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Friday, December 7, 2018

Arizona Hard Money Loans Are Easy, Who Knew?

Arizona Hard money loans are surprisingly easy to obtain. Learn more below about how you can qualify to get quick cash to finance your investment.

Did you know that Arizona hard money loans, despite their name, are actually easy to apply for? The name might convince you otherwise, but hard money loans are where people go to get capital quickly because of their ease of application and quick turnaround.

So what exactly are the need to know facts about a Arizona hard money loan? The loan terms can and will vary between lenders, but for the most part, here’s what you need to know about hard money loans.

Proof of Repayment Ability vs. Collateral

Hard money lenders are like any other lender in that they need to know that they will be repaid, but they go about it in a different way than traditional lenders. What they focus on is the collateral for the loan. Will they be able to resell the collateral if you are unable to pay? That will let them know if the loan is worth it to them as a hard money lender. If your collateral has enough value, you should have no problem securing your loan.

Higher Interest Rates, but Quicker Payouts

Arizona Hard money loans are riskier for lenders than traditional loans so they need to account for that fact. That means higher interest rates because the Arizona Hard Money Lender is sticking their neck out for the borrower. That being said, the borrower is going to get their money quicker than with a traditional bank loan so both parties are benefiting from the transaction.

Credit Rating, Shmedit Rating

Even if you don’t have pristine credit, Arizona hard money loans will afford you the opportunity to get that investment property without having to rebuild your credit which can be a long, difficult process. Your loan amount will vary based on how much equity you’re going to have in the property, not based on your past credit decisions that have combined to make the credit score that could be keeping you from receiving traditional loans.

As you can see, Arizona hard money loans are simple. Only the name is ‘hard’ so you can feel confident in calling Level 4 Funding to learn more about Arizona hard money loans and how you can make your investment dreams come true. We can walk you through the process, discuss your Arizona Hard Money Loan opportunities, and get you funded quickly so you can snatch that perfect fix and flip off the market or grab that beautiful piece of commercial property that could be your next money maker.

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.

Can Builders Get Spec Home Financing from Arizona Hard Money Lenders?

Finding a loan to fund a speculative home isn't as easy as it used to be, but it's still possible, even if your financial specs are less than stellar. We'll tell you how to do it and give you a few things to consider.

The housing market crash and the subsequent recession did a real number on the lending industry. Shady practices of the past led to new regulations such as the Dodd-Frank Act, and that has left conventional lenders (like the big banks) more than a little gun shy when it comes to doling out money for spec homes. So if you want to start building these days, you're out of luck, right?

Not so fast. While getting Arizona Spec Home Financing the old fashioned way may have gone the way of the dinosaur, there are still private lenders who are willing to wade into the waters. Arizona Hard Money Loans aren't subject to all the complicated underwriting and stringent restrictions of bank loans. They're more concerned with your plans and your collateral.

How to Get Hard Money Arizona Spec Home Financing

If you decide that Arizona Spec Home Financing in the form of a Arizona Hard Money Loan is the right choice for your situation, there are a few things to speak about with your lender:

● Talk about location. It's the oldest axiom in the real estate business — location, location, location. And that holds true for spec home building as well. Make sure your geographic location makes your investment a wise choice.

● Talk about the process. As a builder, you're already familiar with sticking to a budget and staying on schedule. Part of that involves learning about the ins and outs of the loan process. How long will it take to be approved? How long before the funds are available?

● Talk about rates and fees. Any hard money lender worth his or her salt will be upfront about the rates they can get and the fees they'll charge. Ask for a breakdown so you know how to fit it into your budget.

● Talk about the loan structure. Here's where a hard money lender can really shine. Unlike banks, where the structure is essentially written in stone, a hard money lender can work with you to tailor your terms to fit the unique circumstances of your investment.

Secure Your Arizona Spec Home Financing Today

Ready to get started with your Arizona Spec Home Financing? It may seem overwhelming, but it's really simpler than you think. You've got nothing to lose and everything to gain — give us a call today to speak with a hard money lender in Arizona.

How to Use a Bridge Loan to Invest in Real Estate

Just like their namesake, Arizona Bridge Loans are designed to safely get you where you're going, often over troubled waters. But how exactly do they work and how can you get one? Here's what you need to know.

First, what are they? They're a temporary infusion of funds to get you where you need to go until you can secure more permanent funding. For instance, let's say you've purchased a flip and you're waiting for funds to make repairs and do improvements. An Arizona Bridge Loan can help you get started while you wait for other funding. After all, the real estate game is all about timing; the faster you start on renovations, the faster you can get the home or commercial property sold and turn a profit.

There are two types: ones done by conventional banks and credit unions and ones done by private, accredited lenders. Which style works best for you?

Choosing the Right Arizona Bridge Loan for Your Situation

If you go with a traditional loan from a bank, you'll probably get fairly low rates. However, there are a number of qualifications that many real estate investors can't possibly meet. Banks will analyze your financial history, your current situation, and your future prospects ad nauseam. They'll make sure your credit score falls within their acceptable range; they'll dig deep into your past, and they'll check out your bank account and other assets to determine if you're too much of a risk.

If you do fit into their box and you're approved, funding may take a while to come through and your loan fees can add up to thousands of dollars, even on small loans.

Conversely, you can go with a hard money lender. Their rates will typically be higher than a bank. However, there are a variety of reasons many investors prefer to go this route. The biggest one is this: Arizona Hard Money Loans are secured by collateral. This means that, for the hard money lender, things like lower credit scores, previous short sales, and less healthy bank account balances don't carry as much weight.

Securing a Hard Money Arizona Bridge Loan

The funds for a hard money Arizona Bridge Loan comes from private sources, so there's no complicated underwriting, no debilitating red tape, and no guidelines that are set in stone. In other words, you and your broker can sit down, talk about your unique situation, and work out terms and rates that make sense for both of you.

Looking for a Arizona Construction Loan? 3 Questions to Ask Yourself

Ready to build your dream property? It might surprise you to learn that you have more options than just a traditional mortgage; an Arizona Construction Loan may be another route to your real estate dreams.

Loans for new construction work differently than a mortgage for an existing property. Traditional home loans use a home's condition, comparable properties, and appraisals to determine rates and terms. Usually, they come with interest rates in the 3-10 percent range and last for 15-30 years. Arizona Construction Loans offer shorter terms and higher interest rates, primarily because the people using them build a property and sell it quickly.

There are two types of Arizona Construction Loans. There are the kinds you get from an institution like a bank or credit union and there are ones that are funded by private money.

Choosing Between a Traditional and a Hard Money Arizona Construction Loan

These three questions will help you decide which type of loan is right for you:

1. How fast do I need the money? It's the truth — construction is all about budgets, time-crunches, and deadlines. If you have a month or two to wait for your funding to get the project started, a conventional bank loan will work just fine. If, on the other hand, you need the money quickly so you can start getting work done and stay on schedule, a Arizona Hard Money Loan may be a better option. Whereas a bank loan typically takes at least 30 days, a Arizona Hard Money Loan can be in your account in as little as a week.

2. What do I qualify for? With a loan from a big institution, you'll need to provide proof of income, show that your credit score is at least 700, and demonstrate that you have no blemishes in your financial life. Arizona Hard Money Lenders use collateral to secure the loan, so they're able to work outside the one-size-fits-all system.

3. What loan structure works for me? Bank loans are fairly inflexible. They have rates and terms that are essentially set in stone, which doesn't give you a lot of space to tailor the loan for your needs. A hard money lender uses private funds and isn't bound by the same restrictions. They can structure the loan to work well for each unique situation.

Finding a Hard Money Lender in Arizona

If you've weighed the pros and cons and decided a hard money Arizona Construction Loan is the right move for your circumstances, you'll want to sit down with a private money lender in Arizona. He or she can listen to your plans and help you figure out the best course of action.

3 Tips for Getting a Arizona Rental Property Loan

Ready to jump into the world of real estate investment as a rental property owner? With the housing market crash firmly in our rearview mirrors, now is a great time to do it. Here are three essential tips to help you get started.

In the third quarter of 2018, 93 percent of America's major metro areas experienced a gain in prices for existing single-family homes. That's an incredible statistic and its proof that the market has recovered and then some. It's also a sign that investing in real estate is a safer bet again.

If you're interested in buying a property as a rental, you've probably looked into financing options. If so, you know that getting financing these days isn't as quick or easy as it used to be.

Three Ways to Secure a Arizona Rental Property Loan

1. Be a perfect borrower. If you're going to go through the banks for a good Arizona Rental Property Loan, you'll need to have the credentials they want. That includes a credit score that's at least 700 and preferably over 740. They'll also want to see that you have at least six months of money in your bank account to pay expenses, both investment-related and personal. And, of course, they'll want you to not have a blemish on your record like a foreclosure or bankruptcy.

2. Make a big down payment. If you fall short when it comes to your credit score, you may also be able to secure a bank loan if you have a big chunk of money to put down. If you've got 25 percent to 30 percent of the property's value to put down, that may be enough to get you the funding you need.

3. Forget about banks. Believe it or not, banks and credit unions aren't the only way to get a Arizona Rental Property Loan. Arizona Hard Money Loans are secured with collateral and use private funds, so these types of lenders don't ask you have a perfect history, a high credit score, or a big down payment. They offer more flexibility and you can have funds in your account within a few weeks.

Can I Qualify for a Residential Arizona Hard Money Loan?

If you don't fit the narrow profile that big banks want in their borrowers or you need to get funding quickly, a hard money Arizona Rental Property Loan might be perfect for you. Give us a call today to tell us about your investment plans and see how we can help you realize them.

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.