Beretta Only

Friday, November 15, 2019

ARIZONA PRIVATE MONEY LENDERS ARE THERE WHEN YOU NEED THEM

Are you eager to buy an investment property, but your credit is less than perfect? Have you been turned down by traditional lenders?

Arizona Private Money Lenders, sometimes called hard money lenders, are non-institutional lenders that issue short-term loans. Typically, these loans are for the purchase of an investment property; however, they may also be used for fix-and-flips, rehab projects and quick funding.

Arizona Private Money Lenders are less bothered with a borrower’s credit and more concerned with their hard assets: which is real estate, cash or land. A hard asset will show up on financial statements. This is opposite of a soft asset which can include: equipment, furniture, software and any other assets with a low intrinsic open market resale value. Usually, a lender wants to see a FICO score of at least 550; however, that is not always the case. The type of private money lender you choose will determine the credit score you need.

DIFFERENT TYPES OF MONEY LENDERS, LOAN QUALIFICATIONS, LOAN TERMS AND APPROVAL TIME

There are three main types of Arizona Private Money Lenders:

1) Primary circle: These are your family and close friends.

2) Secondary circle: This consists of personal friends, colleagues and professional acquaintances.

3) Third-party circle: This includes accredited investors and hard money lenders.

Borrowing money from your primary and secondary circle may be easier to obtain, but in the long run can get uncomfortable and relationships can become strained. Hard money lenders belong to your third-party circle, which is the most distant in terms of relationships. They have proven to be the best private lenders due to their reliability, professionalism, across the board interest rates, fees and loan terms. You will know exactly what you are getting into before accepting the loan. The terms don’t change.

Private money loans have much shorter loan terms than traditional loans. They have terms anywhere from a month to 5 years. Hard money lender terms are typically between 1 and 3 years; with most loan terms closer to one year. Pre-qualification can occur in as little as 10 minutes and funding typically is dispersed within two weeks.

When meeting with a hard money lender you will need to bring the last three months of your bank statements, a credit score of 550, the property location and the purchase price. If you are seeking a hard money rehab loan, lenders will also require contract bids, a renovation scope of work and a portfolio of your experience that includes prior projects.

Is a private money lender right for you?

Are you looking to purchase, renovate and sell your property within a year or less? Do you need quick financing to compete with cash only buyers? Are you looking to purchase and renovate a property before you refinance with a conventional mortgage? Or, have you been turned down for a traditional loan? If any of these scenarios describe you, a private money lender be may your answer!

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

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.

Thursday, November 14, 2019

DO YOU WISH YOU COULD BUY AN INVESTMENT PROPERTY BUT YOUR BANK TURNED YOU DOWN?

You have searched high and low for that perfect Arizona investment property and finally you’ve found it! You get to your bank only to find out the property’s condition is not up to par with your bank’s mortgage conditions and your credit is less than attractive—no loan for you. But, there is a solution—a hard money loan.

Just like all loans, a hard money loan is money borrowed by a lender. The borrower receives the money and, in turn, the lender receives monthly interest on the loan until final payment has been issued. Where traditional loans are based off the borrower’s credit, hard money loans are based off the asset being purchased. If the borrower defaults on the loan, the hard money lender will foreclose on the property.

BENEFITS OF A HARD MONEY LOAN

There are a plethora of reasons to obtain a hard money loan; however, the quick approval and release of funds along with the relationships investors can make seem to be the most popular.

There are fewer hoops to jump through when you are working with a hard money lender. You will work with an individual lender versus a group of lenders at a bank. There is less paperwork and a shorter waiting period because the lender is more concerned with the Arizona investment property, not in your debt and credit scores. The property you are purchasing will be backing the loan. Working with a hard money lender you could easily have your funds available in as little as two days; unlike a traditional mortgage which could take months.

You can build a relationship with your investor. If you show that you are reliable; you pay your debt back on time or early, your investor will want to work with you again. Once your lender trusts you they may be willing to do things such as reduce the origination fee, get your funds to you faster or loan you greater amounts. Building trust with your lender will form a priceless business relationship.

You can get a hard money loan for virtually any type of property: from single family residential to commercial and industrial properties. Typically, borrowers use hard money lenders for fix and flips or to rehab a property. Some hard money lenders will not fund an owner-occupied residential property because of the extra regulations. However, there are plenty that will.

Is a hard money loan the right move for you?

Hard money loans are most ideal for:

* Fix and flips

* Construction loans

* Rehab properties

* A borrower who doesn’t have enough cash or access to private financing

* A borrower with bad credit

* Quick financing for an investor who is competing with a cash only investor

Hard money loans aren’t for every investor in every situation, but of you are just starting out they are an excellent choice. These loans allow you to purchase real estate with little, or none, of your own money.

Wednesday, November 13, 2019

HOW TO QUALIFY FOR A BUSINESS LOAN REGARDLESS OF YOUR CREDIT

You’re tired of working for “the man.” You want to be your own boss. That comes with start up money. You’re going to need a business loan.

The hardest part of starting your own business is finding the financing. It can be problematic, but it is not impossible. There are numerous sources when looking for a business loan. The more prepared you are, the better chance you will find your funding.

HOW TO GET AN ARIZONA BUSINESS LOAN

Creating and building a business requires two things: a great idea and money. Business lenders can have incredibly strict standards. So, the more you know about what these lenders will require the easier it will be to get approved.

1. Get a business plan: There are few lenders that will fund you without a business plan. A business plan will include a written description of the future of your business. It is a detailed story of what you plan to do and step by step instructions on how you plan on doing it. This will include: your strategy, your products and services, your marketing plan, your background and your personnel’s background, and your financing needs.

2. Decide which type of loan is best for you: It can be difficult to get a business loan if you are just starting out. Often small business lenders want you to be in business for a certain amount of time and require a minimal annual revenue. If you are just starting out a personal loan or small business credit card may be something you look into. These are unsecured, so you will not be required to put up any collateral like you are with a business loan.

3. Gather documents: Business lenders will want to know if your business is a good risk before funding you. You will need to pull out all your financial statements; this will include the last three years of your bank statements, personal credit report and business and personal tax returns.

4. Check your credit: You will have more success if you have good personal credit. Your FICO score will range from 300-850. The better your credit, the lower your interest rate. The majority of borrowers range from 670-739. However, it is still possible to get a loan with poor credit.

Can you get a Arizona business loan with poor credit?

Yes, it is still possible to get a financing for your small business with poor credit. One way to do this is through a hard money business loan. These loans are meant for business owners who don’t qualify for traditional business loans. A hard money Arizona business loan is a loan that is backed by the business’s commercial real estate. A hard money loan is an asset based loan. In essence, you will be using your business’s commercial real estate as collateral for the loan. In case of default by the borrower, the property is used as protection. This is fantastic news for people with bad credit; because this loan is not based on the borrower’s FICO score. It is determined, almost completely, by the collateral you can offer to the lender. Hard money business loans are calculated by a loan-to-value ratio. The loan-to-value ratio is a percentage of the property's value. Typically, lenders will lend 70-75% of the value of the property used as collateral. These are non-traditional loans and are individuals or lending organizations. Hard money business loans are easy to apply for, easy to qualify for and borrowers will receive funds quickly.

No matter what financial situation you find yourself in, you will find funding for your business. If you are a veteran business owner (or a new business owner), don’t qualify with traditional banks’ strict standards, or need your funds available quickly— there is a lender for you.

Tuesday, November 12, 2019

HOW TO START FLIPPING HOUSES

Do you dream of living a life like Tarek and Christina on ‘Flip or Flop’? Do you know it is possible to fix and flip houses with little to no money down?

Can you really flip a house in Arizona with no money down? YES! Most people believe it is impossible to flip a house with zero money down. Surprisingly, you can do it and it may not be as hard as you can imagine! There is no real hidden secret on how to invest in real estate with no money of your own. Flipping a house with none of your own money will require you to use someone else’s money; this is called OPM (other people’s money). To finance your investment, you will need to find an investor that will lend you the money to rehab the property. You will then pay them interest on the money you borrow.

Where can I find OPM?

There are a few places you can find ways to start investing with no money.

1. Find a partner: A simple way to get funding for your investment is a silent partner. If you have no money but have all the skills and will do all the heavy lifting, find a silent partner. They put the money in, you do the work and you split the profit equally. This could be a family member, a neighbor who has a successful business or anyone you know that has money. Keep in mind that you will do all the work and they will receive the same profit because they fronted you the money.

2. Private Money Lender: A private money lender is just a person with disposable income to invest. They can invest in literally anything; and often they invest in real estate and land. These lenders will have income, but it is income such as investments, mutual funds and IRAs. They will not necessarily have hard assets. To attract a private money lender, you will need to offer them a high enough interest rate that it is worth them lending you the money.

3. Hard Money Lender: A hard money lender is a great way to get funded. What these lenders do is help people by often funding 100% of the purchase at a higher interest rate. The great thing about hard money lenders is they will approve a borrower with “not so perfect” credit. However, you need hard assets. In case you don’t repay the loan, they will have the rights to those hard assets. You will find that their interest rates are higher than traditional loans and your loan terms will be shorter. This is a perfect way to borrow especially if you are confident the house will flip in a reasonably short time.

Things to consider when thinking of flipping houses in Arizona

Flipping houses in Arizona can be either a full-time or part-time job. If you have assets, but don’t want to spend your own money, have time and understand what it takes to be successful then Flipping houses in Arizona can be a lucrative job. It requires hard work and careful attention to detail. As any investment, it comes with risk. However, working with an experienced lender will help you figure out how to get started.

Monday, November 11, 2019

How to Secure Spec Home Financing

Are you considering building your first spec home? Securing spec home financing may be easier than you assumed.

Are you considering venturing into speculative building, also known in the industry as a “spec home?” This is a home that you build before the home is sold. What makes this speculative is the fact that the home is not sold before construction, making the loan one that is considered speculative. In the Arizona construction loan industry, the spec loans are only a small portion of the loans. If your project has strong possibilities and you are willing to do more work than a conventional loan, your chances of approval stand an excellent chance.

1. Find a lot that you can improve on: A spec loan is much more speculative or riskier than other Arizona construction loans because you have no committed buyer. Your chances of getting approved increases if you locate land that needs to be improved. Raw land which does not have roads, curbs, sewer lines or water (known as infrastructure) is not as valuable as improved land and more likely be far away from urban centers and you will be less likely to find a buyer.

2. Be able to complete your project quickly: Spec home financing is short term in nature. The loan will last only as long as the construction takes. The loan is paid out in stages of completion, also known as draws. To minimize the lenders risk, and if you are new to spec building, pick projects that can be completed quickly. The interest charged is based on the amount of money that has been disbursed. At the end of the project, the borrower ether gets another loan or pays off the balance.

3. Equity is in the land: Giving a lender equity in the land will maximize your chances of getting a loan. Some lenders will require you to do this. This also could be used as the down payment or a portion or combination of the two. The loan is considered secured and the lender’s position is secured in case of default and the lender will be able to recover the monies. A lender will most likely only credit 80% of the value of your land for the down payment on your loan.

Partners in the Deal

To improve your chances of getting approved for spec home financing, you can bring partners into the deal. A partner with better credit will improve your chances of getting approved. The partner could also help with the down payment. A partner can also improve the assets when applying for the loan. You’ll also

Tell a Compelling Story. The spec loan is a loan on a dream since there is no buyer lined up. The lender is buying into your dream.

The spec loan is highly risky. You will need to sell the idea to the loan officer or the lender. The project location is very vital in securing the loan. “Sell” your idea to the lender, explain the infrastructure, why you chose the location, and the development patterns. If there is a strong presence of rental units in the area, this is a good selling point. At Level 4 Funding, we work with hundreds of private Arizona Hard Money Lenders. Call us to see if we are the brokers that can fulfill your dream and find the right investor for your spec home financing.

Sunday, November 10, 2019

How Arizona Hard Money Lenders Work

If you are seeking an alternative to a conventional mortgage lender, then you may want to look at An Arizona Hard Money Lender. The loan with this type of lender, for the most part, is based on the collateral.

An Arizona Hard Money Lender will be able to act fast—in as little as a few days—while conventional lenders will make you jump through hoops and drag their feet for 30 or more days. Traditional lenders are concerned with your credit score, how you are going to repay them, and your income to repay the loan. If your history is solid and you have a great credit score and your ability to repay the loan is verifiable, then you should not have a problem getting approved for a loan. The process is painfully slow. If there are any negative entries on your credit report or income that is not verifiable to the lender’s satisfaction, you will more than likely be turned down. You will be faced with a longer process at a traditional lender. The approach by An Arizona Hard Money Lender is different. The Hard Money Loans in Arizona are short term loans ranging from 1 to 5 years. The interest that these types of lenders charge is higher than traditional lenders, so you will not want to keep the loan for much longer than the 5 years.

Speed, flexibility and percentage of approvals are a few of the reasons why investors turn to private lenders. Speed: the hard money lender is mainly focused on the property or collateral and not your financial position the Hard Money Loans in Arizona can be closed quicker than conventional loans. A private lender does not want to take possession of the property; they do not spend hours looking over a loan application, verifying your income, looking over your bank statements and so on. If this is not your first rodeo and you have a relationship with a lender, the approval process can move much faster.

Flexibility: The terms and conditions of Arizona Hard Money Lenders can be more flexible than traditional banks. Private lenders do not have a standardized underwriting process. They evaluate each deal individually. You might be able to charge the repayment terms.

Approval: The collateral is the most important factor. If the property is an investment property, then the lender may be able to lend on the full value of the property. Arizona Hard Money Lenders may not look at your credit report and if you have a foreclosure this is less important compared to a conventional lender.

A Hard Money Loans in Arizona can be expensive. Depending on the lender, interest rates can be double digit and you may pay origination fees and/or several points.

Where the collateral is located is important. You will be able to locate An Arizona Hard Money Lender easier if the property is in or near a metropolitan area. You will need to contact real estate agents and investors to find names of lenders or individuals that make Hard Money Loans in Arizona. Once you establish your relationship with An Arizona Hard Money Lender, you can build on that relationship for future projects. Call us at Level 4 Funding to see if we are the right lenders for your next project.