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Wednesday, January 30, 2019

Can You Really Qualify for Texas Hard Money Loans?

Interested in obtaining funding with an alternative loan but unsure if it’s for you? Continue reading to learn more about how you can be successful with hard money, and if it is right for you.

Hard money loans are offered by untraditional lenders. Untraditional lenders are usually private companies and investors. Normally, a traditional loan can be obtained from a bank or credit union. However, because traditional lenders have qualification standards, not everyone can receive traditional loan funding. This is why many turn to Texas Hard Money Lenders, and why you may be interested in learning more about hard money yourself. Hard Money Lenders utilize the property’s potential when approving borrowers for loans. The value of the property, its potential profits, and collateral are the overall determining factors. And while financial history is important, it doesn’t play as big a factor as the property’s value will.

Qualifying for hard money loans will certainly be exciting, especially if you have been turned down in the past by other lenders. Though before moving forward, you will need to consider a few things before accepting and signing the terms to your loan agreement.

What to Know if You’re Eligible for Private Hard Money

Private lenders have high interest rates and loan fees that accompany the terms of private hard money. The rates can be as high as 15 percent and meant to protect the lender for possibly risky loans and unreliable lenders. It is not uncommon, either, to see ill-intentioned individuals hide under the premise of these loans. Doing your research and feeling confident in the reliability of your lender is going to be as important as proving yourself a reliable borrower. It’s not unheard of to have lenders pull deals out at the last minute. Understanding their past success with previous clients will give you an idea if you make a good fit with the kind of work they are intending to do, but you should also be aware of common situations when hard money is completely ideal.

Is Hard Money Right for You and Your Situation?

The short repayment period of hard money loans usually means it is most ideal for short-term projects. Examples of this include: renovating a fixer upper, obtaining money fast to prevent a home from foreclosing or to grab it quickly off of a competitive market. Fixer uppers are great for hard money because the loan can be used for renovations before the home is sold for a profit, in a very short-term scenario. Using the loan for something like the necessities of a rental property, which involves a profit after obtaining a tenant long-term, would not be ideal. 12 months are usually given for the repayment period, unless another deal is compromised with your lender. Timelines are extremely important. It’s one thing to obtain funding, but it’s another to not be able to work with the given circumstances of the agreement. Knowing how the timeline of hard money functions within your own personal timeline will determine if you will find success with hard money.

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.

If You Need Speed, Private Hard Money Loans Might be the Best Option for You

Trying to borrow money fast? If you can’t qualify with traditional lenders and have a need for speed, hard money loans offered by private investors just might be for you.

Lots of people turn to traditional lenders like banks and credit unions when they need money. However, it doesn’t take a genius to know that traditional lenders have some tough requirements to meet. Having a great credit score and debt to income ratio can make or break you when it comes to qualifying for loans, often leading people to seek out alternative options.

Alternative loan lenders are not bad. They are untraditional, private investors that can usually offer money faster than traditional lenders. Because they can cater to a wider audience, their needs and expectations are often different. For example, they have different loan approval requirements, as well as steeper fees and interest rates.

Are You Eligible for Private Hard Money?

Qualifying for hard money loans is possible, even if a bank denies you. This is because Texas Hard Money Lenders consider property potential before they consider borrower potential. If you are working to obtain a property with high potential, it is likely that a private investor will provide you with funds to support your property. Private Texas Hard Money Lenders consider the LTV—the loan to value ratio. Sometimes, they can offer 65 percent of the property’s worth to you in funds. Additionally, because they work a little differently than traditional money lenders, the relationship is usually more transparent with a little flexibility. Usually hard money loans are paid off in 12 months, but can be expanded as long as 60 months, or 5 years. In this way, Texas Hard Money Lenders may seem “individualized,” making the loan process suitable to each individual that has been denied by banks due to high, generalized standards.

Borrowing from Texas Hard Money Lenders Successfully

If you think this sounds too good to be true, it probably is. While Texas Hard Money Lenders offer lots of benefits, they also have some cons that should be considered thoroughly—before making any rash decisions out of excitement. For one, Texas Hard Money Lender maintain very high fees. This is a stipulation of their easy approval process, and acts almost as a reliability buffer for them as lenders. Knowing if you can handle high fees and a short repayment period is important. Even if there is flexibility within the repayment period, you still want to be realistic. Researching a reliable lender will also be important. While Texas Hard Money Lenders typically provide good, transparent relationships with their borrowers, it is not unheard of for lenders to pull out at the last minute, or hide fees within the loan agreement. If you are feeling unsure of your hard money lender, you can always invest in a real estate attorney who can help you evaluate and understand the terms of the loan agreement, so that you can feel confident you will be making the best decision for you. Hard money loans are a great option for people who need money fast—just make sure that your need for a loan doesn’t overlook stipulations that could cause you trouble in the long run if you aren’t being realistic about all of your needs.

Do Texas Hard Money Lenders Really Make Dreams Come True?

Are you in need of a loan but unsure if hard money is right for you? Read Julia and Robert’s story below to find out the best way to take advantage of the hard money market.

Julia and Robert are married, successful business partners who have been working together for over 10 years in the housing market. With an eye for design and innovation, Julia has been working as an interior designer, while Robert has been working as a real estate agent. Having been in the industry for so long, it’s a wonder that they haven’t branched out into home renovations. Perhaps it’s been the hours of binging HGTV that’s inspired them to explore new opportunities.

Despite being successful in the industry already, it was still necessary for Julia and Robert to take out a loan to begin renovating a home. They were exciting to begin work right away, and were interested in pursuing Texas Hard Money Lenders because of the speed they offered.

Eligibility of Private vs. Public Lenders

Making money with private hard money investors means being aware of all of their expectations. Private money lenders work differently than traditional lenders like banks and credit unions. For example, they have an easy to pass approval process. Instead of evaluating the borrower’s financial history first, they evaluate the value of the property. Considering the property’s potential allows them to determine if it would be a successful investment. Then they can consider if the borrower is someone, they would be willing to work with. In this way, they offer flexibility that is appealing to many, especially when gaining approval by banks is so difficult. Working in the housing market made it necessary for Julia and Robert to understand finance and credit. This made them great candidates for a loan from the bank because they had a great credit score. Not only that, but the wealth they’d accumulated from work also made for a great debt to income ratio, something else that disqualifies many from bank loans. Despite these benefits, Julia and Robert turned to Texas Hard Money Lenders for another reason: speed.

How to Make Money with Private Money Lenders

Using the advantages of hard money was exactly what Julia and Robert wanted to do. Obtaining a property with high potential was going to be hard to do on a competitive market, though the speed of their private investor allowed them to bid fast. Banks can take as long as a month, but their investor allowed them to make a bid the following day. After obtaining the property, Julia and Robert were able to begin renovations. Because the fees of private investors are higher than traditional public lenders, Julia and Robert’s decisions had to be considered carefully. Anything can go wrong when renovating a house, and if the opportunity is there, it will. Creating a buffer for financial downfalls is exactly what Julia and Robert did, but they were fortunate not to have to fall back on them for much. Then, Julia and Robert were able to post their house on the market successfully. With a successful sale within their profit margin, making for less stressful loan repayments, Julia and Robert were able to prove that Texas Hard Money Lenders can help make dreams come true.

Tuesday, January 29, 2019

Triple Your Chances at Becoming a Borrower with Texas Hard Money Lenders

Being disqualified from a loan can be frustrating, and you may not know what your next steps should be. Fortunately, for those who don’t qualify for traditional loans, alternative lenders exist to provide options for those who may be struggling to find funding elsewhere.

Traditional lenders like banks and credit unions may have some hard to meet requirements for the average borrower. If you’ve fallen behind in a payment or have weak financial history, you are probably not the best candidate for a traditional lender. While it may be discouraging at first, you should know you may qualify with untraditional, private lenders who offer hard money.

Texas Hard Money Lenders are the common go-to for people who can’t qualify for traditional loans. They offer speed, transparency, and a quick approval process—perfect for those who are ineligible for bank loans, and are looking to moving forward fast.

Benefits of Borrowing from Private Investors

Borrowing from private investors usually means having a more personal relationship with greater transparency. In a successful deal with a hard money lender, you will get the money you need fast, as well as have some flexibility within the loan. Private investors focus on the property’s potential. This means they will evaluate it using a loan to value ratio, or LTV. Sometimes they are able to offer borrowers as much as 75% of the LTV. Banks differ because they evaluate the reliability of the borrower first—they seek out credentials, ensuring they are lending to a candidate who will be successful in the repayment period. This is not to say that private lenders do not consider your finances—they do. But they also evaluate how successful you will be with the property. In cases of fixer uppers, where a profit is hopefully being made, they will consider how this will factor into your ability to repay.

Tactics to Borrowing Successfully

Borrowing from Texas Hard Money Lenders successfully comes down to using your smarts in making decisions. Doing research and understanding all the factors involved will make your life easier. This involves the terms to the loan agreement, expectations of your lender, and factors regarding the property itself. The repayment period for hard money is fast. Because it is paid off so quickly, usually in 6 months to a year, it is a great option for fixer uppers. The success of a quickly sold and renovated home lends itself to this option. However, others with a need for speed may also turn to this option—like those trying to prevent foreclosures, or just trying to obtain a competitive property. One major stipulation all borrowers of hard money need to consider is the high fees. While obtaining loans from private investors may come easier than public investors, it definitely comes with a noticeable price. Because lenders are going into a loan agreement with someone deemed “unreliable” by banks, the high fees act as a buffer between the lender and borrower. Knowing your financial situation and thoroughly evaluating if you can couple the fees of hard money as well as its repayment period will be essential, because while private investors offer great alternative options, they may not be the best bet for everyone, even if approval comes easy.

Top 6 Arizona Hard Money Loans

Get hard money loans today through Level 4 Funding.

Opposed to conventional or institutional lending sources, hard money originates from private investors. These private investors pool hard money funds intended to be lent out above the average market interest rate in order to finance business ventures, asset acquisitions, or residential needs. Hard money is found by consulting either a private money lender directly, or a hard money broker. Comparing loan types, terms, and rates from a variety of lenders, hard money brokers help clients find the right type of financing. Though hard money loans vary, here are some of the most common loan types available.

Business Loans:

· Commercial loans: Frequently, businesses need more, more land, equipment, or inventory to meet demand. Arizona Hard Money Loans can help. Other reasons for acquiring commercial Arizona Hard Money Loans include bad credit, lack of credit, foreclosure, market shift, economic downturn, bankruptcy, or debt consolidation. Whether growing or maintaining investments, Arizona Hard Money Loans offer help, progress, and return.

· Arizona Cannabis Business Loans: Navigating the promising and perilous opportunity of legal cannabis? Need some cash to get your business up and running? Hard money is probably your best bet since institutional lending is on the sidelines. Get cash to start an agricultural, medicinal, clinical, or commercial business. Find the right property to grow your business. While institutional money is on the sidelines, small business is poised to gain.

Residential Loans:

· Owner occupied loans: Sometimes, when you already have a mortgage, it is difficult to get further financing from the banks. This is discouraging for individuals who just need a little money to renovate their home, bump the value of their residence a bit. Arizona Hard Money Lenders are able to lend money to residential home owners who need a helping hand.

Real Estate Investing Arizona Hard Money Loans

Real Estate Investment Loans:

· Fix and flip loans: Fix and flip loans help real estate investors acquire, renovate, and sell property. Distressed property is king, since it’s below average market value and offers greater potential returns. However, banks frown upon distressed properties, so hard money lending is typically preferred for fix and flip investors. Arizona Hard Money Loan help fix and flip investors step-by-step with financing until the property is refurbished and valued at average market value.

Get Arizona Hard Money Loans. Talk to your hard money broker today at Level 4 Funding.

· Renovate and rent loans: Wait, you can retire on rental properties? Sure! Save money, invest in property using your savings coped with Arizona Hard Money Loans. Buy distressed property, fix it up, and lease it out at a comfortable rate. Pay off your loan in a short period and have pure cash flow. Repeat. Retire with long-term cash flow from long-term rentals.

· Spec home loans: Are you tired of beating the bushes for distressed property? Build a spec home and secure returns with Arizona Hard Money Loans. Arizona Hard Money Lenders allow you to acquire land, build property, and sell homes for a pretty penny.

Crowdfunding: A New Era of Arizona Private Money Lenders?

The concepts of crowdfunding have been around for a long, long time. Printing presses, credit unions, governments, bonds, religions leading up to GoFundMe, blockchain, Uber, Airbnb, etc. . . . With the internet overwhelming the four corners of the earth, crowdfunding has risen to a global stage, a stage that entices many to invest, fund, or support the efforts of others. Curiously enough, crowdfunding has even seeped into real estate investment acting in virtue of a horde of micro Arizona Private Money Lenders.

Crowdfunding, or gathering small amounts of money from large groups of people in order to achieve a purpose has been going on for a very long time. In the past say 1439, after the beginning of the printing press, when paper, materials, ink, and machinery were more expensive, writing was still expensive despite innovation. Becoming a writer alone usually required someone of great monetary means whose patronage could support an individual of literary talent. However, to acquire more business, many writers employed methods of subscription to fund further literary works. With enough written confirmation of individuals willing to buy the book, publishers would feel comfortable undertaking the risk of printing.

Aside from writers and printers, religions, charitable organizations, credit unions, and even bonds have implemented crowd funding principles. However, after the advent of the internet and the spread of personal computers, crowdfunding evolved taking the nation and the world by surprise. Napster in 1999, for example was an early attempt. eBay, soon followed along with Airbnb, Cryptocurrency, Uber, Spotify, Citi Bike, and a myriad of mobile scooters paying individuals up to $20 per to charge each unit. Crowdfunding and its principles are wide-reaching, theoretically founding or funding many successful companies.

Some are interested in crowdfunding for its ability to help those in need, offer unique services to many people, or build economic infrastructure in third-world countries. Others enjoy these benefits but are also able to harness crowdfunding to create, build, and secure returns.

Micro or Macro?—The Future Source of Arizona Private Money Lenders

The possibilities of crowd funding are unforeseeable and promising. Instead of gathering the funds of one huge entity, it allows companies to harness the power of many Arizona Private Money Lenders. E pluribus unum. Micro Arizona Private Money Lenders continue to move mountains with the widow’s mite. Surreal.

Will conventional hard and Arizona Private Money Lenders be affected by crowdfunding? Stay tuned . . .

There are now over 75 crowdfunding real estate entities in the US. Many ponder the implications of crowdfunding entering into the real estate industry and the effects it will have on hard and Arizona Private Money Lender. Only time will tell how crowdfunding will work out, whether or not legal mandates will push it out of the lending sector or will allow it to remain.