Setabay Private Money Lender

Sunday, January 5, 2020

Benefit from Arizona Bridge Loans: Invest and Receive Quicker Returns

Weigh the short-term and the long-term with Arizona Bridge Loans to find an ideal investment situation.

According to an article in Investopedia, a Arizona Bridge Loans “is a short-term loan used until a person or company secures permanent financing or removes an existing obligation.” This means that the goal of a Arizona Bridge Loans is to obtain some sort of short-term loan in order to secure an investment. In the case of real estate investment, the goal of a bridge loan is to acquire possession of a property within a limited amount of time in order to obtain a more favorable loan and interest rate later.

For example, a real estate investor may use hard money Arizona Bridge Loans to acquire a distressed property, a property that conventional lenders will not finance, for $100,000 at an interest rate of 7% to 15%. After the investor puts $50,000 of his or her own money into renovation on top of the $100,000 acquisition fee, the investor may be able to secure a long-term loan, which would greatly reduce the interest rate that the real estate investor is paying, say to 5% interest.

The long-term goal of a Arizona Bridge Loans is to acquire long-term financing because this would greatly reduce the amount of interest paid on hard money. Hard money is beneficial for the ease of acquisition it brings. But, on the other hand, hard money comes at a cost. It is expensive, with higher interest rates than conventional lenders. Paying up to 15% plus in interest for a long period of time can be crippling. However, if the end goal is to transition to a conventional loan at a lesser interest rate, then the burden of hard money can be greatly reduced.

Arizona Bridge Loans: The Short-Term and the Long-Term Perspectives of Real Estate Investing

For many, the ability to switch out from hard money to conventional lending is out of the question. This may be due to credit score, credit history, foreclosure, or bankruptcy. The things that typically scare conventional lenders off since they paint a negative image of whether or not a borrower is able to pay off his or her loans.

Less interest is more gross. Arizona Bridge Loans may be the business solution for you!

But, on the other side of things, if an individual borrower were to have a favorable credit situation and a stellar credit history, bridging to a conventional loan may be a favorable strategy. Not only would a bridge loan allow such an investor to acquire wholesale property at an accelerated rate in order to get an edge up on other investors chomping at the bit for coveted property, it would also allow such an investor to convert high interest into low interest until the desired property generates a desired return. For those that renovate to rent property, this is especially a benefit because a lower interest rate would guarantee lower annual payments to the lienholder resulting in higher gross.

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.

Saturday, January 4, 2020

Quick Money: Arizona Hard Money Loans Helps Investors Secure the Property That They Need, Fast!

Get your real estate investment up and running with Arizona Hard Money Loans.

For many individuals who find themselves in the real estate business, money is needed and fast. Consequently, many real estate investors deal with wholesale purchases. This involves finding property from individuals at wholesale value. This property can come from individuals who solely sell wholesale property to other real estate investors. Wholesale property also can be found by local flippers who find local individuals who are looking to get out of property quickly for cash. The premise is finding a property that is valued under the average retail price and then being able to sell that property for a profit.

There is a trick to this though. To find the right wholesale property, an individual has to act fast. In many cases, real estate investors buy property from auctions. Others find great deals on foreclosed or short-sold properties. And yet, others have connections with local real estate agents or friends who are looking to sell a favorably-priced property. Time is a factor when buying property. Time and money. How quickly can an individual purchase a property in the midst of others who are chomping at the bit for the same prize.

The wholesale value of a property is key to grinding out a great profit. If an investor pays too much for a wholesale property, he or she receives less of a return. If an investor is too slow in deciding on whether or not to purchase a property, someone else will be quicker. If an investor secures a bid or a purchase of a property, the funds for the property must be furnished within a short amount of time. This is why many individuals use Arizona Hard Money Loans when purchasing real estate—it is very, very quick.

Arizona Hard Money Loans Are Quicker than Conventional Loans

Where conventional lenders can take months just to secure financing, Arizona Hard Money Lenders are a favorite for real estate investors because they can secure loans within a week’s time. By securing quicker loans with Arizona Hard Money Loans, real estate investors can acquire the property they need within a time frame that is suitable.

Arizona Hard Money Loans are the means to starting the real estate investment that is right for you.

But what happens if the lending rate for Arizona Hard Money Loans is too high? Not a problem. Though hard money lending can have a higher interest rate than conventional lenders, this is not a concern for individuals who are able to acquire conventional loans. Many recipients of Arizona Hard Money Loans use the hard money as a bridge loan until they are able to secure a conventional loan for less interest than a typical hard money loan would have. By using a bridge loan, a real estate investor, especially those concerned with renting property, can acquire wholesale property quickly and then later acquire the interest rate that is right for them by refinancing.

Find a Lending Niche: Private Money Lenders Arizona Form a Lending Mecca for Real Estate Investors

Private Money Lenders Arizona may be the means to setting estate investments into motion.

According to a recent article by Forbes, private money lenders are changing the lending industry by financing real estate investors rejected by conventional lenders. Supporting this notion, Bobby Montagne from the Forbes Real Estate Council writes: this “reluctance [to fund real estate investors] has created a growing national market for Private Money Lenders Arizona and a lucrative opportunity for investors in private loan investment funds.” In the US, a capitalistic economy were businesses depend on venture investors, this is great news—the possibility of having lenders lending more money at more competitive rates. Supply and demand.

So why all of the fuss about Private Money Lenders Arizona? What is moving so many investors to get funded by them? Well, many real estate investors are shrewd and eager to see a good return. Whether they are a first-time, ma-n’-pa outfit or a seasoned band of weekend warriors, real estate investors typically look to invest in distressed property, renovate, and generate profit. The problem many real estate investors run into is that banks typically do not like lending on undeveloped property or distressed property. This is problematic for contractors wanting to build a spec home from the ground up. Also, this is problematic for flippers and those who rent because buying destressed property at wholesale value and fixing it up offers more profit than buying a property that needs minimal renovation.

The stone cast out by the builders has becoming the corner of the foundation. Setting the banks aside at first is a good strategy for many real estate investors because they can initiate funding: Private Money Lenders Arizona who step up to the plate and fill in a needed lending gap.

Who Benefits from Private Money Lenders Arizona

Filling the gap is no small thing. Montagne goes on the state that “With the median flip priced at $189,000, [it’s] a $56 billion market.” That’s a lot of money, folks, and a lot of money coming from private investors. Where the proverbial door of conventional banking closes, the door of private lending stays open. This is quid-quo pro. Private Money Lenders Arizona get a good return on roughly 7%-14% of their investments and are covered by the LTV they wish to set. By charging more than conventional lenders they are rewarded more. Real estate investors win by finding a funding niche.

Private Money Lenders Arizona are the financing start that allows for a strong and profitable finish.

For real estate investors with poor credit, the advantage is the ability to find sub-prime lending in the wake of Dodd-Frank. For real estate investors with stronger credit scores, the advantage is finding lending to get the job started. Grease the wheel and get it turning, get a loan on barren or destressed property, build or renovate, then acquire conventional funding. Private money can bridge between hard and conventional, it can start the pace and allow the money to trickle in. Though higher at first, it is a start that allows for a strong finish, a profitable finish.

Friday, January 3, 2020

Start a Profitable Business: Get Hard Money Loans to Flip Houses in Arizona

Loans to Flip Houses in Arizona are available to those wanting try their hand in the flipping industry.

The average profit on smaller flip homes in the States can range from $20,000 to $30,000. Three to four months is the average time it takes an experienced flipper to flip a home. With three to four completed flips per year, a flipper could possibly earn a profit of $60,000 to $120,000 per annum. The possibility of obtaining these types of returns, add in an increase in TV shows glamorizing real estate investment, has driven many individuals to try their hand in the flipping business. Great right? The ability to start a business that can generate six figures without pricy investments in an academic or trade education.

So, after looking at the earning potential of flipping houses and deciding that is the best real estate investment route, acquiring property to flip houses and financing to run a business are the next major steps that individuals come up against. What type of home should these investors flip? Well, usually, in the flipping industry, foreclosed, distressed, and short-sold homes are desirable. Property that will be sold at an enticing, wholesale rate. Sometimes, the right piece of property is no easy find, it is not a low hanging fruit to be snatched from above. Effort, research, and beating the bushes to find the right wholesale piece. Balancing the wholesale price, the foreseeable refurbishment cost, and the after-repair value ARV are important steps in evaluating if the investment is worth undertaking and, more importantly, if the investment is capable of generating sizeable return. After completing these analyses and others, financing becomes the next question to answer.

Due to the fact that most conventional lenders will not lend for the acquisition of distressed property, hard money Loans to Flip Houses in Arizona is crucial element to understand when flipping homes. Once a property is selected and the numbers are drawn out, a hard money lender is usually consulted in order to present financing options.

Make More Money with Loans to Flip Houses in Arizona

Though most investors making their way into the flipping business may not have a sizeable portion of cash to put down, some sort of property equity or initial cash down is needed to secure hard money Loans to Flip Houses in Arizona, this leverageable collateral or equity may be in the form of real estate already owned by the potential borrower.

Talk to a hard money broker at Level 4 Funding to get Loans to Flip Houses in Arizona today!

With the collateral and the equity decisions under control and agreed upon, a hard money lender or broker will calculate rate, conditions, terms, and lending fees if applicable. He or she will be able to tailor a lending situation that is favorable, short, and able to secure a favorable investment situation for both lender and borrower. If receiving Loans to Flip Houses in Arizona is right for you talk to a hard money broker at Level 4 Funding today and make your way into the lucrative industry of flipping homes.

Thursday, January 2, 2020

Hotels Are Losing Money: Investors Earn an Extra Buck with an Arizona Airbnb Loan

Arizona Airbnb is helping small investors eke out a living by taking businesses from the goliath of the hotel industry. Backed by the tech firepower of Arizona Airbnb applications, little guys are rope-a-doping giants.

In the past, hotels were the way people vacationed in the States. Families would plan a vacation to a remote and exotic region, do research about that particular area noting the touristic attractions, and finally book a hotel that was of a reasonable name, rating, and price. For years, this was the ritualistic pattern: In the prehistoric Age of Analog, travel agents, salespeople, and a vast amount of phone calls were needed to go on vacations, buy things, do things, stay places. The process was arduously long, may have taken months to plan, and possibly a good chunk of change to set in motion.

Then, from the obscure depths of algorithms, turning machines, and half-mad scientist and mathematicians, the computer emerged. Next, a labyrinth of networks—then, networks of networks leading up to the internet. Al Gore claims to have created it. People could now talk to each other over vast distances. Businesses could now post product prices online. Travel agents fell out of vogue. Middlemen and their commissions lessened. Software caused fluctuating market standards.

The year—2008. Enter Airbnb. Arizona Airbnb created a software platform that allows people to rent out houses for a fraction of the cost of a hotel room. Arizona Airbnb at first was a small threat to hotels and vacation rental companies. Then it grew, exponentially. The year—2018—the present. Arizona Airbnb has reached a value of $30 billion plus. The hotel industry is now running scared. It has lost billions of dollars over the past few years. Not only is Arizona Airbnb making a lot of money, but people using Arizona Airbnb are incentivized to make money by renting out property. Quid quo pro. People are using services that fill their own pockets. Though a tech giant, Arizona Airbnb helps the little guy rake in some more dough.

Arizona Airbnb Loan for an Arizona Airbnb Business

How are people renting out property? Well, many individuals already have a mortgage on a home. Maybe they have a guest room or guest house to rent out. Renting out rooms helps them pay their mortgage off faster. However, there is another category: those looking to make an Arizona Airbnb business with an Arizona Airbnb loan. By using hard money brokers and lenders, these individuals find an attractive vacation rental property with a favorable occupancy rate. Next, they find a hard money lender who is willing to give them an Arizona Airbnb Loan at a favorable LTV percentage. Occasionally distressed property is renovated to save money on acquiring a rental property.

Start an Arizona Airbnb business with an Arizona Airbnb loan.

In the end, a property is purchased and rented out ideally earning more per annum than the debt owed to the hard money lender. With an evident and favorable return percentage this step may be repeated. An Arizona Airbnb loan forms a vacation rental chain with a decent return may be established.

Wednesday, January 1, 2020

Reap the Returns: Arizona Spec Home Financing Helps Builders to Meet Market Demand

In a bullish housing market, Arizona Spec Home Financing is helping builders acquire greater returns.

Spec homes are hot, “like Africa hot.” According to a recent article from the Washington Post, “home buyers across the country are scrambling for properties, and real estate professionals are begging for more houses to be built to answer the high demand.” That’s right, the demand for homes is so high that people are “begging” for more homes to be built. While this may be difficult for some niche real estate investors, conversely more demand for homes is phenomenal news for those involved in building and selling homes.

Where chaos strikes a market, the opportunity for increased returns arises. More individuals buying homes leads to a scarcity of available houses. Thus, higher prices are charged to produce homes that are in short supply. For spec home investors, this means a possibly of shorter intermediary periods between investment and return. Confirming this, the Post’s article continues to state, “in today’s hot housing market . . . most houses selling fast . . . . Builders [are] building houses as fast as the lots are developed.”

Why such a demand for spec homes? Well, with a growing housing market and a growing number of individuals selling homes from positive equity positions, there is an influx of individuals looking to move immediately into a new and reliable housing after selling their former properties. Spec homes, according to the same article, are fulfilling this niche. Since spec homes are based off of a generic, reliable, and cost-effective plan, individuals itching to find a new home within a short amount of time tend to find spec homes to be secure, new, and reasonably priced answer to their market demands.

Arizona Spec Home Financing for Real Estate Developers is Fast, Easy, and Attractive

While this is great news, while there is a growing market for building these types of homes, where does one acquire Arizona spec home financing? Great question. Arizona Spec Home Financing is available through Arizona Hard Money Lenders. Many spec home builders use Arizona Hard Money Lenders as a Arizona Spec Home Financing source because conventional lenders are fickle when it comes to granting loans on lots of land devoid of buildings. Though hard money may have a higher interest rate than a conventional loan, it is quick and painless to set in motion as a funding source and many times the only available financing source to be found.

Arizona Hard Money Lenders form a funding base for those looking for spec home financing.

Join many spec home investors in acquiring Arizona spec home financing. Talk to your hard money broker today at Level 4 Funding to see what rates and terms apply to any foreseeable spec home investments on the horizon.