Learn To Be A Fix & Flip Investor: November 2018

Friday, November 30, 2018

No Money Down Arizona Fix and Flip Loans: Advice for New Investors

If you are new to be flipping business, you may have heard the prospect of no money down Arizona Fix and Flip Loans. You may be thinking "hmmm, I can get into the flipping business without spending any of my own money, well sign me up!"
You can use three methods to pay nothing out of pocket for your next flipping project, wholesaling, private money and hard money.
Let's talk about wholesaling first. The Easiest way to explain the process is you sell the option to purchase the house to another investor. You don't spend any money; you secure a purchase contract with a buyer and before the date on the purchase contract comes around you sell off the option to purchase the home to another investor.
Wholesaling is not a good option for someone who is new to the rehab business. A good wholesaler knows how to find the most attractive houses to flip, can compete with full cash offers to secure a bid and above all, they are in contact with a network of other real estate investors who are willing and eager to purchase their contracts.
As a new investor, it is doubtful you have any of these qualities. So what are your other no-money-down financing options?
Few new house flippers can qualify for no-money-down Arizona Fix and Flip Loans from private investors.
The situation with private money involves you seeking out a cash buyer to finance the full cost of your flipping project upfront. In this situation, you have to prove your value to an investor, and have an answer for him when he asks "why should I pay for the full cost of your project?” The investor needs believe that you can carry out the work, and all he has to do is sit back and let the money roll in.
However, if you're new to the flipping business, you don't have the requisite demonstrable proven track record when it comes to rehabbing distressed properties. Given this lack of experience, you probably wont get an investor on board. What are your options when it comes to getting no money down financing, for your first flip?
Hard money can be a route for new investors to get no money down Arizona Fix and Flip Loans but carefully consider the risks.
If you have enough collateral on offer, even if you're new to the flipping business you can still get a zero down hard money deal.
A hard money provider is a lender who offers you a loan based on the value of your collateral. You need to find a hard money provider who is "creative," when it comes to collateral. If you pledge enough of your assets, some hard money providers might not require you to make a down payment. To truly pay nothing out of pocket, you also need to find a lender who is willing to defer the payment of fees until your project resells. But, are you willing to pledge your primary residence, 401(k) or any other assets to avoid out of pocket expenses?
You need to consider this question carefully. If you are new to the flipping business, it might be better to make a steep down payment than to risk losing your house. The more experience you get with house flips, the more financing options you'll have. You can get into wholesaling, partner with other investors and you'll have a bit more confidence to get a no-money-down hard money loan.

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

About the Author: 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.

Monday, November 26, 2018

Hard Money Arizona business loans: A Tale of Two Businesses

When it comes to Arizona hard money loans you take out for your business, consider carefully, whatever your pledging.
Sally Jones lives in a beautiful picturesque tourist town, where she owns and operates a restaurant. Then the especially ponderous local city council demands Sally make some extensive cosmetic changes to the exterior of her restaurant, “to preserve the historic character” of the neighborhood they say. If she doesn't make these changes, she will have to shutter her business right in the midst of peak tourist season.
She needs money yesterday. She's heard about hard money does a quick cursory search online, to find a "hard money provider," and the one she finds offers her a merchant cash advance instead. She doesn't think much of it, applies, and the money quickly comes in. She makes the necessary cosmetic changes. Business goes well extremely well during tourist season.
However, the loan she took out was paid back with 40% of all her profits. She breathes a sigh of relief ‘at least the loan is paid off,’ she tells herself. But her margins are razor thin, and she has absolutely nothing in savings.
Should be okay right? Well, then the city council demands that the siding on her restaurant isn't the right color and she'll have to change it. With absolutely nothing in savings, Sally has to take out another MCA loan to resolve the issue.
When it comes to hard money Arizona business loans, real hard money providers don’t use your income to secure their loans.
Across the street, Ralph was under similar threat from the city council. He too needs fast money, he goes online and finds a hard money provider. His lender asks him to pledge his restaurant as collateral for the loan, and he's a bit nervous about the interest payments. Nevertheless, he goes ahead and makes the necessary changes. All the extra income he earns throughout tourist season, allows him to pay back the loan he took out and also enables him to save up the additional revenue.
So when the Birkenstock wearing, tofu munching city council demands that he also needs to change the color of the siding on his building he has some extra money on hand and he doesn't need to take out another loan.
Risk less by seeking out real Arizona Hard Money Lenders.
The moral of this story is don't put your businesses long-term income on the line to fix a short-term problem. A real hard money deal allows you to leverage the equity you have your business' real property as collateral. Yes, there's some risk and you'll want to carefully consider whether or not you can pay back the loan. However, if the prospect of quickly paying back the loan is in sight than this type of deal offers little to no danger.
However some there are hard money providers online, that are merchant cash advance lenders. These loans are especially dangerous as seen in the story above because they hamper your business's ability to save income. Your business's cash flow is eroded, and slowly but surely another short-term problem comes up. Because of your MCA, you have little to no savings on hand, and you have to take out another loan.
So when it comes to alternative financing, know precisely what you're pledging. Be sure your hard money provider is the real deal.

Fix and Flip Loans: Exit Strategies.

You are in the flipping game, and you're just brimming with hopeful expectations about your next project. The house is a diamond in the rough, and in your capable hands, you will polish it into a sparkling gem. You are ready to apply for a loan, but what if things don't quite go according to plan? With Arizona fix and flip loans its best to have an exit strategy in mind before you even apply.
Finding the right opportunity isn't everything the flipping game, in fact, it might be even more critical to plan ahead in case things go wrong. Don’t be overconfident going into your next deal. No matter how beautiful the renovations you intend to make or how splendid profit your projections look on paper, math and reality don't always line up. When it comes to flipping, there are two classes of exit strategy: preemptive and "well that sucks," strategies.
Preemptive Exit Strategies for Arizona Fix and Flip Loans
A preemptive exit strategy involves you getting out of a deal before you begin the project in earnest. When it comes to taking preemptive action there are two basic strategies:
Keep it Simple: in this case, you've lost confidence in the prospect of doing a full-blown renovation, but you still think there's some money to be made. So keep it simple, narrow the scope of work, replace the carpet or give the interior a fresh paint job. Then you sell the house for a little less money to a prospective buyer.
Wholesaling: Basically you leave the house untouched, you don't do any work, and you sell the house back to another real estate investor. Whatever preemptive strategy you choose you need to ensure the sale price can pay-off the remaining balance of your loan.
The worst-case scenario is that you've already gone full bore into a project, completed renovations and…
"Well, that sucks," exit strategies for Arizona Fix and Flip Loans
Your once shambolic home is now full of snappy furniture and shiny finishes, but no one is buying. The open door creaks in the wind and the cookie plates go unconsumed at every open house. All the while the home sits unsold and you are paying real estate commissions and the cost of carrying your loan. There are two basic things you can do in this case:
Rent it: You find someone who is willing to pay for the privilege of living in your home every month. Of course, if you go for this option, that high-interest short-term loan you took out the flip house in the first place might be too expensive. The rent you charge must at least equal your loan payments. If not you might need to refinance,
But if you can't refinance you might have to,
Eat it: You keep lowering the list price until someone takes the house off your hands. Hopefully, in the end, you'll breathe a sigh of relief, you might not have made a profit but at least the final sale price paid for the loan. But this won't always be the case, you might just have to eat the difference between the final sale price and the outstanding loan balance. But this better than going into default.
So how do you avoid eating it? Don't just waltz wistfully into every opportunity, hold off a bit. If you have some uncertainty, ponder if you'll be able to refinance if the property doesn't sell. But if you regularly flip houses, sometimes you will simply have to eat it.

Sunday, November 25, 2018

The Real Deal: Arizona Private Money Lenders Connect with Clients in an Era of Red Tape

Understanding Arizona Private Money Lenders and their relationship with both lenders and investors
Arizona Private Money Lenders are individuals or investment groups that are not backed by an official financial organization. They are not banks and they usually do not advertise to the public. Instead, on a word-of-mouth basis, Arizona Private Money Lenders lend money to individuals with whom they have a direct or indirect relationship. While some individuals believe that there is inherent risk in receiving loans from a private lender because they are not backed by an institution, others seem to find comfort in a person-to-person relation with a lender with whom they can talk and reason with individually.
Arizona Private Money Lenders are investors of their own money and that of other investors. They pool a significant amount of money, find suitable investments and secure returns in the form of interest, equity, and property. Their goal is to eke out a growing profit stable enough to support them and their investors.
To do business, Arizona Private Money Lenders require a dead of trust and notes to secure loans. The deed to a property is held by a private money lender until the note or loan is payed off by the borrower. Should the borrower fail to pay of the remainder of the note and foreclosure is unavoidable, the deed of trust permits the lender to take back the property and liquidate it.
Advantages of Arizona Private Money Lenders
Arizona Private Money Lenders charge higher interest rates and lend for shorter terms than banks. While this may seem likely to drive away clients, Arizona Private Money Lenders have formed a niche market for those who have credit issues, foreclosures, bankruptcies, or sold and bought real estate. Situated outside of the federal regulations of financial institutions, Arizona Private Money Lenders have more flexibility and patience with lenders. Many times, Arizona Private Money Lenders are able to prolong foreclosure and work through temporary issues with clients to secure money, excising a healthy balance between grace and justice where banks would prefer to cut out the pound of flesh.
Arizona Private Money Lenders provide a personable and understanding relationship with their clients.
If you, like many, have a need for a private loan, research the Arizona Private Money Lenders in your local community. Or find mortgage brokers or individuals who have dealt with or have received loans from these types of lending sources. Locate the lending source that suits you.

The Facts About Arizona Rental Property Loans

Get more returns with Arizona Rental Property Loans.
First off, property investment attracts investors wanting to use funding from a bank, instead pulling an ungodly amount of cash out of pocket. Do you have to be a million or billionaire? No. Not at all. You just need to secure the funding and provide a percentage of cash down to protect a lender should a foreclosure occur. This is great! To start leasing, you do not have to fork out a fortune to buy a $200,000 home along with the added cost of renovations, marketing, and the works. Instead, you rely on a lender: an entity that evaluates value, equity, and risk in order to fund you, the investor.
Alright, you can get money from Arizona Rental Property Loans. So what. What does that get you? Well, “you gotta have money to make money,” and when it comes to property investment, you generally use Arizona Rental Property Loans to purchase real estate to build, fix real estate to sell, or renovate real estate to rent. If you have connections and experience with construction and contractors, building may be a viable option. If you are looking for a quick pop and a good return within a shorter period, flipping may be your niche. However, if you’re in the game for the long haul, if you want to build the next mecca of personal equity, or if you just want a steady trickle of cash from leasing, rental property is where it’s at.
Arizona Rental Property Loans allow for an individual to build equity by using profit from leasing to pay off debt. Equity is what you own: for example, you put down $35,000 to receive a loan of $65,000 at a certain interest rate. $35,000 is your equity in the property. The more you pay and the less you owe the lender, the greater your equity. Aside from paying off debt, renovation may increase the overall value of a property, worth of a debtor’s equity, and the price of rent.
Arizona Rental Property Loans Create Long-Term Security
While constructing and flipping provide relatively quicker returns, investing in rental property may establish income via long-term renters. With a newly renovated property in a desirable area and at a market-conscious price, a landlord with a business knack can rake in consistent returns.
Build equity with Arizona Rental Property Loans.
Over time, investors hope to pay off the property. Owning property free and clear once again increases the returns. Should the market value of property rise, the owner is able to sell the property and reap the benefits of positive equity. If the owner chooses to continue leasing the property, he or she can then use the money to further invest and build more rentals, businesses, or savings.

Earn More Money: Start an Airbnb Business in Arizona

How an Airbnb Business in Arizona may let you tap into rental income.
In the beginning there were normal rental businesses, and normal rental businesses were the way to run things. Then God spoke. Airbnb emerged from the darkness, and its opportunities were good.
Ground control to Major Tom—analog is dead, digital is here to stay. Airbnb has overwhelmed the traditional rental methods. It is now worth roughly 24 billion dollars!! A fancy app, a clean UI, and a myriad of positive ratings have seduced users into booking low-cost, well-placed, and amenity-packed locations. Are you willing to harness its power and tap into the money? Wait? You can make money using another business? You could, say, purchase a conveniently located property and then, you know, rent it out on an app to people who want to stay there? Sure. You can just as many other people have.
So, how do you do it? Well, Arizona Hard Money Loans appear to be the answer to funding your side business because conventional lenders find property loans to be particularly risky. This is partly due to conventional lenders looking at short-term or vacation rentals as intermittent, with high, low, and uncertain cycles as compared to long-term, stable renters, considered a traditional source of income. Adding to the list, conventional lenders seem to fear the uncertainty of a new IT company dealing with property, the consistency of its users, and the duration of its product. A brave new world where banks have limited data, limited knowledge, and many federal restrictions on property loans and second mortgages. However, don’t let this stop you from earning your cut of a multi-billion-dollar industry. Opportunity is often found upon the frontier of a new industry. Hard money Airbnb Business in Arizona loans have helped many individuals into the industry. Renovate to rent and loans have become a profitable way to pay off mortgages, build equity, establish side income, or fund extended travel vacations.
Getting an Airbnb Business in Arizona Started
To start, do your homework. Study the areas that are best suited for an Airbnb Business in Arizona. Is it an urban or a rural area? Is it an area that is close to a lake, a beach, or a river? Research favorable areas, compare values of the properties, and search Airbnb’s app to find average bookings per property. Once you’ve crunched the numbers, read hours of articles, and hopefully talked to a few individuals in the industry, you probably will need a funding to get your idea up and running.
Get your Airbnb Business in Arizona up and going in no time!
Get a hard money loan. Find the hard money broker or lender that is right for you. During this phase, the desired property will need to be appraised. Afterwards, your lender will evaluate the property to determine equity, loan-to-value, interest, and period. With the terms, the lenders stipulations, and your portion of the equity in cash down, funding can be established quickly and efficiently. Start today. Level 4 Funding is here help you build your business.

Learn To Be A Fix & Flip Investor

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Friday, November 30, 2018

No Money Down Arizona Fix and Flip Loans: Advice for New Investors

If you are new to be flipping business, you may have heard the prospect of no money down Arizona Fix and Flip Loans. You may be thinking "hmmm, I can get into the flipping business without spending any of my own money, well sign me up!"

Few new house flippers can qualify for no-money-down Arizona Fix and Flip Loans from private investors.

Hard money can be a route for new investors to get no money down Arizona Fix and Flip Loans but carefully consider the risks.

Monday, November 26, 2018

Hard Money Arizona business loans: A Tale of Two Businesses

When it comes to Arizona hard money loans you take out for your business, consider carefully, whatever your pledging.

When it comes to hard money Arizona business loans, real hard money providers don’t use your income to secure their loans.

Risk less by seeking out real Arizona Hard Money Lenders.

Fix and Flip Loans: Exit Strategies.

Preemptive Exit Strategies for Arizona Fix and Flip Loans

"Well, that sucks," exit strategies for Arizona Fix and Flip Loans

Sunday, November 25, 2018

The Real Deal: Arizona Private Money Lenders Connect with Clients in an Era of Red Tape

Understanding Arizona Private Money Lenders and their relationship with both lenders and investors

Advantages of Arizona Private Money Lenders

Arizona Private Money Lenders provide a personable and understanding relationship with their clients.

The Facts About Arizona Rental Property Loans

Get more returns with Arizona Rental Property Loans.

Arizona Rental Property Loans Create Long-Term Security

Build equity with Arizona Rental Property Loans.

Earn More Money: Start an Airbnb Business in Arizona

How an Airbnb Business in Arizona may let you tap into rental income.

Getting an Airbnb Business in Arizona Started

Get your Airbnb Business in Arizona up and going in no time!

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