Fixer Uppers and Foreclosures

Fixer-uppers and foreclosures are what most people think of when flipping comes to mind. But it is possible to flip a house without doing any work on it at all. During the real-estate boom of the early to mid-2000s, flippers could buy new construction homes, hold on to them for a few months, then sell them at a profit. Now there's a trend toward trying to flip houses in new, high-end developments in outlying suburbs. If commercial and retail development. like big-box superstores, spring up, it could bring in droves of residents. But if the situation isn't perfect -- if gas prices rise, for example, causing home buyers to shy away from big commutes -- this kind of flipping becomes pretty risky.

So why do people flip houses? And what does the average buyer -- and seller -- need to know about flipping before investing? How much money can be made by flipping a house? And what kind of moral line do you walk by paying bottom dollar to people who have lost their homes? We'll address all of these issues as we investigate the art of house flipping.

If you watch home-and-garden cable channels, it looks like everyone is flipping houses, especially in California. "Flip This House" and "Flipping Out" are just a couple of the many cable offerings that sing the praises of buying a house and quickly selling it at a substantially higher price. With this many California Hard Money lenders have been popping up as well, but house-flipping is more like a basic investing lesson: Buy low, sell high regardless of what California Hard Money lender you go with. You want to find a property that is undervalued or in just bad enough shape that you can invest minimal time and money in it before selling it. There are people who have made careers out of buying distressed properties and quickly turning them around for a profit. However, in a real-estate bust, things aren't quite so easy.

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 Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027111 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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

GET HELP WHEN BUY A HOME TO FLIP

GET HELP WHEN BUY A HOME TO FLIP

Sellers may also offer to help out by agreeing to accept part of the purchase price in the form of a note (I.O.U.) that you can pay off in the future. Certain loan programs allow sellers to contribute toward the closing costs to help minimize your out-of-pocket expenses. You also may be able to borrow against equity in your primary residence to come up with your down payment.

Still another possibility is to secure your down payment with funds you already have in a brokerage account, according to investor and loan expert Deborah A. Ten Brink, president of LLC Loan Network. She describes it this way: Sam wants to purchase an investment property for $100,000.00. Sam has a brokerage account with $50,000.00 in it. He must pledge 143% of the $25,000 down payment required by the lender or $35,750 (143% times $25,000.00 = $35,750.00). The funds are retained in his brokerage account, still accruing interest, but the lender puts a lien on the account to protect its interest, then loans him the full $100,000.00 to buy the property. When the investment property achieves 25% equity (proven by an appraisal), the lien on the account is released and the pledged amount plus accrued interest is once again completely under the borrower’s control.
Even if you have cash for a down payment, you may not want to tie it up in your new property. So, for example, Sam can open a certificate of deposit (CD) with the lender using his down payment funds of $25,000.00, and still borrow 100% of the purchase amount of $100,000.00. When the investment property achieves 25% equity (proven by an appraisal), the lien on the CD is released and the CD, plus accrued interest, is returned to Sam.
In both cases, 100% financing is achieved! These options are also available to investors who want to close and hold title in a business entity, such as a limited liability company, limited partnership, or corporation, California Hard Money Lenders. Either way, California Hard Money Lenders will find a way to get you the money you need to invest.

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 Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027111 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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Your First Buy of a Home Hard Money Flipping

When it comes to buying a real estate investment property, the first deal is the hardest. Many talk about buying a rental property for several years until they finally take the initiative, by finding a property, and buying it. Many times the houses appreciate substantially…leaving people to wish they had bought ten more! However, financing your first investment property can be daunting, especially in California. This is where the California Hard Money lenders of level 4 funding come in. They can help you with all of your loan needs. So if concerns about financing your first property are stopping you from getting started, here are some other tips to ease your mind. Check your credit early for mistakes and items you may need to address, but don’t let less-than-perfect credit stop you from trying to get pre-approved for a loan from California Hard Money lenders. You may be surprised by what Hard Money Lenders of California will approve these days. Once you review your credit report, do not take any drastic action without first consulting with an expert. In particular, don’t close old accounts or pay off collection accounts right before trying to get a loan. Either action may hurt your credit score rather than help it. Also, don’t procrastinate any longer: lenders are being scrutinized for making risky loans, and standards are likely to get tougher in the near future. If you are not eligible for a loan based on your credit or other qualifications, look for an investor partner to go in on the property with you. There are many others out there wishing they owned more real estate who lack the time and/or expertise to find and buy property. Although hard money lender’s interest rates are high, it can be worth it if you can refinance or sell the property in a relatively short period of time.

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 Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027111 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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Variations in California Hard Money Lending

An California hard money loan is a loan secured by the value of a real estate property. California hard money loans are typically arranged at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution but by private investors, generally via local areas brokers who specializing in arranging hard money loans. In reality every hard money lender California and every hard money loan is different than any other.

There are many other factors that affect individual loans among them:  credit, personal income, equity, loan purpose, term, owner occupancy, property type, property age and condition, location, city and state regulations, co-borrowers, market trends, availability of lenders and other factors. The relative importance of the factors varied from loan to loan. Every California hard money loan situation is to some degree unique—your own situation is unique. The only effective way to find out about your specific case and what can be done is enter a very basic request from a hard money lender California. The lender will have to review your request and reply with questions or with initial an approval. Based on the reply from the hard money lender California, you can modify your request and provide additional data

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 Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027111 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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Things to Consider as an California Hard Money Lender

With an California hard money loan, the payor needs the money. If he is coming into the private market and paying higher rates, it is because he has been rejected by or cannot go to the banks. I like paper because it can have a lower risk factor than any investment that I know. I am an equity investor. I know the property can pay me when the payor can’t. I do not want a loan turned down by the institutions unless there is enough equity that I would love to own the property and have the staying power to re-market it. As a hard money lender California, when I buy a discounted mortgage I am doing so because the seller of the note needs the money - not the payor. In addition, my yield is derived by buying the note at a discount, not because the payor is being charged usurious rates. Which brings up another important point!

As a hard money lender California, if you are loaning money at high rates you may be in violation of your local state usury laws. "Usury" is charging more interest than is allowed by law. These laws vary from state to state. In a situation where I make an California hard money loan at 18% interest, I could be in violation of a local state's usury laws. If I buy a 10% note discounted to yield 18% - that would not be usury. Making or buying a usurious loan can lead to a complete loss of all interest as well as other potential damages. There are federal "truth in lending" laws that apply to mortgage lending as well as local state versions in some states like California. For example, the APR - Annual Percentage Rate must be disclosed on a loan that includes points and other loan costs. It can be a violation of federal law not to do so. Violation of these laws could lead to a total loss of interest and principle on a loan, lawsuits or judicial problems. Buying a discounted mortgage is a whole different matter. Most laws do not apply to a secondary buyer.

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 Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027111 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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

How You Know When to Use an California Hard Money Lender

When should you use an California hard money lender? Hard money is great for beginning investors who may not have money or for those who have bad credit and cannot qualify. Investors also use California hard money when they need to purchase quickly. Typical soft money or conventional loans take 30 days or more. Sometimes that is too long. Using an California hard money lender is also a creative way to finance a property. Most like to call it "Nothing Down." If you can borrow enough money to buy the property, fix it up and then sell it under market value for a profit, then you've just made money without any of your own money. Sure it will cost you money to borrow that money, but the rewards outweigh the expense.

How can you find a hard money lender California? There are hundreds of hard money lenders waiting to lend you money. It could be your next door neighbor. The best way to a find hard money lender California is to talk to a mortgage company and ask for referrals. You can also call a title company or a real estate agency. They deal with buyers and sellers of houses every day. Shop around until you find the best one that will fit your needs. Another way is search online to find a hard money lender California. Some will lend nationwide, but these typically want a credit check. A hard money lender California will typically do a drive-by of the property if it is in-state.

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 Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027111 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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Be Sure to Know the Terms of Your California Hard Money Lenders

It is good to know what the terms are when dealing with an California hard money lender so you can find the one that will fit your needs. Here are some of the terms you can expect to see from many California hard money lenders. Typically they will only loan you up to 70% ARV (after repaired value). This means that a hard money lender can loan you up to 70% of what the home is worth in repaired condition. So if you find a home worth $45,000 in the condition it's in, and needs $20,000 in repair work, and after it is repaired the current fair market value is worth $100,000, then typically they can lend you up to $70,000, which would cover the cost of the house and the repairs.

Other terms you can expect from hard money lenders California are high interest rates. Interest rates vary from 12% - 20% annually and terms can last for 6 months to a few years. Many times these rates vary depending on your credit score and experience. In most cases, there will be closing costs or fees to use hard money California. Typically hard money lenders will charge anywhere from 2-10 points just to use their money. One point equals one percent of the mortgage amount. So charging 1 point on a $100,000 loan would be $1000. These are all important things to consider when choosing a hard money lender California.

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 Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027111 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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.