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

Saturday, March 23, 2019

The 4 Best Types of Fix and Flip Loans in Arizona

Property flipping has become very popular in the last few years. But many real estate investors have no idea how to best finance Fix and Flip Loans in Arizona.

Over the last several years there have been dozens of television show demonstrating the process of buying, fixing and flipping homes. But what those shows gloss right over is the correct process for funding Fix and Flip Loans in Arizona. Not everyone has $100,000 sitting around to start a real estate investing business. But there are a few pointers that can help anyone who is interested in entering the real estate investment business when they are just starting out.

The important fact to remember is that if you are using a traditional lender, you will need to have access to enough cash to cover at least 20% of the purchase price of the property. This is because mortgage insurance does not cover investment properties. If you are using a less traditional lender, such as a private hard money lender, then the amount of your down payment will vary depending on the lender's stipulations.

Personal funding covers a lot more than just what you have sitting in savings. In some cases, you can borrow from your retirement account to fund a down payment for Fix and Flip Loans in Arizona. In other cases, you could use a personal loan, a loan from family or friends or even a home equity line of credit on your personal home. Other real estate investors partner with someone who will do nothing more than provide funding while they do the work on the house flipping.

A Professional Loan

If you have created a business to do your house flips, then you might also be able to secure a small business loan to use for funding down payments and other expenses. You could also secure a business line of credit that would allow you to keep the credit available for future purchases. Hard money is another option that is very popular for Fix and Flip Loans in Arizona. These are short term loans that are offered by private lenders. The loan is secured with the property that you are purchasing rather than your personal creditworthiness. Because hard money is asset-based, these loans are much easier to qualify for and will fund in as short as a week or two. Many borrowers also like to work with Arizona Private Money Lenders because they are able to customize the terms of the loan to best meet their specific needs.

Do Your Homework

There are many different options available to fund a house flipping business. And not all of the loans are going to be from a traditional lender or even from a professional lender. Using your personal resources such as friends and family, as well as your personal credit can often be enough money to get the down payment for your first flip property. Then you just need to be diligent and remain on schedule to complete the property and sell it to fund your next fix and flip.

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.

Friday, March 22, 2019

The 4 Best Types of Fix and Flip Loans in Arizona

In most cases hard money is used to purchase an investment property. But there are cases when owner-occupied Arizona Hard Money Loans are funded by some lenders.

Not everyone has the credit history or even the documentable income to qualify for a traditional loan from a bank or a mortgage company. But these consumers need a place to live and can grow very tired of renting a property. Most people look at renting as paying a mortgage for the property owner and improving the property owners financial future rather than their own. As a result, many of these renters look for alternative resources which will allow them to purchase a home and begin to build their own financial security. Owner-occupied Arizona Hard Money Loans are one way to finance a home purchase that is truly creative.

If you are unable to verify your income or to show a stable and regular income level, then securing a traditional loan will be nearly impossible. It can also be a challenge to get a loan when you have no credit history or a bad credit history. But Arizona Hard Money Lenders are more interested in the value of the property that you are buying and less concerned with your personal credit. Asset-based lending is all about the property condition and value. The loan to value ratio is used to determine how much the lender is willing to offer you, and the property you are purchasing is used to secure that loan. The qualifications are much easier than those of a bank loan.

Because owner-occupied Arizona Hard Money Loans are provided by private lenders, the terms of your loan could vary but there are some fairly standard terms that you should expect. The down payment is normally between 20 – 30%. This is to create instant equity and help to protect the borrower's investment. Some lenders will also allow co-signers on Arizona Hard Money Loans. Some Arizona Hard Money Lenders are also willing to work with you to allow for seller financing on the down payment so that you do not need to have such a large amount of cash to close the deal. And when you begin to see offers, expect to see the interest rate at just under 10% at best. Depending on the LTV, the condition of the property and your current financial health, the rate can be several points above the 10% mark.

Other Reasons for Owner Occupied Arizona Hard Money Loans

Some hard money borrowers are first time home buyers who just need to build a credit history. Others have poor credit and need the opportunity to rebuild good credit. Other borrowers just want to refinance an existing loan or need to refinance for some reason. Refinancing might be the only way to make needed repairs or to remodel the property. While other borrowers are looking for a way to consolidate their debt.

Do Your Homework

Using hard money to finance the home that you are living in could be costly, but it certainly has several benefits over continuing to rent and pay someone else ’s mortgage and build their equity. As with any financial choice, do your research and only make a decision when you feel that you fully understand all of your options and have found the one that best meets your needs.

Terms of Owner Occupied Hard Money Loans in Arizona

Not every real estate investor uses traditional lenders or even traditional loans to purchase rental properties. There are many ways to creatively finance Arizona Rental Property Loans.

Many investors do follow the traditional path of saving for a down payment and then securing a traditional loan from a bank or a mortgage company, but there are several other ways to creatively fund Arizona Rental Property Loans. Exploring all of your options for financing your first rental property or one later in your career is always a smart move. In some instances, you might need to be creative to land a great deal, even when you are not in a position to seek traditional funding.

Seller financing is always a great option if you can get it. In many cases, you will make a down payment to the seller, and then continue to make payments just as you would to a bank or other lender. In some cases, the lender will only carry a small part of the purchase price, and you will use traditional financing for the remaining balance of the loan. One of the big benefits of owner financing is that you can work with the individual to create loan terms that work well for both of you and are beneficial and fair to both of you.

Investment partners are another common way to fund Arizona Rental Property Loans. Many real estate investors who are new to the business just don’t have the money to cover the 20% down payment required for an investment property. This is because mortgage insurance is not offered on an investment property mortgage. So the solution is to seek a silent partner who contributes the cash for the down payment and then earns a little bit on his money. Sometimes you will even get lucky and find a partner who will contribute money and work to the project.

Fund Your Own Rental Property Purchase

Many real estate investors have a retirement account that is just sitting there waiting to be used. The account is earning interest, but it could also be used to help you start your real estate investing career. Some 401K retirement accounts will allow you to take out a loan from your account to start a business or for other financial needs. If your retirement account offers this feature, then you can fund your own down payment and possibly even the entire purchase. And the best part is that you are paying the interest on the loan to yourself.

Research Your Options

There are many creative ways that you can finance Arizona Rental Property Loans. The only really important factor is that the loan and the terms work for your immediate needs and future needs. Taking a very high-interest rate is sometimes worth the added cost to secure a property that will make you a great deal of rental income for many years to come. Explore your options, and only make your decision based on the cost of the loan and the benefits that it offers you.

Creative Financing Options for Arizona Rental Property Loans

Not every real estate investor uses traditional lenders or even traditional loans to purchase rental properties. There are many ways to creatively finance Arizona Rental Property Loans.

Fund Your Own Rental Property Purchase

Research Your Options

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.

Thursday, March 21, 2019

Critical Information for Newbies Seeking Arizona Rental Property Loans

Not all types of loans are the same and that can make seeking Arizona Rental Property Loans a bit scary for new investors. But these few bits of information can be a great help in the learning curve.

Acquiring a first rental property is both exciting and in some ways very trying. The excitement comes from knowing that this first rental property could be the start of a very lucrative real estate investing career. But the trying part begins when the new investor begins to realize that Arizona Rental Property Loans are not the same as a traditional home mortgage.

The first hurdle that most borrowers face is the fact that lenders are much stricter on a loan for an investment property, and they also require a larger down payment. All of this is because Arizona Rental Property Loans and all investment property purchases represent more risk than a mortgage for an owner-occupied property. The biggest reason there is more risk is that a borrower will default on an investment loan long before he or she will default on the loan for the place that he or she is living.

This higher risk means that lenders are going to look a little deeper on loan applications, and they are also going to want to get paid more to lend to the higher risk borrower. The biggest difference that borrowers are going to notice is in the interest rate. If an owner-occupied property loan is charging 4% then expect to pay 7% or even 8% for Arizona Rental Property Loans. In addition, lenders tend to charge a more in points and other fees to process an investment property loan. This can mean an extra point, or it could be additional fees for application processing, appraisal fees or even funding fees.

Your Credit Is a Huge Factor

As with all property loans and mortgages, your credit score is important. In the world of investment property loans, a credit score of 740 or lower is the point when lenders begin to charge higher interest rates. A score of 741 or up will likely get you the best rates that the lender offers. If you are very interested in getting the best interest rate possible, but your score is just a tad under the magic number of 740, then there is often the option to buy down your interest rate. You can request a quote with the best interest rate and the buy-down fees, as well as the rate that you qualify for and do the math to decide which offer works best for you.

More Magic Numbers

Even though you are just beginning the process of your first rental property purchase, it is important to know that most mortgage companies will not even consider a borrower who is already carrying four property mortgages. There are a few options to acquire more mortgages, but you need to have a very large cash reserve, a down payment of 25% and have a credit score of over 720. Knowing these pieces of information will help you to understand the expectations that you will need to meet for your rental property mortgage, as well as what to expect as you grow your real estate investment portfolio.

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.

What are Residential Hard Money Lenders in Arizona?

Understanding what Residential Hard Money Lenders in Arizona are and what they offer can be a great benefit when you are entering the real estate investment business. They might not be perfect for every deal but they do offer some unique benefits.

Residential hard money in the real estate financing world is basically a loan for a residential investment property that does not come from a traditional lender such as a bank. These loans can also be called private loans, bridge loans or asset-based loans. Residential Hard Money Lenders in Arizona are the private groups or individuals who are providing these loans to borrowers.

There are some very clear differences in the services offered by traditional lenders and Residential Hard Money Lenders in Arizona. The first of which is the criteria used to determine if the loan request will be approved. Banks use a very long process that examines the potential borrower's personal credit history, credit score, tax returns, and current overall financial health. Arizona Hard Money Lenders are really more interested in the value of the property being purchases rather than all of the details of the borrower's personal finances.

This difference in the approval process leads to two more very significant benefits to using Arizona Hard Money Lenders. First, the process is much less complex and difficult for the borrower to manage. Very few documents are requested, and most of it is regarding the property and not personal assets or financials. Second, the loan application process, as well as the approval process, requires just a fraction of the time that a traditional lender needs to process a loan request. In many cases, a hard money lender can have an approval for you in less than a week, and then the money in your hands in just a few more days.

Who You Work With

In most cases, Residential Hard Money Lenders in Arizona are individuals or partners who are in business to make money lending money to real estate investors. This is another great benefit for borrowers as you are working hand in hand with the person who will be lending you the money that you need. This allows you to work with the lender to create loan terms that meet all of your needs, while still providing a realistic return on investment for the lender. Unlike many peoples common misconception, hard money lending is a very legitimate business that works within the letter of the law. You will not be working with shylocks, loan sharks, or other shady lenders, who might not be working in a legal business.

Just a Different Option

There are many different types of lenders other than the standard banks and mortgage companies that most borrowers use for a home mortgage. In some cases, these more creative and non-traditional lenders can better meet the needs of real estate investors or consumers who are unable to qualify for a traditional loan. What is important is that you completely understand the terms of the loan that you are getting and the total cost of the loan so that you can fairly compare and contrast all of your options.

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.