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Monday, January 14, 2019

How Get an Airbnb Loan in Arizona and Work at Home in 2019

If you’ve always wanted to work at home, 2019 is the year to make it happen. Using an Airbnb Loan in Arizona, you can cash in on the trend and earn a solid income in short-term rentals.

Your future profits will hinge upon finding the ideal property, so start looking early. If you live in an area with lots of tourism, do your searches during the slow times, when homeowners aren’t likely to be using vacation properties and they won’t be rented out. This will give you more time to check out the inside of each and will give you a bit more wiggle room when negotiating a better purchase price. In most areas, the summer is tops for tourism, so you’ll want to start your research at the start of the year. The same rules apply even if you’re looking at properties in neighborhoods, as home sales peak during the summer because families tend to move when school is not in session.

Get to know the areas you’re considering. People who are only staying for a short period of time like to be close to activities and necessities. Check out how close each property is to things like airports, convention centers, cultural activities, entertainment venues, grocery stores, and the like. Whenever possible, visit the area at various times of the day to get a feel for what your renters will experience.

Check out the house and decide on a plan of action. You’ll have a myriad of options here, from determining what, if any, renovations you’ll make through how you’ll handle the upkeep. Nowadays, there are numerous services designed to clean and prepare rental homes for guests, but you can hire your own team or take care of the transitions on your own to keep more money in-house. You’ll also need to verify what kind of Airbnb Loan in Arizona you want. Bear in mind, banks will consider this a second property for your or will look at is as a commercial property, so you may need to have an alternative funding source, like a hard money lender, lined up to make the purchase.

If You Want an Extra $21,000+ Per Year, You Can Get It Through Vacation Rentals

According to research from Savills, the average income achieved through a second home is $21,000 per year. To be clear, that’s almost exactly what someone working full-time on minimum wage will earn in 2019 ($21,528) and is only a couple thousand shy of what the average part-time employee earns ($27,284). In other words, your Airbnb Loan in Arizona can give you the opportunity to almost effortlessly earn what other people make in their careers, all while sitting in your pajamas and sitting at your computer.

Work from home and build a successful portfolio to increase your wealth exponentially.

If the average vacation rental is netting its owner $21,000 per year, imagine what the top earners are getting or what you could get by operating several. When you’re ready to get approval for your first Airbnb Loan in Arizona, take time to create a comprehensive business plan, complete with details about the property, how it will generate cash, how much it will earn, and what your plans are for operation are. With a little bit of effort, you can create a solid secondary stream of income or wholly work from home in 2019, all through vacation rentals.

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.

Sunday, January 13, 2019

3 Things TV Shows Don’t Tell You About Rehabs & Fix and flip loans in Arizona

While home rehab TV shows can be great entertainment and provide some insights into the industry, they don’t show the full picture. They’re missing key details on fix and flip loans in Arizona and projects that might change the way you look at the field.

1. Market research matters. In all fairness, someone scouring spreadsheets and pulling up data online doesn’t make for particularly good entertainment, so it’s no surprise most TV shows leave this component out. However, a significant portion of any project’s success is completed before the rehabber even sets foot on a property or picks up a hammer. A successful rehabber invests time in researching which cities and neighborhoods are best, then explores the needs and potential of several properties before digging in.

2. Not all restorations provide ROI. We all love seeing a gorgeous house with wow-factor and curb appeal. Potential buyers love it too. It’s the little touches a rehabber adds that create an emotional connection with buyers, so they picture themselves living in it and are willing to pay more for the home. However, there are many things that will not result in profits. According to MoneyWise, adding a backyard patio or sunroom will return less than half your investment to you. Adding an upscale master suite or bath will only give you 55-56% of your investment back. A full kitchen remodel will, in all likelihood, only give you 59% returns at best. These are things you’ll commonly see done in TV shows, but they don’t typically result in real-world profits.

3. Finding financing isn’t always straightforward when you’re not a celeb. It’s pretty rare for TV shows to even talk about financing. That may be because it rarely adds entertainment value or it could be because it’s just not a concern for them. In some cases, the network funds the flips, while in others, the stars have income from the show, so they can either pay for the projects outright or can use their cash flows to demonstrate they have the bandwidth to pay a conventional mortgage. In the real world, many rehabbers use fix and flip loans in Arizona, which are relatively easy to get, even if you don’t have celebrity income, a network funding you, or great credit.

If You Can Address the Behind-the-Scenes Issues, You Will Be More Successful

Even though TV shows don’t usually cover the legwork done before a project starts, it’s things like fix and flip loans in Arizona and crunching the numbers associated with ROI and market conditions hat play a major role in the outcome of a project. If you’re just getting into the biz, you’ll need to do some homework to ensure your rehab project is profitable.

Build a team of pros who are there when you need them.

One thing shows get right, however, is that it takes a team to make things happen. Shows like to highlight the unique dynamics of each relationship because it adds drama and entertainment value. In some cases, the disputes between parties keeps viewers tuned in, while the dynamics of a happy couple seeing to a joint project gives the empowering feeling that anyone can achieve the same. The latter is more true to life, but the real team expands beyond those seen on screen. There are always contractors, subcontractors, brokers, lenders of fix and flip loans in Arizona, and more involved, so if you’re getting into the biz, building your dream team is a good place to start.

How to Vet Contractors When You’re Using Loans to Flip Houses in Arizona

The criteria used to assess whether contractors and subcontractors are a good fit for your project change a bit when you’re working on an investment property versus your own. If you’re using Loans to Flip Houses in Arizona , make sure your team is up to the task.

1. Make sure they have experience with fix-and-flips. When a traditional homeowner hires a contractor to perform repairs or remodel, it’s usually just an annoyance if it takes longer than initially planned. If you’re in the rehab business, a sluggish contractor or delays can derail a whole project, particularly if numerous tradesmen are involved and their work hinges upon someone else’s work being complete. Even a delay of a day can send the tradesman onto his next project, leaving your project undone until he has time to come back. When you’re using Loans to Flip Houses in Arizona , you’ve got an exit plan and need to stick to your timeline. You need someone who has a proven track record of doing so in order to ensure your project moves forward without costly delays.

2. Get recommendations from other rehabbers and investment property pros. While you can check out general review sites, most are geared toward the consumer market. There’s a big difference in the types of requests a homeowner has and what a rehabber expects, and that ranges from the types of projects completed through the materials used. Your average homeowner may fixate on which shade of beige to paint the walls, which is fine because they’re the ones staring at it for years to come. A good contractor will roll with these types of things and be at least somewhat patient. That’s what’ll get him a good review with a consumer. A rehabber wants a contractor who can make a quick assessment and move on. The mindset is different. In other words, you don’t necessarily want to go with review sites, but rather get recommendations from other rehabbers and people in the industry.

3. Verify they’re insured. Uninsured contractors may do the work for less, but what happens if one puts his foot through the ceiling while working in the attic? What happens if one doesn’t seal a pipe joint properly and it leaks? The list goes on. Uninsured contractors can wind up being a costly proposition that will eat through your budget and then some with a single error or misstep. A true professional has insurance.

Get Multiple Bids to Make Evaluating Contractors Easier

Getting multiple bids lets you see the full range, so it’s easier to see if someone is gouging you or is likely to take shortcuts. It also means several highly-trained eyes will be checking out your property, so you’re more-likely to catch all the issues and hear multiple ways to address each. Getting multiple bids will also help you maximize your return on investment—an absolute must when using Loans to Flip Houses in Arizona .

If you’ve got cash in hand, you may be able to negotiate better too.

It’s generally unwise to prepay for services, as this can actually make the team work slower. However, letting your contractor know you’re using Loans to Flip Houses in Arizona may make him more willing to cut you a better deal. It provides reassurance that he’ll be paid swiftly and, if the project goes smoothly, that you’ll probably hire him next time too. Once you’ve found your ideal contractor, use your funding as leverage to negotiate better rates. By applying these tips, your projects will be smoother and you’ll see greater returns.

How to Evaluate if Commercial Hard Money Loans in Arizona are Right for You

You still have options if the banks won’t fund your business mortgage. If you’ve got a solid business plan, commercial Hard Money Loans in Arizona are a great way to get your project off the ground.

Big banks reject a lot of small-business owners because their projects tend to come with greater risk. They prefer to have sure bets, so they heavily weigh things like credit scores, years in business, and revenue. Worse yet, having your score checked repeatedly, regardless of whether you’re denied or decide not to take the offer you’re given, can hurt your chances of getting approved later, so it’s important to evaluate all your options before moving forward with any one choice. If the banks won’t play ball, there are three main alternatives to look into; credit unions, regional banks, and commercial Hard Money Loans in Arizona .

Credit unions can work if you’re just shy of qualifying with a big bank or you aren’t being offered good terms. You do have to qualify to join one before applying and the criteria will vary based on the institution. Many have higher approval rates and, because they’re non-profit organizations, you’ll likely see lower fees and interest rates. However, if you’ve got rotten credit, don’t live near a credit union, or don’t qualify to join one, you’ll likely need to explore other options.

Regional banks can be another alternative. According to Yardi Matrix Director of Research Paul Fiorilla, they’ve seen the greatest growth when it comes to commercial and multifamily mortgages, which suggests approval rates are slightly higher. “Generally, the smaller the bank, the larger the concentration of commercial mortgages,” he says. While this may be good news right now, he adds that “historically, small banks have played a major role in some of the markets biggest busts,” and expresses concerns that the density seen with smaller banks could spell out trouble in the near future; both for the banks and hopeful borrowers. Moreover, many tend to focus on niche businesses that they know and trust, so the banks in your area may not be big on your preferred property, and some are moving away from fixed-rate solutions to protect themselves from Federal Reserve interest rate hikes.

Private and Hard Money Provide Options and Relationships

Doors really start to open when you explore commercial Hard Money Loans in Arizona . It’s no longer a matter of having a perfect credit score or fitting into a specific niche, but rather having a good business plan and connecting with an experienced broker. Your broker will get to know you and your plans and will then find a private lender who likes to fund projects like yours. Because the approach differs, approvals increase and you’ll likely be offered better or more flexible terms.

There are fewer regulations with private lending, so there’s less red tape and you can get funded faster.

Part of the flexibility afforded by commercial Hard Money Loans in Arizona comes from the fact that they’re not subject to the same regulations conventional mortgages are. This also means the process is streamlined and you can be fully-funded in a matter of days, not a month or more like you’d probably experience with a credit union or regional bank. So, if speed, credit, and denials are getting in the way of funding your business mortgage, touch base with an experienced broker to find out what terms you’ll qualify for with a private lender.

Can You Really Get Funded with Hard Money Loans in Arizona in Days?

Whether you need funding before the year is up or are simply eager move on a deal before it vanishes, Hard Money Loans in Arizona can help. Unlike traditional mortgages which can take more than a month to get cash in hand, you can measure your HML timeline in days.

According to a recent report from Ellie Mae, closing on traditional mortgages is becoming an increasingly sluggish process, with the average refi now taking 43 days and purchase taking 46. This is the longest close time seen in more than a year, meaning those who need to move quickly are out of luck if going through traditional channels.

The same report notes that FICO scores stand in the way for many people trying to get financing. In all, 71% of those funded have scores that top 700, but the stats are a bit grimmer for those going the conventional route. Just 13% of financing was awarded to those with a 650-699 FICO score and less than 4.5% went to all groups sitting at 649 or below. Overall, the average score of those approved currently sits at 727, yet it’s important to note that the average person doesn’t have a score this high. Even though FICO scores are at an all-time high across America, CNBC says they’ve peaked at 704.

Time and credit scores are major barriers for those hoping to move on the purchase of a home quickly, but these numbers largely reflect the landscape for traditional homebuyers. Those working in real estate investing or who want to grab a great deal on a distressed property and restore it face additional challenges. When lenders are being picky about the traditional markets and raise the bar for criteria like FICO scores, those trying to get funded for mortgages under less-traditional circumstances are edged out even more. This is where Hard Money Loans in Arizona can help.

You Can Get Funded Quickly—Even with Rotten Credit

Regardless of whether you’re an average person who wants to purchase a distressed property with the hopes of turning it into a dream home or you’re a real estate investor, you may have trouble even getting the banks to talk to you at all. However, hard money loans work differently. Your FICO score is not a major deciding factor, but the value of the property you’re looking at is. In other words, simply choosing a home that’s a good deal, be it because you’ve negotiated a lower price or the seller is motivated to unload his junk home fast, will be enough to get your foot in the door.

If you can find a good deal, you can have cash in hand in a matter of days.

Conventional financing comes with a lot of red tape because it’s subject to different laws and guidelines than Hard Money Loans in Arizona are, so conventional options take longer to process… and that’s if you’re funded at all. If you’re organized and prepared, it’s not unheard of for alternative funding to come through in a matter of days, making it a great choice for those who need to move quickly or are even struggling due to an “average” or less-than-average FICO score.

Saturday, January 12, 2019

Top 3 Tips for Working with Hard Money Lenders in 2019

The financial landscape is always changing. Learn what Hard Money Lenders in Arizona are looking for in 2019 to improve your chances of getting successfully funded.

1. Have some skin in the game. Before the market burst, you could sometimes get funded without putting any of your own money into a project. This is rarely true these days. While you can get up to 90% LTV, which may well cover everything you need it to, plan on having some of your own cash set aside for emergencies. At the very least, it’ll provide reassurance that you can see your project through if unforeseen circumstances creep up.

2. Bring experience and knowledge to the table. If you’re working with Hard Money Lenders in Arizona to fund your real estate projects, you have to prove that you know what you’re doing. The market is still great for fix-and-flips, fix-and-holds, and new construction, but your experience and knowledge will determine the outcome of the project. If you’re lacking in either, you may need to find a partner whose skills complement yours before you can take on a project.

3. Work out a solid plan in advance. Your plan should include a comprehensive timeline, each task you plan to complete, all costs you’ll incur, market research, and more. If you aren’t a specialist in any given area, be it contracting or appraisals, bring on an expert to help you plan or to review what you’ve established. It’s a smart thing to do regardless, simply because it eliminates a whole lot of costly variables, but it’ll help you get approved for financing too. You’ll also need to nail down your exit plan before approaching anyone for financing. That’s pretty straightforward if you’re doing fix-and-flips, but you may need to explore several options and crunch more numbers if you’re doing new construction or fix-and-holds.

You Can Still Get Funded with Rotten Credit!

One of the biggest questions people ask is whether Hard Money Lenders in Arizona are still willing to work with people who have bad credit. The answer is YES. Absolutely. You’re more than the sum of a credit score. If you’re bringing a great deal to the table and you’ve got what it takes to see it through, rotten credit will not hold you back. Just make sure you’re addressing the three points outlined above and are choosing projects with a lower loan-to-value rate to improve the options you’re offered.

Work with a broker who’s as eager as you are.

Experienced brokers, particularly those who work with private money, always know several Hard Money Lenders in Arizona who are looking to fund deals. They can help you find someone who understands the nuances of your business and will find the best terms available. Moreover, they understand the value of what you’re doing and want you to come back to them for your next project, so they’ll work even harder than most to make sure you’re not just getting an approval, but a great deal too.