Beretta Only: Arizona investment property loans

Showing posts with label Arizona investment property loans. Show all posts

Sunday, October 14, 2018

3 Ways to Get More from Your Arizona rental property Loans

If you’re taking out Arizona rental property loans, finding ways to improve your ROI is essential. However, most advice you’ll hear could wind up costing you money, so stick to the tried-and-true methods to keep your cash flowing.
Maximizing the return on your investment should always be a priority, but if you’re paying on Arizona rental property loans, that monthly check serves as a constant reminder that it takes money to make money. It also likely makes you want to work that much harder to improve your gains. Here’s how to do it without unintentionally sabotaging yourself.
1. Focus on staying full. Oftentimes, landlords come in with the intent to make improvements and then bump up rents to generate more cash. This can actually backfire because it frustrates tenants and often places their existing home outside their budget. Before you make a move to hike up rates, consider what it will cost you to replace your tenants. Chances are, you’ll make more money by keeping their rents as-is and increasing rates as people move on. This is especially true if you have really great tenants who pay on time and make life easy, so always work out what costs you might incur by having to fill vacancies.
2. Allow tenants to sublet for a fee. The Airbnb craze is here to stay. Some landlords detest it because of the potential for damage and uncertainty of who will be renting, but it’s worth noting that your tenant is still ultimately responsible for what happens in the home. Consider including a clause in your contracts that allows your tenants to use services like Airbnb, but only if they sign up for it and agree to an additional monthly fee for the duration of their lease.
3. Have a late fee clause. Nobody likes to be the bad guy, but the reality is you rely on your tenants to pay in a timely manner in order for you to make good on your obligations. Having a late fee clause can help get them to have better payment habits and will give you a small revenue boost when they don’t. Follow-through is paramount, though. If you’re uncomfortable requesting the fee face-to-face, consider using a service to process payments instead. You might find that this saves you time and money as well.
Hard Money Can Help You Add to Your Portfolio
Getting approval for Arizona rental property loans isn’t always easy, especially if you don’t have great credit or don’t have much experience with property management. If you’re in the process of picking up your first property or you already have one and want to have more but traditional funding won’t work, the more relaxed approval process offered by alternative lenders can help you pursue your dreams.
Find out if alternative Arizona rental property loans are right for you.

There are lots of ways to grow your portfolio, but finding the best terms and the right options are key in ensuring your ROI is all that it should be. Have a chat with a broker about your goals and portfolio plans to learn which options are best for your needs.

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.© 2016 Level 4 Funding LLC. All Rights Reserved.
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How to Get Arizona investment property Loans without 20-40% Down

Banks usually expect you to make a massive down payment when you apply for Arizona investment property loans, which puts them out of reach a whole lot of investors. The good news is, there’s a way to get around the standard 20-40% most expect.
Checking out Arizona investment property loans can be a rude awakening for someone getting into the business. Most people at this stage have purchased a home to live in before and expect the process to be somewhat similar. You apply for a mortgage and your broker works some magic, then comes back with numbers and tells you what you qualify for. But, when the property you’re buying is not going to be your primary residence, a lot of that magic disappears and the yesses are replaced with nos. What gives? You haven’t changed at all, your credit is the same, and you’re diversifying. Shouldn’t the banks be happy? Not exactly.
When it comes to traditional mortgages, the bank knows you plan to live there and that you’ll do everything you can to keep your home, even when times get tough. So, they’ll sometimes give a bit of wiggle room with their options. On top of this, if you don’t have the full 20% to put down, you can often get mortgage insurance. Although you pay for it, it actually protects your lender in the event you default. When you’re making a purchase with the plan to rent it out, fix-and-flip, or fix-and-hold, mortgage insurance is not an option. Ergo, the bank is going to expect you to bring at least 20% to the table.
From there, they may expect a greater down payment if your credit isn’t excellent as well, among other things. Depending on the circumstances, that down payment can skyrocket as high as 40%. And, that’s if they approve you at all. Without a couple years of property management experience under your belt, many of the big banks won’t even consider helping you out.
Alternative Funding Can Help You Out When Banks Can’t
The good news is, there are other places you can turn to for Arizona investment property loans that are easier to qualify for and don’t require the same massive down payments. Hard money is one of those choices. While lenders still look at things like your credit and your plans or ability to manage your Arizona investment property successfully, the biggest thing they consider is its value. What’s more, it’s possible to get up to 90% of the value, meaning you could wind up only needing 10% or less, if you grab a sweet deal for less than it’s worth.
Find out if alternative investment property loans are right for you.

When people go for hard money, having an exit plan is essential. If you’ll be fixing and flipping, the natural exit is selling the home after you’ve finished the work. However, if you plan to rent it out right away or fix and hold it, you’ll either need a plan to refinance at the end of your term or have another way of paying off the balance, as lenders usually expect the balance paid off within a matter of months or just a few years. If you’ve got a property in mind, a comprehensive plan, and the banks aren’t able to help, talk to a broker to learn more about hard money and the terms you qualify for.

The Guide to Arizona Investment Property Loans

Many real estate entrepreneurs turn to Arizona Hard Money Lenders for Arizona investment property loans. There are several options available when looking to obtain a loan for your investment.
All of a sudden, the market takes a 20 percent corrective move. One of the hedges is the real estate market. Afterall, owning an investment property offers a number of perks. Becoming a landlord is a very good way to realize a passive income stream. Keep in mind that there are a number of lenders they will require that you have skin in the game or cash to invest. Taking a loan out when you do not have a positive cash flow is one way to close the deal.
Arizona investment property loans can take several forms, including the criteria that the borrower needs to meet. If you do not do your research and choose the wrong type of loan, it can impact your ROI or Return on Investment. You will need to do your research on the various types of lenders in your market.
You’ve probably all heard or worked with conventional bankers. Expect to put close to thirty percent down of the purchase price when your loan is on an investment property. Lenders will look at debt-to-income calculations. Keep in mind that future rental income is not figured into this calculation. Be prepared to have six months of cash set-aside to meet the mortgage obligation as this may be a lender requirement.
One popular investment these days is the fix-and-flip model. Flipping a property is most attractive because it allows the investor to receive their profit in a lump sum after the sale of the investment property as opposed to waiting for a rent check each month.
Fix-and-flip loans are short term loans which allow the investor/landlord to make the needed renovations. Once the renovations have been completed, the investment property is put back on the market as soon as possible. Fix and flip Arizona investment property loans are secured by the property. You may want to also look at a real estate crowdfunding site as an option.
The advantage of using a hard money lender as opposed to a conventional lender is that it is easier to qualify. The hard money lender looks at the after-repair value (ARV) as to if you are able to repay the loan. The advantage of a hard money lender versus a conventional lender is the speed of getting the loan, days as opposed to weeks or months as is customary with a conventional lender.
Interest Rates
Expect to pay higher interest rates when compared to conventional lenders. You will also need to pay points of the Arizona investment property loan amount upfront to close the loan. Some lenders allow you to take the cost of the points out of the proceeds of the loans.
More home owners are looking to Arizona Hard Money Lenders for home equity loans.

If you are a home owner and have equity, then you can access the equity through various loan programs. There are some loan programs that access the equity like a credit card and allow interest-only payments. A cash-out refinance is another option and a long-term loan is the final option. Both rental properties and fix-and-flip ventures are risky. The opportunity for big returns, however, is attractive. If the obstacle you face is funding the necessary money, consider a hard money lender for your next investment property.

Happy senior business man making his notes at work 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

How Lines of Credit Work with Arizona Commercial Loans

Commercial lines of credit are very popular with the small business financing of today—and are the most misunderstood. Here, then, are some of the basic facts that can help you decide if this type of Arizona Commercial Loan is right for your small business.
A line of credit allows a company to draw on a predetermined amount of money. To access the funds, the company just needs to draw on the line. Every time you draw on the line, you are reducing the amount of funds you can draw from. The inverse is that you can pay down the line of credit at any time, thus increasing the available funds to draw from. A conventional credit card works much like a revolving line of credit.
When getting the Arizona line of credit, the bank restricts the use of the funds. Since it is a Arizona commercial loan, the funds can only be used for business purposes. Your company can use these funds to cover short term needs such as paying suppliers, covering payroll, and other corporate expenses.
Just like all types of lines of credit, there is an associated cost. The costs vary depending on the size and risk of the line, and the fees are based on the outstanding balance. There are additional fees such as availability and maintenance fees. These fees vary by bank. Most banks require that the full balance of the line of credit be paid down in full once a year.
Lines of Credit: Secured and Unsecured
Secured Lines
Both corporate and personal collateral can be used for this type of line of credit. These assets will be used to secure the repayment of the line of credit. If the business owner defaults, the bank will foreclose on the assets to pay off the loan. Various types of assets can be used such as account receivables, inventory, cash, machinery, securities, certificates of deposits and real estate. The pleaded assets will be secured by the bank filing a UCC.
Unsecured Lines
This type of line of credit does not required collateral such as outlined above. The unsecured line of credit will be personally guaranteed by the business and often includes a personal guarantee by the business owner. In the case of a default, the bank will sue the business owner personally as well as the company.
When applying for a Arizona commercial loan, the bank will examine the company’s income statement (P & L and Balance Sheets). These reports will help the bank determine if you can repay the loan.
Most banks will want to review two years of financial reports. The bank wants to see two years of operating profits. The bank also wants to see assets on the balance sheet such as accounts receivable, machinery, inventory and real estate. This requirement varies by bank. The line of credit based on these assets runs around 50% of the net value of the asset such as the machinery after depreciation.

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

Saturday, October 13, 2018

A Borrower’s Guide to Arizona Business Loans

There are several different types of loans suitable for businesses. Make sure you know the difference between each one before choosing your next Arizona business loans.
If you are running a business, you may find yourself in need of working capital, new equipment, or additional inventory. A business loan specifically for one of these needs may be your best bet when it comes to continued success or hanging in there during the slow season. There are an assortment of Arizona business loans to choose from including bank loans, mezzanine financing, asset-based financing, invoice financing, microloans, business cash advances and cash flow loans.
Bank loan: Just as the name indicates, the originator of this type of loan is a bank. The loan may or may not be a secured loan. A secured loan requires approved collateral. If payments are not made, then the collateral will be kept and usually sold. An unsecured loan is, just as the name states, one in which there is no requirement to pledge collateral to obtain the loan. Before making an unsecured loan, a bank may want to see the borrower’s business accounts, balance sheet and business plan, the principal’s background, and credit histories.
SBA Loans: The Small Business Administration is a government agency that offers guaranteed backed loans through your local bank. The SBA (a) includes both a standard and express loan approval process.
Mezzanine finance: Mezzanine financing effectively secures a company’s debt on its equity, allowing the lender to claim part-ownership if the loan is not paid back in full and on time. The loan is made with collateral. Dilution of the debtor’s equity occurs in a default situation.
Asset-Based Finance: If you are lacking the credit rating or track record to qualify, this type of financing has become a very popular choice. The lender focuses on the borrower’s assets instead of their credit rating. Various assets are considered including the premises, plant, stock, or receivables.
Invoice Finance (factoring): An alternative to conventional financing, this type of lending requires the borrowing at a discounted amount of the invoices. Once established, you will be able to obtain funds as soon as a new invoice is created. This may not be the best option for your business. There may be a negative view by customers, and the lender will take ownership over the businesses’ invoices until the loan is paid.
Microloans: These Arizona business loans are for amounts of $100,000 or less. Alternative lenders are more likely to make these types of loans than traditional banks. If the traditional bank makes this type of loan, it is made based on the individual personal credit score than the business credit score.
Checking out Online Lenders
A number of online lenders have begun popping up on the World-Wide-Web. Since 2014, $12 billion dollars have been made. Since 2000, non-bank online lenders have doubled their outstanding portfolio balance each year. Another option is crowdfunding—an option that allows businesses to raise capital from a wide variety of sources.
Personal guarantees are usually required if you own a certain percentage of the business.

If you are an owner of 20% or more of a business, most lenders will require a personal guarantee. This allows the lender to collect on a Arizona business loan in the event of a default. In most cases, as a personal guarantor, you will need a strong personal credit score.

Beretta Only

Sunday, October 14, 2018

3 Ways to Get More from Your Arizona rental property Loans

If you’re taking out Arizona rental property loans, finding ways to improve your ROI is essential. However, most advice you’ll hear could wind up costing you money, so stick to the tried-and-true methods to keep your cash flowing.

Hard Money Can Help You Add to Your Portfolio

Find out if alternative Arizona rental property loans are right for you.

How to Get Arizona investment property Loans without 20-40% Down

Banks usually expect you to make a massive down payment when you apply for Arizona investment property loans, which puts them out of reach a whole lot of investors. The good news is, there’s a way to get around the standard 20-40% most expect.

Alternative Funding Can Help You Out When Banks Can’t

Find out if alternative investment property loans are right for you.

The Guide to Arizona Investment Property Loans

Many real estate entrepreneurs turn to Arizona Hard Money Lenders for Arizona investment property loans. There are several options available when looking to obtain a loan for your investment.

More home owners are looking to Arizona Hard Money Lenders for home equity loans.

How Lines of Credit Work with Arizona Commercial Loans

Commercial lines of credit are very popular with the small business financing of today—and are the most misunderstood. Here, then, are some of the basic facts that can help you decide if this type of Arizona Commercial Loan is right for your small business.

Lines of Credit: Secured and Unsecured

Saturday, October 13, 2018

A Borrower’s Guide to Arizona Business Loans

There are several different types of loans suitable for businesses. Make sure you know the difference between each one before choosing your next Arizona business loans.

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