Beretta Only: Arizona house flipping loans

Showing posts with label Arizona house flipping loans. Show all posts

Monday, November 5, 2018

Arizona House Flipping Loans: Risks and Benefits of Equity Partnerships

When it comes to financing your next flipping project, you may be wondering about the difference between equity "partnerships" and standard Arizona fix and flip loans.
Before you set out on your next flipping project you need to know what the cost of financing will be. The cost of capital basically determines the profitability of your project. Loans imply fixed payments. With loans you calculate the cost of financing by adding up the loan fees and total interest payments, you then subtract this cost from your projected profits. The terms of a standard loan are spelled out in black and white, the only variable in this case is how long it will take for your rehabbed home to sell.
Equity partnerships present more uncertainty.
When it comes to equity partnerships, there is a lot of risk versus standard house flipping loans in Arizona
In equity partnerships a specific amount of money is given for a particular percentage of ownership in the property. In this case, the investor receives a certain percentage of the property’s resale value.
Equity partnerships represent a gamble for both sides, as the return you generate is entirely up in the air until your property resells.
With an equity partner on board, there are entirely no guarantees when it comes to the cost of financing. Don't expect any investor to come on board with your project if you stipulate a cap on their potential returns. The implication here is that if you sell the property far and above your initial projections, you will have to give up a greater share of profits .
On the other hand, if the property resells below projections, an equity partnership might cost you less money than a standard loan. That is unless your investor stipulated a guaranteed return before they financed your project, if this the case, you might be personally liable to pay back the difference.
As you can see equity partnerships, there are few if any guarantees.
Standard Arizona Fix and Flip Loans are more predictable, but there may be some benefits to an equity partnership
Taking a loan out to finance your next project offers you the potential to keep a greater share of profits. Again the terms of the loan are spelled out well in advance and represent a predictable cost. Unlike equity partnerships, if your project does well your lender is not going to demand more money from you.
So you may be wondering why you might consider an equity partnership in the first place.
When comes to loans, the terms of the deal are fixed after you sign the papers. If your project runs into difficulties and your renovated property continues to linger on the market, your lender will still expect you to keep making payments.
With an equity investor, there is more flexibility. Your equity partner will likely not expect a return or any payment until the property actually resells.
So if the next house you aim to flip is in a lukewarm market, or if there is any other type of uncertainty, the flexibility of an equity partnership might benefit you. However, if you have more certainty to your property will resell at a profit, taking out a loan might allow you to capture more of the upside from your investment.

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.

Friday, November 2, 2018

How to Retire Early with Loans to Flip Houses in Arizona

An early retirement may be in reach if you invest in the real estate market with a loan to flip a home in Arizona or property. Confidently step into the world of real estate investing with the assistance of the tips and tricks outlined in this brief guide.
Do you have hopes of retiring early so that you can have the freedom to get back to doing the activities that you love to do? This goal is entirely possible with the help of making money through investing in real estate. Getting started with a loan that can help you begin to flip houses can keep you on track to retire early. The best part is that you don’t even have to do the manual labor yourself. You can outsource this work. That’s right! Flipping houses in Arizona does not even require you to be a handyman.
Flipping houses can lead to the great potential to gain huge earnings and make a profit quickly. Most of the time, the main reason that people decide to get into or enter the real estate flipping market is that they have the hope of making a return on their invest quickly. If you are able to navigate the market of flipping houses in the correct way, flipping investment properties can lead to very expansive profit margins in a short period of time. For some people, this can happen in as little as a couple of months.
Real estate investment and flipping investment properties in Arizona can also give you extensive degree of knowledge of the various aspects that come with the real estate market. For example, you will be able to learn about construction and other areas of house flipping you may not have previously had experience with. This new knowledge could open further doors for you as you try to achieve your financial goals and financial prosperity.
Finding the Right Opportunities for Loans to Flip Houses in Arizona
House flipping and investing in real estate is actually at the highest level its ever been in the past decade. The rising prices of property has given an increased availability of financing. The limited housing supply is even giving flippers the great opportunity to be able to acquire higher profits than ever before.
Flipping houses with the help of loans can help you to triple your income and achieve the financial freedom needed to retire earlier so that you can get back to do the activities that you love.
Since the process of buying, fixing and quickly reselling properties in Arizona can be such a great way to begin to make money and retire early, it actually takes much more funds to undergo the process required to flip a house than it does to just purchase a property that you are hoping to live in. Find the right lending opportunities to get stared with purchasing houses to flip and turning these properties into profitable investments. More importantly, this may even allow you to retire early by giving you the financial prosperity necessary to do so.

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
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
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, October 29, 2018

Phoenix Fix and Flip Loans: How to use Crowdfunding to Invest and Make Money

You don't need to be an active house flipper to make money from flipping projects. You can avoid all the hassle of these projects and still earn a profit by financing fix and flip loans through online crowdfunding platforms. Learn some of the basics about what you should look for in these deals and some basic strategies to find the best way to invest in these types of loans.
Crowdfunding remains the most accessible way for individual investors to earn money from house flips without actually carrying out the renovations themselves. Crowdfunding usually takes place on an online platform and relies on you (the individual investor), to finance the loans listed on the site. These loans are then given out to active house flippers.
However, there some fundamental things you should look into before investing in these loans.
Expectations before investing in Arizona Fix-n-Flip Loans
Before investing in any loan, consider the platform, or the website on which you aim to make your investment. Be wary of crowdfunding sites that claim to charge absolutely no fees. In almost every case this is too good to be true. In general, these websites will charge you a percentage of the income you earn either on an annual or a regular basis. Obviously, you want to make your investment on the crowdfunding website that charges the lowest possible fees.
Consider the type of flip you are investing in, is the project a residential or commercial flip? Residential flips offer a smaller return over a shorter period, while commercial flips provide a potentially larger return over a longer period. So consider how quickly, and how much, of a return, you want from your investment.
Consider the borrowers details, ideally you want to someone with prior experience and a proven track record of successful projects. Also, do your best to understand the conditions of the surrounding market to get a sense of the project's potential. Developing an understanding of an individual borrower and their project might put your mind at ease.
Ideally, you also want to invest in loans in which the borrower has signed a personal guarantee, as this will indicate they have some personal stake in their project.
After you find the right loan, there are two ways to actually invest.
When it comes to investing in Arizona fix-n-flip loans, you risk less as a debt partner, but you can make more money by acting as an equity partner
When it comes to investing in these types of loans, you can choose to act as a "debt" or "equity" partner. Acting as a debt partner allows you get regular interest payments throughout the term of the loan. Most crowdfunded fix and flip loans, have terms of 36 months and charge interest rates of 8 to 14%. You earn these interest payments on a regular monthly basis, and once the term of the loan expires, you receive the remaining interest and principal.
Acting as an equity partner gives you a share of ownership in the property. In this case, once the flipped property is sold you earn a specific percentage of the profits earned by the borrower. The potential returns from an equity partnership can be far greater; however, there is more risk in this case. It's uncertain how much profit a flip will earn until the renovations are finished and the property is actually resold.
In short, crowdfunding presents the opportunity to earn money from house flipping without actually flipping homes yourself. Consider the platform, type of project and borrower you want to invest in and whether or not you want to act as a debt or equity partner.

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

Sunday, October 28, 2018

House Flipping Loans: Is Local Private Money the Right Help For You?

When it comes to house flipping loans and private money you need to first understand what private money actually is and where it can be found. Learn some basic strategies to find the help that's right for you
Private money is a vague term, but it refers to any private group or individual with enough capital to lend. So where you should you look for this type of lender?
You might begin your search online, where you will likely find many “private lenders,” but most of these are really hard money providers. Its difficult to pin down what exactly private money is, especially when compared to “hard money.” In truth, the differences are insubstantial, financing is financing after all.
The only real difference between private hard money that you should be aware of is that hard money often entails higher interest payments when compared with private. Hard money providers usually charge between 12 to 15%, while private lenders typically charge between 8 and 12%.
However truly private lenders are usually individuals that can offer far more flexible loan terms in comparison with other types of financing providers.
If you look online you likely wont find a truly “private lender,” that offers this type of flexibility, so then where should you begin your search?
When it comes to Arizona Private Money Lenders, the best way to find the right help for you and your deal is to ask around.
The best way to come in contact with private money providers is to attend real estate networking events. At such events talk to other house flippers to get a sense of their experience with various local private lenders. You should ask questions like how quickly were their loans funded? What were the specific terms of their deal? And how willing was the lender to negotiate these terms with them?
Above all, you want to find a lender that is willing to negotiate. Because when it comes to private money you want to take advantage of flexibility this type of financing offers.
When it comes to truly Arizona Private Money Lenders, if you can do your best to secure an equity partnership which can help you avoid the expense of carrying a loan.
You might not even have to make any payments on your loan if your private lender chooses to act as an equity partner in your project. In this case, the proceeds of your resale will pay off the remaining loan balance, while your lender receives a share of the profits you earn.
To negotiate this type of deal, you’ll probably need to find a truly private lender. Hard money is a great financing option in the case of flipping projects, but these are lenders, not investors, and they will give you a loan which you will have to pay back with interest.
If you want to find a true private investor for your next project you should avoid beginning your search online. Perform your due diligence by asking your fellow real estate developers about their experience with local private lenders. Once you find a lender that has a good reputation, see how much room there is to negotiate. If you can try to arrange an equity partnership with them which will help you avoid the expense of carrying a loan.

How To Understand House Flipping Loans

Not every loan works for every project so it is important that you understand all of the aspects of Arizona house flipping loans. This is a huge first step in a successful project.
Flipping houses can be a great business and a great way to build your personal wealth. But it can also be a very difficult business is you are not familiar with the financial needs and the criteria for that makes good house flipping loans. You will quickly learn that a traditional loan is not a good fit for most flippers. The biggest drawback on a traditional loan is the extended time frame to secure the loan. In addition, you need to have very good credit to qualify for most bank loans. But fortunately, there are much better solutions for your house flipping loans.
The best way to avoid all of the runaround and document requirements is to avoid the traditional lenders. Using a private lender is a lot faster and easier. The cost can be a little bit higher but in most cases, you can tailor the loan to meet all of your needs including a fast approval and funding process. These types of loans are called Arizona Hard Money Loans or asset-based loans and they are offered by a private lender or a small group of people who function together as a private lender.
The lenders are not looking at your credit history, income or even your credit score to decide if they are willing to loan you the money. For asset-based lending, the determining factor is the value of the property that you are buying. The lender requires that you use the property as collateral for the loan so that it is secured. All the lender is concerned about is that the value of the collateral is always greater than the balance of the loan.
Calculating the Amount of House Flipping Loans
Lenders who focus on these Arizona Hard Money Loans have a set loan to value ratio that they are willing to offer borrowers. The LTV is normally somewhere between 70% and 80% of the value of the property. There are two reasons for this choice. First, this assures the lender that the property will always be worth more than you owe in the event of a default on the loan. Second, the lender knows that you are very motivated to get the deal done as you have invested your own money in the project to reach the asking price. This is known as having some skin in the game and is a good motivator.
Know The Terms
Flipping houses in Arizona can be a great business and can grow very quickly if you are aware of the proper types of funding for these projects. In addition, you need to understand that the conveniences of hard money only come at a higher cost. So it is important that you find the best deal possible to begin your home flipping business and ensure your success.

Using Hard Money for House Flipping Loans

There are many benefits to using hard money when you need house flipping loans. These nontraditional loans offer all of the flexibility and benefits that will make you profitable.
Traditional loans are designed to be used by home buyers who are going to carry the mortgage for 15, 20 or even 30 years. But house flipping loans should never reach even a year if you are running your business correctly. You want to buy quickly, make the repairs and renovations and then get the house resold for a profit as quickly as possible. And asset-based lending or Arizona Hard Money Loans as they are also called can be the perfect loan for flippers.
Arizona Hard Money Loans are very short-term loans. Many are for only a few months and because of their short-term, the rates are higher than a traditional loan. The rates range from a low of about 7% to as high as 15% or more if the lender is unsure of the deal. There are also additional fees that the borrower will pay such as closing costs and lender fees. But the biggest benefit of hard money is that the application process is very fast and simple. Many loans are fully processed in less than two weeks which is far less than the average 90 to 180 days for a traditional mortgage to process.
The process to qualify for Arizona Hard Money Loans is based more on the value of the property that you are buying than it is on your personal creditworthiness. While the lender might check your credit score and require a score of 550 or better, that is far below more traditional lenders standards. The value of the property is also what will determine the amount that the hard money lender is willing to offer you. The loan to value rate is how this is determined. Each lender has a specific percentage of a property’s value that he or she is willing to loan. In most cases that number is between 70% and 80% of the current value of the property.
Collateral on House Flipping Loans
The reason that the LTV is important is that the lender will require that you use the property as collateral for the loan. This protects the lender in the event that you default on the loan. Bu loaning only a percentage of the property value, the lender will always know that the collateral is worth more than the balance you owe on the loan. If you do default, the lender will take possession of the property and sell it to recover his or her investment in the loan.
Hard Money is a Wise Choice
As long as you make wise choices and are aware of the expenses of an Arizona house flipping loans, hard money is a good selection to fund your purchase. But only when you have a clear renovation plan and time frame for completion of the project. The short timeframe of the hard money loan and the higher interest rates leave little margin for error if you want to earn a good profit.

Beretta Only

Monday, November 5, 2018

Arizona House Flipping Loans: Risks and Benefits of Equity Partnerships

When it comes to financing your next flipping project, you may be wondering about the difference between equity "partnerships" and standard Arizona fix and flip loans.

When it comes to equity partnerships, there is a lot of risk versus standard house flipping loans in Arizona

Standard Arizona Fix and Flip Loans are more predictable, but there may be some benefits to an equity partnership

Friday, November 2, 2018

How to Retire Early with Loans to Flip Houses in Arizona

Finding the Right Opportunities for Loans to Flip Houses in Arizona

Flipping houses with the help of loans can help you to triple your income and achieve the financial freedom needed to retire earlier so that you can get back to do the activities that you love.

Monday, October 29, 2018

Phoenix Fix and Flip Loans: How to use Crowdfunding to Invest and Make Money

Expectations before investing in Arizona Fix-n-Flip Loans

When it comes to investing in Arizona fix-n-flip loans, you risk less as a debt partner, but you can make more money by acting as an equity partner

Sunday, October 28, 2018

House Flipping Loans: Is Local Private Money the Right Help For You?

When it comes to house flipping loans and private money you need to first understand what private money actually is and where it can be found. Learn some basic strategies to find the help that's right for you

When it comes to Arizona Private Money Lenders, the best way to find the right help for you and your deal is to ask around.

When it comes to truly Arizona Private Money Lenders, if you can do your best to secure an equity partnership which can help you avoid the expense of carrying a loan.

How To Understand House Flipping Loans

Not every loan works for every project so it is important that you understand all of the aspects of Arizona house flipping loans. This is a huge first step in a successful project.

Calculating the Amount of House Flipping Loans

Know The Terms

Using Hard Money for House Flipping Loans

There are many benefits to using hard money when you need house flipping loans. These nontraditional loans offer all of the flexibility and benefits that will make you profitable.

Collateral on House Flipping Loans

Hard Money is a Wise Choice

About Me

Total Pageviews

Blog Archive