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Friday, August 30, 2019

How to increase eligibility for Arizona Renovation loans

If your just starting out in the flipping business, you may be wondering how to increase your eligibility for renovation loans. Sure the application process is easier than a bank loan, but that doesn't mean these lenders just give money away. Learn some steps to increase your eligibility-these steps wont just help put your lenders mind at ease, but also help you increase the profits you can earn from your next flip.

By and large renovation lenders are mainly Arizona hard money folks. These lenders focus on property values above all else, which means there’s basically two things they care about:

1.When they’ll get their money back

2.What the value of your property is both now and after you’ve repaired it.

Along these lines, if your in the flipping game you can up eligibility by following these tactics.

Follow these three tactics to improve eligibility for Arizona renovation loans

1,Have a detailed plan before meeting with your lender- Have a clear timetable concerning each repair you’d like to make. Knowing these details and having them on paper will assure your lender about exactly when they’re going to get their money back. Plus it shows that you’ve carefully thought about your project and that you know what you’re talking about.

2.Cite a Realistic resale value- Your lender will want to know that the final sales price of your flip will cover the cost of your loan. So before meeting with a potential lender, know the resale value of comparable properties and know these numbers like the back of your hand.

3.Have enough savings on hand in case something goes wrong- What goes up must come down, and if you have a plan something will go wrong. So before meeting with a potential lender be sure you have enough savings on hand to make loan payments for a couple months, in the event your plans get derailed. Having any sort of financial safety net will greatly ease your lenders mind and improve your eligibility.

Not only will using the above steps improve your chances of getting approved they will also help you risk less and turn a greater profit on your next deal.

Using these tactics wont just improve your eligibility for Arizona renovation loans, they’ll help you risk less and make more.

Detailed plan keeps work on track- Having a clear timetable will ensure work stays on schedule and that you’ll pay your loan off as soon as possible. The less time you waste, the lower your loan payments and the more money you’ll make in the end.

Realistic resale value gives realistic profit projections- This will give you peace of mind of knowing how much money you’ll make on your project. It will also help you avoid flipping a 100k house that in the end sells for 105 K.

Having sufficient savings will prevent default- If you can’t make loan payments after work get seriously delayed, you’re going to default. If you default because you can’t keep up with payments, all those blood sweat and tears you’ve expended on your flip will go to waste.

So use the above principles not only to improve your chances of qualifying but to help you risk less and make more on your next flip.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: 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.
© 2019 Level 4 Funding LLC. All Rights Reserved.

First time flipping? Why Professional Private money lenders are the real deal.

If your a first time flipper, or real-estate investor you might be having a tough go of it getting financing from the bank. Theres lots of advice out there telling you that you can fund your first real-estate venture with a loan from a close friend or a relative. But getting a real-estate loan from your rich uncle is generally not a good idea. Learn the benefits of working with professional Arizona private money lenders.

If your a first time flipper struggling to fund your first deal, you might be considering going in hat in hand to a close relative or your best friend. You might think a big shot professional lender will pretty much give you the same deal as all his other clients, while relatives and relations always think the best in you. While convincing your mom to give you a zero interest loan for your first flip might be easy it’s not a good idea.

How Professional Arizona Private money lenders excel

1.They have the money- Things move fast in the flipping game and a professional private lender actually has money to lend you. Once the application process closes, you’ll have the money you need to get started.

In contrast, it might take months for your relative or best friend get their funds together. Waiting for your relatives to get their ducks in a row could cost you a great opportunity. Plus just think of all the awkward phone calls-“yes Uncle Lester, remember that loan we talked about?” On that note, with a professional lender…

2.You don’t risk your relationships- A professional lender might not cut you slack if you miss a payment, but they wont take it personally either. . It’s just common sense, money ruins relationships. On that note, theres a much better reason to work with a professional

3.You build a reputation- Do you think successful flippers rolodexes are full of close relatives ready and eager to fund their deals? The answer is no. Successful flippers get that way because they have an established relationship with a professional lender. After funding a few deals with a professional you might qualify for no money down financing, meaning you’ll be able to flip for free. The sooner you start building a relationship with a professional lende the sooner you’ll be able to get such deals.

You risk less and get more by working with professional Arizona private money lenders

Basically ask yourself if you want to risk your relationships in order to flip houses? What if something goes wrong (which it will) and you can’t pay your relative or best friend back? Think of all the tears, venomous phone calls and thanksgiving dinners where the only conversation is between the silver ware.

You can spare yourself all of that pain and heartache by getting a professional lender to fund your first deal. Getting a professional on board will get you your money faster, save your relationships and let you start a new relationship, one that can pay dividends for years to come.

Think about it.

Two principles to Avoid Wasting Renovation Loans

If your in new to the flipping business you need to know that just because you add a feature, doesn’t mean you add value. This article will outline two general principles so you can avoid wasting renovation loans on frivolous fixes.

First, what is a frivolous fix? Its any feature that isn’t common to homes nearby or that could narrow your pool of potential buyers.

You might think its a good idea to start knocking down walls, add in a cute little breakfast nook, or an office with built in storage solutions, because you’ve seen these sorts of things in magazines.

But whats your goal to make a pretty house or to make money?

To make money of course, so heres some principles that can help you avoid wasting money.

The first principle is don’t spend Arizona renovation loans on unnecessary projects.

The first principle is to plan your project in line with the realities of the market. For example, if homes nearby are selling for a hefty sum and they happen to have walled off kitchens, don’t waste your time and energy redesigning the homes interior.

I know almost every episode of any “flip or flop” type show begins with discussions of extensive layout modifications. Almost without exception, walls are knocked down, living rooms and kitchens joined, because only open concept houses sell right?

Not necessarily, while it might seem painfully retro to sell a house with a closed off kitchen, if houses nearby with similar layouts have sold for a decent amount, knocking down walls is a waste of time and therefore money. The more time you waste on unnecessary projects the higher your loan payments will be.

Remember your not an architect or an interior designer, your a flipping a house, it doesn’t need to be magazine ready it just needs to sell.

In addition, certain renovations might look pretty, but could have limited appeal, so along those lines,

The second principle is don’t spend Arizona renovation loans converting rooms

When it comes to a rehab the end result should leave as much to your buyers imagination as possible.

Because when buyers comb through online home listings whats the first thing they look at?

The number of bedrooms and bathrooms. So converting any room for a fixed use, or adding any sort of built in furniture is generally a bad idea.

You might think its a good idea to install benches in place of a kitchen table or to add a built in desk in a cute little home office, but buyers will only see a headache if they plan to use the room for something else.

Buyers can overlook your poor choice in paint color. But they might not be so quick to forgive one less bedroom than another a nearby home.

Projects that limit the use of different rooms could cause your home to sit on the market for weeks as you wait for that one special buyer who might need a home office or who wants a kitchen table that will take a week to move. The longer it takes to sell your home, the longer you’ll be making loan payments which will lower your profits.

So remember your not a designer, your an investor and your goal in the end is to make money, and if you follow the above two principles you can avoid wasting money.

Why trust deed investments are a better bet than stocks

With trade wars escalating and stocks more volatile than ever, you might be wondering if theres a safer way to invest your money. Well there is-its called a trust deed. Learn what trust deed investments are and why they’re a better bet than stocks, especially in these uncertain times.

First what is a trust deed?

A trust deed is basically a mortgage where you as an investor act like the bank. You give a loan to real-estate developer, and In exchange for your investment, the developer pays you back on a monthly basis.

This arrangement might sound sketchy but just think for a moment when you invest in a stock do you actually know what your investing in?

Because trust deeds are secured by real-estate you can make a more solid investment

Because it’s familiar you might think the stock market is a safer bet but ask yourself a few questions-

• Do you know what determines a stocks value? No, because no one can say what a stocks price will be in 5 minutes. Even if have a masters in economics, you cant definitively say what a stock is worth.

• Do you know when a stocks value is going rise or fall? No,Stock prices rise and fall based on the news of the day and the hot air spewed by analysts. One bad news story or a vague tweet could send a stocks price plummeting.

• Do you know where the stock market is actually headed? Maybe. But lately its been all over the map.

In contrast, trust deeds are based on real-estate. Real-estate has a definite value that even an eight year old can understand. Everyone knows that a 100 square foot shack is worth less than a mansion. In addition, the price of real-estate is essentially based on supply and demand and lately the price of real-estate has been climbing, as the market digs itself out of the hole of the recession.

Trust deeds are hands off way to invest in real-estate, which makes them a better bet than stocks. Unlike stocks with real-estate you can understand valuations, you can pretty much say what the price of a given property will be tomorrow, and you generally know where the market is headed.

Still if your new to the idea of trust deeds, you might be wary. Well trust deeds are actually safer than stocks for the following reasons:

3 ways trust deeds beat stocks

Higher guaranteed yield: Trust deeds are loans with interest payments, usually in the high single digits. Basically you earn a guaranteed return on your investment every month. Stocks pay out paltry dividends a few times a year and even those aren’t guaranteed

Guaranteed return on initial investment- With trust deeds your pretty much guaranteed to make back your initial investment. Think about it can you just stop paying your mortgage? No. Even if a trust deed borrower stops making payments you have a protection stocks can’t offer

Right to recourse- basically you can foreclose and liquidate the borrowers property to make your money back.

So basically trust deeds are give you rights, protections and the potential for higher returns than stocks. If your still indecisive, think about it are you going to leave the value of your investment portfolio at the mercy of the presidents next tweet? Or would you rather earn a safe and steady income from a trust deed?

I’ll leave that for you decide.

The Benefits of Arizona hard money Business loans

If your business needs cash, but banks keep turning you down, theres one option you might not have considered-Arizona hard money business loans. Learn what it is and how it might just be the right help for your business.

First what is Arizona hard money? Arizona hard money is basically any loan secured by the value of a hard asset. This could be your storefront, some form of inventory or even your primary residence.

You might be asking yourself “isn't that the same thing as a secured business loan?”

Well, not exactly.

Heres a just a few ways conventional Arizona business loans fall short:

Banks give loans to business secured by collateral all the time, so how is Arizona hard money any different? Well banks also secure their loans based on your credit score which means their loans are:

• Hard to qualify for- Traditional business lenders only give funding to businesses with solid credit scores. So if you need financing to help improve your businesses’ cash flow, to help pay your bills and improve your credit score, a regular business lender wont help you.

• Inflexible: If you go to the bank asking for a loan to finance an investment that is even the least bit speculative your application is basically a no-go. The loan officer at the bank will likely put your business plan through the ringer. Even after they give you funding there will likely be limits as to how you can use that funding spelled out in the terms of your loan documents.

• Take forever—Banks will spend weeks if not months, sitting on their hands combing through the details of your application before closing your deal. So if you need funding to cover an unforeseen expense, going to a traditional lender is basically a waste of time.

Heres how Arizona hard money excels when compared to conventional business loans.

Unlike banks, Arizona hard money providers secure their loans solely based on the value of your assets, so credit is not a factor which means these loans are:

• Easy to qualify for: Like we said credit isn’t an issue, so if your business is essentially dead, Arizona hard money could finance an investment which could resurrect your balance sheet.

• Flexible: Arizona hard money providers wont restrict how you can use their funds. If you want a business loan to program a virtual reality store front, a Arizona hard money provider wont stop you. Whether a building a store in virtual reality is a wise investment is another question.

• Fast: If your all your inventory is currently sitting under six feet of water do you have months to wait on the banks ponderous application process? Probably not. Well Arizona hard money a quick appraisal of the property backing your loan is all thats needed to qualify. So Arizona hard money can help your business quickly get back on its feet in the face of an unforeseen disaster.

So if your business needs funding, but lacks a stellar credit score, you need funding for a speculative investment or you just need money quickly, Arizona hard money could be the help your business needs.

3 Reasons why Arizona hard money is best for rehab loans

A recent episode of flip or flop might have convinced you to start flipping houses. But as the credits roll you realize you have a problem, you don’t exactly have a stash of gold bars buried in the back yard, so to get started in the flipping business- you’ll need financing. Where do you start? This article will tel where not to go and where to go to get rehab loans.

Those just starting out in the flipping business might think that their local JP Morgan Branch office will finance their first deal. Why not, if you’ve planned your project carefully, have a decent downpayment and have a good credit score, why wouldn’t your local bank give you a loan to flip your first house?

Well there's really only one reason-

You cannot get Arizona rehab loans from banks.

Getting a rehab loan from a traditional bank is impossible. God himself might have spoken to you in a vision and said ‘if you flip it they will come,’ but still a bank wonk give you money for a flip. Period-end of discussion.

This is because banks fund their loans by selling their mortgages back to the government, which means a whole lot of bureaucracy comes into play when it comes to the condition of the home you intend to purchase. Basically any property you finance through a bank, has to be as close picture perfect as possible, and if you want to flip a house, this wont be the case.

So if banks don't offer loans to flip houses, who does?

Heres 3 reasons why you need to go to Arizona hard money provider first when getting rehab loans

Arizona hard money is a loan given by a private lender based on the value of the hard asset (i.e. The house you intend to flip). These sorts of lenders specialize in funding flips, its their main game.

You might be consider other ways to finance your flip, like going to your relatives, but heres 3 reasons why Arizona hard money is your best bet if you want to get into the flipping business:

• Property condition isn't a factor- The first house you want to flip might have one out of four walls left standing, but if you have a solid plan a Arizona hard money provider can still fund this sort of deal.

• No bureaucracy- Most Arizona hard money providers don’t answer to anyone but themselves. Without bank bureaucracy things like your down payment and interest rate are up for negotiation, which means you can get a better deal.

• Loan terms make sense for a flip- Arizona hard money is short term, with terms which don’t usually go over 12 months. No solid flip should take more than a year.

Speaking of loan terms, if you’re new to the flipping business you might see those double digit interest rates and be ready to spit up your lunch. In truth is, those high interest rates wont matter if your deal is good enough.

If you end up paying 2 K in interest, but earn 40 K in profit from a flip, a couple grand is nothing.

So in short if you want to start making money in the flipping business, you need Arizona hard money.