Beretta Only: April 2019

Wednesday, April 17, 2019

How to Pay Less to Arizona Private Money Lenders for Their Cash

Obviously, it’s important to develop a good relationship with any Arizona Private Money Lenders you work with, but you also want to keep your fees as low as possible too. Use these tried-and-true methods to reduce your costs when you go for your next loan.

Before getting into how to reduce fees, it’s important to understand what types of fees Arizona Private Money Lenders charge. To begin with, each loan will have an interest rate and points. The interest rate is straightforward. You’ll pay a percentage of the loan to borrow the cash, just as you would with any other loan. However, in this case, you’ll probably make interest-only payments until the term ends, and then you’ll pay the principal.

In addition to this, you’ll also see points, which are common with this form of lending and also with traditional mortgages. These are sometimes called “up front points” because you pay them with your closing costs. Each point is equal to 1% of your loan. Generally speaking, the riskier it is for an investor to finance you, the more points your loan will have. However, other things may come into play too, like what region you’re operating in and how much competition there is for the investor.

After points and interest, additional fees will vary based upon the investor. Although not all will charge these fees, a few common ones include an underwriting fee, processing fee, and doc prep fee. You may see referral fees and loan servicing fees as well.

You’ll want to watch for fees which could emerge later in the deal too. For example, it’s common to see late fees, foreclosure fees, and renewal fees listed on the paperwork. Although you may never have to pay these fees, provided you make your payments on time and can pay off the balance of the loan before the term is up, it’s a good idea to be aware of what you could be charged should issues arise.

When You Create a Win-Win Solution, Your Fees Will Be Less

One of the biggest things you can do to keep your costs low is to reduce risk for your Arizona Private Money Lenders. Bear in mind, this is an industry that’s not particularly concerned with your credit, but with how solid the deal, itself, looks. Than means keeping the loan-to-value (LTV) low. You can do this by putting more of your own money into the project or by finding a screaming deal on a property. There’s also reduced risk when financing people who are experienced in the biz. If you’re a flipper, expect to pay more the first few times or bring someone who has several successful flips on board. The same is true if you’re in construction, doing fix-and-holds, or are in virtually any industry.

Talk with a few companies, so you’ll know the real deal when you see it.

On a final note, some companies simply price themselves more competitively. Gather rates from a couple different companies and be sure to ask which fees are part of their packages. That way, you can compare apples to apples—you won’t think you’re paying lower rates just because the interest is lower or there are fewer points, but can tally up the whole cost to borrow money. From there, it’ll be easier to identify which Arizona Private Money Lenders have the best rates overall, so you can keep more money in your pockets.

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.

Tuesday, April 16, 2019

How to Get Financing for Cannabis Marijuana Business Loans

The number of borrowers searching for Cannabis marijuana business loans is at an all the high. Understand the market and your options before stepping into this slightly perilous, though very lucrative, market.

If you are a startup business, adequate financing is a requirement to succeed in your target market. If you are a liquor store or restaurant, you may seek financing from a traditional bank or credit union. However, if you are venturing into a marijuana related business and the ambiguous legal status of the marijuana federally, banks have been prohibited to open accounts for these types of businesses. Do not get discouraged, some traditional banks have started offering merchant services and lines of credit and even some Cannabis marijuana business loans. To fill this gap, Arizona Hard Money Lenders have swooped in to offer their lending services.

The Federal Deposit Insurance Corporation (FDIC), a federal agency that guarantees banking institutions, will not insure banks that are providing Cannabis marijuana business loans. Banks would rather avoid making loans to a marijuana business since they view it as aiding and abetting activities that are felonies under Federal Law. Traditional banking institutions accepting deposits from marijuana businesses could be looked at as money laundering. The Department of Justice has decided not to prosecute banks, but if political winds change, as they are prone to do, the banks that have opted to allocate funds for these types of businesses could be in serious trouble.

To fill the space that is left behind by traditional banks that are not willing to provide Cannabis loans, private investors have moved in. Some of these include venture capital and private equity, angel investors, high interest loans provided by private investors, and marijuana consulting firms that offer loans through private funds they manage. And, of course, Arizona Hard Money Lenders. Some of the requirements for private equity firms to offer financing are: be incorporated, have a checking account in the business name, be in the marijuana business as a dispensary or grower for at least six months, monthly gross of at least $10,000, and have a personal credit score of 500. There are a number of public companies that acquire and invest primarily in medical marijuana ventures. A company may take a significant ownership stake (equity) in exchange for funding. The company, after the investment, still maintains operational control. Canada has just approved legislation making all marijuana legal.

Merchant Service

Marijuana businesses need a way to deposit money and write checks to pay bills, pay employees, and distribute profits to partners. If you want to use a traditional bank, you may not want to fully advise the bank what type of business you are in. Of course, do not cover up the type of business by making the banker think you are in some sort of different business as this is bank fraud and you do not need the headache.

Marijuana business financing is difficult, but the rewards are huge. The laws are constantly changing, making it beneficial to contact an attorney to learn the latest laws and any new revisions that have occurred.

At Level 4 Funding, we offer rates as low as 7.99%. We work with hundreds of direct hard money private lenders, some of which specialize in the Cannabis business field. No credit required and no surprise front or junk fees added to the loan. Call us for a no-obligation quote.

Technorati Tags: Cannabis Marijuana Business Loans,Cannabis Business Loans

Top 3 Ways to Boost Your Eligibility for Arizona Spec Home Financing

Arizona Spec Home Financing is back in a big way, but not everyone who applies for a loan will qualify. Make your application stand out from the pack by addressing a few often-overlooked issues.

1. Have a builder with experience and a good reputation on your team. People move into spec homes from all walks of life. Some are coming from the fix-and-flip biz while others are relying on their natural skill or come from some kind of construction or repair-related background. This kind of experience does matter and will help you have a more successful outcome, but it’s not enough to get a loan. If you, personally, do not hold a contractor’s license and do not have previous projects which demonstrate your success, you aren’t going to get Arizona Spec Home Financing. Find someone to partner with on your first few projects who already has a good reputation in the industry and you’ll get more approvals.

2. Bring an appraiser on board early. It may sound strange to have a house that hasn’t even been built yet appraised, but you can get an estimated value based on your plans and similar homes in the area. An awesome appraiser can also give you tips and ideas before you build, so that you can pivot your plans to collect more cash if anything has been overlooked. Most lenders will want to see the appraisal too.

3. Be prepared to put some skin in the game. The amount of your down payment will vary based upon the lender, but most builders have to put 20-25% down.

Show Lenders You’re the Real Deal with a Detailed Plan

You’ll need to be well beyond the idea stage when you approach lenders for Arizona Spec Home Financing. It may sound like you’re putting the cart before the horse—how can you plan if you don’t know how much you can get? That’s not true when it comes to applying for loans. Your investors will want to know how you plan to spend the money, what your timeline is, and what will be going into the finished project. Be prepared with floorplans, a full materials list, and other items which showcase your budget and the scope of your plans.

If you can plan it, you can successfully fund it.

There are many forms of Arizona Spec Home Financing, though chances are you’ll be looking for Arizona Hard Money Loans for this. In these cases, you’ll need to purchase the land to build on and can then use that as your collateral for the building portion. Lenders may also allow you to use other assets as collateral. For example, if you’ve got investment properties already, you may be able to use one or more of them. Knowing which asset you’ll be leveraging can also help you identify how much money you’ll have to spend before planning. Try to keep your costs to no more than 70% of the asset you’re leveraging. Yes, you may be able to get as much as 85%, but not all lenders will go this high, so it’s important to start off with conservative estimates and go from there. The same mentality will help you immensely throughout the whole approval process.

Top 10 Cities to Invest in Real Estate with Colorado Hard Money Loans

Ever wonder where the best places to flip or hold with Colorado Hard Money Loans are? According to a new report, more people rent one-way moving vans to the Sun Belt states than anywhere else.

Penske truck rental service recently published some insider insights regarding where people throughout the United States are moving to and they have some major commonalities. All but two in the top ten are considered Sun Belt states. Technically speaking, the Sun Belt encompasses all regions south of the 36^th parallel. More concisely, it’s the states which run across the southernmost border of the United States from California through the southernmost tip of North Carolina.

This development isn’t particularly surprising because populations in the Sun Belt have been booming since the 1960s, and air conditioning is likely to thank for it. Since then, cities have built up dramatically and offer all sorts of recreational activities year-round. Although often sought out by retirees who have grown tired of snowy regions, the diverse activities and cultural hubs have made the Sun Belt states destinations for all. In short, all this means that if you apply your Colorado Hard Money Loans to homes in the Sun Belt states, you’ll have more command over the sale.

If You Can Work in One of These Ten Cities, You May Have More Successful Sales

When working with Colorado Hard Money Loans, you’ll always want to have a solid exit plan before jumping in. Knowing the cities people move to most can serve as a good starting point for research. They include:

· Atlanta, Georgia; median home value of $255,100

· Phoenix, Arizona; median home value of $239,000

· Tampa, Florida; median home value of $219,500

· Orlando, Florida; median home value of $235,300

· Denver, Colorado; median home value of $424,200

· Houston, Texas; median home value of $183,000

· Las Vegas, Nevada; median home value of $273,000

· Charlotte, North Carolina; median home value of $220,700

· Austin, Texas; median home value of $73,800

· Portland; median home value of $423,200

Beware: move-ins only account for part of the picture.

It’s important to note that the number of people moving to a region only account for a portion of the picture. Yes, populations are growing in the Sun Belt, especially in and around the cities mentioned. However, the Penske report doesn’t actually cover the housing market. There’s no research indicating how many homes are on the market nor how long houses stay listed. In some cases, your own research could turn up that an area has a surplus of homes, in which case, it may not be the best place to flip unless you’re able to bring something to the table that other sellers can’t. Furthermore, regulations will vary from city to city, meaning some may have regulations which make it harder to buy, fix, or sell. Lastly, the availability of Colorado Hard Money Loans will vary based upon a number of factors. Most lenders prefer to work a specific geographic area because they know it well, are familiar with the laws, and have seen successful investments in the area. So, at the end of the day, you’ll need to do your homework. This list may be a good starting off point if you’re not sure which region to do your flips or holds in, but you need to evaluate each region and each opportunity on its own merit.

Monday, April 15, 2019

Experts Say Market is Stable: Invest with Arizona Hard Money Loans

Changes in the housing market this year have made some wary of an impending crash, but experts say the data concludes it’s stable. You can still use Arizona Hard Money Loans to invest in properties and earn some serious cash.

Some worries about the housing market have arisen because 2018 was filled with skyrocketing values and a housing shortage, but the numbers shifted at the end of the year a bit. However, experts say this is not a cause for concern—the market is stable and expected to continue to remain strong. According to a recent AZ Central news report, “96 out of 100 top national economists don't expect a housing crash this year.” This is based on data pulled which does show changes in the market but indicates ongoing stability for the foreseeable future.

“The supply of homes for sale increased, and sales slowed during the last three months of 2018,” explained senior housing analyst Tina Tamboer in a meeting of more than 100 real estate agents just a few weeks ago. “But, nothing in the current data shows a market crash coming for Phoenix,” she said.

Her findings concur with what many already know: it’s a seller’s market. Prices aren’t necessarily climbing at the rates they were, but that’s actually a positive thing because the market can’t sustain continuous rapid climbs at that rate. The good news is, you can make money with Arizona Hard Money Loans regardless of whether it’s a buyer’s market or a seller’s market. If you haven’t worked in a seller’s market before, however, you’ll need to adapt your strategy to suit.

Learn How to Make Money with Flips in a “Seller’s Market”

People flocked to fix-and-flips when it was a buyer’s market; when homes could be picked up at a fraction of their value. This doesn’t happen quite as much in a seller’s market, so you have to be mindful how you apply your Arizona Hard Money Loans, simply because you can’t rely on value increases to line your pockets. You must find a good deal to start with and put in some sweat equity or choose the right repairs and upgrades to increase value. In addition to this, it may be beneficial to apply a unique strategy, such as working on multi-family dwellings or subdividing land in popular areas.

Be more successful with the right plan and funding.

Once you understand how the market shift changes how money is made, the next step is to identify the right source of financing for your project. Arizona Hard Money Loans work well in this climate because the initial sellers of the home likely have options. Having cash in hand works wonders to sway someone who’s eager to move or simply wants to be assured the sale won’t fall through because the buyer couldn’t get financing. It also lets the flipper move fast when a home is priced under value, so it can be grabbed before other flippers get to it.

Why Do Texas Hard Money Lenders Care if I Run an LLC?

You may have trouble finding Texas Hard Money Lenders to work with if you aren’t established as an LLC. In short, this is due to governmental red tape, but you do have options if it’s a sticking point in your approval process.

Whether you label yourself as an investor, entrepreneur, house flipper, or businessman, the reality is that most people just getting into investment opportunities or making money through real estate are getting into it alone. As such, it probably doesn’t matter to you, personally, what happened with the consumer market years ago, so long as you can make a profit on real estate today. However, it does impact how Texas Hard Money Lenders and other financial institutions behave now, and that means it impacts you when you apply for a loan.

It would be challenging to find someone who wasn’t impacted by the recession or at least didn’t know someone who was. The reasons for this are well cited, with all sources pointing to changes in the housing market in 2007. Prior to this, houses were selling like hotcakes and anyone could get approved. Sub-prime mortgages reigned. That is, until they didn’t. Ultimately, banks fell apart and the job market tanked. Everyday people lost their homes and more. It took years to recover and it’s certainly nothing the world wants to see again.

The government stepped in with a slew of new regulations to prevent recurrence. For the most part, these changes impact the consumer market, not commercial loans. Therein lies the issue. How do you prove that you’re borrowing for business purposes unless you’re registered as a business?

Avoiding the Pitfalls of Government Regulations is Key in Real Estate Investing

Obviously, you, as a business, probably can’t afford to jump through government hoops or slow funding. You know what you’re getting into and have a business plan for your real estate investment, which means it’s important to ensure you’re not subject to the general consumer guidelines. When it comes to the Truth in Lending Act (TILA), for example, your loan is exempt from the extra red tape if the funds are being used for business or commercial purposes. That should be a win by itself, but there are harsh penalties for Texas Hard Money Lenders and other entities that may unintentionally breach protocol. Ergo, many go by the second method to exempt loans; extending them only to “non-natural persons,” which is legalese for “businesses.” Ergo, you may not qualify unless you’re established as an LLC, partnership, or corporation.

If you can fill out basic paperwork, you can establish an LLC.

Again, not all Texas Hard Money Lenders require you to have an LLC. Some are simply satisfied knowing you’re using the funds for business. However, having an LLC has its perks—namely limiting your personal liability in the event something goes wrong. Maybe someone slips on your sidewalk or something similar occurs and you wind up in court. The LLC protects you—the person—from business-related damages. The amount to file varies by state and it can be anywhere from $50-500, but it’s little more than $100 on average. In other words, filing is cheap, and there are many benefits to it.

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