone, but it can be done if you know your situation.

Loans from banks are usually the first place people look. Because banks are traditional public lenders, they will have strong stipulations in place. Strong credit score and financial history are musts. Unfortunately, not everyone can meet these types of requirements. Those who meet these requirements will obtain a loan that functions like most typical mortgage loans.

When traditional lenders are out of the question, private investors come next. Private investors offer Arizona Hard Money Loans that have a less strict approval process. While people with imperfect credit may be able to obtain a hard money loan, they may not be able to balance the high fees and interest rates that combat the easy approval process. Those considering Arizona Hard Money Loans must also be aware of the short repayment period. Experienced, financially proficient flippers take the short repayment period as an advantage. A successful flip equates to a fast sale and the ability to repay the loan fast. Again, not everyone will see this as an advantage.

Depending on the property, a personal loan may be best. Personal loans are great if a property only needs small renovations. If the property needs a little work, they may be combined with other loans.

The Real Deal Arizona Fix and Flip Loans

Coming right down to it, the most common Arizona Fix and Flip Loans are offered by Arizona Hard Money Lenders. The short repayment period is ideal for a property that, hopefully, sells quickly. During the renovation process, however, it’s going to be important that you’re working with professionals and know what you’re dealing with. The last thing you want is a piece of property that causes more chaos than anything else. Though of course, your lender doesn’t want that either, and will offer a loan based on the loan-to-value ratio, or the LTV. Arizona Hard Money Lenders are usually able to offer around 65%.

Conclusion

Arizona Fix and Flip Loans don’t always play out in real life like they do on TV—but that doesn’t mean you still won’t find success with one. Understanding the market, renovation process, and stipulations that come with each type of lender is going to be what ensures you success based on your personal financial situation, and further goals for the fixer upper. Putting in time and research on the type that’s best for you just may be the difference between a flip and a flop.

Thursday, January 24, 2019

How Arizona Hard Money Loans and Rotten Credit Work Together

Receiving loans can be extremely difficult if you live in a precarious financial situation or have a history of bad credit. Fortunately, there are alternative options for people in need of financial help when a bank isn’t the answer.

When working with a bank, many requirements may stand between you and your loan. Credit score, income, debt, and current loans are a few things that may make borrowing difficult. Banks are traditional, public lenders that evaluate past financial performance before agreeing to a loan. Requiring good credit ensures them that their borrowers are capable of making deadlines on a strict repayment period. However, not all people in every financial situation meet banking standards, and there are alternative options funded by private investors for those in need of financial aid but can’t receive it traditionally.

Arizona Hard Money Lenders are often recommended to people who don’t meet bank standards. Instead of zeroing in on personal finances, Arizona Hard Money Lenders first consider the value of the property. Possible collateral is seen as a way to evaluate the loan’s profit and potential. While Arizona Hard Money Lenders will look at your credit score, it won’t be the determining factor of the loan. An appraisal of the property will determine the LTV, or the loan-to-value ratio. It’s possible to get as much as 75% from a hard money lender.

Arizona Hard Money Lenders consist of private companies and investors. By taking a chance on someone with less than superb credit, they are taking somewhat of a risk. It is because of this that they require high interest rates. Rates can be as high as 10 percent, and sometimes there are fees within the loan agreement.

Benefits of Hard Money Eligibility

Being able to acquire Arizona Hard Money Loans can be the difference between obtaining the winning bid on a property, or saving a home and preventing foreclosure. People who use Arizona Hard Money Loans usually need to act fast. They usually consist of fixer uppers and households. Sometimes lenders are able to lend as soon as the day of—this beats the loan process for banks who, in addition to a selective process, may only be able to lend money a month or more after the loan proposal.

How to Know if Hard Money Loan is a Win-Win Solution for You and Your Lender

Drawbacks of Arizona Hard Money Loans are the high fees and interest rates. Immediately, that may pose a question to people not on solid financial ground. Because of this, it is important to read over the terms of your loan agreement and seriously consider any additional fees. Real estate attorneys can be helpful in this process, providing advice and recommendations. Researching your lender is also important, because it is not uncommon for predatory characters to try to take advantage of people in these scenarios. Investing in a real estate attorney can help ensure the legitimacy of your agency, but also help you to understand the logistics of all the involved fees and terms of the loan. Starting off by finding a lender in your area can come down to a basic search of local lenders, if you believe they are the right decision for you.

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

Risks of Arizona Hard Money Lenders

Private Lending companies and investors seem like great options when your credit history won’t allow you to receive an unconventional loan. However, there are a few caveats you should be aware of so you know if you are making the choice that’s best for you.

Arizona Hard Money Lenders are untraditional financing options. Usually people are referred to these types of investors after a rejection from the bank. They can usually offer these three things: a flexible relationship, proposal acceptance, and speed.

A flexible relationship and proposal is almost guaranteed. Because they can accept people based on value of the property, they are less concerned with your personal financial history. Banks typically have high standards regarding credit score and income, and they like someone experienced with a strong portfolio if they money is for something like a fixer upper. If you can’t get approved for a loan by the bank, you will likely be approved by an alternative lender. In addition to flexibility, alternative lenders can also provide transparency within the relationship.

Speed is something else Arizona Hard Money Lenders can offer that banks do not. While banks may take as long as a month or more to begin the process, private investors can usually begin the process within the week—if not the same day. This is an attractive advantage for people who are competing for property or need to prevent a foreclosure fast. Sometimes, the difference between success can boil down to the timeline.

Things to Consider about Arizona Hard Money Loans

Arizona Hard Money Loans are unlike other loans because of their high interest rates and quick repayment period. These types of loans usually do not work well for somebody who will need more time to repay the loan. Fixer uppers typically find Arizona Hard Money Loans affordable, and are able to utilize the money from the sale to repay the loan fast. If you need the loan for a long-term rental property, Arizona Hard Money Loans are probably not ideal for you. The short repayment period owed to the lender is immediately contrasted with the money you would be collecting from rent, long-term. Considering where you are relying on the money for repayment is really important, especially if there’s a process involved with the purchase of your land—something as small as even finding a renter can factor into this decision.

Evaluating Personal Circumstances

On first glance, Arizona Hard Money Lenders seem like great options. With individualization and flexibility, they offer what a lot of banks can’t and more. However, when pursuing a hard money loan, it is important to put in the research. What kind of plans are you making and how does repayment fit into it? What are your goals for the property and what kind of timeframe does it operate on? With Arizona Hard Money Loans, it’s also important to consider the legitimacy of the source—are they reputable? What kind of terms and fees are within their list of agreements? If you need help analyzing your personal financial situation, real estate attorneys can provide a helping hand to determine if this is the right choice for you.

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 Secure Spec Home Financing

Are you considering building your first spec home? Securing spec home financing may be easier than you assumed.

Are you considering venturing into speculative building, also known in the industry as a “spec home?” This is a home that you build before the home is sold. What makes this speculative is the fact that the home is not sold before construction, making the loan speculative. Spec loans are only a small portion of the loans in the Arizona construction loan industry. If your project has clear potential and you are willing to do more work than a conventional loan, your chances of approval stand an excellent chance.

1. Find a lot that you can improve on: A spec loan is much more speculative and risky than other Arizona construction loans because you have no committed buyer. Your chances of getting approved increase if you locate land that needs to be improved. Raw land which does not have roads, curbs, sewer lines or water (known as infrastructure) is not as valuable as improved land and more likely be far away from urban centers and you will be less likely to find a buyer.

2. Be able to complete your project quickly: Spec home financing is short term in nature. The loan will last only as long as the construction takes. The loan is paid out in stages of completion, also known as draws. To minimize the lenders risk, and if you are new to spec building, pick projects that can be completed quickly. The interest charged is based on the amount of money that has been disbursed. At the end of the project, the borrower ether gets another loan or pays off the balance.

3. Equity is in the land: Giving a lender equity in the land will maximize your chances of getting a loan. Some lenders will require you to do this. This also could be used as the down payment or a portion or combination of the two. The loan is considered secured and the lender’s position is secured in case of default and the lender will be able to recover the monies. A lender will most likely only credit 80% of the value of your land for the down payment on your loan.

Partners in the Deal

To improve your chances of getting approved for spec home financing, you can bring partners into the deal. A partner with better credit will improve your chances of getting approved. The partner could also help with the down payment. A partner can also improve the assets when applying for the loan. You’ll also

Tell a compelling story. The spec loan is a loan on a dream since there is no buyer lined up. The lender is buying into your dream.

The spec loan is highly risky. You will need to sell the idea to the loan officer or the lender. The project location is very vital in securing the loan. “Sell” your idea to the lender, explain the infrastructure, why you chose the location, and the development patterns. If there is a strong presence of rental units in the area, this is a good selling point. At Setabay, we work with hundreds of private Arizona Hard Money Lenders. Call us to see if we are the brokers that can fulfill your dream and find the right investor for your spec home financing.

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

Wednesday, January 23, 2019

How Arizona Hard Money Lenders Work

If you are seeking an alternative to a conventional mortgage lender, then you may want to look at an Arizona Hard Money Lender. Loans with these lenders type of lender, for the most part, is based on the collateral.

An Arizona Hard Money Lender will be able to act fast—in as little as a few days—while conventional lenders will make you jump through hoops and drag their feet for 30 or more days. Traditional lenders are concerned with your credit score, how you are going to repay them, and your income to repay the loan. If your history is solid and you have a great credit score and your ability to repay the loan is verifiable, then you should not have a problem getting approved for a loan. The process is painfully slow. If there are any negative entries on your credit report or income that is not verifiable to the lender’s satisfaction, you will more than likely be turned down. You will be faced with a longer process at a traditional lender. The approach by an Arizona Hard Money Lender is different. The Hard Money Loans in Arizona are short term loans ranging from 1 to 5 years. The interest that these types of lenders charge is higher than traditional lenders, so you will not want to keep the loan for much longer than the 5 years.

Speed, flexibility and percentage of approvals are a few of the reasons why investors turn to private lenders.

Speed: the hard money lender is mainly focused on the property or collateral and not your financial position the Hard Money Loans in Arizona can be closed quicker than conventional loans. A private lender does not want to take possession of the property; they do not spend hours looking over a loan application, verifying your income, looking over your bank statements and so on. If this is not your first rodeo and you have a relationship with a lender, the approval process can move much faster.

Flexibility: The terms and conditions of Arizona Hard Money Lenders can be more flexible than traditional banks. Private lenders do not have a standardized underwriting process. They evaluate each deal individually. You might be able to charge the repayment terms.

Approval: The collateral is the most important factor. If the property is an investment property, then the lender may be able to lend on the full value of the property. Arizona Hard Money Lenders may not look at your credit report and if you have a foreclosure this is less important compared to a conventional lender.

Hard Money Loans in Arizona can be expensive. Depending on the lender, interest rates can be double digit and you may pay origination fees and/or several points.

Where the collateral is located is important. You will be able to locate An Arizona Hard Money Lender more easily if the property is in or near a metropolitan area. You will need to contact real estate agents and investors to find names of lenders or individuals that make Hard Money Loans in Arizona. Once you establish your relationship with an Arizona Hard Money Lender, you can build on that relationship for future projects. Call us at Setabay to see if we are the right lenders for your next project.

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