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Saturday, January 18, 2020

Who Finances Arizona Spec Loans Investors?

Arizona Spec loan investors use hard money to take advantage of real estate opportunities.

In real estate investing there are two common types of investments: investments in spec and in custom homes. To start, instead of meeting the general preferences of a larger community, custom homes are constructed with a specific client in mind. This client will have a drawn out and specific plan for the construction of the house. Floor plans will represent what an individual client finds appropriate, economical, and appealing. All of the supplies for building, the colors, and the arrangements will be considered and constructed based upon agreements between the both the purchaser and the contractor.

On the other hand, spec homes or speculative homes, are homes made to suit the general needs of the housing market. These homes will be constructed by Arizona Spec Home Investors who do not have a specific client in mind, but rather are looking to create a home consistent with other designs that are selling well in a given area. To do this, Arizona Spec Home Investors will have researched a favorable floorplan and will have measured out the general costs of the materials needed to build a decent looking home. Suiting the markets general needs permits the builders to receive a quicker turn on investment than dealing with the idiosyncrasies of trying to reach an individual.

By building a general fit for market needs in a profitable and attractive area, Arizona Spec Home Investors are able to get a quick return on investment. Many Arizona Spec Home Investors find that they have buyers before completing construction. Another reason for the popularity of spec homes and the ease of selling is that buyers generally know what they are getting into since they are able to look at other spec homes previously built.

Hard Money for Arizona Spec Home Investors

Arizona Spec Home Investors who have been in business for a long period of time are sometimes able to acquire conventional lending. This is often due to a favorable credit history, a strong credit score, a leverageable asset, or a great record of completing ventures and paying off debt. The advantage of obtaining conventional lending is that it offers some of the lowest available rates. These rates diminish the total amount of interest to paid off in the long run. On the down side, is the red tape and the length of the paperwork. Conventional lending offers great rates, but potential debtors are subject to rigorous credit evaluation and stipulation requirements, these taking at times months to complete.

For Arizona Spec Home Investors, finding the right source of financing is a crucial step to reaching potential returns.

If potential Arizona Spec Home Investors, are unable to meet these stipulations, that is to say they do not have stellar credit scores, businesses with a favorable lending history, or properties to leverage, hard money lending may be the best option. Since hard money lending bases collateral off of property, Arizona Spec Home Investors interested in these types of loans will require property to leverage instead of creditworthiness. Whether the collateral is property that is already owned, or it is created by putting cash down the future investment, it does not matter. For more information on spec loans talk to a broker at Level 4 Funding.

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.

Friday, January 17, 2020

Conventional Versus Hard Money Rental Property Loans in Arizona

Which of these rental property loans do you qualify for?

You are getting into the rental property business. Maybe you have done the research and have looked at various neighborhoods in a particular city, area, or neighborhood that are able to give a good return on long term housing rentals. Great. You have the idea, the research, and the iron will to push forward, but you are left with a crucial question: where is the money to do this? The answer for many investing into the renting business is found in locating a comfortable financing situation.

First, what type of loan are you looking into, hard money or conventional? If conventional, do you have a strong credit score, a record of financing and renting out homes, a comfortable amount of cash down (20%-30%), and a favorable debt-to-income (DTI) ratio? Also, is the real estate you are looking to buy in good shape—not distressed or in need of a solid renovations?

If not, Hard Money Rental Property Loans in Arizona are your next option. Hard Money Rental Property Loans in Arizona have less stipulations than conventional lenders. To receive such a loan as this, a borrower must have enough cash down, 20% to 60%, to create a favorable loan-to-value situation for his or her lender. Otherwise, he or she will need to leverage current real estate assets owned to mitigate the lender’s risk. By leveraging property, especially with excellent positive equity or with no debt owed, up to 100% LTV is possible.

Benefits of Hard Money Rental Property Loans in Arizona

On top of this, previous credit issues such as bankruptcy, foreclosure, and delinquency can be overlooked in favor of an optimistic equity situation. Don’t worry about the past, it is time to live in the glory of the entrepreneurial present.

Talk to your hard money broker today at Level 4 Funding to get the rental property loans you need.

Another benefit of using Hard Money Rental Property Loans in Arizona, is that you are able to buy distressed property. This is a benefit if you are interested in renovating to rent a house since purchasing a house is cheaper than purchasing other refurbished units in an area. Though this may take honing a few more skills and becoming one with your inner weekend warrior, many are able to get more returns by paying less in these instances. If hard money lending seems right for you, talk a hard money broker at Level 4 Funding.

Thursday, January 16, 2020

4 Benefits of Using Arizona Private Money Lenders

Who are Arizona Private Money Lenders, and why should they matter to you?

Arizona Private Money Lenders are individual investors who are separate from federal institutions. Aside from conventional lenders who receive institutional money, rates, and regulations in order to lend money, private lenders loan out their own money to the individuals they see fit to loan to. They are small entities with their own interests and their own agendas, not an extension of the bureaucratic arm of federal lending.

There are several benefits to using private lenders. First off, generally speaking, Arizona Private Money Lenders tend to finance real estate that needs to be repaired. They are okay with borrowers purchasing property that has been run down, that has extensive damage, or that can be fixed within a short period of time. This is because these types of property, if the numbers are crunched correctly, can bring in a healthy return, benefiting both lender and buyer. Because of this, fix and flip investors frequently tend to deal with private lenders for a variety of lending scenarios: acquiring a profitable piece or real estate that may be distressed; financing only a portion of the renovation process such as cement, paint, etc.; or financing equipment that can be used for renovations.

Second, reduced lending requirements. Arizona Private Money Lenders do not require lengthy verification requirements and can be funded within a matter of a few days at the quickest. The speed and the reduced application and funding requirements make private money popular for individuals purchasing wholesale, foreclosed, or short-sold properties, many of such purchases needing to be funded within a short amount of time opposed to the lengthy, 40-day-plus period that a conventional loan would take.

What Do Private Lenders Require?

Third, Arizona Private Money Lenders tend to look at equity positions and business success over past bankruptcies, foreclosures, and delinquencies. Many recipients of Arizona Private Money Lenders are contractors, leasers, and flippers who purchase property to get a return on money. A primary concern for Arizona Private Money Lenders is what the loan-to-value (LTV) and the after-repair-value (ARV) will figure out to be. By calculating both of these factors, a private money is able to calculate risk in the advent of foreclosure. Other factors included when financing real estate investors are: how many jobs has the investor completed, and how well has his or her investing business held up.

Arizona Private Money Lenders are local lenders who

tend to have a personal relationship with borrowers.

Forth, Arizona Private Money Lenders are generally local lenders. Aside from equity and work history, Arizona Private Money Lenders tend to lend to people in a close-knit community. Instead of calling an obscure entity from a “1-800” number that is directed through a myriad of phone lines and codes just to hopefully get a bank representative, Arizona Private Money Lenders are accessible, personable, and available. By building local investment ventures, they indirectly build communities, small businesses, local infrastructures, and community jobs. Though finding Arizona Private Money Lenders is not as easy as other lending outlets, it is a comfortable and a less regulated lending form that continues to help many small business and individuals get their start.

Wednesday, January 15, 2020

Yurts Make Money: Airbnb Loans for Glamping

Get an Airbnb loan in Arizona to reap the benefits of the glamping industry.

Outdoor, short-term rentals are on the rise according to a recent article in the New York Times: “Now known as glamping—short for glamorous camping—the hybrid of camp and resort has exploded, bringing a wave of new glamping destinations this year in a variety of price ranges.” In an age of office jobs and commutes, individuals are eager to set aside the grind of the city and enjoy the bliss of nature. The glamping market offers an escape with many of the luxuries of home: heated shower, king-size bed, running water, in-door pluming, and cozy stove, even accessible Wi-Fi included.

Much of the rise in glamping is due to millennials. Recent studies quoted by Fast Company state “that 72% of millennials (currently the U.S.’s largest generation) would prefer to spend money on experiences than on material objects.” This means that there is a growing market for those who value experiencing a unique moment instead of a monotonous stay at a hotel, and glamping satisfies the civilized needs of a client while bolstering an iconic, photo-worthy moment.

So, what are the costs? By searching Airbnb, yurts and elaborate canvas tents can charge up to $500 per night in touristic destinations. A glamping kit for building a yurt costs $2,000 to $5,000. Larger, elaborate, and completed yurts go from $10,000 to $20,000 dollars and can be as large as 30’ in diameter! Add to the this a set of furniture, a septic tank and toilet, an accessible energy source, a propane shower, and a kitchenette. These comforts allow for the possibility of a summer retreat or a cozy winter getaway.

Airbnb Loans for Glamping Investments

Hard money Airbnb loans are a consideration for getting a glamping business up and running. First off, property, generally at least half an acre, is needed in a wilderness environment that entices tourists: a mountainside, lakeshore, or Zion-esque desert. Research Airbnb and other real estate sources to find a location that is suitable to glamping and that can sustain an occupancy rate that will make for decent returns.

Use Airbnb loans to invest in glamping property and equipment.

Get your business up and running in no time at all.

If property is already available, then using Airbnb loans in Arizona for investing in glamping equipment may be a factor. How many glamping units are needed per each portion of land? What is the cost of the needed glamping accessories and property development? Should receiving Airbnb loans in Arizona for glamping interest you, talk to your talk to your hard money broker for more information are Level 4 Funding.

Tuesday, January 14, 2020

Arizona Fix and Flip Loans: Hard Money v. Conventional Loans

Looking for money? Are you eligible to receive a conventional Arizona fix and flip loan?

Though difficult to acquire for many flippers, mortgage loans present opportunity for borrowers possessing the following:

· High credit scores: Creditworthiness is a big indicator for conventional banks. They will want to see a borrower’s track record in regard to Arizona fix and flip loans. Has the borrower payed bills well in the past? Has the borrower had any delinquencies such as missed payments? Have there been any foreclosures or repossessions? Essentially, to the banks, credit history indicates the risk of loaning.

· Favorable debt-to-income ratios: This is the total debt figure divided by income. Banks use this ratio to calculate if a potential borrower is able to make payments, especially after adding any requested loans. Max debt-to-income ratio for conventional banks tends to hover between 40%-50%.

· Considerable or significant assets: Collateral is another crucial factor for receiving a conventional loan. What types of assets, general property or equity in property, does the borrower possess? Is the proposed collateral enough to buffer the lender in the unforeseen event of foreclosure?

· Completed jobs: Conventional lenders look for a history of profit, repayment, and success as good omens. What is the borrower’s track record? Has the borrower been able to repay previous flipping debts?

If the borrower has a favorable history in many of these areas, he or she is more likely to receive funding for Arizona fix and flip loans. The upside to receiving a traditional home loan is, for one, a very low interest rate, some of the lowest. On top of this, the loan-to-value (LTV) can reach up to 80%. On the downside, conventional Arizona fix and flip loans may not be a great choice for individuals who are new to the fix and flip market and thus have a limited amount of completed flips.

Do to the drawn-out nature of submitting and reviewing credit applications, typically taking months to complete, conventional lending presents complications for those looking to bid on wholesale, foreclosed, or short-sell property, which may need a quicker source of financing to acquire. Finally, the challenge of acquiring distressed or hazardous property—conventional lenders are typically interested in property that can be lived in. If there is neglect, structural issues, or other issues that prevent this, the bank is likely to withhold funding.

Rotten Credit? Hard Money Arizona fix and flip loans May Be an Alternative

Though many potential borrowers do not fit the rigorous credit archetype delineated by conventional lenders, there are still other options. Arizona Hard Money Lenders have formed a safe haven for entrepreneurs possessing a rocky credit history, limited experience, or limited assets. They have also provided opportune funding for those looking to purchase property quickly.

Bad credit, limited experience, or few assets?

Hard money Arizona fix and flip loans may be right for you.

Need help flipping a home? To receive more information regarding hard money lending, talk to a hard money broker today at Level 4 Funding.

Monday, January 13, 2020

Secure Returns: Loans to Flip Houses in Arizona Help Flippers Earn More Money

Need cash to get into the flipping game? Hard money loans to flip houses in Arizona may be right for you.

Flipping homes offers many benefits to real estate investors. One of the main appeals to flipping houses is it offers investors a return within a short amount of time. Within a few months to under a year, investors locate, purchase, and renovate a property presenting a return potential. The return on investing in a flip home is large, usually close to 50% and sometimes even higher. Not bad.

But where do flippers start? Typically, investors purchase properties during a booming housing market, a time when real estate prices are on the rise. (Like right now, when flipping is at its highest since the mid-2000s.) The rising cost of homes indicates a rise in equity and an increased possibility of a good return. With this in mind, flippers tend to find distressed property in a neighborhood where renovated homes are selling well. They will do their homework and look at the “comp” or comparable sales. After locating a distressed property, flippers take into account the “perceived” renovation costs, how much will renovation cost to receive a return similar to that of other renovated houses in a given neighborhood. The trick is finding a property that would hypothetically receive a greater return for less work. Renovations could be as simple as reflooring, landscaping, and painting a few rooms. Other times, it might be necessary to delve into more complex renovations to receive a return. Either way, the main questions remain: Do the ends justify the means? Can a decent profit be made for all of the labor? If yes, “you may pass GO.”

So, a flipper has found a house, done the homework, and taken into account all of the perceived costs. Great. The next step is funding. Since many Americans don’t have too much cash to blow, funding is a very important step. To finance their projects, flippers often go to lenders, generally ones that gives loans to flip houses in Arizona.

Arizona Hard Money Lenders Offer Less Restrictions for Those Looking for Loans to Flip Houses

Arizona Hard Money Lenders typically grant loans to flip houses. This is due to the fact that conventional lending is practically restrictive when it comes to loaning to real estate investors new to the business, with low credit scores, and with a history of subprime credit or past delinquencies.

Cut through the red tape! Talk to your hard money broker to get loans to flip houses in Arizona today.

For this reason, many new flippers enjoy the face-to-face, hands-free approach to hard money loans to flip houses. They find it a way to cut through the red tape of bureaucracy and start their new path of securing the returns that they need. If eligible, rates may start as low as 7.99% for terms extending from 3 to 60 months. Applications processes are short. Funding up to 90% LTV is available through certain lending programs for borrowers meeting collateral requirements.