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

Wednesday, February 6, 2019

Top 5 Reasons People are Denied Arizona Business Loans

Roughly 77% of people can’t get Arizona Business Loans and lines of credit at all or in meaningful amounts. If one or more of them is holding you back too, you still have financing options.

The Small Business Credit Survey is an annual publication produced by the 12 Federal Reserve Banks. The latest version indicates that of those who apply, 23% don’t get any kind of financing and 54% don’t get the amount of cash they need. These shortfalls can effectively shut down a company or stunt its growth. Oftentimes, banks cite one or more of five main reasons for denials.

1) Insufficient Credit History: The greatest cause for financing shortfalls for small businesses is not having established credit. This impacts 36% of those who apply.

2) Insufficient Collateral: When credit isn’t enough to obtain financing, sometimes people can use assets as collateral. However, 35% of shortfalls in financing are impacted by lack of assets.

3) Too Much Debt: The survey found that 30% of businesses don’t get the funding they need because the bank thinks they have too much debt to be able to make good on additional payments toward Arizona Business Loans.

4) Low Credit Score: In all 27% don’t have a good enough credit score to qualify for the loan they need. The numbers skyrocket if the lender considers you to be medium risk or high risk, with just 29% and 10% being fully funded, respectively. To clarify, you would have to have a minimum business credit score of 80-100 or a personal credit score greater than 720 to NOT fit into one of those categories.

5) Weak Business Performance: The last measurable segment includes those who are operating underperforming businesses, which could very well be weak because they lack capital. Even still, this ranks among the reasons for not being offered cash 22% of the time.

Arizona Hard Money Lenders Can Lend a Helping Hand When Banks Don’t

Given that lack of collateral only impacts 35% of small Arizona Business Loans, the approval rate could theoretically be as high as 65%, yet just 23% are getting all the funding they need. This means it’s not lack of collateral holding business owners back, but issues like credit, debt, and business performance. Yet, everybody knows it takes money to make money. The simple answer to getting around most denials: hard money.

If you’ve got collateral, you can get your company the capital it needs to be successful.

Arizona Hard Money Lenders are different because they care more about the value of the collateral than they do about all the other common factors that result in denials. In other words, it’s easier to get Arizona Business Loans this way and a greater number of people will qualify for them—including those who have already been denied by banks. The terms are a little different too. Instead of taking out funds for an extended period of time and paying on the interest and principal each month, you’ll likely have the funds for a year or two, making interest-only payments for the duration and paying off the principal in the end. If you think a hard money loan is right for you, talk to a broker to find out what kind of terms you qualify for.

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

Monday, February 4, 2019

Why Banks Don't Like to Give Loans to Flip Houses in Arizona (And What You Can Do About It)

Going to banks for Loans to Flip Houses in Arizona usually results in a big fat “DENIED” letter. The good news is, there are other ways to increase your eligibility for funding.

Working on fix-and-flips can increase your wealth dramatically, especially if you’re already handy or have some experience in real estate or finance. However, getting your hands on financing, particularly for your first few properties, is a real challenge because traditional financing doesn’t work. Banks will typically tell you “no” for one of three reasons;

1. You’re not living in the home. Banks like owner-occupied homes because the person making the payments obviously needs a place to live. In other words, you’d move mountains to keep your home, no matter what else happens in your life. If you’re not living there, the bank will likely consider offering any kind of cash too risky.

2. The property is not in good repair. Some of the best fix-and-flip deals have serious issues, like roof or structural damage. They can’t be lived in because of this. If the bank were to give you Loans to Flip Houses in Arizona and you didn’t make good on payments or fix it, they’d be stuck with an unlivable house that they’d have to fix before unloading. It’s an expensive and undesirable situation for them.

3. Your credit isn’t spectacular and you don’t have business credit yet. It takes small businesses quite some time to establish credit, especially if you’re asking for tens of thousands or hundreds of thousands of dollars. In most industries, the business owner uses his or her personal credit until the business is established, but most people don’t have strong enough credit to cover the large amounts of cash needed for purchasing a property. If you already have a mortgage for your own home, that’s a double ding. They’ll be looking at it from the standpoint of making two mortgage payments; something most people cannot do.

Increase Your Eligibility by Choosing Alternative Funding

Banks aren’t the only ones you can go to when you need Loans to Flip Houses in Arizona. Oftentimes, people in the industry go with hard money instead. This refers to financing based on the value of an asset, rather than the criteria banks usually use. It’s easier to get and it doesn’t matter if the house is a wreck or if your credit is rotten. You’ll also hear it referred to as private money, simply because the people financing your project are regular people versus institutions or banks.

A seasoned broker can help make your dreams come true.

It probably goes without saying, but private individuals with cash to invest don’t hang around street corners asking people if they need cash. To get Loans to Flip Houses in Arizona with great terms, you’ll need to work with a broker who is familiar with multiple investors and can match you with someone who’s a good fit for your project. A seasoned broker will also help you shore up your plan if need be, so the deal looks good to investors and you have more success with your rehab projects. Whether you’re just looking for info or already have a property picked out, speak with a broker who works with hard money and you’ll increase your chances of getting approved dramatically.

Friday, February 1, 2019

Get Money Now: Arizona Construction Loans for Suburban Families

Use Arizona Construction Loans to build the home you need today.

John and Sally were high-school sweethearts. They grew up in the same small town. They had similar friends, interests, and dreams about life. The year they turned 18, like any Nicholas Sparks book, John bought a diamond ring, staged an elaborate proposal, and asked for Sally’s hand. Sally was enamored of John. An autumn wedding in the White Mountains soon followed. The air was cool and crisp. The pastor read their vows and quoted forgotten words form an old book. Tears of joy fell from Sally’s face. John grinned. The honeymoon soon followed.

Years later, they are cramped in a two-bedroom house with three children. Thanks to Nicholas Sparks or some unseen deity—the cancer theme was removed from the plot—John and Sally, alive and well, still love one another, but it gets stressful at times with crying children, occasional disputes, and John working late nights trying to survive the contracting business. “John is a good man, he is a good man,” Sally muses. She knows that sixty to seventy-hour weeks are just part of getting a business up and running, just a part of the American Dream.

Sally feels like a sardine in a can, though. Add to the can clutter, screaming children, and diapers. Take from can John who is still at work and will get home late to stuff down a cold casserole that has been on the table for some time. The housing market is booming. John and Sally live in the Greater Phoenix suburbs. Sally sees her friends who have husbands working a nine-to-five, who come home to a nice dinner every once and awhile. Sally sees her friends taking out loans to buy three and up to four-bedroom houses. Each kid has his or her own room. Each couple has space to breath and spend an occasional tender moment together at night. A full-sized table to have dinner at. A walled-in yard for the kids to play in. A home to live a life in. A life they dreamed of.

Arizona Construction Loans Help Families Build a Dream Home

Sally remembers that they bought empty suburban lot after the last recession when prices dipped. John got a good deal on the property. “The land is paid off. John is a contractor. He could build on it, couldn’t he?” Sally is excited. Sally wants a home like her friends. Sally wants an ideal family and an ideal life for her and her sweetheart.

See if you qualify for Arizona Construction Loans today at Setabay.

John comes home. Sally talks about building on the land by using Arizona construction loans. John smiles. He has worked hard over the past few years. Business has done well, and their savings could handle a down payment. Lucky for them, John know a few private lenders who have financed previous projects and who might be willing to lend out Arizona construction loans. Within a year, John and Sally use Arizona Construction Loans to finance building their dream home. After completing the property, John and Sally bridge their loan from private hard money to conventional financing. They feel happy with their decision.

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

Benefit from Arizona Bridge Loans: Invest and Receive Quicker Returns

Weigh the short-term and the long-term with Arizona Bridge Loans to find an ideal investment situation.

According to an article in Investopedia, a Arizona Bridge Loans “is a short-term loan used until a person or company secures permanent financing or removes an existing obligation.” This means that the goal of a Arizona Bridge Loans is to obtain some sort of short-term loan in order to secure an investment. In the case of real estate investment, the goal of a bridge loan is to acquire possession of a property within a limited amount of time in order to obtain a more favorable loan and interest rate later.

For example, a real estate investor may use hard money Arizona Bridge Loans to acquire a distressed property, a property that conventional lenders will not finance, for $100,000 at an interest rate of 7% to 15%. After the investor puts $50,000 of his or her own money into renovation on top of the $100,000 acquisition fee, the investor may be able to secure a long-term loan, which would greatly reduce the interest rate that the real estate investor is paying, say to 5% interest.

The long-term goal of a Arizona Bridge Loans is to acquire long-term financing because this would greatly reduce the amount of interest paid on hard money. Hard money is beneficial for the ease of acquisition it brings. But, on the other hand, hard money comes at a cost. It is expensive, with higher interest rates than conventional lenders. Paying up to 15% plus in interest for a long period of time can be crippling. However, if the end goal is to transition to a conventional loan at a lesser interest rate, then the burden of hard money can be greatly reduced.

Arizona Bridge Loans: The Short-Term and the Long-Term Perspectives of Real Estate Investing

For many, the ability to switch out from hard money to conventional lending is out of the question. This may be due to credit score, credit history, foreclosure, or bankruptcy. The things that typically scare conventional lenders off since they paint a negative image of whether or not a borrower is able to pay off his or her loans.

Less interest is more gross. Arizona Bridge Loans may be the business solution for you!

But, on the other side of things, if an individual borrower were to have a favorable credit situation and a stellar credit history, bridging to a conventional loan may be a favorable strategy. Not only would a bridge loan allow such an investor to acquire wholesale property at an accelerated rate in order to get an edge up on other investors chomping at the bit for coveted property, it would also allow such an investor to convert high interest into low interest until the desired property generates a desired return. For those that renovate to rent property, this is especially a benefit because a lower interest rate would guarantee lower annual payments to the lienholder resulting in higher gross.

Thursday, January 31, 2019

Start a Profitable Business: Get Hard Money Loans to Flip Houses in Arizona

Loans to Flip Houses in Arizona are available to those wanting try their hand in the flipping industry.

The average profit on smaller flip homes in the States can range from $20,000 to $30,000. Three to four months is the average time it takes an experienced flipper to flip a home. With three to four completed flips per year, a flipper could possibly earn a profit of $60,000 to $120,000 per annum. The possibility of obtaining these types of returns, add in an increase in TV shows glamorizing real estate investment, has driven many individuals to try their hand in the flipping business. Great right? The ability to start a business that can generate six figures without pricy investments in an academic or trade education.

So, after looking at the earning potential of flipping houses and deciding that is the best real estate investment route, acquiring property to flip houses and financing to run a business are the next major steps that individuals come up against. What type of home should these investors flip? Well, usually, in the flipping industry, foreclosed, distressed, and short-sold homes are desirable. Property that will be sold at an enticing, wholesale rate. Sometimes, the right piece of property is no easy find, it is not a low hanging fruit to be snatched from above. Effort, research, and beating the bushes to find the right wholesale piece. Balancing the wholesale price, the foreseeable refurbishment cost, and the after-repair value ARV are important steps in evaluating if the investment is worth undertaking and, more importantly, if the investment is capable of generating sizeable return. After completing these analyses and others, financing becomes the next question to answer.

Due to the fact that most conventional lenders will not lend for the acquisition of distressed property, hard money Loans to Flip Houses in Arizona is crucial element to understand when flipping homes. Once a property is selected and the numbers are drawn out, a hard money lender is usually consulted in order to present financing options.

Make More Money with Loans to Flip Houses in Arizona

Though most investors making their way into the flipping business may not have a sizeable portion of cash to put down, some sort of property equity or initial cash down is needed to secure hard money Loans to Flip Houses in Arizona, this leverageable collateral or equity may be in the form of real estate already owned by the potential borrower.

Talk to a hard money broker at Setabay to get Loans to Flip Houses in Arizona today!

With the collateral and the equity decisions under control and agreed upon, a hard money lender or broker will calculate rate, conditions, terms, and lending fees if applicable. He or she will be able to tailor a lending situation that is favorable, short, and able to secure a favorable investment situation for both lender and borrower. If receiving Loans to Flip Houses in Arizona is right for you talk to a hard money broker at Setabay today and make your way into the lucrative industry of flipping homes.

Wednesday, January 30, 2019

How to Get Residential Arizona Hard Money Loans

What are residential Arizona Hard Money Loans? How through your hard money broker at Setabay, you can get the necessary help and the financing you need.

Residential loans are home loans that are not intended to be used for commercial returns. Instead they are intended to allow a borrower to purchase a property in order to use it for personal housing. Loans can be received to finance a variety of different property types in a variety of different locations.

In the spectrum of hard money lending, Residential Arizona Hard Money Loans are not offered by most Arizona Hard Money Lenders. This is due to the restrictions of the Dodd-Frank, which after the Great Recession changed many of the residential housing regulations especially regarding subprime lending. Because of the Dodd-Frank Act, there are more regulations private money lending for residential purposes. Most Arizona Hard Money Lenders do not want to deal with the bureaucracy and the difficult processes associated with Residential Arizona Hard Money Loans or do not specialize in this area of loans. Those lenders who do deal with Residential Arizona Hard Money Loans tend to focus on a subniche: residential rehab, family residential, multi-family residential, etc..

Residential hard money is able to help individuals purchase: apartments, condos, mobile home trailer parks, multi-family units, raw land, single-family properties, and vacant land. Financing for these types of loans requires cash down in order to fulfill the loan to value stipulations of Arizona Hard Money Lenders. An acceptation to LTV cash down restrictions would depend on personal assets with a strong, positive equity position which would create enough security for the hard money lender.

Talk to Your Residential Arizona Hard Money Loans Broker at Setabay Today. Get started and Find the Funding You Need

Determine the type of residential property that you need a loan on. Evaluate what assets or cash down you have to leverage in order to begin the application process to receive a hard money loan. Then speak with your hard money broker to find the right lender and rate to finance the property you are interested in.

Avoid pitfalls! Setabay is here to help you receive your hard money residential loans. Talk to a broker today!

Your hard money broker will guide you through the process and help you to understand whether you qualify for a hard money residential loan and if so what type of hard money residential loan would work best for you.