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

Tuesday, February 19, 2019

Arizona Fix and Flip Loans: Make the Most of Your Investment

Arizona Fix and Flip Loans provide the cash, but you have to turn that cash into a quick turnaround by making your property a must have. Here’s how to make your property a must-have amongst buyers.

Arizona Private Money Lenders will provide your Arizona Fix and Flip Loan, but what do you do once you’ve secured your investment property? Now you’ve got to actually perform the fix and the flip. Unless you have experience in home and interior design you may be at a loss for how to make your property stand out amongst the others on the market. Here are some tips on how to make sure you’re making the right design choices for your investment property funded by an Arizona Fix and Flip Loan.

Stand out, get offers

You don’t want your property to be so cookie cutter that there’s no differentiation between yours and the one down the street. Think about a red door that will attract buyers passing by. Splurge on the countertops so buyers don’t walk in and think about how much they’ll have to spend on upgrading the kitchen. One or two stand-out features can be a deal maker for your fix and flip home.

Look for trends

Standing out is great when it comes to marketing a home and this tip may sound counterintuitive to what we just told you, but trends are trends for a reason. Gone are the days where buyers want to walk into a stark white home. Paint an accent wall in a noticeable, but still neutral tone. Add some Edison bulbs to exposed light fixtures. If you spend fifteen minutes on Pinterest you will see the top trends in homes today and you can easily pick out a few quick, cheap trends to include in your renovation and decorating to make sure your fix and flip is on trend with what people want today.

Invest in staging

A blank home can allow buyers to envision what they would do to the home to make it theirs. A staged home allows buyers to picture themselves already living in it, sitting on that couch, sitting on that patio, having family game night by that fireplace. You don’t want to overdo the staging to where buyers are off put if the style doesn’t match their own, but it should be enough that it doesn’t feel as if they are walking into a bare bones home that they can’t picture themselves living in.

Fix and flip properties require a sense of style and what’s on trend to sell for top price. Picture a model home in new-build neighborhoods. Does it have the lowest end fixtures? Does it have stark white walls and zero personal touches? No, that’s because it needs to feel like a home, not just a building. If you put a little extra money into your finishing touches you can make more on the sale. If you have any questions about Arizona Fix and Flip Loans, call Setabay LLC and we can walk you through the process.

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.

Monday, February 18, 2019

Mi Casa, Su Casa: Rental Property Loans

You can make money purchasing homes that can be used as rental properties, giving you passive income. Arizona Hard Money Lenders give you the cash on an Arizona Rental Property Loan so you can purchase quickly

Have you ever been a renter? Have you made monthly rental payments that went into the pockets of the home owner or a rental management agency? Being a rental property owner can be a lucrative business, but how do you get your hands on that first rental property if you can’t secure a big bank loan? Big banks aren’t the only way to get investment cash to purchase a rental property. Arizona Rental property loans can also be serviced by Arizona Private Money Lenders , also known as Arizona Hard Money Lenders.

Rental property loans will allow you to scoop up investment properties quickly so you don’t have to front your own money to make the purchase. That being said, there are things that can stand in the way of you getting that funding to make the quick purchase before the perfect rental home flies off the market. You can be the majority of the way through the approval process when a big bank decides that you’re “too risky” to fund.

Big bank decisions are based on hard and fast qualification rules that can keep you from having your loan paid on day one, or the day before escrow. We service rental property loans based on your propensity for success, not for your ability to make a credit card payment on time. Here’s why Arizona Private Money Lenders are the way to go for rental property loans.

We’re investor friendly lenders

We are there to service investor loans so we understand the timeliness needed and why Arizona rental property loans need to be treated differently than traditional home loans. We won’t be shopping around for the perfect lender, we ARE the perfect lender. That cuts out time and road blocks that could keep you from getting the property you want.

We offer an alternative to traditional investments

Rental home loans enable you to diversify your wealth through non-traditional means. For some people, the security of an IRA account or 401(k) is what works best for them. But as an investor, you know that real estate, and rental properties in particular, can have far greater returns. Also, there’s potential for multiple rental properties. The strict qualifications at big banks can keep you from securing multiple loans. Alternative lenders can bypass those and help you diversify quicker and bigger.

The fact is that rental properties are always going to be necessary. Housing is a tried and true investment that you can always count on. Rental property loans will give you the opportunity to get a piece of the rental property investment pie, and we can help you get your spot at the rental property table quickly and efficiently. Your Arizona Rental Property Loan needs will be met through Level 4 Funding. Call us today to get started on your approval.

Sunday, February 17, 2019

Help Your Capital Needs with Commercial Hard Money Loans

Investors use hard money when an opportunity arises and they need to jump on it quickly before someone else grabs it or when they need to bridge a gap between where they are right now and where they want to go.

Hard Money Loans in Arizona can be referred to as many things— one such thing being a bridge loan. They are called this because in essence they are bridging an investor from one opportunity into another. These are the same type of loans that investors take out when they are flipping homes or commercial real estate—such as a mall or an office building.

When you apply for a traditional loan at a bank they generally look at the last three years of your businesses financing to see if there is enough collateral and cash flow to satisfy their lending requirements. When these requirements are not met or when a business has not existed long enough this will result in non-approval of the loan. This is why there are Texas Hard Money Lenders.

COMMERCIAL HARD MONEY LOANS OPEN UP OPPORTUNITY FOR BUSINESSES

When a bank turns down a borrower for either not being established long enough or has insufficient cash flow a borrower can turn to a hard money lender. These business owners can use hard money. This is money that is used to transform a business to where it needs to be in order to obtain traditional financing.

Hard Money Loans in Arizona are short-term, interest-only loans that typically have loan terms from six months to three years. The terms are short because these loans are intended to only be a short-term fix. Once the business owner has the capital to bring their business up to par, they can secure long-term financing.

A good example of when hard money lending may be useful is when an investor wants to purchase an office complex that is vacant and needs to be rehabbed. Because there is no income being generated from this property a bank will not approve the loan. However, a commercial hard money lender will approve the loan and use property as collateral to secure the loan.

A hard money lender can explain many different hard money scenarios that can work for an investor’s unique situation.

Your Dreams Can Come True with Private Money Lending for Your Small Business

Unfortunately, a small business can’t prosper without funding. Funding can come from many sources—such as family, friends and loans.

If you are fortunate enough your friends and family will have enough cash on reserve to help you grow your business. However, the reality is most of us do not know many people that can just toss us thousands of dollars to invest in our small business.

A business owner can take out a Arizona small business loan from the bank. However, banks require stellar credit and enough monthly income for them to feel secure loaning money to a business— and let’s not forget the agonizing process of a bank loan. A business owner can easily wait months for approval and funding from a bank.

WHERE CAN YOU GET A QUICK SMALL BUSINESS LOAN

Private investors provide small business owners loans with capital to get their project off the ground. These investors can make a huge difference in the success of a business. There are clear benefits of working with a private investor—the main benefit being the quick access to capital. Private funding serves small businesses that may not qualify for bank loans.

Capital is the most important factor of a small business—it is what makes or breaks a small business. Bottom line is a business cannot grow without money. It can be difficult for small business to obtain approval for a bank loan and without private lending many businesses could struggle to grow or even to keep their doors open.

Small business owners with poor credit or new small businesses have a great opportunity for obtaining a small business loan with private investors.

Private investors are a good alternative to traditional bank loans. Most banks are weary about lending to new businesses and frown upon business lenders with poor credit. Private investors are also referred to as Texas Hard Money Lenders. These investors will use the business owner’s commercial real estate as collateral for the loan. The property is used to secure the loan and protection in case the borrower defaults on the loan. This is great news for business owners that do not qualify for a traditional bank loan. The loan you receive is almost completely determined by the collateral that is offered to the hard money lender. Because private money, or hard money, loans are not available through the bank, you will need to find a local hard money lender. If you are a small business owner in need of financing, please contact us at level4funding.com.

Saturday, February 16, 2019

How You Can Buy a New Home Before Selling Your Old One

Sam and Judy had just put their home, of 20 years, up for sale. As, people do, when they are selling their home, they began looking for a new home. Luckily, or so they thought, they found the ideal house only a few days after putting their house up for sale.

When Sam and Judy found the home, they wanted to purchase they were so excited. Their realtor said it shouldn’t be a problem for them to put an offer in because they could put a contingency in the contract. However, that served to be a great problem.

The house Sam and Judy had decided on was a popular one. It was a steal of a deal and had more than one offer in on it. Unfortunately, the seller felt a contingency wasn’t necessary due to the fact that there were cash buyers putting offers in on the home. Sam and Judy lost that home and were feeling a bit concerned. The home they were selling had repairs that were necessary, and their realtor had warned it may be on the market longer than they were hoping.

WHAT YOU CAN DO WHEN YOU CAN’T COMPETE WITH CASH BUYERS

When a seller doesn’t want a contingency in the deal a smart move is a Arizona bridge loan. A bridge loan, as the name suggests, offers a bridge that allows a buyer to purchase a new property by using the home they currently own as collateral.

A Arizona bridge loan is also known as a “gap financing.” They are there for home owners who want to purchase a new home before selling the home they are currently in. Unless you have a large nest egg of cash, most people cannot buy a new home before selling the old one—and in a competitive market most sellers frown upon a contingency. It is very difficult to qualify for two mortgages at one time let alone pay on two mortgages.

This is where a bridge loan can be a buyer’s saving grace. A bridge loan can come from a hard money lender. A hard money lender will loan the money to you and usually give you a few months before a payment is due. Once due, the monthly payments are interest only payments. When the old home sells, the borrower will pay the loan in full in what is called a balloon payment. This allows the borrower to purchase their new home and have time to sell their old home without carrying two mortgages. Once the old home sells, the buyer has money to pay off the loan and pocket the rest of the cash as profit.

Typically, a hard money lender will finance up to 80% of the combined value of both the new home and old home. The other 20% or so usually comes from home equity or savings for the new down payment. There are lenders that will lend more than 80% but be prepared to have the other 20% handy.

Bridge loans can be a life saver for borrowers wanting to purchase their new home without waiting on the old one to sell.

Bridge loans take a shorter time to process than a conventional mortgage. Typically, these loans are approved, and funds are released in two weeks or less. These loans will have a slightly higher interest rate than loans from a traditional lending institution, however, remember you will only be paying interest on the loan until the last payment—the balloon payment.

What to Expect with Hard Money Loans

Hard money loans are funded by individual investors when traditional lending institutions can not approve a borrower for what they need or a borrower needs quick financing.

A typical hard money loan will run between 7% and 15% in interest rates and cost anywhere from 4 to 7 points. Points are an upfront fee of the loan amount. Hard Money Loans in Arizona are short-term loans that generally run between six months and three years.

If you took out a loan with a bank for $1,000,000 you would be paying back approximately $6,000 per month—that is including interest. With a hard money loan you would be paying back approximately $8,700 a month. This is due to the higher interest rate of a hard money loan.

Many people will read this and think, why in the world would I take out a hard money loan if it is less expensive to take a loan from a traditional lending institution. Well, let’s take that $1,000,000 we were discussing above. If an investor finds a commercial property that is being sold for $1,000,000— but there is nothing there except empty rooms, however the investor has a clear vision of what they can do with that building. What do they typically do? They go to their bank. Well, because there is presently no income being generated the bank is most likely not going to approve any amount of loan. So, what does an investor do if they don’t have $1,000,000 laying around. They find a hard money lender.

WHY WOULD A HARD MONEY LENDER INVEST IN MY PROJECT?

Hard money investors are investors that choose to invest money into real estate rather than traditional investing such as stocks and bonds. They do this because they make money much faster than waiting around for the ebbs and flows of the stock market.

Texas Hard Money Lenders have money and they want to invest in a project they feel will be profitable for them, as well as you. And this is where they make their money. The borrower will present their project, and show that they will contribute anything they are able to contribute to the project—whether that be money down, showing ways to cut corners or having an active role in the project themselves—such as pouring their blood, sweat and tears into the project. The hard money lender is able to approve the loan within minutes and distribute the funds within days, unlike banks.

Where Texas Hard Money Lenders make their money is through points and interest—just like a bank. However, a borrower pays for the convince of quick loan approval and funding of properties that banks will not fund through a higher interest rate.

Although hard money loans cost more initially, it will gives the quick funding required and allows you to prosper in the future.

It is important that when you take a hard money loan out you have a clear and realistic vision of your investment. Make sure that when you meet with your hard money lender you have a crystal clear business plan that you believe in—your hard money lender can’t believe in an investment if you don’t.