Setabay Private Money Lender

Wednesday, April 15, 2020

How to Spot the Differences in Arizona Construction Loan Options Today

There are many Arizona Construction Loan options on the market today. Knowing key differences makes it easier to get approved and find the right financing for your needs.

Sometimes called a construction-to-perm or a C-to-P, an Arizona Construction Loan gives a borrower the financing her or she needs for an extensive project. More often than not, it references building a structure from scratch, but it can also relate to performing extensive renovations on an existing property. Although C-to-Ps can be leveraged by homeowners who are tackling their own projects, they’re mostly leveraged by builders and developers who need a cash injection to get a project started and then plan to pay off what they’ve borrowed when a buyer takes interest in the property and then secures his or her own financing.

Banks often shy away from financing these types of projects because they can’t turn around and sell the property quickly if the borrower doesn’t make good on payments, and they aren’t in the business of holding. That means many people who need funding will have to look outside banks to get it, and each lender will have its own criteria as well as different packages available,

That said, these financial products vary in structure and the monthly payments will vary greatly from one to the next as well. It’s also important to note that, even when financing is used for rehab or renovation purposes, it works differently than financing specifically created for those purposes. Let’s take a look.

Consider the Structure Options Before You Apply

Most investors going for an Arizona Construction Loan will be looking for a short-term option with two closings. This involves drawing funds as needed, with the principal balance increasing over the months financing is active. The borrower typically pays interest-only payments for the duration. A second loan process and closing occurs when construction is complete, providing long-term financing for the property. The second closing is usually handled buy a buyer, but it can also be handled by a builder or investor who wants to hold the property. As an alternative to this, a single-close option is sometimes available. However, it typically only applies when the individual securing the financing plans to hold the property for an extended period of time. In these cases, cash can still be pulled as needed during the build and interest-only payments are made. However, once construction is complete, the loan is automatically modified to fully amortized payments.

A renovation or rehab loan might also be right for you.

An Arizona Construction Loan is often ideal even if a project isn’t starting from scratch, simply because there aren’t typically rules about how much of the funds need to go directly to improvement. There may also be differences in where the funds are held—an interest-bearing account versus drawing from the loan—and in when mortgage insurance is necessary. If you’re not sure which one is best for your circumstances, connect with a broker who specializes in both and can help you find the best structure and financing for your needs.

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.

Orchard Funding 11333 N Scottsdale Rd #293, Scottsdale, AZ 85254 (602) 252-1500

Hard Money Lenders Phoenix Arizona 40 N Central Ave #1400, Phoenix, AZ 85004 (480) 999-6183

SFG of Arizona, LLC 7272 E Indian School Rd #540, Scottsdale, AZ 85251 (480) 455-5047

Capital Fund 1 14555 N Scottsdale Rd Ste 200, Scottsdale, AZ 85254 (480) 889-6100

Prime Plus Mortgages - Phoenix Hard Money Loans 7137 E Rancho Vista Dr b05, Scottsdale, AZ 85251 (480) 788-357

Brad Loans by eMortgage Inc. 6011, 7522 E McDonald Dr C, Scottsdale, AZ 85250 (480) 948-0880

Geoff Ball | Hard Money Loans 3003 N 73rd St, Scottsdale, AZ 85251 (480) 808-8687

Hilton Financial Corporation 11024 N 28th Dr #170, Phoenix, AZ 85029 (602) 375-8951

LM2 Investment Group 9160 E Bahia Dr #105, Scottsdale, AZ 85260 (480) 444-2242

Setabay Loan Trust Deed Investing - Private Lender 23335 N 18th Dr #120, Phoenix, AZ 85027 (623) 869-6854

Kenwood Mortgage Investments 7950 E Redfield Rd # 110, Scottsdale, AZ 85260 (480) 783-8800

Hard Money Loan Services 916 E Baseline Rd #106, Mesa, AZ 85204 (480) 820-5070

Arizona Private Lender Association – APLA 11811 N Tatum Blvd #4020, Phoenix, AZ 85028 (520) 269-6585

A&A Funding Corporation 10031 E Dynamite Blvd Suite 230, Scottsdale, AZ 85262 (602) 494-8980

Capital Market Funds 8442 E Chaparral Rd, Scottsdale, AZ 85252 (480) 351-4472

Hard Money, LLC -- Hard Money for Arizona bruc.robinson@gmail.com, Gold Canyon, AZ 85118 (559) 967-5582

Clear Mortgage 9399 South Priest Drive

xmantothemoonisgoing good today at all

Tuesday, April 14, 2020

How to Get Arizona Land Loans for Off-The-Grid Housing

Let’s be realistic, the zombie apocalypse isn’t coming. But, if you’re trying to cash in on the latest trend toward off-the-grid housing, you’ll still have to look outside the banks to get your Arizona Land Loan.

While it was once the “in thing” over fears of Y2K, governmental strife, and hoards of zombies, there’s no longer stigma attached to living off the grid. People are coming to realize that doing so lets you have a greener life with a reduced or neutral carbon footprint, build self-reliance and resilience, and can often provide people with an unmatched sense of freedom. There are logical and mainstream reasons for opting to go off the grid, and as such, demand for housing options has skyrocketed.

Research presented in Forbes shows that half of all new electricity connections will be off the grid by 2030. It’s a big arena for investors too, with more than $352 million being poured into off-grid solar in the last year alone—a 20% increase year-on-year. Yet, availability of off-grid homes remains a problem. People who want to live the lifestyle find few move-in ready options, leaving prefab homes as the only viable option for those who don’t have the engineering backgrounds to design their own.

As it stands now, energy efficiency is the big thing with homebuyers. A national study performed just a few years back confirmed it’s the number-one concern for homebuyers. No doubt, the desire for better off-grid options has only increased in recent years due to the prevalence of national disasters, such as fires and hurricanes, that have ravaged the country and left people without the essentials of life. Data shows Millennials are leading the change, but as Gen Z begins purchasing their first homes, the shift toward eco-conscious practices will be even more pronounced. Those who get their Arizona Land Loans now and start building will be ahead of the curve and well-poised to cash in on the trend.

One of the Biggest Pitfalls of Going Off the Grid is Financing

While it may seem obvious, living off the grid means you’re not tapping into outside sources. That means no external power, water, sewer, or gas. It’s a real problem for banks because that means the property is “unimproved.” They’re not really geared toward Arizona Land Loans to begin with because raw land doesn’t suit their target consumer, but when the added complexity of no connections is added in, the deal’s just too risky. They don’t anticipate being able to resell the property if things go bad—not without costly improvements—and making those improvements is simply not the business they’re in.

Alternative lending can make your dreams come true.

Big banks have a certain structure or way things are done that they don’t deviate from. They insist on conformity and there’s lots of red tape when things don’t fit into their tidy little box. However, hard money lenders don’t operate the same. Most of the time, these are everyday individuals who simply want to make a solid investment. The decision whether to extend Arizona Land Loans is entirely a personal decision, and yes, many believe in the importance of going green or are, at the very least, willing to explore it as a viable investment vehicle. How do you find one of these folks? Connect with a broker who specializes in hard money and knows lots of lenders and can match you with the right one for your project.

Orchard Funding 11333 N Scottsdale Rd #293, Scottsdale, AZ 85254 (602) 252-1500

Hard Money Lenders Phoenix Arizona 40 N Central Ave #1400, Phoenix, AZ 85004 (480) 999-6183

SFG of Arizona, LLC 7272 E Indian School Rd #540, Scottsdale, AZ 85251 (480) 455-5047

Capital Fund 1 14555 N Scottsdale Rd Ste 200, Scottsdale, AZ 85254 (480) 889-6100

Prime Plus Mortgages - Phoenix Hard Money Loans 7137 E Rancho Vista Dr b05, Scottsdale, AZ 85251 (480) 788-357

Brad Loans by eMortgage Inc. 6011, 7522 E McDonald Dr C, Scottsdale, AZ 85250 (480) 948-0880

Geoff Ball | Hard Money Loans 3003 N 73rd St, Scottsdale, AZ 85251 (480) 808-8687

Hilton Financial Corporation 11024 N 28th Dr #170, Phoenix, AZ 85029 (602) 375-8951

LM2 Investment Group 9160 E Bahia Dr #105, Scottsdale, AZ 85260 (480) 444-2242

Setabay Loan Trust Deed Investing - Private Lender 23335 N 18th Dr #120, Phoenix, AZ 85027 (623) 869-6854

Kenwood Mortgage Investments 7950 E Redfield Rd # 110, Scottsdale, AZ 85260 (480) 783-8800

Hard Money Loan Services 916 E Baseline Rd #106, Mesa, AZ 85204 (480) 820-5070

Arizona Private Lender Association – APLA 11811 N Tatum Blvd #4020, Phoenix, AZ 85028 (520) 269-6585

A&A Funding Corporation 10031 E Dynamite Blvd Suite 230, Scottsdale, AZ 85262 (602) 494-8980

Capital Market Funds 8442 E Chaparral Rd, Scottsdale, AZ 85252 (480) 351-4472

Hard Money, LLC -- Hard Money for Arizona bruc.robinson@gmail.com, Gold Canyon, AZ 85118 (559) 967-5582

Clear Mortgage 9399 South Priest Drive

xmantothemoonisgoing good today at all

Why Your Rotten Credit is Killing Your Arizona Land Loan Prospects (And What You Can Do About It)

Getting an Arizona Land Loan is next to impossible if you’ve got rotten credit. However, you can still grab your slice of heaven with the right products and prep.

Whether you’ve just come across a piece of land that looks like it’ll be a great investment or you’re weighing the benefits of purchasing raw land to build your dream home, one of the most pressing matters will be how to pay for it. Those with great credit have challenges as it is, especially if the plot isn’t tapped into the grid. For those with rotten credit, making that purchase is often nothing more than a pipe dream. What gives?

Banks think Arizona Land Loan packages are too risky. The reality is, if push comes to shove, you’re going to protect the home you live in as your priority. That’s human nature and the banks know it. The exception is when it’s an investment that’s actively generating cash, but that’s rarely the case for unimproved earth. That in mind, lenders try to make sure you’re never going to have to be in a position to choose whether to keep up with your payments or not, and they do that by looking into your history.

They will dig deep. They’ll check your credit score to make sure you’ve got a good history of paying. They’ll examine your existing debts to ensure you’re not stretched too thin. They’ll look into your cashflow to ensure it’s steady and strong enough to cover the balance for the foreseeable future. And, they’ll find out if you have reserves you can tap into in order to keep paying if things go south. It’s a frustrating process, but they have to minimize their risk, or they’d go bust.

Take Steps to Increase Your Future Eligibility

If rotten credit is impacting your ability to get an Arizona Land Loan, you can take steps to minimize their risk, thereby making yourself a more appealing borrower. Make sure you’re paying all your bills on time every time without fail to improve your credit score. Come up with a personal budget that gets your debts paid off quicker. There are two issues that can hurt your credit here; debt-to-income ratio (DTI) and credit utilization. Experts say up to a 43% DTI will still allow you to qualify for a mortgage, but lenders look for a 36% or less. The catch: this isn’t a traditional mortgage. You’ll need to do better. The same is true of credit utilization. While 30% may be standard for other types of loans, you’re going to have to do better to get specialized financing. With debts paid down, you’ll need to work on establishing reserves. All things considered; it can take years to put yourself in a position to qualify.

Get help through alternative lending now.

The good news is, banks aren’t the only ones who can provide you with an Arizona Land Loan, and having rotten credit is not a barrier to getting funding with certain options. Hard money is one such option which relies more on having a good business plan and solid loan-to-value (LTV) than credit. If it sounds like this is the best option for you, touch base with a broker who specializes in hard money lending who can walk you through the process and get you the best possible rates.

Orchard Funding 11333 N Scottsdale Rd #293, Scottsdale, AZ 85254 (602) 252-1500

Hard Money Lenders Phoenix Arizona 40 N Central Ave #1400, Phoenix, AZ 85004 (480) 999-6183

SFG of Arizona, LLC 7272 E Indian School Rd #540, Scottsdale, AZ 85251 (480) 455-5047

Capital Fund 1 14555 N Scottsdale Rd Ste 200, Scottsdale, AZ 85254 (480) 889-6100

Prime Plus Mortgages - Phoenix Hard Money Loans 7137 E Rancho Vista Dr b05, Scottsdale, AZ 85251 (480) 788-357

Brad Loans by eMortgage Inc. 6011, 7522 E McDonald Dr C, Scottsdale, AZ 85250 (480) 948-0880

Geoff Ball | Hard Money Loans 3003 N 73rd St, Scottsdale, AZ 85251 (480) 808-8687

Hilton Financial Corporation 11024 N 28th Dr #170, Phoenix, AZ 85029 (602) 375-8951

LM2 Investment Group 9160 E Bahia Dr #105, Scottsdale, AZ 85260 (480) 444-2242

Setabay Loan Trust Deed Investing - Private Lender 23335 N 18th Dr #120, Phoenix, AZ 85027 (623) 869-6854

Kenwood Mortgage Investments 7950 E Redfield Rd # 110, Scottsdale, AZ 85260 (480) 783-8800

Hard Money Loan Services 916 E Baseline Rd #106, Mesa, AZ 85204 (480) 820-5070

Arizona Private Lender Association – APLA 11811 N Tatum Blvd #4020, Phoenix, AZ 85028 (520) 269-6585

A&A Funding Corporation 10031 E Dynamite Blvd Suite 230, Scottsdale, AZ 85262 (602) 494-8980

Capital Market Funds 8442 E Chaparral Rd, Scottsdale, AZ 85252 (480) 351-4472

Hard Money, LLC -- Hard Money for Arizona bruc.robinson@gmail.com, Gold Canyon, AZ 85118 (559) 967-5582

Clear Mortgage 9399 South Priest Drive

xmantothemoonisgoing good today at all

How Car Sales Can Determine Real Estate Strength

Keep an eye on car sales to help inform your real estate decisions when you borrow from a hard money lender.

Real estate investors are savvy when it comes to the housing market, but when they’re ready to borrow from an Arizona hard money lender they will pay attention to the bigger picture to make important decisions about their portfolio.

There are two large financial indicators of the economy because they are the two biggest purchases most people will make: cars and houses. So how do car sales inform real estate investors of the strength of the real estate market?

When car sales change drastically, it can be a foreshadowing of a bigger economic upturn or downturn. Recently, car sales for the big brands like Toyota and Honda have dropped drastically. If consumers aren’t making large purchases like cars, the real estate trends will tend to follow, and vice versa.

As the economy trends that direction, consumers will become wary of other big purchases like homes and real estate investments. Why is that?

Consumers Hold Their Breath

We all remember the big real estate bubble that burst in 2008 and buyers and sellers are anxiously awaiting another large sway in the market. Though we may see something similar, we won’t see a burst to that extent anytime soon.

That being said, some owners are wanting to sell their homes before that tide does turn. That means we may see an influx of homes on the market after the new year. That’s the time for real estate investors to get their hands-on homes to fix and flip, or to buy and hold.

If you have any questions about how to use a Arizona hard money lender like Level 4 Funding to help you make a purchase for your real estate investment portfolio, reach out to us to find out what we can offer.

Orchard Funding 11333 N Scottsdale Rd #293, Scottsdale, AZ 85254 (602) 252-1500

Hard Money Lenders Phoenix Arizona 40 N Central Ave #1400, Phoenix, AZ 85004 (480) 999-6183

SFG of Arizona, LLC 7272 E Indian School Rd #540, Scottsdale, AZ 85251 (480) 455-5047

Capital Fund 1 14555 N Scottsdale Rd Ste 200, Scottsdale, AZ 85254 (480) 889-6100

Prime Plus Mortgages - Phoenix Hard Money Loans 7137 E Rancho Vista Dr b05, Scottsdale, AZ 85251 (480) 788-357

Brad Loans by eMortgage Inc. 6011, 7522 E McDonald Dr C, Scottsdale, AZ 85250 (480) 948-0880

Geoff Ball | Hard Money Loans 3003 N 73rd St, Scottsdale, AZ 85251 (480) 808-8687

Hilton Financial Corporation 11024 N 28th Dr #170, Phoenix, AZ 85029 (602) 375-8951

LM2 Investment Group 9160 E Bahia Dr #105, Scottsdale, AZ 85260 (480) 444-2242

Setabay Loan Trust Deed Investing - Private Lender 23335 N 18th Dr #120, Phoenix, AZ 85027 (623) 869-6854

Kenwood Mortgage Investments 7950 E Redfield Rd # 110, Scottsdale, AZ 85260 (480) 783-8800

Hard Money Loan Services 916 E Baseline Rd #106, Mesa, AZ 85204 (480) 820-5070

Arizona Private Lender Association – APLA 11811 N Tatum Blvd #4020, Phoenix, AZ 85028 (520) 269-6585

A&A Funding Corporation 10031 E Dynamite Blvd Suite 230, Scottsdale, AZ 85262 (602) 494-8980

Capital Market Funds 8442 E Chaparral Rd, Scottsdale, AZ 85252 (480) 351-4472

Hard Money, LLC -- Hard Money for Arizona bruc.robinson@gmail.com, Gold Canyon, AZ 85118 (559) 967-5582

Clear Mortgage 9399 South Priest Drive

xmantothemoonisgoing good today at all

Monday, April 13, 2020

What Good is an Arizona Construction Loan?

If you are exploring your options on the real estate market, you may be wondering what an Arizona Construction Loan is and what the benefits are compared to other loan options, like fix and flip loans. Read more below to find out how an Arizona Construction Loan can make all your dreams come true!

An Arizona Construction Loan can save you tons of time when searching for homes on the real estate market. When you are buying a home, you don’t want to settle. After all, you will be living in it—if you don’t enjoy it or it doesn’t meet all of your needs, you won’t be happy and you won’t be able to live out your preferred lifestyle fully. Investing in a construction loan allows you to take your wants into your hands and build your dream home from scratch.

Sometimes the perfect home exists, but it’s not in a good neighborhood or the distance is too far from work. Sometimes a home meets all of your needs but details, like a small yard, end up being deal breakers. If you choose to build a home on a vacant lot, you will be able to design something that meets all of your needs. Perhaps you want two in-home offices, or you want an in-home gym or untraditionally sized bedrooms—you can get all of this by designing the home yourself.

Tips on Choosing a Vacant Lot

Before just choosing any lot to build your dream home on, you will need to consider a few things. First of course there is location—do you want to be near school or entertainment districts? Do you want to live in a large social neighborhood or a quiet, isolated one? Additionally, you will have other locative aspects to consider, like if there are any curbs, sidewalks, power lines, and water lines nearby. All of these things are prime to consider when building and can be a deal maker or breaker in the building process.

Of course, before accepting the terms to an Arizona Construction Loan, you will need to consider more technical aspects of the property, like if there are any HOA requirements or limitations the city requires you to follow. All of these things are as important, if not more, as how many bedrooms you want in your home.

Why Private Money Lenders

If you are seeking out construction loans in Arizona, you may be considering options from both public and Private Money lenders. Public money lenders are traditional options. They include banks and credit unions and have generalized standards when it comes to qualifying for loans. Unfortunately, they will not be able to work one on one with you in the way that a Private Money lender would be able to.

Private Money lenders have flexibility and speed when it comes to loan requirements. Because they consist of private lenders and companies, they are much more likely to be able to work one on one with you—which is something you may want when doing something as specific, personal, and unique as building your dream home.

If you are seeking a Private Money lender, give the mortgage brokers at Level 4 Funding a call. We offer Arizona Construction loans and the ability to work individually with you. Give us a call today and see how we can help you!

Orchard Funding 11333 N Scottsdale Rd #293, Scottsdale, AZ 85254 (602) 252-1500

Hard Money Lenders Phoenix Arizona 40 N Central Ave #1400, Phoenix, AZ 85004 (480) 999-6183

SFG of Arizona, LLC 7272 E Indian School Rd #540, Scottsdale, AZ 85251 (480) 455-5047

Capital Fund 1 14555 N Scottsdale Rd Ste 200, Scottsdale, AZ 85254 (480) 889-6100

Prime Plus Mortgages - Phoenix Hard Money Loans 7137 E Rancho Vista Dr b05, Scottsdale, AZ 85251 (480) 788-357

Brad Loans by eMortgage Inc. 6011, 7522 E McDonald Dr C, Scottsdale, AZ 85250 (480) 948-0880

Geoff Ball | Hard Money Loans 3003 N 73rd St, Scottsdale, AZ 85251 (480) 808-8687

Hilton Financial Corporation 11024 N 28th Dr #170, Phoenix, AZ 85029 (602) 375-8951

LM2 Investment Group 9160 E Bahia Dr #105, Scottsdale, AZ 85260 (480) 444-2242

Setabay Loan Trust Deed Investing - Private Lender 23335 N 18th Dr #120, Phoenix, AZ 85027 (623) 869-6854

Kenwood Mortgage Investments 7950 E Redfield Rd # 110, Scottsdale, AZ 85260 (480) 783-8800

Hard Money Loan Services 916 E Baseline Rd #106, Mesa, AZ 85204 (480) 820-5070

Arizona Private Lender Association – APLA 11811 N Tatum Blvd #4020, Phoenix, AZ 85028 (520) 269-6585

A&A Funding Corporation 10031 E Dynamite Blvd Suite 230, Scottsdale, AZ 85262 (602) 494-8980

Capital Market Funds 8442 E Chaparral Rd, Scottsdale, AZ 85252 (480) 351-4472

Hard Money, LLC -- Hard Money for Arizona bruc.robinson@gmail.com, Gold Canyon, AZ 85118 (559) 967-5582

Clear Mortgage 9399 South Priest Drive

xmantothemoonisgoing good today at all

Wednesday, March 11, 2020

Build Your Dream Home with a Arizona Construction Loan

House hunting can be an exhausting process that yields little results. If you are unhappy with what is on the market, consider how an Arizona Construction Loan can make all your dreams come true!

House hunting can be exhaustive. After a while, you may feel like giving up—but settling on a house is not something you should do. After all, you spend time in your home every single day and it is a reflection of who you are and functions within your lifestyle. Choosing a home that is too small or doesn’t have all the features you like will make you unhappy in the long run. Fortunately, there are other options.

Some prospective home buyers may go as far as to consider fixer uppers. Sometimes, this option can be cheaper. However, it does involve a little bit of work and transforming a home before your eyes. Depending on who you are, if you have a natural eye for design and are able to work with the existing foundation, the process of making a fixer upper your own can be difficult—and, because you are forced to work with what is there, not all creative design choices are possible. If you are tired of not being able to find your dream home, or even renovate or modernize one to your liking, consider building one from scratch with a construction loan.

Why You Should Invest in Arizona Construction Loans

An Arizona Construction Loan will allow you to create your dream home. You will be able to design the floor plan, and even go as far as picking the location of your property, probably with the help of a land loan. Building a home from scratch is a lot of work that involves multiple heads: an architect, project manager, and the builders themselves. However, a collaboration like this one may be able to allow you to create the home you want but doesn’t exist on the market.

The idea of building a home from scratch can definitely be overbearing. There is a lot of pressure to do the job right, but you are not alone. If you don’t want to design your floorplan by yourself, you can work with an architect who can help make adjustments or suggestions that will help ensure you are getting the home you want that fits your aesthetic and lifestyle. If you choose to work with a qualified mortgage broker, like those at Level 4 Funding in Arizona, you can be confident that you are working with someone who considers your needs on an individualized basis with a thorough understanding of the real estate market.

Arizona Construction loans in Arizona

If you are tired of the nonsense availability of the current homes on the real estate market, give the lenders at Level 4 Funding a call to discuss what an Arizona Construction Loan can do for you. We offer a free initial consultation, with no upfront costs or fees, to help you determine the best way to make your dreams reality. Our lenders are willing to work with you on an individual basis so that you can build the home that speaks to you. Give us a call today!