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Tuesday, March 26, 2019

Avoid Scams: Use a Reputable Arizona Hard Money Lender

Vet your Arizona Hard Money Lender to ensure you’re not being taken for a ride.

We live in a time where scams run rampant. We receive calls asking for personal information from illegitimate sources. We get emails phishing for our data. We have to live in a diligent manner in order to avoid the pitfalls of scammers.

Unfortunately, Arizona Hard Money Lenders fall into this category. While it’s not the norm, one bad apple can spoil the bunch. That’s why we’re here to tell you that places like Level 4 Funding are dedicated to providing clear and concise loan information so that you can feel comfortable funding your project with one of our loans.

Here are some ways to detect an illegitimate Arizona Hard Money Lender:

Too Good to Be True

We learn this from a young age and see it time and time again. There’s always fine print so you want to review any and all paperwork and contracts for the fine print that could get you into hot water. Things like large prepayment penalties may be hiding in the fine print, waiting to sneak up if you’re not prepared.

You Vet Them, They Vet You

Would you loan a stranger a large sum of money without knowing their background? Neither will a legitimate Arizona Hard Money Lender. They are handing over thousands of dollars and need to know that it’s going to someone who can handle the responsibility and plan their investment properly.

Extra Up Front Fees

While Arizona Hard Money Lenders may require a loan origination fee or a smaller sum of money as a sort of earnest deposit, if you’re being asked to hand over what seems like an unreasonably large amount of money before your loan is funded, beware!

Word of mouth is a great way to make sure you’re going to work with a tried and true lender. Speak to former clients and look up reviews. There are forums that you can find where investors talk about their experiences with certain Arizona Hard Money Lenders. If you’re seeing a lot of negative experiences, it might not be the lender for you.

Contact Level 4 Funding today to learn about our funding with no hidden fees or terms.

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.

No Credit? No Problem for Arizona Hard Money Lenders

Whether you have bad credit or no credit, Arizona Hard Money Lenders can look beyond that to see the potential for a great investment.

There’s a lot of talk about bad credit these days. When people fall on hard times it can be the only way to get by, but it comes back to haunt you if you are unable to pay it off in a timely manner.

But what about those who don’t have credit? There’s an especially satisfying feeling being able to make large purchases without putting it on your credit. People work and save to be able to do just that. However, not having credit can sometimes be a roadblock just like bad credit can be when it comes to home loans.

Here’s why traditional lenders don’t follow in the footsteps of Arizona Hard Money Lenders when it comes to credit requirements.

Why Credit Matters

Credit shows your ability to budget your money and pay off large purchases. Banks use this as a gauge for how you will treat their loan should they fund it. Having bad credit shows that you haven’t been responsible with money in the past and taints your ability to secure funding.

No credit means there’s no record of your money management at all. Unfortunately that’s the best way to prove to lenders that you can fulfill financial responsibilities. A clean slate, in this case, isn’t good.

While Arizona Hard Money Lenders can look beyond not having credit, it’s beneficial to have some sort of credit history because it is an important part of many life events like applying for a job or student loans. You can get a secure credit card to begin building your credit history and display your ability to manage your money wisely.

Bypass the Credit Requirements

If you’re looking to fund an investment and don’t have the savings to do so, speak with a Arizona Hard Money Lender to see what your options are. Level 4 Funding, for example, has a proven track record of funding loans for investors with no credit or bad credit, enabling them to make their investment dreams come true!

Use a Hard Money Loan to Ensure Funding for Your Flip

A Arizona Hard Money Loan is a quick and easy way to fund your fix and flip investment, ensuring you don’t run out of money to finish the job.

One of the worst mistakes and fix and flip investor can make is not having the funds to purchase and rehab the home up front. It’s risky to rely on a previous flip to sell for enough to fund your next flip that’s already in progress.

Using a hard money loan can give you peace of mind that you’re not going to run out of money before the job is completed. You most definitely don’t want to be half way through the rehab and realize you can’t afford the rest. That’s the easiest way to stall a flip and lose money, lots of money.

Budget, Budget, Budget!

When you’re planning your flip you want to budget for things to go wrong. You may want to just replace an out-dated sink, but when the plumber begins the installation they may find mold or other plumbing issues that will need to be fixed. It’s rare to rehab a home and not have unexpected expenses. It’s the nature of the beast!

Your Arizona Hard Money Loan should allow for those unforeseen circumstances. The last thing you want to have to do is take out a secondary loan because you can’t cover the rehab with your first round of funding.

If you have proper inspections done you should be able to have a good idea of what you’re in for beyond the typical aesthetic upgrades. It’s an up front cost that will most definitely pay off in the long run.

Don’t Put Yourself at Risk!

Having to sell a partially completed home is worst case scenario. You’re fighting a losing battle trying to find someone willing to take on a partially completed project and that takes out a huge chunk of buyers who will only purchase move in ready homes.

As stated above, trying to secure a secondary loan can be difficult, and sometime impossible. Lenders don’t want to be second in line as that puts their funding at risk.

Speak with a lender about a Arizona Hard Money Loan and discuss having your project funded, with a little wiggle room so you can complete a successful rehab project and grow your investment portfolio!

Monday, March 25, 2019

Residential Arizona Hard Money Lenders Compete for Business

Residential Arizona Hard Money Loans are, in fact, a great way for buyers to lock down funding without the tough qualifications required by traditional lenders.

Shopping for a residential Arizona Hard Money Loan is like shopping for a car. You can get the same vehicle at multiple dealerships, but you want to vet them out and pick the right one for you. Here are the items you should know about your residential Arizona Hard Money Loan servicer before applying for a loan:

Rates

Rates can vary from lender to lender and the rate is going to make a big difference in the amount that you pay.

Loan Length

How long is the life of your loan? How long do you have to pay it back?

Prepayment Penalties

If you are able to pay your loan back quicker you will want to know if there are prepayment penalties that will be levied against you.

Origination Fees

Much like the interest rate, the origination fee can vary from lender to lender. This is cost that needs to be included in your investment budget.

Loan-to-Value Percentage

Depending on the home you want to purchase and the amount that you have to put down for the loan, your LTV percentage will change. You’ll want to check the residential Arizona Hard Money Loan terms to see if your purchase qualifies for their LTV restrictions.

Call a Arizona Hard Money Lender like Level 4 Funding to get this information so that you can be prepared for your investment and apply for your loan with all of the necessary information.

Arizona Special Home Financing Provides Opportunity for Investors

Arizona Special Home Financing allows investors to purchase homes quickly to fix and flip for a profit.

The term home loan brings to mind the traditional 30-year mortgage that home buyers use to fund the purchase of a house, but that’s not the only way to fund a home loan. Investors are a special breed of home buyer. They have different needs and that’s why Arizona Special Home Financing exists.

In order to obtain Arizona Special Home Financing from a Arizona Hard Money Lender, you’ll need a well thought out business plan. They’ll want to know about the specific home you want to purchase and what your rehab plans are. But to start your fix and flip business there’s a bigger picture plan that needs to be put into place.

Here are some of the things you’ll need to consider when starting your fix and flip business:

Where You Want to Work

There may be certain areas of your city that will work better than others for fixing and flipping. Knowing those areas is important so you can select a property that will bring in a good return on your investment.

Type of Houses You Want to Flip

Do you want to stick to only single family residences? Are townhomes an option? If the home has an HOA are you prepared to work around their restrictions? Consider the different options to narrow down your flip opportunities.

How Many Houses You Can Flip

You’ll also need to take a deep dive into your budget to plan for how many houses you can flip without digging yourself into a financial hole. Be prepared for all expenses beyond the rehab such as HOA dues and taxes.

Once you have your business plan prepared you can tailor it to specific properties that you want to flip, giving you a groundwork for your Arizona Special Home Financing application. To learn more about your funding options, call Level 4 Funding today!

Short Term Private Money Loan Means Long Term Income

Arizona Private Money Loans aren’t just for fix and flips. They can be used for long term investments such as rental properties as well.

Arizona Private Money Loans are best known for funding quick investments like fix and flips, but you may not know that it can be used for long term investments like rental properties.

The main reason to go with a Arizona Private Money Loan is because it can be funded quickly and without the restrictions of traditional loans such as credit requirements. The Arizona Private Money Loan is going to come with a higher interest rate which is an incentive to pay it off sooner rather than later, but the ability to get your loan funded quickly is a definite pro.

When an investor is looking at purchasing a rental property for long term investment income they may not be able to meet the traditional lending requirements and that’s where we come in. We can allow the investor to purchase the property quickly, start making income, and fund with a Arizona Private Money Loans until a traditional loan is within reach for the investor.

Here are some ways to boost your chances of getting approved for a traditional loan to replace your Arizona Private Money Loan on your rental property.

• Boost your credit by paying off high interest balances

• Work with a credit repair company to correct errors on your credit report

• Speak with a lender to determine where your debt-to-income ratio needs to be

• Avoid incurring any new debt

• Stay at your job to have consistent employment history

Speaking with a professional credit repair service and a mortgage professional are surefire ways to get yourself on track to be approved for a traditional home loan. They can offer guidance that is personally tailored to your situation and what you yourself need to do to qualify for a traditional loan

In the meantime, if you need a short term Arizona Private Money Loan to fund your rental property, give us a call at Level 4 Funding to discuss your options.