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Friday, April 5, 2019

Finding an Owner-Occupied Hard Money Loan in Arizona

Whether you want to remodel your current home, make much-needed repairs to a money pit or get some money out of your equity, an owner-occupied Arizona Hard Money Loan might be the right move for you. Here at Level 4 Funding, we've got years of experience providing homeowners in Arizona with the funding they need to reach their goals. If you're interested and you're tired of getting the runaround from the bank, give us a call and let us show you how we can help. Think the Banks Are Your Only Option? Think Again. Residential Hard Money Lenders Can Help.

Many people think jumping through the big banks' hoops is the only way to get the funding they need. We're here to tell you that it's not. Arizona Residential hard money lenders offer viable options that some people don't know exist. Let's look at how they can help.

There are so many reasons people end up going through the bank for a loan and getting turned down. One of the biggest is that they're not deemed credit-worthy. The banks have a bottom-line number for you to qualify. If you're off by a point or two, it's lights out. If you barely qualify, your rates will skyrocket. That's because these lenders are part of a massively complicated system of rules, regulations and "best practices" — if they don't dot every "I" and cross every "T" the buck will come back to stop with them.

Another reason people get turned down is because their income doesn't fit into a box. We live in a gig economy where more and people work for themselves or are independent contractors for smaller companies. Gone are the days of getting a Friday paycheck for 40 years. Banks haven't caught up — they often still want you to show a weekly paycheck and healthy-looking tax returns. Otherwise, you don't qualify and you're out of luck.

Where Residential Hard Money Lenders Differ From Banks

Arizona Residential hard money lenders exist in a whole different world. The money they lend comes from private lenders and they're not as bound by the rules and regulations of the "system" as the banks. In fact, since the funds are secured with an asset (like a property), they're not even that concerned with how much you make, what you've done in the past or how high your credit score is. Yes, they do have standards and you will need to prove your case is worth the risk, but it's a smaller task than fitting in the bank's tiny little box.

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.

Tired of the Runaround for the Banks? Try Owner Occupied Arizona Hard Money Loans

When the Dodd-Frank Act passed, it became significantly harder to get an owner-occupied Arizona Hard Money Loan but don't believe people who tell you that they don't exist anymore. Speak with us today to see how you can qualify for one.

After the awful recession this country passed through, politicians passed the Dodd-Frank Wall Street Reform and Consumer Protection Act to close the loopholes and loose regulations that allowed it to happen. It applied to banks and big financial institutions, but, surprisingly enough, it also encroached a bit on an area of lending that traditionally exists outside the system — hard money lending and specifically owner-occupied Arizona Hard Money Loans.

These newfound restrictions on the business sent many hard money lenders running for the hills, leaving the few who are willing to take the risk making it into a niche market. So, yes, they still exist and they're a great option for the right candidate.

Who Are Owner-Occupied Arizona Hard Money Loans Good For?

Even though they've taken up residence in the financial world as a niche loan, these types of loans are still a good option for some people. These include:

● People who may have faced a short sale, bankruptcy or foreclosure in the past and have a blemished record

● People who are buying their first-ever home

● People who need a bridge loan to span the gap until they get a conventional loan

● People with a "money pit" — a property with all sorts of repair problems

● People who need money to rehab their personal home

● Anyone who wants to consolidate debt

● Anyone who has increased equity and wants to refinance

Of course, there are pros and cons to these kinds of loans. They are easier to qualify for and they can come through quickly, but they also typically come with higher interest rates and stricter repayment plans.

Thursday, April 4, 2019

Qualify for Bigger Arizona Hard Money Loans by Using Your ARV

Lots of people qualify for Arizona Hard Money Loans to buy homes and make repairs, but what if we told you there's a way to qualify for more funding? You can, and it's by knowing your after repair value (ARV).

Arizona Hard Money Loans, also called asset-based loans, are loans that are secured by a property. Many lenders will only give you around 65 percent of the total value of the given asset. In other words, a property appraised at $100,000 could secure a loan of $65,000.

However, this is where things can get hairy. An appraisal works if the house is in good condition, but what if your plan is to buy the house to renovate it and resell it? You wouldn't be able to get the funding you need because the house's appraisal will show what the house is worth before the rehab.

That's where your after repair value comes in. If you can show the lender that the after repair value is much higher, you may be able to get more funding. So how do you do this?

Figuring Out Your After Repair Value

There are a few ways to zero in on a more accurate picture of your after repair value. First, gather all the relevant information — the square footage, the exterior condition and the basic specs of the house (bedrooms, bathrooms, special features). Now find 10 properties with similar features and of a similar size that sold in the last six months in the immediate area. It's important that you find matching properties that are in good condition. Doing so will allow you to show the lender what the property's potential is.

Of course, you should also use professional appraisers and have them give you an estimate for after the rehab is done on the house. Compare that estimate with your own experience in the business and bring that info to the hard money lender. Remember, you want to sell the lender on the potentiality (the future value) of the property. The more data you have to show this, the better your chances for securing more funding.

Getting a Arizona Hard Money Loan in Arizona with a Solid ARV

Once you've got your ARV — and all the convincing data to back it up — you can go to a hard money lender in Arizona to apply for a Arizona Hard Money Loan. If you're thinking about getting one and have your ducks in a row, give us a call and see how we can turn your dreams into reality.

Supercharge Your Income with Rental Property Loans

Ever thought about getting a property that works for you? It might be easier than you think. How? Rental property loans in Arizona. Let's take a look at how they work.

Most people dream of having money coming in every month that doesn't require them to clock in and clock out a job they hate. Most people also think that the only way to do that is to have a ton on money in the bank to buy a rental property. If you've ever thought that way (and it's stopped you from taking action), we've got awesome news for you! Not only is it within your reach, but it's also probably easier than you think.

You might be saying you don't qualify for a bank loan so there's no way you can buy a rental property. And you'd be right. Banks have rules, regulations and guidelines for deciding to whom they loan money. If you've had a short sale or foreclosure on your record, you'll most likely be denied. If your credit score is below their mandated minimum, you're out of luck. If your bank account isn't as large as you'd like, you may get rejected.

Thankfully, the bank isn't the only place to get a rental property loan. Aspiring landlords get funding for their projects all the time from private investors. These Arizona Hard Money Loans aren't subject to the same regulations and guidelines, so lenders can decide to take a risk on whomever they want. Even if you have blemishes on your financial history and a less-than-desirable credit score, you can have a dream and a plan and get approved for funding.

How Fast Can You Get a Rental Property Loan?

Here's where Arizona Hard Money Loans really shine. With a bank loan, it might take a month or more to see your cash. Without stringent restrictions, you can get approved in a matter of days and have your money within a week or two. And, in the real estate business, being quick can sometimes give you an amazing advantage over other offers.

Where to Get a Rental Property Loan in Arizona

Now that we know that you can get approved for a loan to buy an income property, it begs the question — how do you go about getting one? Well, you're in the right place. Level 4 Funding has been doing hard money rental property loans for decades, so we have the experience to help you through the process. Contact us now to find out how we can work together.

Using Fix and Flip Loans to Make Money Flipping Houses

There are some people out there who think that you can only make money by flipping houses with bank loans. However, not only can you make money with private fix and flip loans, there are times when they actually work better than bank loans. Let's look at how.

When most people look into flipping a house, they go to the bank to get financing. They jump through the bank's many hoops, drop a bunch of their capital on fees and sometimes wait for a month or more to get financing together. Some people do it because it works for them and some do it because they think it's the only way to go about it.

Here's the good news — going through the big, inflexible financial institutions isn't the only route. Hard money fix and flip loans are a viable option, too. Here are two major reasons why:

Arizona Hard Money Loans Are Flexible

At the bank, you'll be asked to have an almost spotless financial history, a sizable amount of money in the bank and a credit score that meets their minimum. If you don't fit in their narrow box, you're out of luck. Arizona Hard Money Loans use private money and operate largely outside the "system," so while they take some of those same things into consideration, they're not bound by them. That means a hard money lender has the freedom to work with you.

Maybe your credit score isn't great or you've got some issues in your past, but you've got a vision and experience doing flips. In the hard money business, you can make your case and get the money you need to make your vision come to fruition.

Hard Money Fix and Flip Loans Are Fast

When you go through the big banks, the red tape can be debilitating. There is all manner of regulations they have to adhere to, and they have complicated underwriting processes. As a result, you might wait a week or two to hear about your approval and then another month before you see the money in your account. Not so with hard money. With very few hoops to jump through, you can get approved in a day or two and have the cash in hand within a week or two.

And we don't have to tell you how important speed is in the flipping game! If you're interested in seeing if a hard money fix and flip loan might work for you, give us a call and discuss your options today.

Wednesday, April 3, 2019

Getting a Arizona Hard Money Loan: Advice for First-Time Borrowers

If it's your first time looking into a Arizona Hard Money Loan, you might be feeling confused or nervous about the process. Don't worry, it's a lot simpler than it seems. Let's look at some things you'll need to know for your first loan.

For our purposes, let's say you're going to do a real-estate flip. So, how would you go about getting a Arizona Hard Money Loan?

When you make your initial contact, you'll want to have some key bits of information at your fingertips. You'll need to know the location of the property, have a purchase price in mind, put together a budget for the rehab and come equipped with some idea of how much the property may appreciate. And, many hard money lenders will want to know your exit strategy.

Once you've gone over this info, the lender may want to get a feel for you as the borrower, especially if you've never partnered on a project. A lender may ask if you've done fix and flips before and inquire about your financial history. Thankfully, none of these things will disqualify you — private lenders have more flexibility when it comes to loaning money.

The Next Steps After the Initial Meeting

The application process can vary significantly from lender to lender but will typically involve a loan application and showing paperwork for some of the above-mentioned factors including the purchase contract and the budget for the repairs and renovation. The underwriter will usually do an appraisal on the property and ensure that the after repair value is in the same ballpark as the borrower's estimate. In addition, they may want to check the property insurance and title history. If everything looks good, a closing will be scheduled.

At the closing, the buyer will purchase the property and sign paperwork related to the loan. Among the documents you might be asked to review, and sign include, but aren't limited to, a personal guarantee, a security agreement, a note and an investment affidavit.

The great thing about using private money for a fix-and-flip transaction? All of this process can be completed in a matter of a week or two. By comparison, a bank loan can take up to a month or two to come through.

Finding a Arizona Hard Money Loan in Arizona

For first-timers, all of this can seem daunting, but compared to big financial institutions, the process is pretty straightforward. And, any hard money lender worth his or her salt will help walk you through every step and make sure you understand what's happening. Here at Level4Funding, we have decades of experience dealing with Arizona Hard Money Loans. Give us a call today to discuss how we can work together to make your real estate dreams come true!