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Monday, January 27, 2020

Harvard Study Shows You’re Approaching Private Money Lenders in Arizona Wrong

You want to put your best foot forward when approaching Private Money Lenders in Arizona for funding, but research out of Harvard Business School suggests most people are approaching business situations totally wrong. Catering to people and bragging will not help you get ahead, but authenticity just might.

Prepare to be mind-blown. A collaborative study including researchers both Harvard and Wharton suggests you’re approaching business deals wrong, but then again, most of us are. The study looked at two distinct areas; how people view humblebragging and how they view catering. Both techniques are routinely used in business as a form of self-presentation. People use them as tools to make a good impression, and most people believe they’re effective at getting others to like them.

To test the impact of humblebragging, researchers had more than 100 students answer a fake job question regarding their biggest weakness. Over three-fourths responded with a humblebrag. These are the well-rehearsed lines we’ve all been trained to give in interviews. For example, “I’m a perfectionist and it can be irritating,” or “I’m so driven that I sometimes forget to take breaks,” or “I graduated Ivy League, so my peers can sometimes be intimidated by me.” You probably have your own humblebrags as well; for social media, business meets, interviews, and so on. Unfortunately, these kinds of phrases actually sends the message that the speaker is not self-aware and puts the individual in a less favorable light. In follow-up studies, the researchers discovered that people prefer outright braggers and even complainers over humblebraggers.

The group also tested how catering to someone impacts likability. The situation here, however, was just like what people do every day with Arizona private money lenders. They tested how entrepreneurs were received when they approached investors and asked for funding. In some cases, the entrepreneurs catered to the investors by demonstrating that their interests were aligned or by trying to behave in a manner they felt the investors expected. Although most people believe that catering will make them more likable or trustworthy, the inverse is actually true, according to the study. Those who catered were evaluated more poorly than those who did not.

You’ll Be More Successful if You’re Authentic

Regardless of whether you’re approaching private money lenders, an interviewer, or even your friends on Facebook, people prefer that you’re authentic. Being authentic, in spite of any flaws or shortcomings, may actually be the thing that lands you your next job or gets your next deal funded. That’s because people can see through your attempts to present yourself a certain way and it brings everything else into question.

Temper your bragging with self-awareness for the best results.

There are times it’s ok to brag. For example, if you’re approaching Private Money Lenders in Arizona and you have a great track record with fix-and-flips, show off your successes. Don’t hesitate to demonstrate your skills. However, if you’re asked about shortcomings or challenges you’ve faced, you’ll likely do better to give an honest assessment of yourself, minus the humblebrag.

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, January 26, 2020

3 Reasons Residential Arizona Hard Money Lenders are Avoiding You

Are you eager to get into the fix-and-flip game, but discovering residential Arizona Hard Money Lenders aren’t exactly jumping to support you? It probably comes down to one of three reasons, and the good news is, they’re totally fixable.

1. You’re inexperienced. People new to real estate investing make more mistakes and don’t have the experience to know how to handle surprise issues that surface during a project. Bear in mind, there will always be unexpected events that try to derail a project. At the very least, lack of experience costs money. At worst, it can leave residential Arizona Hard Money Lenders totally holding the bag. The best fix for this is to work for someone with experience in the industry for a while or to bring on a partner with experience who will make the person financing your deal more comfortable.

2. You want the lender to assume all the risk. Fix-and-flip loans of this nature are asset-based, meaning your loan amount will be based on the value of the property. Experienced rehabbers with a good plan and property can get up to 90% of the value, but as risk increases, the less you’ll be able to get. You’ll get more financing offers if you’re putting more of your own money into the deal because it builds confidence with the lender that you’ll see the project through.

3. You haven’t done your homework. People who are successful with fix-and-flips know the numbers like the back of their hand, and they either get there through experience or by building a team of professionals who are knowledgeable in the areas they aren’t. For example, if you aren’t a contractor, don’t try to guess what it will cost to fix a leaky roof. Bring someone in who knows. If you aren’t an appraiser, bring someone in who can accurately establish value.

When Investors Risk Less, They’ll Work with You More

The reality is, residential Arizona Hard Money Lenders want to fund a project, earn alongside you, and then put their money into another project quickly. When they see risks to this model, they’re more hesitant to cover projects. If you’re struggling to get financing, the best way to overcome it is to reduce or eliminate their risks, which creates a win-win situation for both of you. In fact, many prefer to work with the same rehabbers time and time again because they have faith in their capabilities.

Increase your eligibility and get better terms by working with a knowledgeable broker.

If you’ve got the knowledge and the team behind you to complete a project successfully, there’s almost no reason why residential Arizona Hard Money Lenders won’t work with you. However, it also helps to have someone in your corner who understands what your lender is looking for and can help you shore things up before trying to get funded. Work with a broker who can examine your plans and will find you the best terms possible, so you can get funded fast and get top ROI on your project.

Saturday, January 25, 2020

If You Can Write a Listing, You Can Make Money with an Arizona Airbnb Loan

Taking out an Arizona Airbnb loan may seem like a risky prospect. However, it doesn’t take much beyond knowing how to post a listing to make money using the platform.

In the early days, peer-to-peer marketplaces for home-sharing and rentals were little more than couch-surfing sites. Born out of necessity due to market conditions, these sites thrived because homeowners needed to generate extra income to make ends meet and travelers needed less expensive accommodations. Ergo, most of the rentals listed were either a single room in an occupied home or just a sofa in someone’s Livingroom.

These options still exist, but as the market has improved, peer-to-peer rentals developed too. Nowadays, people not only rent out second homes, but purchase properties with the express intent of renting them out. Data from Savilles concludes the average second home brings the owner a cool $21,000 per year in rental income and most people use a mortgage or Arizona Airbnb loan to fund the initial purchase. Interestingly, the average home is rented out just 17 weeks per year as well, meaning you could easily use yours as a vacation home as well or increase marketing to improve your revenue stream. If you do the math, it works out to $1,235 per week or over $64k annually if you’re fully booked.

The catch: you need to select a property that will rent out and you need to market it well in order to increase your ROI. The good news is, Savilles also researched what people are looking for in their short-term rentals, so it’s easy to pick a place that will get booked and stay booked.

Match Expectations to the Property and You’ll Be Successful

Coastal locations, towns/ cities, and mountains are your best bets as you shop for a property, according to Savilles, and your guests will prefer detached villas/ homes, apartments, and townhomes, in that order. Guests also look for basic features, such as broadband internet and air conditioning while booking, and if you’re in a coastal area, they want easy access to the beach. If your property doesn’t already have special features, it may be worthwhile to use your Arizona Airbnb loan to add them, so demand for your property increases. Not all features will give you ROI, though, so spend wisely. For example, guests aren’t generally looking for golf courses, marinas, and access to water sports, nor are they over-eager about sports facilities, gyms, extra land, and home automation systems. That’s not to say these features aren’t beneficial, but they aren’t as likely to increase your bookings or allow you to charge more as cultural activities and good parking.

You’ll make readers eager and increase ROI by highlighting the best features in your ads.

The secret to making money with an Arizona Airbnb loan is to keep your space rented out and get the most from each rental. Spend time crafting the perfect ad that demonstrates which features the property has as well as its proximity to local attractions and transit. Be sure to include photos and experiment with the wording. When the property starts off with good features, generating income with it is nothing more than good writing skills.

Friday, January 24, 2020

Why Fix and Flip Loans in Arizona are Awesome for REOs

REO properties make great investments, but financing the purchase can be a challenge. Fix and Flip Loans in Arizona work especially well for REO purchases because they eliminate barriers.

As you search through property listings, chances are you’ll see the term “REO” quite a bit. It appears on listings for both investment properties and consumer properties, and references that the home is “real estate owned.” In short, the bank owns it, not a person.

Properties become known as REOs when the homeowner defaults on the mortgage and a foreclosure occurs. People wind up in foreclosure for many reasons, and the banks don’t like to take homes away from people, so the homeowner gets a chance to make things right during a pre-foreclosure process. During this phase, the homeowner can either get his mortgage caught back up or sell the property. Banks will even sometimes allow the homeowner to sell the property for less than they owe on their mortgage just to be done with the whole thing. If the homeowner does nothing, then the property will go to auction. Many investors use Fix and Flip Loans in Arizona at auctions as well, purely because they’re usually cash-only, meaning the buyer can’t try to apply for a mortgage after. He has to be able to pay for the purchase right away. If a property doesn’t sell at auction, then the bank takes ownership of it and it becomes known as a REO.

Naturally, banks aren’t in the home-selling business, so it’s their goal to unload the property as quickly as possible. Additionally, REO properties tend to be in disrepair, simply because the initial mortgage-holder is often unable to handle maintenance on the property for some time prior to defaulting on the mortgage. The foreclosure process takes months to complete too, increasing the timeline proper care hasn’t been given to the home. Because of these things, REOs can often be purchased fairly inexpensively.

One of the Pitfalls of REO Properties is that Banks Financing May Be Out

Regardless of whether you’re an investor or an average person looking for a new home, the banks may turn up their noses at your REO property. This usually happens when it’s in ill repair, but things like your credit and whether or not you plan to live in the home matter too. That doesn’t mean you can’t or shouldn’t purchase the REO, particularly if you’re getting a screaming deal on it, only that Fix and Flip Loans in Arizona may be better-suited to the job than a conventional mortgage.

Hard money can get you into a REO when the banks won’t.

Hard money Fix and Flip Loans in Arizona work differently than mortgages. You’ll typically take the money out for a short period of time; such as a few months or a couple of years. During that time, you’ll make interest-only payments and then pay off the balance at the end of your term. Things like the condition of the property and your credit are less of a concern, but you’ll need to have detailed plans for how you’ll repair the REO and know when/ how you’ll pay off the balance. If you plan to live in the home and the initial condition of it prevented you from getting a traditional mortgage, you should be able to qualify once the repairs are complete. If you’re a rehabber who likes to repair and sell, you’d pay off the balance as soon as the property is sold. In other words, don’t let the term “REO” scare you away from a property. Instead, research it well and explore alternative lending with a broker. You just might find you’re getting the deal of your dreams.

Thursday, January 23, 2020

Why Banks Don’t Like to Give Loans to Flip Houses in Arizona (And What You Can Do About It)

Going to banks for Loans to Flip Houses in Arizona usually results in a big fat “DENIED” letter. The good news is, there are other ways to increase your eligibility for funding.

Working on fix-and-flips can increase your wealth dramatically, especially if you’re already handy or have some experience in real estate or finance. However, getting your hands on financing, particularly for your first few properties, is a real challenge because traditional financing doesn’t work. Banks will typically tell you “no” for one of three reasons;

1. You’re not living in the home. Banks like owner-occupied homes because the person making the payments obviously needs a place to live. In other words, you’d move mountains to keep your home, no matter what else happens in your life. If you’re not living there, the bank will likely consider offering any kind of cash too risky.

2. The property is not in good repair. Some of the best fix-and-flip deals have serious issues, like roof or structural damage. They can’t be lived in because of this. If the bank were to give you Loans to Flip Houses in Arizona and you didn’t make good on payments or fix it, they’d be stuck with an unlivable house that they’d have to fix before unloading. It’s an expensive and undesirable situation for them.

3. Your credit isn’t spectacular and you don’t have business credit yet. It takes small businesses quite some time to establish credit, especially if you’re asking for tens of thousands or hundreds of thousands of dollars. In most industries, the business owner uses his or her personal credit until the business is established, but most people don’t have strong enough credit to cover the large amounts of cash needed for purchasing a property. If you already have a mortgage for your own home, that’s a double ding. They’ll be looking at it from the standpoint of making two mortgage payments; something most people cannot do.

Increase Your Eligibility by Choosing Alternative Funding

Banks aren’t the only ones you can go to when you need Loans to Flip Houses in Arizona. Oftentimes, people in the industry go with hard money instead. This refers to financing based on the value of an asset, rather than the criteria banks usually use. It’s easier to get and it doesn’t matter if the house is a wreck or if your credit is rotten. You’ll also hear it referred to as private money, simply because the people financing your project are regular people versus institutions or banks.

A seasoned broker can help make your dreams come true.

It probably goes without saying, but private individuals with cash to invest don’t hang around street corners asking people if they need cash. To get Loans to Flip Houses in Arizona with great terms, you’ll need to work with a broker who is familiar with multiple investors and can match you with someone who’s a good fit for your project. A seasoned broker will also help you shore up your plan if need be, so the deal looks good to investors and you have more success with your rehab projects. Whether you’re just looking for info or already have a property picked out, speak with a broker who works with hard money and you’ll increase your chances of getting approved dramatically.

Wednesday, January 22, 2020

Why Few 100 LTV Arizona Hard Money Lenders Exist (And What You Can Do About It)

If you’re looking for 100 LTV hard money lenders, you’re likely to find few, if any, options. The good news is, there are still ways to fully-fund your real estate investments if you’re savvy.

Before the big market crash, people could find 100 LTV Arizona Hard Money Lenders with relative ease. Obviously, not everyone offered loans worth the full value of a property, but home values were increasing at such rapid paces in most markets that a successfully-funded deal, even at 100% of what it was worth at the time of closing, could climb 5-10% or more in value before the project was even finished. That was one of the big draws to getting into the fix-and-flip market. It was incredibly difficult to lose money doing it.

That being said, the market crash changed a lot. Nowadays, fix-and-flips are still a lucrative field to get into, but you have to be smarter with your numbers because you can’t count on increasing market values to bring you profit; you’ve got to buy low, repair fast, and sell high. Moreover, getting 100% of the value at the time of the sale is unlikely, purely because the market isn’t climbing as fast. Most areas are still climbing, but at nowhere near the rates that they once were. Because of this, it’s more likely that you’ll get a deal funded at 60% of the value, with a few outliers climbing as high as 90%.

If that 90% isn’t going to get you where you need to go, you still have options. First, going with alternative lending means you can make an offer with cash-in-hand. Motivated sellers like that because it means they’re free of their problematic or junk house fast. They don’t have to worry about their buyer qualifying for, and possibly being denied, a traditional mortgage. That means you can often negotiate a better deal for the property, meaning your cost to purchase it would be lower and you’ll have more wiggle room for financing. As a second option, you can also consider cross-collateralization. Instead of relying solely on the value of the property you’re repairing, you could use another investment property or even your own home as collateral too.

An Experienced Broker Can Lend a Helping Hand

If you can’t find 100 LTV Arizona Hard Money Lenders and you’re still struggling for ways to fund your project, an experienced broker can help. Regardless of who funds your deal, they want you to be successful, and so if you’ve got a great property and have the knowhow, a broker can help locate a lender who understands your position or identify other ways to make sure that your deal goes through.

A successful project is a win-win for everyone.

Ultimately, you may not be able to find 100 LTV Arizona Hard Money Lenders or someone to fund a project, but that’s a lesson in and of itself. Savvy investors know when a project isn’t going to be a win, and they’re able to move away from it without emotion and onto something that is going to generate real returns. Find a good project, work with a seasoned broker who can find you the best terms possible, and build up from there.