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Monday, December 30, 2019

What you Need to Know When Seeking Arizona Rental Property Loans

Making extra cash by renting out a property is definitely doable. However, for first time buyers and flippers, it’s important to evaluate all the situations before becoming indebted to a flop.

Obtaining funding from traditional lenders like banks and credit unions is easier when you have a strong credit score and a history of successful fixer uppers. Traditional lenders aren’t flexible like Arizona Hard Money Lenders when it comes to lending out money, due to the risks that accompany possibly unreliable borrowers. For those who may not qualify for traditional financing, Arizona Hard Money Lenders are private companies or investors who will lend money to people with imperfect credit scores, but with a cost—high interest rates, and fees. Not to mention, a quick repayment period.

Many experienced people who fix and flip houses utilize services offered by Arizona Hard Money Lenders. They are usually able to afford higher rates, and with a fast sale are usually able to satisfy the needs of a quick repayment period with the sale of the flipped home. Not everyone will be able to meet these requirements, especially first time flippers. While they offer flexibility within the relationship, transparency, and general speed, the high costs can be risky for people delving into the housing market for the first time if proper research isn’t done regarding renovations. If you don’t have great credit, comparing traditional and untraditional lending options may seem like the first step to delving into the loaning process. However, untraditional hard lending money options do not compliment a long-term rental property where cash is coming in over a lengthened period of time. Their quick repayment period would make it difficult to repay, unless you had some extra cash on hand. Chances are, your needs of a loan eliminate that as an option.

Requirements of Arizona Rental Property Loans

Other things to consider are down payments, cash reserves, and mortgages. Traditional loans for rental properties will require a 20% down payment, and a cash reserve of at least 6 months. Another strong stipulation of banks is that they won’t approve more than 4 mortgages. Depending on your situation, a mortgage for a rental may disqualify you. Equity line of credit, the Federal Housing Administration FHA, or Veteran’s Administration VA are other sources to look into when the short repayment periods of Private Money Lenders in Arizonaand the strong stipulations of traditional public lenders aren’t working out.

Realistic Expectations

Renting out a property isn’t as simple as just collecting the rent. In addition to obtaining the Arizona Rental Property Loans, there are other things to consider. Factors such as home owner’s association, utilities, and possible renovations are other sources of potential financing. Being accountable and aware of your cash flow is going to make the process of financing a rental so much easier and save you stress in the long haul so that, when it’s time to collect your check, you can put it to good use.

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 29, 2019

Why Arizona Airbnb Loans are the Hottest Thing on the Market

It’s very common to rent out a traditional home or apartment. Now, because of the new travel market, people are taking specific advantage over Airbnb—a service that allows people to rent out their living spaces to travelers.

Airbnb is a company that allows people to rent out their living spaces to travelers visiting the area. Compared to hotels, services offered by Airbnb can be a lot cheaper and individualized to a specific traveling party. Airbnb may also be an alternative to those traveling last minute with nowhere to stay because of booked hotels. People located in touristy cities may find it beneficial to rent out part of their living space should they be seeking extra cash or ways to add to their savings.

Most people who host their space through Airbnb live in it simultaneously with the traveling party, designating particular rooms or areas in the home to guests. It’s not uncommon to see Airbnb hosts interacting with guests as a type of tour guide, giving out advice on places to see, eat and explore. That experience is certainly different from that of a traditional renter and landlord, and comes with some customer services skills. Having the ability to impact someone’s experience in a positive way as they explore the new city is just one way this relationship will differ from traditional renting scenarios.

Things to Consider for an Arizona Airbnb Loans

The popularity of Airbnb is steadily rising, which makes it a great investment option. Still, there are some things to consider. Accommodations will be important because you are offering a service like that of a hotel—and often, to the choice of the travelers, instead of. Having things like extra towels, running water, and space for luggage are just a few things you should be thinking about. While you will likely have a majority of the needed accommodations in your home, it is important to think of your space as the service you are providing, making it comfortable and reliable so that your place is up to par with the demand of the travelers. If you don’t feel your space is appropriate, you may consider Arizona Airbnb Loans for small renovations.

Taking Advantage of the Market with an Arizona Airbnb Loans

Maintaining a high score on the app will drive the demand of visitors to you, and could eventually lead to partnership with Airbnb, where you could qualify for funds offered by the company itself. In ensuring the company is offering the best services and hosts possible, they’ve begun Airbnb Select where they offer Arizona Airbnb loans. In helping you maintain a great space, they are maintaining the integrity of their company. Otherwise, things such as personal loans or other short-term loans may come in handy if any small renovations need to happen. If you are considering hosting with Airbnb, your space is likely already accommodating and, with a decent credit score, you will likely be approved by a traditional lender for a small loan. Beginning to offer services through Airbnb is definitely doable, as seen by the hundreds of thousands of listings online.

Saturday, December 28, 2019

How to Get Arizona Construction Loans to Build your Dream House

Building your dream home will be a long process of planning, but it can be done with hard work. There are specific loans designed to lend you a helping hand when you need it most.

Arizona Construction Loans are short-term loans for people on the market to building a new home. They are not given out all at once, but given in increments after meetings with the borrower and home builder, and strong regards to schedule. Ultimately, the loan is given out with each progressive step of the building process. Planning is very important, and because the lender cannot view the value of the home unbuilt, budgets, schedules, and progress visits are compromised with the lender who is heavily involved in the process. Staying on schedule will be important to both you and the lender because fees may increase with missed deadlines and a slowly moving timeline.

Being approved means having a solid plan and production schedule, but also a credit score of 680 and, typically, a down payment of 20 percent. Providing a strong financial history is crucial because proving that you are capable of simultaneously paying extra bills is as important as proving the home will actually be completed.

Receiving funds from a lender may happen with a strong credit score, but it won’t happen with weak plans. Your lender will be interested in reviewing everything your builder touches before handing over a loan. This will help ensure them that the money is going to use at a solid project with qualified people. Lenders providing Arizona Construction Loans are much more involved than other lenders working with other types of loans. In this case, your lender will be very influential regarding the builder, plans, etc. Their approval of your builder and architect will be absolutely necessary. If they don’t believe in your production members, your loan may never be approved. Your lender will likely be a traditional public lender, such as a bank or credit union, whose familiarity with the community makes them a great option for borrowers looking to build in the area.

Types of Arizona Construction Loans

A construction-to-permanent loan converts the loan into a mortgage after the home is complete. With a construction-to-permanent loan, there is only one closing process. A construction only loan is the opposite. Closing costs are paid twice, because the loan is split into both construction costs and a mortgage, requiring the fee twice. Whatever your choice, repayment will begin when construction is complete.

Moving into your Dream Home

Using Arizona Construction Loans to finally move into your dream home is a great option, but one that comes with hard work. Understanding everything that goes into planning, building and scheduling is important because of the way these loans are given out. Finding a strong team of home builders will be important because architects that can’t meet deadlines will hurt you in the loan process. It’s possible to get the white picket fence, but first comes work and planning.

Friday, December 27, 2019

Are Arizona Fix and Flip Loans Realistic?

HGTV makes flipping houses look so easy—but is it? Read more below to find out what types of loans are available to you for your first successful flip.

Depending on your financial situation and history of flipping, the best loan for you may not be the best for everyone. When it comes to loans, many people are guided to private investors when approval can’t be obtained by banks. On the flip, even experienced flippers will use private investors because of the speedy process. Gaining financing for Arizona Fix and Flip Loans will be different for everyone, but it can be done if you know your situation.

Loans from banks are usually the first place people look. Because banks are traditional public lenders, they will have strong stipulations in place. Strong credit score and financial history are musts. Unfortunately, not everyone can meet these types of requirements. Those who meet these requirements will obtain a loan that functions like most typical mortgage loans.

When traditional lenders are out of the question, private investors come next. Private investors offer Arizona Hard Money Loans that have a less strict approval process. While people with imperfect credit may be able to obtain a hard money loan, they may not be able to balance the high fees and interest rates that combat the easy approval process. Those considering Arizona Hard Money Loans must also be aware of the short repayment period. Experienced, financially proficient flippers take the short repayment period as an advantage. A successful flip equates to a fast sale and the ability to repay the loan fast. Again, not everyone will see this as an advantage.

Depending on the property, a personal loan may be best. Personal loans are great if a property only needs small renovations. If the property needs a little work, they may be combined with other loans.

The Real Deal Arizona Fix and Flip Loans

Coming right down to it, the most common Arizona Fix and Flip Loans are offered by Arizona Hard Money Lenders. The short repayment period is ideal for a property that, hopefully, sells quickly. During the renovation process, however, it’s going to be important that you’re working with professionals and know what you’re dealing with. The last thing you want is a piece of property that causes more chaos than anything else. Though of course, your lender doesn’t want that either, and will offer a loan based on the loan-to-value ratio, or the LTV. Arizona Hard Money Lenders are usually able to offer around 65%.

Conclusion

Arizona Fix and Flip Loans don’t always play out in real life like they do on TV—but that doesn’t mean you still won’t find success with one. Understanding the market, renovation process, and stipulations that come with each type of lender is going to be what ensures you success based on your personal financial situation, and further goals for the fixer upper. Putting in time and research on the type that’s best for you just may be the difference between a flip and a flop.

Thursday, December 26, 2019

Who Are Arizona Private Money Lenders?

Beginning a relationship with an alternative money lender may be the only option when a traditional lender won’t approve a loan. Read below to learn who they are and how they can help you with financial success.

Private investors are alternative loan sources for people who aren’t approved by traditional lenders like banks and credit unions. While most people may think of private investors involved with real estate, they can really range from any untraditional source. This may include people such as friends and family who offer a loan to professional acquaintances, crowd funders and typical Arizona Hard Money Lenders.

Typical Private Money Lenders in Arizona are private investors that differ from banks in that they can offer speed, flexibility and approval. Usually people with rotten credit or low income go to Arizona Hard Money Lenders because these types of lenders focus on the property instead of financial history. While financial history is important, as is the repayment of the loan, alternative lenders focus on property potential. Compared to a bank, private lenders have a more transparent relationship with their borrowers. When evaluating potential loans, private lenders typically evaluate the LTV loan to value or ATF after repair value; for them, collateral trumps finance history. Appraising the property’s potential will likely be the first step. One major benefit of utilizing a private lender is speed. Banks can take as long as a month or more to begin the loan process, but some private lenders can start as soon as the day of. This is attractive to people who need money to bid on competitive property or to prevent a foreclosure fast.

Who Alternative Lenders Work with Best

As mentioned, agents bidding on property or families wishing to prevent a foreclosure may benefit the most from private Arizona Hard Money Lenders. The short repayment period and speed in the loan process loans itself to these options specifically. Fixer uppers are another example of those who may take advantage of the benefits of private money lenders. Experienced and successful renovators would definitely take advantage of the short repayment period, as they are likely to resell their property and make a profit fast. Thinking outside the box into other type of private lenders such as crowd funders or family and acquaintances could be helpful if a small amount of money is needed. If the public believes in the investment or a personal connection knows you to be reliable, they are definitely options that may be more successful than a bank—especially if the rates of Arizona Hard Money Lenders are too high.

Determining the Right Option for You

Private Money Lenders in Arizona provide opportunities for many people unable to receive traditional funding. However, this does not mean they are for everyone, especially in cases of Arizona Hard Money Lenders. Determining your qualifications for both traditional and untraditional loans will help you evaluate the types of opportunities work best in your particular situation. Taking account of all variables in your situation and comparing each alternative option will likely lead you to success. Sometimes it just requires you think outside of the box.

Wednesday, December 25, 2019

How Arizona Bridge Loans Work

Funding your next house may not come easy—fortunately, specific loans exist for people wishing to do just that.

Arizona Bridge Loans have a variety of names. From “swing loans” to “wraps” to being referred to as “bridging the gap,” they all mean the same thing: borrowing using the down payment on your house to purchase the next. They are used when you want to make a purchase before selling your current home, and oftentimes to get out of contingencies in contracts that you must sell your current home first. The word “bridge” is the transitional metaphor of moving from one home to the next.

The benefits of Arizona Bridge Loans include the freedom of searching, buying and selling your homes, with no transition period between, allowing for the ability to move in when ready with no temporary living spaces. Other common scenarios include using these loans in scenarios of small renovations and relocations across cities. People avoiding loan contingencies are usually interested in this type of loan, while lenders are generally interested in them for their high interest rates and short-term, low-risk repayment.

How to Know if “Bridging the Gap” is Right for You

If this loan interests you, qualifying will require a great credit score and a low debt-to-income ratio. Qualifying for this loan means that you will own two properties—which means paying two mortgages. Additionally, these types of loans are short-term loans, usually being paid off in 6 to 12 months, and carry higher interest rates. Rates vary from lender to lender, but they are usually 2% higher than the market. They will also be further affected by the home’s loan-to-value LTV ratio and your personal credit history. These factors coupled with the need you’ll have of selling your house are definitely things to consider before making any fast decisions. Understanding the current housing market and how your home will fare compared to other listings will be important and cause you less stress. Sometimes loan extensions can be provided if the house isn’t selling, but it’s important to be aware of these unguaranteed factors ahead of time.

Moving Forward and Alternative Options

If Arizona Bridge Loans are right for you, finding a possible lender can be done at your local bank or credit union. If they are not the right option for you, alternative routes such as home equity loans or a 401k are other options. High credit and income is required for home equity loans, but they are common suggestions when Arizona Bridge Loans aren’t the answer. Home equity loans essentially take a second mortgage on your home that can then be used for a new loan. Personal loans are also alternatives that generally have lower interest rates. It’s not uncommon for personal loans to be small or paired with other types of loans. Evaluating all your options and understanding your long and short term goals will help you determine the decision that’s best for you. Whether or not these loans are the answer, other options are definitely able to be sought so that you can finally manage your dream property.