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Friday, December 7, 2018

Everything You Need to Know About Arizona Private Money Lenders

You might have heard of Arizona Private Money Lenders as an alternative to banks and institutional brokers, but what exactly are they and how do private money loans work? Here's everything you need to know.

Let's start with the basics: a private money loan is simply a loan that comes from a private party, not an institution like a bank or a credit union. That could mean getting funds from a friend or a relative, borrowing from a colleague or a professional acquaintance, or securing financing from Arizona Hard Money Lenders or accredited investors. That's why they're often referred to as "relationship-based loans." Of those three sources of private money, Arizona Hard Money Lenders are considered the most reliable and offer trustworthy loan terms, fees, and interest rates.

The terms of third-party private money loans are quite different from those of a traditional bank loan. Because they're usually intended for real estate investments like fix-and-flips, they are short; typically one year but sometimes as much as five years. Interest rates for private money loans generally fall in the 7 percent to 12 percent range, with lenders fees between 1.5 percent and 10 percent. Finally, private funds don't need to go through an extensive verification and underwriting process, so they can be secured much quicker. In fact, approval can come through in a day or two and funds can be in your account in a week or two.

Who Can Benefit from an Arizona Private Money Lender the Most?

These are the types of people who can benefit most from a Arizona Private Money Lender:

● Experienced flippers who can turn a property in under a year.

● Short-term investors who need money quickly to jump on a great opportunity.

● Investors who don't fit into the bank's tight criteria for credit scores and financial history.

● Investors with short sales, foreclosures, or bankruptcies in their past.

● Investors who plan to refinance once the waiting period for credit dings expire.

● Borrowers with hard assets to put up as collateral.

Where to Get an Arizona Private Money Loan

As we discussed before, private money loans can be secured through friends, family, colleagues, and third-party lenders. If you're looking for a reputable Arizona Private Money Lender to help fund your real estate dreams in Arizona, Setabay offers competitive rates, fast qualification, and funding in as little as two weeks. Send us an email or give us a call today so we can talk about your options.

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.

3 Reasons You Should Seek Out an Arizona Residential Hard Money Lender

A residential Arizona Hard Money Loan can be a fantastic alternative to a common bank loan in many cases. Here's how to know if getting one is the right move for you.

Residential Arizona Hard Money Loans are private funds that can be procured by real estate investors for single family homes and duplexes. They differ from bank and credit union loans in a range of important ways:

1. Residential Arizona Hard Money Loans are more flexible. Banks are very rigid when it comes to qualifications for getting a residential loan. They'll typically want you to have a FICO score of 700 or more; they'll want you to verify all of your income sources and they'll want you to have a fair amount of funds to put down. Arizona Hard Money Loans are based on collateral, so those things aren't as important.

2. Residential Arizona Hard Money Loans are faster. A bank or credit union loan has to go through an extensive underwriting and verification process that can sometimes take 60 days or more. A residential hard money lender can get you approved quickly and many loans go through in a matter of two weeks or less. That speed will give you a significant advantage when it comes to moving quickly on an investment opportunity.

3. Residential Arizona Hard Money Loans come with fewer fees. Most banks will nickel and dime the borrower with applications fees, appraisal fees and more. Those fees can add up to thousands of dollars. Arizona Hard Money Loans are typically very light on upfront fees and some have none whatsoever.

Is a Residential Arizona Hard Money Loan Right for You?

Arizona Hard Money Loans offer a lot of advantages over bank loans, but they also offer shorter terms and higher interest rates. Since they're based on hard assets and not credit scores and financial history, they are the perfect fit for some people. Namely, investors with impaired credit, investors who need their funds quickly, and investors who have blemishes like short sales and foreclosures on their record. It's also ideal for borrowers who have complex situations where multiple pieces of collateral are involved.

Finding an Arizona Residential Hard Money Lender

Finding an Arizona residential hard money lender in Arizona is simple. Here at Setabay, we'd love to hear about your investment plans and discuss ways to help make your real estate dreams come true, Give us a call today!

Thursday, December 6, 2018

Break into the Rental Game with an Arizona Airbnb Loan

Thousands of people in the U.S. are making extra income by opening an Airbnb rental. How do you get funding to cash in on the homestay craze? We're here to help you figure out how to get an Arizona Airbnb Loan.

Whether it's a bit of supplementary cash or a full-time income you're looking for, an Airbnb rental may be a fantastic option. Many people choose to build an addition to their existing home, while others buy entire properties to rent out on the popular homestay site.

There are pros and cons to this approach compared to being a traditional landlord. An Airbnb requires more regular cleaning and you'll need to be available at all times to tend to each and every need of your guest. There is also a range of upfront costs. On top of the sale price of the property or the costs of building an addition, you'll need funds for repairs, decorations, insurance, and all the little items guests will expect to be stocked like shampoos, soaps, and snacks.

Of course, along with these upfront costs comes the potential to make exponentially more. Let's say you can rent your apartment for $1,200 per month as a traditional landlord. You can probably rent the same apartment on Airbnb for $120. That's a total of $3,720 a month, or $2,520 more.

Getting financing for an Arizona Airbnb rental

So if you're sure an Airbnb is the way to go, how do you secure financing to pay for the property and all the upfront costs? If your credit score is fantastic, your bank account is healthy, and your history is spotless, you may be able to go through the bank. They'll pour over every detail of your financial life and you may have to wait a while to get your funds.

Another option is a hard money Arizona Airbnb Loan. Arizona Hard Money Loans are secured with collateral, so lenders in this field don't base their decisions as much on credit scores and history. And, in addition to flexibility, Arizona Hard Money Loans really shine in one area: speed. You can get approved in a matter of days and have your funds in a matter of weeks.

Finding a hard money lender for an Arizona Airbnb Loan

Need an Arizona Airbnb Loan to jumpstart your dreams? Finding a Arizona Hard Money Loan in Arizona is simple. Give us a call today and we can talk about your plans and investigate options to make them happen.

Start Your Real Estate Dream Today with a Fix and Flip Loan in Arizona

Thinking of getting into the real estate flipping game? One of the first steps is to secure financing. Here's how to do it.

As a concept, it's a simple process — find a home that needs a little work, fix it up, and then sell it for a profit. The truth behind flipping is a little more complicated. Finding the right deal is paramount, getting financing is key, and hiring the right contractors and workers is critical to success. Even then, you'll need a little luck with the market's fluctuations to make a really healthy profit. It's hard work, but it's a great business for people who have the work ethic and know-how to get the job done.

And, while we can't help you hang cabinets or fix a foundation issue, we can help you get the Fix and Flip Loan in Arizona you need to help make a move in a competitive market.

Many flippers go the banks and credit unions to secure financing. This can be a great option if you've got a nearly perfect credit score, a bank account with a healthy balance, and a blemish-free background. However, many flippers don't check off all of those boxes; some have had dings on their credit, some are working with little cash flow, and others have had a short sale or foreclosure in their past.

Fix and Flip Arizona Hard Money Loans

With a hard money Fix and Flip Loan in Arizona, you don't have to have perfect credit, a robust bank account, or a history that's unscathed. With a Arizona Hard Money Loan, you put up collateral to secure the funds. So that — and your passion for the project — is what's most important. Arizona Hard Money Loans for flipping houses are quick, too. You can get approved in a few days and have money to close your deal in as little as a couple weeks. Keep in mind that Arizona Hard Money Loans also have higher interest rates and shorter terms than what you'll find at the bank.

Get a Fix and Flip Loan in Arizona Today

If you think a Fix and Flip Loan in Arizona might be the perfect move for you, your next step is clear. Call or sit down with a hard money lender in Arizona like Setabay. Our people can listen to your dreams, go over your options, and help you come up with a plan for securing financing for your flip.

Can you still qualify for Loans to Flip Houses in Arizona when banks have said no?

With the right resources at your disposal, flipping houses can be a viable way to make quick money in the real estate business. But what are your options if the banks and credit unions have said no?

You know the old saying — everyone has to have a place to live. That axiom has been the governing principle in the fix and flip industry for decades and, even as the market fluctuates, it will remain true. You can find a run-down or outdated house, put in some sweat equity, and sell for a profit in as little as three months.

Seems simple, right? There are a few problems that fix and flippers run into, though. Aside from the surprises and challenges of flipping a house, there's the question of getting funding. If you don't have the cash on hand, you'll need to go to a lender like a bank. To get Loans to Flip Houses in Arizona, banks want you to have a great credit score, a good amount of funds in your account, and no blemishes on your record. Those narrow requirements can leave a lot of fix and flippers out of luck. After all, anyone who's been in the real estate business for any length of time has had issues, whether it's a short sale, a foreclosure, or a bankruptcy.

Alternatives to banks for Loans to Flip Houses in Arizona

Here's the good news — you can still get Loans to Flip Houses in Arizona if you don't qualify for one from a bank or credit union. For the right person, Arizona Hard Money Loans can be a great alternative for several reasons. You can get approved for a Arizona Hard Money Loan as quickly as two days and have the money in your account in a matter of weeks, which can give you a distinct advantage in a competitive real estate market.

Arizona Hard Money Loans are also more flexible. Since you put up collateral to secure them, Arizona Hard Money Lenders aren't as worried as banks about your credit score, bank account, or past history, so borrowers with less-than-perfect credentials can still make their dreams come true.

Is a hard money fix-and-flip loan right for me?

Arizona Hard Money Loans to Flip Houses in Arizona also typically come with higher interest rates and shorter terms than bank loans, so they may not be the right move for everyone. We recommend them to people who have previous experience flipping homes themselves or newbies who have hired a contractor with flipping experience.

Yes, 100 LTV Arizona Hard Money Lenders Do Exist

There aren't many, but there are lenders out there who will do 100 LTV loans. Here, we'll define LTV loans in plain English, give you some examples, and tell you how to secure one.

For those of you who are scratching their heads and wondering what LTV means, let's spell it out as plainly as possible. LTV is loan-to-value ratio and it's calculated by taking the size of the loan and dividing it by the property's value. For instance, if the appraised value of the property in question is $100,000 and the loan amount is $75,000, you have a loan-to-value ratio of 75. If you're buying a home, the LTV is based on the home's sale price, except in cases where it's appraised for less than the sale price.

Lenders use LTV calculations as one of the factors in determining eligibility for a loan. Typically, lenders want a low loan-to-value ratio because it means there's less risk involved. Many banks and credit unions set an unmovable upper limit for LTV — if it's above, say, 80, they won't even consider it.

However, there are some places that will go up to 100 LTV. VA loans are backed by the U.S. Department of Veterans Affairs and USDA loans are guaranteed by the U.S. Department of Agriculture, so those are two ways to get a 100 LTV loan. By the same token, FHA loans can do up to 96.5 percent because they are insured by the Federal Housing Administration.

Using Arizona private money lenders for 100 LTV loans

In addition to the above sources, some Arizona Hard Money Lenders are willing to do 100 LTV loans. This is because the money comes from private sources and borrowers generally put up collateral to secure the loan. Arizona Hard Money Lenders can also be more flexible and get you funding faster than a bank or credit union, so many people prefer this type of loan.

Finding an Arizona Private Lender who will do 100 LTV loans

Finding a lender who will do 100 LTV Arizona Hard Money Loans can seem like finding a mythical bigfoot in the woods. But don't worry, they do exist and it's not as hard as you may think to find one. Here at Setabay, we sit down and chat with potential borrowers and take into account their dreams, desires, and individual situation to determine if it's a good fit for both of us. If you're interested, give us a call today!