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Tuesday, December 3, 2019

EXPECTATIONS OF ARIZONA FIX AND FLIP LOANS

Lina was a divorced mother of three living paycheck to paycheck until she started flipping houses. Here is her story.

In March of 2009 Lina Jerome’s life felt like it was falling apart. Her husband had left her and their 3 daughters. Not left as in living in separate houses—left as in left the country not to be heard from again.

Lina had worked as a teacher’s assistant and her husband had been the bread winner. After he had left her financial world began to crumble. All three of her girls were in different extra-curricular activities and all three went to different private schools. She had to pull them all out of their schools and return them to public schools. Many dinners were Top Ramen and grilled cheese. Times were tough, and as Lina looked toward their future she didn’t see change coming.

DREAMS DO COME TRUE

After months of struggling and worrying Lina saw a “We Buy Ugly Houses” flyer on her front door. Her house wasn’t ugly, but Lina was curious about the sign. When she inquired, she was given the run down on flipping houses. She figured she could flip houses. And she did. Her bank would not finance her due to her present financial issues and her lack of monthly income. Traditional banks are less than comfortable lending you money while you transition financially.

After being turned down by her bank of 20 years, she found a private lender, also known as a hard money lender. In April of 2010 she found a perfect property. Then price tag was $109,000—with about $6,000 worth of rehabbing. Lina was approved for $116,000 Arizona Fix and Flip loan within 15 minutes; her funds were dispersed in 13 days. She worked with a contractor and had the house rehabbed within 6 months. During that 6 months she paid only interest on the loan. The newly renovated home went on the market and was sold within a week. Lina’s loan was $116,000; she sold the home for $205,000—making Lina an $89,000 profit in less than 7 months. After paying the interest on the loan, the fees associated with the loan and her contractor she still walked away with close to $50,000 in profit. Not only did this change Lina and her daughters’ lives completely, she found that she loved waking up and going to work each day. Today Lina flips three to four houses a year and averages close to $200,000 in profit.

Yes, Lina’s story is inspiring—but I don’t have the money to do that and I definitely don’t have the credit to flip houses in Arizona.

That is the beauty of a hard money loan. It is an asset backed loan; the lender is far more concerned with your hard assets than your revenue stream or credit. If the borrower defaults on the loan the lender has the option to foreclose on their assets (mainly real estate). Where there is a will there is always a way- you can flip houses in Arizona. Find an Arizona local hard money lender and start making your financial dreams your financial future.

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.

Sunday, December 1, 2019

EXPECTATIONS OF RESIDENTIAL ARIZONA HARD MONEY LOANS

Whether you want to rent out duplexes or buy a Arizona Fix and Flip property, finding financing can be quite difficult.

It isn’t just borrowers with bad credit that find themselves in an uphill situation when looking for financing. Even qualified borrowers find themselves struggling to secure the loans they need. What do you do when the bank turns you down and you have exhausted your options? That is where Arizona Hard Money Loans come to into play. These loans are an attainable option for residential buyers with unique needs.

Residential Arizona Hard Money Loans are also called equity-based or private money loans. Typically, these loans are used by real estate investors that want to purchase properties that the bank won’t finance. Many borrowers aren’t aware that these loans can also be used on homes, as well. The terms are different than a traditional bank loan.

TERMS OF ARIZONA HARD MONEY LOANS

These loans not only help buyers that have run into credit problems, they also work well for borrowers who need approval quickly. Arizona Hard Money Loans are a more flexible option. Arizona Hard Money Loans do not have to follow federal guidelines, as banks are required to do. They have their own underwriting department which allows this flexibility.

Typically, Arizona Hard Money Loans have:

* Term: 1-3 years

* Rates: 7-12%

* Lender Fees: 1-10 points

Who uses residential Arizona Hard Money Loans?

Arizona Hard Money Loans are utilized by a variety of different borrowers. Often, investors, purchasing a quick Arizona Fix and Flip property, use these loans because they can be financed so fast. Here are some examples of when a Arizona Hard Money Loan is necessary:

1. Buyers have a mortgage on another property.

2. Property doesn’t meet the requirements of FHA lenders.

3. Buyers need to finance quickly.

4. Banks are unwilling to finance.

5. Buyer has poor credit.

6. Buyer has a recent foreclosure or bankruptcy.

7. Buyer has a recent short sale

8. Buyer has less than 2 years of employment history with their current employer.

If you want to find a hard money lender, find a local lender. Having a lender that you can see versus working with one thousands of miles away has benefits. Developing a relationship with your lender is important when it comes to any hiccups. Typically, local lenders are very easy to find, especially if you are already in the industry. Many sponsor local networking events. You can also find a local chapter of the Real Estate Investors. Another option is to look at Yelp and find one closest to you with good reviews.

Where does hard money come from?

Make sure when you meet with you hard money lender you ask how they are funded. A lender that is not privately funded is most likely going to be funded using institutional funding. Institutional funding will be subject to the same underwriting as a bank. What that means is the approval requirements will be stricter and the loan will not close as quickly as with a privately funded lender.

When searching for a residential loan it is crucial you know everything about your lender and feel comfortable.

WHAT IS AN ARIZONA FIX AND FLIP LOAN?

What exactly is house flipping? Simply put it is when a real estate investor buys houses, repairs them and sells them for a profit.

The definition of house flipping may be simple, but it is not as easy as it may sound. If it is done correctly, it can turn a handsome profit. There are two essentials when flipping: property and money.

To find the rehab property that matches what you’re looking for there are a few options:

1. Search MLS: The Multiple Listing Service (MLS) is a database put together by real estate brokers that lists property according to geographic region. Licensed real estate agents are the only ones that have access to MLS. You will need to connect with an agent to be privy to MLS.

2. Auctions: Auctions are a fantastic opportunity to find a property at a very low price. Most auctioneers will require you to put 10% of the purchase price at the time of winning the bid. After 30 days you will lose your down payment and property if you have not settled.

3. Wholesalers: Wholesaler’s business is finding rehab properties, getting them under contract and then finding a buyer who will flip it. Basically, you will be paying an extra fee for the wholesaler to find the property.

BEFORE APPLYING FOR A FIX AND FLIP LOAN IN ARIZONA

There are a few things that all potential flippers must understand before seeking the funding for their investment; understanding these things will speed up the process and make your lender believe you know what you’re doing, which will benefit you when it comes to approval time.

1. Create a Business Plan: This is a thorough analysis of your property that contains—the exact address of the property, comparable sale prices for nearby homes, your strategy, timeline and financial projections; this is called the ‘scope of work.’

2. Estimate Renovation Costs: Your entire project will fail if you don’t borrow enough from your lender. To get a realistic grasp on your renovation costs you will need the help of an appraiser and contractor.

Finding the right lender is the most important component of your Arizona Fix and Flip loan.

Hard money lenders have proven to be the best option for Arizona fix and flip financing. House flipping in Arizona in a short amount of time is the main reason Arizona hard money loans work most effectively for these projects.

Arizona hard money loans are short-term loans secured by real estate. They are also referred to as rehab loans. One attractive part of these loans is their lower qualifications for approval. Borrowers can receive approval and funding in as little as 2 weeks. Hard money lenders concern lies in the property and potential value than about the borrower’s credit and monthly income.

These loans do have higher interest rates; however, they can not only finance the property, but can also finance the renovations. Lender fees and closing costs are typically taken out of the loan. Borrowers can reduce their overall financing costs by paying back the loan early because these loans are not known to have a prepayment penalty.

Arizona hard money loans can work for a variety of people. When an investor requires a fast closing, an investor has poor credit or when more money is needed than a bank is willing to approval. Regardless of your situation a hard money lender will be able to finance you much quicker than a traditional lender.

Saturday, November 30, 2019

Arizona Fix and Flip Loans: Make the Most of Your Investment

Arizona Fix and Flip Loans provide the cash, but you have to turn that cash into a quick turnaround by making your property a must have. Here’s how to make your property a must-have amongst buyers.

Arizona Private Money Lenders will provide your Arizona Fix and Flip Loan, but what do you do once you’ve secured your investment property? Now you’ve got to actually perform the fix and the flip. Unless you have experience in home and interior design you may be at a loss for how to make your property stand out amongst the others on the market. Here are some tips on how to make sure you’re making the right design choices for your investment property funded by an Arizona Fix and Flip Loan.

Stand out, get offers

You don’t want your property to be so cookie cutter that there’s no differentiation between yours and the one down the street. Think about a red door that will attract buyers passing by. Splurge on the countertops so buyers don’t walk in and think about how much they’ll have to spend on upgrading the kitchen. One or two stand-out features can be a deal maker for your fix and flip home.

Look for trends

Standing out is great when it comes to marketing a home and this tip may sound counterintuitive to what we just told you, but trends are trends for a reason. Gone are the days where buyers want to walk into a stark white home. Paint an accent wall in a noticeable, but still neutral tone. Add some Edison bulbs to exposed light fixtures. If you spend fifteen minutes on Pinterest you will see the top trends in homes today and you can easily pick out a few quick, cheap trends to include in your renovation and decorating to make sure your fix and flip is on trend with what people want today.

Invest in staging

A blank home can allow buyers to envision what they would do to the home to make it theirs. A staged home allows buyers to picture themselves already living in it, sitting on that couch, sitting on that patio, having family game night by that fireplace. You don’t want to overdo the staging to where buyers are off put if the style doesn’t match their own, but it should be enough that it doesn’t feel as if they are walking into a bare bones home that they can’t picture themselves living in.

Fix and flip properties require a sense of style and what’s on trend to sell for top price. Picture a model home in new-build neighborhoods. Does it have the lowest end fixtures? Does it have stark white walls and zero personal touches? No, that’s because it needs to feel like a home, not just a building. If you put a little extra money into your finishing touches you can make more on the sale. If you have any questions about Arizona Fix and Flip Loans, call Setabay LLC and we can walk you through the process.

Friday, November 29, 2019

Mi Casa, Su Casa: Rental Property Loans

You can make money purchasing homes that can be used as rental properties, giving you passive income. Arizona Hard Money Lenders give you the cash on an Arizona Rental Property Loan so you can purchase quickly

Have you ever been a renter? Have you made monthly rental payments that went into the pockets of the home owner or a rental management agency? Being a rental property owner can be a lucrative business, but how do you get your hands on that first rental property if you can’t secure a big bank loan? Big banks aren’t the only way to get investment cash to purchase a rental property. Arizona Rental property loans can also be serviced by Arizona Private Money Lenders , also known as Arizona Hard Money Lenders.

Rental property loans will allow you to scoop up investment properties quickly so you don’t have to front your own money to make the purchase. That being said, there are things that can stand in the way of you getting that funding to make the quick purchase before the perfect rental home flies off the market. You can be the majority of the way through the approval process when a big bank decides that you’re “too risky” to fund.

Big bank decisions are based on hard and fast qualification rules that can keep you from having your loan paid on day one, or the day before escrow. We service rental property loans based on your propensity for success, not for your ability to make a credit card payment on time. Here’s why Arizona Private Money Lenders are the way to go for rental property loans.

We’re investor friendly lenders

We are there to service investor loans so we understand the timeliness needed and why Arizona rental property loans need to be treated differently than traditional home loans. We won’t be shopping around for the perfect lender, we ARE the perfect lender. That cuts out time and road blocks that could keep you from getting the property you want.

We offer an alternative to traditional investments

Rental home loans enable you to diversify your wealth through non-traditional means. For some people, the security of an IRA account or 401(k) is what works best for them. But as an investor, you know that real estate, and rental properties in particular, can have far greater returns. Also, there’s potential for multiple rental properties. The strict qualifications at big banks can keep you from securing multiple loans. Alternative lenders can bypass those and help you diversify quicker and bigger.

The fact is that rental properties are always going to be necessary. Housing is a tried and true investment that you can always count on. Rental property loans will give you the opportunity to get a piece of the rental property investment pie, and we can help you get your spot at the rental property table quickly and efficiently. Your Arizona Rental Property Loan needs will be met through Level 4 Funding. Call us today to get started on your approval.

Thursday, November 28, 2019

Should I Use a Private Money Lender? Your Questions Answered

Big banks are the go-to for large loans, but is that the right way to go? Arizona Private Money Lenders offer you accessibility, flexibility, and quick access to money.

If you asked 10 of your closest friends who they would go through to secure a residential loan or car loan, you would most likely the names of some of the biggest banks in the nation and in the world. For most people their first home loan or first car loan were serviced by a big bank and people tend to be creatures of habit. If you don’t know much about Arizona Private Money Lenders you may be hesitant to seek out a loan from one.

Below we will give you some facts about Arizona Private Money Lenders Phoenix borrowers trust and return to time and time again for their loan needs.

We bypass the big bank red tape

Is your credit perfect? Have you paid every car payment in the last 12 months on time? If so, that’s fantastic! But that isn’t reality for everyone. What do you do when your credit is less than perfect and you’re ready to make an investment in a new home for fix and flip or rental? It can take months or years to perfect your credit score and in the mean time you may be losing out on investment opportunities. Arizona Private Money Lenders are more concerned with what you have versus what you don’t. If you have stable income, already own an investment property, or can show another form of collateral, chances are your loan will be funded and QUICKLY!

We know you don’t want to wait on your money

If you see the perfect home listed and know it could be your next fix and flip opportunity, you don’t want to lose out to another bidder. You need the cash NOW. We understand that and service our loans accordingly. As a Phoenix private money lender we can get you the funds quickly so you can act on your investment opportunities with haste. Don’t let opportunities pass you by as you wait days or weeks for your loan approval. Come to us with your personal property that proves to us you are a savvy investor at heart and we will help you make your investment dreams come true.

Short-term loans are our business

Our borrowers have quick turnarounds on their loans and that’s what makes us the perfect lender for real estate investors. Not only do we approve and pay out quickly, but we offer the flexibility of turning your loan around quickly once you have fix and flipped your property. Repayment schedules don’t have to be cookie cutter like the big banks require. We see you as an individual who needs an individualistic loan based on your needs.

If you’re ready to turn your assets into cash flow then private money lending could be the way to go. If you want to learn more about our Phoenix private money lender company give us a call and let’s discuss how we can help you reach your monetary goals using short-term private money loans.