Beretta Only: hard money lenders in arizona

Sunday, December 2, 2018

The Best Place to get loans for Airbnb businesses in Arizona?

Short-term vacation rentals are now a viable source of income thanks to platforms like Airbnb. You may want to take advantage of this opportunity, but what's the best source of loans for AirBnB businesses?
In the past, it was challenging to secure consistent short-term rental income.
Vacation rentals were advertised through newspapers and other forms of advertising with limited reach. How could Joe and Sally from Minnesota find out about a beachfront property available to rent on the coast of California? Well, they really couldn't. In the 21st century, things are different. Finding a regular stream Joe's and Sally's to lay do wn several thousand dollars a week to stay in a beachfront home is now possible thanks to platforms like Airbnb. Depending on your locale, owning a vacation rental property could pay for half or more of your outstanding mortgage.
However, you may not have the funds on hand to purchase a vacation property outright, and unfortunately, traditional bank bureaucracy hasn't quite come into the 21st century.
Getting an Arizona Airbnb loans can be difficult, bank regulations and FHA guidelines hamstring conventional lenders
A beachfront condo has just come onto the market. You know for a fact the best strategy here would be to rent it out on a short-term basis. So you go to your friendly neighborhood bank. It's all smiles until the loan officer asks " how do you intend to pay for the second mortgage?"
You explain that you intend to make money by renting out the property during tourist season. The loan officer reviews his checklist, " short-term rental hmmm, I’m sorry, we can account for that type of income."
Essentially brick-and-mortar lenders haven't caught up to the opportunity offered by platforms like Airbnb. Traditional lenders are for the most part unwilling to underwrite loans based on short-term rental income, which means the vacation property you intend to finance will be grossly undervalued. In most cases usually only the best borrowers can qualify.
Say you've found a dilapidated beachfront property, in a popular hip location. Prices in the area are prohibitive, and this busted up cabin is your only way to get in on the action. You know once the property is up to a livable standard, you could charge 500 bucks a night to rent it out. But, don’t even bother with a regular bank if a property is anything less than livable. Your deal will not close due to FHA guidelines.
If a distressed, but steeply discounted property, comes onto the market in an extremely lucrative area, conventional lenders, unable to resell your loan to Fannie and Freddie, are going to reject your application out of hand.
Private money can be the help you need to get an Arizona Airbnb loan.
In such situations, a private money provider is your best bet. This type of lender can consider the short-term income potential of the property you want to finance because private lenders set their own rules when it comes to underwriting. Private lenders are also not beholden to FHA guidelines.
With a private lender on board, that condo is yours, even if you have an outstanding mortgage or less than perfect credit. With a private lender, you can transform that run down cabin into a gem. Airbnb will then be sending you a stream of Joe’s and Sallies who will pay you thousands of dollars a week for the privilege of staying in your refurbished vacation home.
So when it comes to vacation rentals, skip the bank and approach a private money provider first.

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.

Saturday, November 10, 2018

Can You Work with Hard money lenders in Arizona as a First-Time Investor?

One of the biggest questions first-time investors ask is whether they can get approval from hard money lenders in Arizona or not. The truth is, you can get funding, but you’ll have to demonstrate knowledge.
Real estate investors turn to hard money lenders in Arizona for a myriad of reasons. Sometimes their projects simply won’t qualify for a traditional loan at the onset, while other times having cash ready to go helps ensure they can grab the property before someone else does. First-time investors face additional challenges, as banks usually need to see a track record for success before they’ll put their money on the line as well.
Ergo, most seasoned investors work with hard money lenders in Arizona on a regular basis and keep this option in their toolkits for various situations and property types. As a newcomer, you’ll want to become established with professionals you can trust as well, so that you can turn to them as needed and streamline the process for subsequent projects. Getting that first approval can seem daunting, though.
On the bright side, alternative funding options aren’t set up like banks, which means that you don’t necessarily have to have a portfolio of successful projects in order to get approved. With HMLs, the biggest concern is the value of the property, meaning if you can grab real estate for less than it’s worth, the odds of getting approval are relatively high. You’ll often hear the term “loan to value” or “LTV,” which refers to the amount of your loan in relation to the value of the property. For example, if the property is worth $100,000 and you’re requesting a $70,000 loan, your loan to value is 70%. Sometimes, HMLs will go as high as 90% LTV.
If You Have Some Experience, You Can Get Funding More Easily
Naturally, the LTV is only one part of the equation. If you have some kind of experience which relates to the project you’re undertaking and have a strategy to overcome difficulties along the way, that will impact your ability to get funding too. Many first-time investors have backgrounds in the mortgage industry, real estate, appraisals, home repair, or similar, so it’s easier for them to understand the value of a project, what must be done to increase value, and what the property will likely sell for upon completion. This type of experience really shines when an investor is pitching his or her idea and can often help overcome a lack of formal investment experience.
Don’t let lack of funding stand in the way of your success.
Ultimately, the best way to know if hard money lenders in Arizona will work with you is to talk with a broker before applying. A great broker will walk you through the process, let you know what HMLs are looking for, and make suggestions specific to your situation that will improve the chances of getting an approval on the first go. If you’re still denied, ask lots of questions to find out why and learn what you can do to improve the odds next time around. First-time investors absolutely can get funding; having a solid strategy and finding the right HML for your needs are the vehicles that will get you there.

Beretta Only

Sunday, December 2, 2018

The Best Place to get loans for Airbnb businesses in Arizona?

Short-term vacation rentals are now a viable source of income thanks to platforms like Airbnb. You may want to take advantage of this opportunity, but what's the best source of loans for AirBnB businesses?

Getting an Arizona Airbnb loans can be difficult, bank regulations and FHA guidelines hamstring conventional lenders

Private money can be the help you need to get an Arizona Airbnb loan.

Saturday, November 10, 2018

Can You Work with Hard money lenders in Arizona as a First-Time Investor?

One of the biggest questions first-time investors ask is whether they can get approval from hard money lenders in Arizona or not. The truth is, you can get funding, but you’ll have to demonstrate knowledge.

If You Have Some Experience, You Can Get Funding More Easily

Don’t let lack of funding stand in the way of your success.

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