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Monday, December 9, 2019

How TO GET RENTAL PROPERTY LOANS WITH BAD CREDIT

The American Dream is defined as “the ideal that every US citizen should have an equal opportunity to achieve success and prosperity through hard work, determination and initiative.”

Many people believe that the best way to reach that dream is through real estate investments—specifically, rental properties. The most frequent obstacle that gets in the way, for potential investors, is poor credit. Have no fear—the American Dream can still be yours even with bad credit. There is a way around pretty much everything and that includes less than perfect credit.

Very few people have the liquid assets to buy a rental property with cash—that is why conventional bank loans are used. Unfortunately, bad credit means bank loans are not an option. The best loans typically come from a traditional mortgage—these loans will give you the best rates and longest terms. This makes them the most affordable choice. But, if you don’t have superior credit and enough monthly income a bank will deny your loan request. If you want multiple rental properties it is highly unlikely that you will be approved for a conventional loan. Banks are uneasy when it comes to rental properties because there is always the chance that the home will be vacant; that means the investor will have to cover the mortgage. So, without a tremendous amount of monthly income it is most likely a bank will turn you down—even with gold credit.

FIND YOURSELF A HARD MONEY LENDER

Veteran investors know hard money lenders are the avenue to take when financing rental properties—not only for investors with bad credit, but also for the quick approval and flexibility of loan terms. Hard money lenders are private individuals or groups who invest cash for real estate ventures. These lenders extend loans based on property not the individual borrower’s credit.

Because hard money lenders don’t have to adhere to federal and state regulations and policies they can lend money to any borrower they see fit. The hard money underwriting is also not nearly as rigid as a conventional bank; therefore, speeding up the approval time. Most borrowers will receive an approval within two days—unlike a bank loan that can easily take up to 45 days—even without any hiccups.

Many Americans have given up on the American Dream; but don’t give up. With the right lender to guide you, you can live the American Dream—and investing in real estate is the only way to go.

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 8, 2019

ARIZONA FIX AND FLIP LOANS

Everywhere you look people are flipping houses and making a killing. It is the newest craze! I’m quite sure you’ve wondered if it’s too good to be true—how many people truly succeed at flipping houses?

Flipping houses involves two tangibles: a distressed property and money. It is a risky endeavor, as all investments are—but the payoff can be a highly remunerative move. If you are thinking of flipping a home but don’t have the finances there are options for you. The first move is finding the property.

Finding Property— The best tool for searching property is the Multiple Listing Service (MLS). It is a database put together that lists all the properties for sale by geographic region. Only licensed realtors have access to the MLS. If you do not have access to the MLS there are other sources with information about homes for sale. There are numerous sites such as realtor.com, zillow.com and trulia.com—and that is only a few of the sites available to anyone—for free. You can also search for listings by individual brokers. If you happen to be a cash buyer auctions can be a fruitful opportunity to find property with a large discounted price tag. However, if you need financing a hard money lender is absolutely your best option.

WHY HARD MONEY WORKS FOR ARIZONA FIX AND FLIP LOANS

Conventional loans require a large down payment—usually between 20-25%. Keep in mind, that loan will only be for the property. You will still need capital to cover the expenses related to the rehab of the property. In a Arizona Fix and Flip scenario a conventional loan just doesn’t make sense.

Arizona Hard Money Loans are issued by hard money lenders. These loans not only offer easier qualifications compared to other loan options—they also have lightning speed approval time. You can get a conditional approval in less than 10 minutes and funding within two weeks.

Where the bank typically requires at least a 650 FICO score, a hard money lender can show more flexibility with their lending requirements. A hard money lenders focus is primarily on the value of the property that will serve as the collateral for the loan and the equity the borrower has in the property. This is why a hard money lender is not overly concerned with a borrower’s credit history or monthly income.

There are numerous benefits of flipping houses—making a quick profit, gaining experience, increasing your network and learning about real estate market.

Find yourself a lender you feel comfortable with and ask questions during your meeting. Ask your lender questions such as: are there other fees you will be required to pay, are there early payment penalties, are they a direct lender or a broker, how long have they been in the business, how often have they foreclosed on a lenders property? Get to know your lender and get the best Arizona Fix and Flip loan terms you can. Finding the right lender opens a large door of opportunity when it comes to flipping houses.

Saturday, December 7, 2019

5 REASONS TO USE ARIZONA HARD MONEY

There are a plethora of reasons to use Arizona Hard Money Loans, the top advantages being speed and flexibility. With that in mind, Arizona hard money loans are a financing tool all investors should utilize.

Choosing a lender for your investment is an extremely important decision. Make sure your lender can accommodate your needs before signing on the dotted line. Listed below are some of the top reasons Arizona Hard Money Loans are becoming more and more popular for investors.

1. Flexibility— Conventional Bank loans are known for their rigid regulations. These regulations often prevent borrowers from acquiring approval. Hard money lenders have their own criteria for approval, but it is much more lenient than a traditional bank loan. For example, most banks won’t even entertain a borrower with a credit score below 650. Although your typical hard money lenders want to see borrowers in the mid 500’s, there is flexibility.

2. Faster Approval—Applying for a conventional bank loan requires lengthy applications and it can easily take weeks to hear if you are approved. With a hard money loan borrowers can receive a conditional approval within ten minutes. Waiting weeks to hear if you are approved means your property could be taken by another buyer. Once a borrower is approved the loan is typically funded within two weeks. Bank loans can take up to two months even with the process runs smoothly.

3. Simpler Underwriting— As rigid as the banks are with their regulations, their underwriting is just as strict. Conventional lenders have exact underwriting guidelines that are based on loan size, location and market trends. Because hard money lenders are private institutions, they are not restricted to any specific guidelines, meaning that they are allowed to approve any project they see can benefit them.

4. Make the borrower’s offer stronger— Using an Arizona hard money loan will strengthen your offer. If a property has more than one offer, and those buyers are using conventional loans, a seller will gravitate towards the buyer with a hard money loan. Why? Anyone involved in real estate knows about bank loans; it is not uncommon for a bank to pull the loan during escrow. Hard money lenders are known as being solid lenders, which helps make sellers more comfortable and secure in their deals.

5. No Prepayment Penalties— Conventional bank loans will penalize a borrower for paying the loan off early with excessive fees. They want to collect all their interest; paying a loan off early deducts that extra interest that the loan accrues. Hard money lenders don’t penalize a borrower for being successful because they want you to succeed. They will set up your loan with no prepayment penalties.

Building a relationship with borrowers is at the top of a hard money lender’s agenda.

Flexibility, faster approval, simpler underwriting, helping a borrower’s offer become stronger and no prepayment penalties are all great reasons to work with a hard money lender instead of a conventional bank, but the most significant reason is building a trusted relationship with an individual. You will know your lender and they will work as your partner. This personal relationship allows them to accommodate your needs much better than a bank.

Friday, December 6, 2019

HOW TO MAKE MONEY WITH AN ARIZONA AIRBNB

For some time it was difficult to run an Airbnb in the state of Arizona. However, thanks to Governor Doug Ducey, and the Arizona state lawmakers, residents of Arizona have a new possibility for financial growth.

Arizona lawmakers were worried about residents buying up property and turning the “house next door” into a hotel. Fortunately, for real estate investors the new laws were passed early last year and there are no limits to the number of properties that an investor can buy; add to that— there are no days that the home cannot be rented out. This means an investor can buy numerous homes on a street and potentially make the entire street Airbnb.

When it comes to potential income for Phoenix residents—the sky is the limit. Phoenix hosts MLB Spring training, Waste Management Phoenix Open, Barrett Jackson—add to that being the home of four professional sports teams and a division one college. That being said, Phoenix has thousands upon thousands of visitors each year.

HOW TO BECOME AN ARIZONA AIRBNB OWNER

1. Understand Rental Arbitrage— When the potential for profit is significantly higher than what it cost you to obtain that is called opportunity. Rental Arbitrage is when your achievable daily rental rate is obviously much greater than your actual daily rental cost. Every city will have this and it is important you do your homework for your market.

2. Be Realistic About Your Investment In Time—Unfortunately, you don’t just buy a property, list it and the money starts pouring in. This is business that will take some time to build. The key is in your reviews.

3. Find A Property—It is important to find property near places tourists would want to live. In Arizona a superb property would be in Sedona. If you are in Phoenix look towards Westgate— where the Cardinals are located, North Scottsdale, Old Town or Tempe. Make sure you research the annual events that will bring your customers to you.

REGULATIONS OF AIRBNB LOANS

The financing is always the tricky part when it comes to investing in an Airbnb. Although, it can be difficult finding funding for your Arizona Airbnb it is possible. Banks are watching carefully how properties are being used when it comes to approving new mortgages and refinancing existing ones. Mortgages that operate as rentals are riskier investments for banks than primary residence. The bank needs to feel confident that during times of vacancy the owner will be able to pay the mortgage.

An Arizona Hard Money Loan is a loan backed by the borrower’s assets versus their credit and monthly income. Arizona Hard Money Loans are easily approved sometimes within minutes—the borrower will have an approval usually within 24 hours and typically have their funds within two weeks. The borrower must have documents proving the value of their assets and that they are the legal owners. Arizona Hard Money Loans are short term loans usually ranging from one to five years. After the loan terms are up usually, they can be transitioned to a mortgage through a traditional bank.

If an Airbnb is something you have been interested in, find a property and make an appointment with a local hard money lender to get you on your way to financial freedom.

Thursday, December 5, 2019

THE BEST LOANS FOR AIRBNBS

Rental properties like Airbnbs can bring in a great deal of extra money to your household. While you may be excited to jump into the rental game, there are a few things that are important to know before purchasing your first property.

Banks are scrutinizing how properties are being used when it comes to writing new mortgages or even refinancing existing mortgages. Rental properties have historically been riskier loans for banks. Most banks will not even extend a line of credit on a property that is being used as an Airbnb rental. Although, there are instances a traditional loan will be approved for an Airbnb, it is not common at this time and a borrower will have to jump over red tape and then wait, what could be months, for approval.

Arizona Hard Money Loans have become popular routes for borrowers to follow in being approved for a vacation home mortgage. Arizona Hard Money Loans are hard asset based loans. Hard assets are usually real estate. With these loans, the lender is not worried about you monthly income or credit. Rather, they are concerned about your assets. In case of default, the lender may foreclose on your property. These loans have different terms than traditional loans, as they are meant to be short-term loans for up to 5 years. However, a borrower may refinance with a traditional institution when the term limits expire if needed. There are many options when it comes to Arizona Hard Money Loans.

An Airbnb can bring a generous amount of annual income to your family. It is imperative that you do your homework before speaking with a lender.

The top 10 cities to own an Airbnb:

1. Asheville, NC

2. Portland, OR

3. St. Louis, MO

4. Nashville, TN

5. Phoenix, AZ

6. Denver, CO

7. Austin, TX

8. Charleston, SC

9. Dallas, TX

10. San Antonio, TX

Do you live in any of these cities? If so—get yourself with a lender and start generating more income!

Wednesday, December 4, 2019

THE REAL DEAL ON AIRBNB LOANS

Airbnb hosting is a tempting opportunity for homeowners—make money off the property you own as a vacation rental.

Hosting an Airbnb can be quite a nice chunk of added revenue stream. Currently, close to 3 million people have listed their homes as Airbnbs. Location will depend on the profit homeowners make with their rental. However, the average homeowner brings in close to $20,000 per year in additional income.

Don’t expect to make much profit if you live in a small middle of nowhere town. However, a beach city such as San Diego or a city like Phoenix, who hosts MLB Spring Ball, are the types of cities that can get rental property owners a lot of money.

Time is another factor in the equation of Airbnb. How much time will you have? Will you clean after your guests depart or will you hire a service? What if the dishwasher floods the kitchen—is it you running across town to fix it or do you have a handy man? Each time you hire someone that will affect your profit.

Location and time are important when factoring in the idea of owning an Airbnb. However, the big question is—how will you finance a vacation home that you can legally rent out?

Taking out a hard money loan for your rental property investment can really help you get the ball rolling. Hard money lenders base their loans in equity rather than on your financial history, allowing borrowers with even the worst of credit to get approved.

Check out some hard money lenders near you to learn more about the process and see if it’s right for you.