Setabay Private Money Lender

Saturday, November 9, 2019

Five Types of Arizona Fix and Flip Loans

There are several different types of Arizona Fix and Flip Loans that you can obtain when looking to get into this lucrative real estate investment. Know the pros and cons before deciding which is best suited for your particular situation.

You not alone if you are wondering on how to finance a house flip. This endeavor of buying a home, fixing the home and renovating can be highly lucrative. Getting a Hard Money Loans in Arizona is unlike getting a mortgage for the house you plan on living in. There are various Arizona Fix and Flip Loans that buyers can utilize to buy distressed properties and then sell them. The qualification process has its pros and cons.

Hard Money Loans in Arizona: These are loans that are short term in nature. These loans are intended for real estate. The issuer is often a private lender and can be an individual, group of investors, or a licensed mortgage broker. The terms of these loans are much shorter than conventional loans. Most are six months to one year, though some can go up to five years. Interest rates can be considerably higher at 12% to 21% with 3 to 6 points upfront. These loans fund 60% to 70% of the value of the property. There is much less paperwork than conventional lenders, and the lenders will accommodate people with lower credit scores, as low as 550.

Cash out refinance: If your property has increased in value, then you have an option to refinance and get a new mortgage for more than you owe. This gives you cash in your pocket for new ventures. Closing costs in the range of 3% to 6% of the total loan will need to be paid. Home equity loan or line of credit: If you’ve been able to build equity up in your primary residence, then you could apply for a home equity loan or line of credit and use your home as collateral. With a home equity loan, you have the full amount of the loan up front. With the line of credit, you draw on the line as you need it. You may be able to borrow up to 80% of your home’s equity.

Investment line of credit

This line is used for buying investment properties. This is drawn upon as needed. This type of Arizona Fix and Flip Loan lasts anywhere from 18 to 24 months. If you have a track record of flipping houses, this type of Arizona Fix and Flip Loan is best suited for that. The time frame for establishing this type of loan is usually about three weeks. The loan amounts range from $1 million to $50 million. The interest rates generally run 5% to 8%.

There is also peer to peer lending which is also known as crowd funding. This brings together a large amount of people who contribute funds to the project. This is usually raised through the internet.

High net individuals invest in these projects with a minimum of $5,000. There is not a lot of data about crowd funding for real estate projects. One firm funds up to 70% of the properties after repaired value. This type of funding can fund in as little as 10 days and the interest rates run 8% to 11% with the average loan term being 12 months. There is also an option for investors to take partnership interest in the property which allows the investor to benefit from interest and upside potential of the project.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

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, November 8, 2019

The Good, Bad, and the Ugly of Hard Money Loans in Arizona

For some people, a Hard Money Loans in Arizona is a fantastic option for them. This, however, is not true for everyone. The following is the way to know if these types of loans are a solution that you should pursue.

At this point, are you wondering what a Hard Money Loans in Arizona is? If you are new to the real estate investing world, you may be unfamiliar with the term. In layman’s terms, they are short term loans. The term of the loans range from one to five years. They are an alternative to conventional mortgage loans. Compared to conventional loans, Hard Money Loans in Arizona offer three main benefits to this type of funding:

1. Quicker: When you apply with a conventional lender for a loan for real estate, it is a painfully slow process. As a borrower, you will need to adhere to strict requirements. Arizona Hard Money Lenders are less concerned with meticulously verifying the borrowers every detail, but more concerned with the collateral. Since the hard money lender is more concerned with the collateral, the process moves must faster, so the borrower can jump right on the property.

2. Flexibility: Compared to the conventional lenders, Arizona Hard Money Lenders do not use the same set-in-stone process. The hard money lender is more concerned in establishing and cultivating a relationship with the investor. Each project will be evaluated on the merits of the project. When seeking funding, the hard money lender you will be speaking to is an individual as compared to conventional corporate lenders.

3. Approval is easier: Most people utilize a Hard Money Loans in Arizona to fund their real estate project. The most important factor is the collateral to Arizona Hard Money Lenders. The credit score and financial history are not important factors. If you have located a property that you need to jump on immediately, your financial situation is not a deciding factor making funding that much easier.

Is a Hard Money Loans in Arizona Right for Me?

If you have experience as a flipper or a first timer that has a working relationship with a contractor, and you are able to make a profit fairly quickly, then this is a perfect source of funding for you. However, for a number of people, this may not be a solution for you. Understand that the hard money lender avenue comes with higher interest rates, up to 15%, closing costs, points, (percentage of the loan amount) and organization fees.

At Level 4 Funding, we offer flexible terms and some of the lowest rates in the industry. We are able to provide these unique properties because of the hundreds of private investors that we partner with.

You have located an opportunity that needs you to move quickly before it is swept out from you. You may want to speak to An Arizona Hard Money Lender. Research lenders in the area that the property is in. If you go to a lender outside the area that the property is in, make sure that the lender offers loans in that area. Go and sit down with the lender and discuss the project. The lender will help you understand your options, find the right terms for your project, and will work with you.

Thursday, November 7, 2019

The Top Five Options When Seeking a Fix and Flip Loan

Real estate investors use Arizona Fix and Flip Loans for short term financing to purchase and renovate a property with the intent of selling it for a profit. These loans are for properties with fast closing and the property is in any condition.

Hard Money Loans in Arizona are the most popular type of Arizona fix and flip loans. In some cases, you can qualify in minutes, see your rates, and get funded within in as little as one week. Hard Money Loans in Arizona are popular loans used for these types of properties. They offer short terms and are secured by real estate. This type of loan is used by investors to purchase a property, renovate the property, and then sell the property within a year. Loans geared for fix and flip properties enable you to finance a property in poor condition. With Hard Money Loans in Arizona, the threshold for approval is lower than conventional loans and funding could be in as little as one week. The concern of the lender is more about the collateral than the background of the borrower. Here are five options for Arizona Fix and Flip Loans including the hard money lender.

Hard Money Arizona Fix and Flip Loans - Perfect for novice investors as well as experienced investors with 2+ flips.

· UP TO 90% Loan-to-Value and 80% after-repair-value

· Term 1-3 years

· Approval time 24 Hours, up to 15 days for funding

· Interest Rates: 7%-12%

· Fees: 1-5% -10% lending Fee, 2% - 5% closing costs

· Qualifications: 550 minimum score, 2-3 past Rehab Projects and Possible Licensed Contractor

Cash Out Refinance - If an investor has an existing investment with 30% to 40% equity.

· Financing up to 75% loan to value

· Term 15-30 years

· Approval 30-45 days

· Interest Rates 3.99% to 6%

· Fees 0% -3% lending fee, 2% - 5% closing costs

· Qualifications 640 minimum credit score, 45% debt to income ratio, 0-6 months reserves and Existing property with 40% equity

Home Equity Line of Credit - Investors who have an owner-occupied primary residence with equity of 30% -40%.

· Financing of up to 85%

· Loan term 25-30 years

· Approval/funding time is 30-45 days

· Interest Rates 4.5% to 5.5% variable rate

· Fees 0% to 2%

· Qualifications 640 minimum credit score, 45% debt to income ratio and existing home with 30% equity

Line of Credit for Investment Property - Investors who have a rental property who wish to cash out for other purchases.

· Financing up to 80% of cost

· Loan term up 75% loan to value

· Approval time up to 30days

· Interest Rate 5.2% - 6%

· Fees $75 annual service fee and 1% -5% closing costs

Arizona Bridge Loans - If you need to close quickly and will arrange more permanent financing later.

· Financing up to 70%

· Term 2 weeks to 1 year

· Approval 15+ Days

· Interest Rates 6.2% - 9%

· Fees $500 appraisal, 1%-2% lender fees

· Qualifications- Ability to pay 2 mortgages, 20% equity in current property and an exit strategy

As you can see, there are many options when choosing a Arizona Fix and Flip Loan for your property. We work with hundreds of investors at Level 4 Funding, many of which specialize in these types of loans. We are quick to funding and can close in as little as three days.

Wednesday, November 6, 2019

Your Guide on How to Obtain Arizona Rental Property Loans

Obtaining your first rental property can seem like an enormous undertaking. Finding the right Arizona Rental Property Loan is often the first obstacle to overcome.

You’ve probably read in the news about what a great time it is to get into the rental property business, a/k/a being a landlord. Now you need to figure out how to obtain mortgage financing to enter into being a landlord by purchasing your first rental property. Since the 2008 economic crisis, it is much harder to obtain financing; however, for people with good credit and income sufficient to support the mortgage payment, there is plenty of money to finance their project. If you are seeking a property to purchase and not live in, then this is considered non-owner occupied (NOO).

To improve your possibility of obtaining a Arizona Rental Property Loans to begin your landlord business, you may want to consider purchasing a rental property that also provides you with a home residence. This will require that you live in the property for a twelve-month period of time which will qualify you for an owner occupant (OO) loan. An owner- occupied property qualifies you for the best terms and, with FHA financing, you may be able to put down as little as 3.5%. When you are ready to make it a complete rental, then the original terms stay in place. This is the best option for you to start being a landlord.

Additional reasons this makes sense are:

· While residing in the property, you will find any problems that may not have been apparent upon inspection such as leaks.

· While residing in the property, you will be able to determine the upgrades and renovations that the property will need, and you are not burdened with two mortgage payments.

· As a landlord living in your investment property, you will be able to purchase a property with greater value.

Down Payments

If your desire is to just buy a rental property, then you will need 20% to 25% as a down payment for most Arizona Rental Property Loans. You will also need to pay for the closing costs and renovation costs. You will need approximately $40,000 cash for the purchase of a $120,000 property.

For a conventional mortgage, you will need good credit to qualify for financing. There is a chance that the lender may include rental income to help your debt-to- income ratios.

Today, the cost for mortgage loans is considerably higher than they were years ago. Even higher are the Arizona Rental Property Loans for non-owner-occupied properties. If you are seeking a loan which banks classify as a small loan, $100,000 or less, then the costs are considerably higher. These small loans could be 5% higher. You will then need to add in the additional costs such as origination fees, appraisal, underwriting, title insurance, and escrow costs. While these figures may seem a little overwhelming, the news is right: this is a very good time to become a landlord and invest in real estate for rentals. Educate yourself on ownership of rental properties, do your own due diligence, and call us at Level 4 Funding for a no-obligation quote.

Tuesday, November 5, 2019

What you Need to Know About Arizona Residential Hard Money Lenders

Opportunities in residential investments have skyrocketed these last seven years. Funding, however, is not as easy as it used to be. Find out which Arizona Residential Hard Money Lenders offer the best rates and terms.

Traditional lenders offering home loans have been scarce since the credit crisis in 2008. Arizona Residential Hard Money Lenders have filled the gap that the traditional lenders have left. These types of lenders offer residential loans at higher interest rates and low loan to value on the property. When traditional lenders are hesitant to step in, hard money lenders are a very good option. The capital from Arizona Hard Money Lenders is available to every type of customer for real estate investing.

Private lenders base their lending on the loan to value ratio; traditional lenders base their credit decision on credit scores, income tax statements, and tax returns. Arizona Residential Hard Money Lenders base their decision on the property as collateral. As a basis for the underwriting of the residential property, the lender considers the equity in the property for their decision. Some of the Arizona Hard Money Lenders deal in land estates and projects with a high equity. Arizona Residential Arizona Hard Money Lenders base their decision by the Loan to Value using the current market value.

The money from An Arizona Hard Money Lender on a residential property acts as a temporary bridge for mortgage refinancing, avoiding bankruptcy or acquisition. This is an option many investors choose when faced with giving up control of the property to financial partners or filing for bankruptcy. A Arizona Residential Hard Money Lender offers people loans for renovation of the residential property and then renting out the property or selling it. The Hard Money Loans in Arizona is based on the value of the real estate property which is also the collateral for the loan. The loan is often 60-75% of the market value of the property. Typically, hard money residential loans can be found at interest rates from 11% to 12%, with 12% the standard for second trust deeds. The loan to value is 60% maximum on improved properties and 40% for vacant land.

Traditional Versus Arizon An Arizona Hard Money Lenders

Traditional lenders offer loans based on credit reports, income statements and tax returns. Traditional lenders base the interest rates and fixed loan amounts, and other terms and conditions, on the borrower’s eligibility. Hard money residential lenders provide funding based on the value of the real estate. The documentation is much lower than traditional lenders. Eligibility is flexible, even borrowers with poor credit and little documentation are able to secure primary residence loans. The loan to value ratio runs approximately 65%.

The values are determined on the property’s current market price. The hard money lender will fix the price at which the property is sold.

If the borrower defaults on the loan, then the hard money lender will seize the property and possibly sell it. In most cases, the lender will allow the borrower a grace period of one to three months before selling the property. The bottom line: investors and home buyers often use Arizona Hard Money Lenders to access Arizona Bridge Loans for residential home mortgages. These types of loans enable buyers to “bridge” from one loan to the next. Instances when these types of loans are beneficial include when someone wants to buy a house before their existing house sells and the market is such that a contingency offer will probably be passed over. At Level 4 Funding, we offer quick-to-funding Arizona Bridge Loans at lower than average rates. Call us for a no-obligation quote.

Monday, November 4, 2019

Advice to Hosts About Arizona Airbnb Loans

Airbnb is now offering loans to prospective hosts. These Arizona Airbnb Loans can be used for renovation as well as construction from the ground up.

Airbnb is taking an active role in ensuring that the homes they offer to rent on their site are pleasant to stay in. In order to accomplish this, they have begun offering hosts Arizona Airbnb Loans for home improvement and have gone so far as to partner with a host for construction of an apartment block in Florida. From the origins of Airbnb as a site connecting holiday travelers with a room that a host has to rent, to a site that is an alternative to traditional hotels, Airbnb is moving further away from its origins. This has also triggered questions by regulators worldwide and irritating hosts who maintained a laissez-faire attitude. The regulators further question Airbnb about the company’s precise nature of its business.

The Arizona Airbnb Loan program is tailored by the company to offer home improvement loans to hosts. This Arizona Airbnb Loan program has been dubbed by the company as “Airbnb Select.” Airbnb identifies homes and hosts that are more likely to appeal to travelers desirous of a hotel-like experience coupled with high quality. Airbnb will highlight these homes in their portfolio. Airbnb offers advice on cosmetic improvements such as shooting the best eye appealing photographs to loans which are repaid through future bookings on the property.

In an effort to create more standardized offerings, Airbnb educates their hosts in the art of showing a room or home in its best light. That may include suggesting they place rolled up towels in a basket in the bathroom to cleaning the counters and placing their own products there. Hosts are urged to explore and learn from high quality hotel bathrooms. They also note that too many pictures of your dogs may make the guest(s) uncomfortable.

Airbnb as Partners

Airbnb is attempting to convert their offerings to a more “Hotel Like” experience. In some locations, Airbnb is partnering with the hosts in order to create this. Airbnb partnering with hosts from the time of construction allows the hosts to offer luxury apartment building perks such as swimming pools to visitors as well as other communal areas without violating the building’s regulations. Through the partnership between landlords and developers, Airbnb can create value to better serve its tenants.

Airbnb is, in essence, asking hosts to take on more hotel-like responsibilities. The changes they are implementing risks the chance that the existing hosts rebel.

Airbnb has shifted complying with the myriad of local regulations for short term stays to the hosts. Some localities have welcomed the shifting of complying with local ordinances to the hosts while, in some instances, the local authorities have fought strongly against this. In New York City, the city council passed a law making it illegal to advertise unlawful rentals. Airbnb wound up suing New York City for passing this bill. Airbnb has been able to stay on the right side of the law in most localities. If you are looking to get into your first Airbnb rental, give us a call at Level 4 Funding. We work with hundreds of investors, some of which specialize in this lucrative investment strategy.