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Sunday, March 24, 2019

Arizona Rental Property Loans: What You Need to Know

The passive income from a rental property is a great way to grow your cash flow. Arizona Rental Property Loans from Arizona Hard Money Lenders allow you to buy a property to use as a rental.

Rental properties have long been a go-to investment for those who want to boost their earnings portfolio. Investors use Arizona Hard Money Lenders for their Arizona Rental Property Loan because it’s a quick way to get the cash needed to make a purchase. But what happens once you have the property?

Here are some tips for successfully managing a rental property.

Set the Right Rental Price

There are many factors that go into pricing a rental property. Is it close to schools? Is there a noisy train track near by? What are other rentals going for in the neighborhood? The best way to determine a rental price is to consult a real estate professional who can crunch the numbers. Setting the price too high will keep you from getting a tenant and setting the price too low leaves you missing out on potential income.

Don’t Break the Law

There are important fair housing laws that simply can’t be ignored by landlords. Tenants are protected in various ways and the worst thing you can do is violate a tenant’s rights and find yourself in legal trouble. You can find this information online or again, consult a real estate professional.

Advertise Your Rental

The next step is to find yourself a tenant so you can start paying back that rental property loan. There are plenty of sites to advertise your rental like Zillow and Trulia. You’ll need to be prepared to run credit and background checks to vet your potential renters and also have access to a lease contract.

All of these things are extremely important and due to the precarious nature of the fair housing laws, it may be beneficial to consider using a property manager to ensure you are covered legally.

If you’re interested in stepping into the realm of rental properties, consider getting a rental property loan from a Arizona Hard Money Lender like us, Level 4 Funding. We would love to help you get started on your investment journey!

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.

Arizona Hard Money Lenders Preparing for Busy Season

Real estate is always a good investment, but supply and demand fluctuates throughout the year. Arizona Hard Money Lenders are gearing up for the busiest time of the year.

What’s better than springtime in Arizona? We’ve got the mountain views, we’ve got the baseball, and most importantly, we’ve got the weather. When the weather warms up so does the housing market. The spring time is one of the busiest times of the year for real estate.

So what does that mean for you as an investor? That means you need to be ready to make purchases quicker as the competition heats up.

Arizona Hard Money Lenders Approve Quickly

Unlike traditional loans, Arizona Hard Money Loans are fast and investor friendly. Once the lender has a chance to review your financial plan they can make a quick approval. It’s even quicker if you come with all of your information in an easy to read and organized format that explains your budget for the home purchase, renovations, and any other fix and flip related costs.

Arizona Hard Money Lenders Fund Quickly

Just as Arizona Hard Money Lenders complete approvals quickly, their funding follows soon after. There’s no waiting around on your money. The quicker your loan gets funded the quicker you can get to renovations so you can get your home back on the market and money in your pocket!

When the market is as competitive as it is right now this is imperative to locking down an investment property. Homes are going under contract at rapid speed so you’ll need to make an offer on a property as soon as possible.

Arizona Hard Money Lenders like Level 4 Funding understand this and make fast lending decisions accordingly. Depending on the project, decisions can be made and loans can be funded in as little as a week, giving you the competitive edge against other investors looking to secure properties like you.

To set up an appointment to speak with us, give us a call and we can carve out dedicated time to hear about your fix and flip investment project and get started on your work with us, a Arizona Hard Money Lender dedicated to making your real estate investment dreams come true.

Funding Your Arizona fix and flip loan and Expenses

A Arizona fix and flip loan is one that doesn’t conform to traditional lending criteria and payoff terms. Read below to find out why a these special loans have investors smiling.

Whether you’re new to fixing and flipping or a seasoned flipper, it’s an exciting adventure! It might not be as glamorous as television portrays the process, but it’s still an investment journey that can bring in the cash and give you creative freedom!

For a first time flipper, there are some expenses beyond your Arizona fix and flip loan that you may not be aware of so we’ve created a list so you can be prepared!

• Loan costs

• Insurance

• Property Taxes

• HOA

• Maintenance beyond repairs such as yard

• Selling costs

Each of these are going to run a different amount depending on where you’re buying and what you’re buying, but it’s a good rule of thump to have money set aside for each of these.

For example, if you purchase a home today, it might take you a month to fix it and a month to flip it. That means you’ll need money to cover two months worth of HOA fees and yard maintenance.

Beyond those typical costs, the costs of your flip are going to depend on the condition of the home and the necessary repairs and ideal upgrades. Having a solid financial plan for your flip is the first step you need to take so that you don’t go over budget and end up coming out on top once you sell the home.

Once you have your financial plan in place, you can contact a Arizona Hard Money Lender for your Arizona fix and flip loan. They will go over your plan with you and examine your budget to determine if it’s a good loan for them to make.

Once they’ve decided that your financial plan is solid and well thought out, they can decide to fund your Arizona fix and flip loan! Funding is quick through Arizona Hard Money Lenders so you can make your purchase and get started on your renovations as soon as possible.

Level 4 Funding specializes in Arizona fix and flip loans and would love to hear about your latest project. Give us a call today to speak with someone about your investment dream!

Saturday, March 23, 2019

Make That Purchase Happen with Arizona Special Home Financing

When conventional loans aren’t an option, Arizona Special Home Financing might be the way to go.

Conventional loans and FHA loans are the typical way for home buyers to obtain financing, but the requirements can be strict and unforgiving. We all go through times in our lives that may force us to turn to credit to stay afloat and during the time you’re paying down that credit, it can be difficult to get a home loan.

Here are some tips for paying down your debt so that you can obtain a traditional loan:

Budget, Budget, Budget!

The best first step is to create a budget. List out every single expense you have each month such as rent, car payment, insurance, phone bill, gas, and groceries. If you don’t have a good idea of where your money needs to go every month, you won’t have a good idea of where you can save to put money aside to pay down debt.

Start High, Finish Low

It may be tempting to pay off the lowest debts first, but financial professionals will tell you to pay off the debt with the highest interest rate first so that you can still make minimum payments on the other debt with lower interest rates.

Balance Transfers are Your Friend

This is a great way to navigate around those high interest rates so that you can make a bigger dent in your debt. This is an advantage to you if you can pay off the amount before the higher interest rate kicks in after the transfer.

Most importantly, if you need to purchase a home in the meantime, Arizona Special Home Financing might be the way to go for you. With flexible terms it can mean being approved and funded while you’re paying down your debt in order to obtain conventional financing on your home.

Call Level 4 Funding today to learn more!

Prime Vacation Properties for Arizona Rental Property Loans

(There are many great options for different properties when you are considering investing in a vacation rental. Determining the best property for you will help you know the best type of Arizona Rental Property Loans to research.)

Vacation rental properties are a very high-interest investment currently. Not only are real estate investors finding that vacationers enjoy the features of a less commercial hotel experience, but investors are also enjoying the benefit of having a vacation rental of their own to visit. The location of your rental can sometimes dictate the type or size of the property that you are seeking but many times it is the preference of the investor and the amount of the Arizona Rental Property Loans mortgage that dictates the choice.

Condos are very popular as vacation rental properties because they offer renters many amenities that are not found in single-family homes. Access to abundant parking, swimming pools, a community gym, and even shops and restaurants can be huge benefits to renters on vacation. And you will find that many guests prefer to have the features within walking distance so as not to have to drive in a new city. Condos are also a good investment as the exterior maintenance, and sometimes the interior care as well, are covered by the association. This eliminates the need for yard care and other expenses associated with a single-family home vacation rental property. And with fewer expenses, you can budget more for your Arizona Rental Property Loans mortgage to get a larger or more updated unit.

A single family detached home is normally going to offer the largest space but will also carry the highest operating cost. You will be paying for more maintenance and upkeep as well as a local manager to provide access to renters and handle emergency maintenance calls. In addition, the single-family homes Arizona Rental Property Loans mortgage will be the largest, making total occupancy critical. Some of the drawbacks include fewer amenities, the need for transportation in most cases and much higher rent which limits your potential renter pool.

Multiunit Properties

Owning a multiunit vacation rental property can have several benefits. You are investing about the same amount in marketing but you have the potential for more rental income for that same investment. In addition, you can rent to larger goods such as several families who each want a unit but want to be near each other. And even in t a more busy season, you have a better opportunity to visit your property which still collecting rental income from the other units.

Know The Market

There are a lot of options for vacation rental properties, and it is always best to learn which types of properties are in the highest demand in the location that interests you. In areas that attract families, larger properties might be the hot item. But in an area that attracts retirees, smaller units and condos could be the best option. Knowing these facts will help you to make a good selection that will offer the greatest return on your investment.

Vacation Arizona Rental Property Loans

(Vacation rental properties are somewhat unique to other rental income. But investors need to consider all of the same information that they would for any other Arizona Rental Property Loans.)

Owning a vacation rental property sound so much more fun and exciting than just owning a rental property across town or even in your neighborhood. But investors need to be careful not to get caught up in the excitement of owning a vacation property until all of the work is completed. There are still many factors that can make even the coolest looking beachfront property a bad investment and can turn your search for Arizona Rental Property Loans into a nightmare.

Location is a driver for all real estate purchases, and this is even more important for a vacation rental property. There needs to be something that draws vacationers to the area for you to get a good return on your investment. And in most cases, you want the property to be in good condition as you will not be able to travel to the property to make renovations and repairs. And a turnkey property can begin earning you income immediately.

You will also want to gather some information to know how much you can afford to spend each month for your Arizona Rental Property Loans mortgage. Vacation rentals often must pay property tax, rental income tax and occupancy tax which all need to be added into the monthly expenses. In addition, don’t forget to include insurance, HOA fees, utilities and management, and maintenance fees. All of these plus the cost of your Arizona Rental Property Loans mortgage should be covered by the rental income you are receiving.

Plan Ahead

While researching different locations for your rental property, you will also want to explore the maintenance and management services in the area that you could use. Renters are not going to want to call a plumber for you if there is an issue and you are not going to be able to run over and make necessary repairs or maintain the property. Planning for these services will ensure a smooth experience for both you and your renters.

Marketing Your Vacation Rental

Most communities in tourist areas have online services to market your vacation rental property. In addition, you can create your own website, list on community boards and market through a management company who helps find renters for you. Other marketing plans include working with local attractions to offer their patrons a discount on your property or even working exclusively with a travel agent. But the most important thing to remember is that your vacation rental property is cost you money rather than making you money when it is vacant. This means that unlike any long-term rental properties, a vacation rental property could require a greater investment in marketing and property management. This is an important piece of information to consider when you are deciding if a vacation rental property is the best investment choice for you or if it just looks like it will be the most fun.