Featured Post

The Big Show is Coming to Town.

Don’t do it…it’s a big mistake flipping homes can cost you a lot of money . Every week the house flipping circus comes to town and adve...

Showing posts with label Arizona hard money loan. Show all posts
Showing posts with label Arizona hard money loan. Show all posts

Tuesday, July 21, 2020

Become A Private Money Lender: Tips From The Pros

Simply put private money lending allows you to act as the bank for other investors.

Rather than directly purchasing assets, you get the opportunity to fund those owned by colleagues and partners. By now you likely realize how beneficial this set up can be. However, there are a few more things you should know before getting started. Read through the following tips before taking on your first deal as a private money lender:

Start Out Small: Identify a range you are comfortable working with, and stick to it. The number one mistake private money lenders make when starting out is spreading themselves too thin. Assess your finances and your preferred level of risk and create clear guidelines for potential projects. If someone approaches you searching for more than you want to offer, do not be afraid to refer them elsewhere.

  •          Find A Good Attorney: Becoming a private money lender does not make you a lawyer. You will still need help when it comes to negotiating and reviewing contracts. Additionally, if you start a private money lending business there are several legal protections you need to have in place before getting started. Find a qualified real estate attorney in your area and bring them on to your team. Their role in your company will be invaluable over time.
  •          Work Locally: There are profitable real estate deals all over the country; however, there are also deals right under your nose. If you decide to start your private money lending business locally, you can meet face to face with investors. Additionally, you will likely be more available for communications and future investment options. Do not underestimate the potential of your own market, you never know what kind of deals may come your way. You can always expand in the future.
  •          Be Transparent: Avoid inflating your portfolio or background to attract potential investments. No matter what point you are at in your investing career, let your work speak for itself. You do not want to misrepresent yourself or your lending business. Always maintain transparency and stay true to your mission and values.
  •          Do not Forget About Yourself: Remember, just because you are not purchasing assets directly does not mean you aren’t an investor. Continue your professional and financial education even if you opt for the role of lender. You still need to stay on top of market trends, financial news and other factors impacting the real estate world. While you don’t have a hands-on role in the investments you finance, you still need to have a strong business acumen.
  •          Learn The Subject Matter: Review the types of borrowers listed above and familiarize yourself with the different deal types. Learn what factors go into a successful rehab, buy, and hold or rental property. That way when a borrower pitches a deal you know how to evaluate it for yourself. Obviously, they are going to paint the investment in a good light, but is it profitable? To be a successful private money lender it is crucial to understand exactly what goes on in the niche you choose to invest in.

What Is Hard Money Lending

Hard money lending is another alternative to traditional lending sources and allows borrowers to use the investment (in many cases a property) as collateral on the loan. While many lending sources rely on a borrower’s credit history, hard money lending relies on the asset in question. Hard money lending will typically require higher interest fees than traditional loans but can provide borrowers with increased access to capital and a more lenient approval process. Investors with low credit and high equity in a property will often turn to hard money for funding. Additionally, property owners at risk of foreclosure may also utilize hard money loans.

How To Become A Hard Money Lender

Hard money lending can represent a unique opportunity for investors with extra capital on their hands. Though, with any financial decision it is important to mind due diligence and premeditate any potential risks. If you are interested in becoming a hard money lender, here are a few steps you can follow:

  1.        Name your business and create your company structure.
  2.        Set up an online presence for your business.
  3.        Seek legal counseling on the creation of a limited liability company check regulations.
  4.        Investigate potential investment opportunities.
  5.        Make a business plan and draft the criteria of future loans.
  6.        Project the future financial outcome of any potential loans.
  7.        Launch your hard money lending business.
  8.        Pros Of Hard Money Lending

Hard money lending gives investors the chance to stay active in real estate, without necessarily adding a property to their portfolios. Some hard money lenders may never purchase a property themselves at all. This can be a huge perk for anyone without the time and resources to actually acquire a real estate deal, as it allows lenders to tap into the lucrative potential of real estate without “getting their hands dirty” so to speak.

Another major benefit of hard money lending is the degree of control it offers. Hard money lenders get the final say in who they work with and on what terms. Anyone who has purchased a piece of real estate likely remembers the process of applying for funds, waiting on application approvals, and going through negotiations. Being a hard money lender puts you in the driver’s seat—and that is quite an attractive perk for many.

Cons Of Hard Money Lending

With any financial opportunity, there are going to be cons involved. For those interested in hard money lending, the most obvious challenge is coming up with enough capital to get started. The amount of funds required can serve as a steep barrier to entry, but it is important to remember that real estate offers a great way in. Investors can work their way up by managing successful real estate deals themselves; over time they can generate the funds necessary to start lending.

Hard money lending also has an inherent degree of risk for the lender.

By operating outside of the traditional loan application process that big banks use, hard money lenders can truly choose who they work with. This means taking a risk on an investor who may not be approved by some standards. To counteract this risk, hard money lenders must come up with standards of their own. Lenders should be prepared to research investors, properties, and ultimately trust their gut feeling about a potential candidate.

Summary

Private money lending can represent an attractive opportunity for both parties involved. Investors seeking alternative financing sources will find the benefits include a faster approval process and increased access to funding. On the other hand, those lending may find they have unique access to potential investments and deals. No matter which side of the transaction you are on, private money lending is a viable option for expanding your financial portfolio and wealth building.

Is a lack of funds keeping you from investing in real estate? Do not let it! Give us a call.

If You Are Not Using Level 4 Funding, You’re
Probably Paying Way Too Much

 

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.

Copyright | Privacy Policy | *Terms & Conditions

Tuesday, June 4, 2019

Why Savvy Millennials are Turning to Hard Money Lenders

Millennials have struggles prior generations didn’t. However, many are now making their dreams come true with the help of Arizona hard money lenders anyway.

Millennials often get a bad rap for their tendency to stay at home with their parents longer than prior generations have, plus this is the same generation that popularized ridesharing and home-sharing. Necessity is the mother of invention and, undeniably, has caused people in this age group to adapt in ways their parents and grandparents didn’t.

Research from Business Insider indicates that wages are up 67% since 1970, which sounds great until you realize that rent costs have risen nearly 100% in the same time period and tuition at public colleges have jumped more than 200% since 1982. Not surprisingly, the credit bureau Experian now reports millennials have more than $80,000 in debt on average. A staggering amount of this is student loan debts, but credit card debt accounts for a large portion of it too. Credit scores are suffering as well, with the average millennial only managing to obtain a “Fair” FICO score, sitting a significant number of points behind national averages for all age groups. This makes it hard to cover daily living expenses and get loans, which makes it all but impossible to get ahead.

These are some big challenges which have caused younger Americans to delay milestones such as homeownership and starting a family. It has also led to a rise in sharing apps, like Uber and Airbnb. The savviest millennials, however, are eschewing the norms altogether though. They’re working with Arizona hard money lenders in a number of areas to improve their lives today and get a head start on growing their long-term wealth.

Side Hustles Funded by Alternative Lending Give Millennials a Helping Hand

One of the key components for millennials who get ahead in today’s economy is having a side hustle, which can often be financed by hard money lenders. The ideal side hustle can be carried out without quitting one’s day job and involves skills which coincide with skills the individual already has. Current trends include house flipping and home rehabs, running an Airbnb or other vacation home, and starting up grow operations.

A broker can help you even if you’ve got rotten credit!

Banks turn people down when they’ve got bad credit or are getting into certain types of businesses, but Arizona hard money lenders don’t. Instead, they look at the overall business plan, it’s potential profitability, the risk involved, and the skill of the entrepreneur. This makes it easy to get approval even if you haven’t been in business long, are struggling with student loan debt, or have rotten credit. If you’ve got a great idea for a side hustle, but can’t find the funding you need to get it off the ground, speak with a broker who specializes in alternative lending and can match you with a private individual who has the cash to help you get started, knows the industry you’re getting into, and wants to help you succeed.

Over $40,000,000 Funded and YOU ARE NEXT!
All of Your Funding Problems are Solved Here!
Get the Lowest Possible Rate Term Guaranteed
Rates From 5.99% APR*


If You Are Not Using Level 4 Funding You're
Probably Paying Way Too Much

Call  623-582-4444

Private Hard Money Rates and Terms

Flexible Terms From 3 to 60 Months
Fixed Rate From 5.99% APR*
Up to 90% As-Is Value, 100% of Rehab Costs
Construction Loans
Fix&Fip Loans
AirBnB Loans
Rental Property Loans

All The Stress is Gone

No More Begging
No Jumping Through Hoops
No Tax Returns
No Pay Stubs
No Credit Required
No Up Front Fees or Junk Fees
No Cost to Ask Us

What are you waiting for?
Give us a call or apply on line, its easy.
No Cost to Apply!

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Private Hard Money Lender
Tel: 623 582 4444 level4funding.com

NMLS 1057378 | AZMB 0923961 | MLO 105737
22601 N 19th Ave Suite 112 Phoenix AZ 85027

What do borrowers say about us?

“Top notch loan broker. who was awesome, quick, prompt, and most importantly, delivered. I would say don't even waste your time with another broker - these folks get the deal done, period. As a lawyer, they have helped me and many of my clients with a can-do attitude, and professionalism that is unmatched. A definite recommendation.” Paul Nordini

“I was working with a hard money lender (OF) for the past ten days. 24 hours before my loan was supposed to close they called me and told me they were lowering my loan amount by 15%. I called Mark G at Level 4 Funding and told him the situation. If you want work with someone honest and professional call Level 4 Funding today.” Roger Johanson

“After hearing, the good things about this company, I think they are on top of their game. I will keep recommending people I know in Arizona to level 4 Funding.” Rick Carrol

"I was scared and not certain about the deals, but when I talked to my attorney I realized the investment was safe and secured, I was ready to go” David F.

What is Private Hard Money?

It is usually a loan from a private person/individual not a bank for financial institution.  Yes, there are people with a boat load of money in the bank and they want to lend it to you.  This is legal, and it happens all the time. It’s their money and they will make a deal with you.  Its easier and faster because the person making the decision is the person who has the money in their possession. It’s called hard money loan because when the loan is made, the collateral backing up the promise to pay by the borrowers is a hard asset. Typically, a piece of real estate or something of value. It’s a promise to pay, backed up by the borrower’s hard asset. So, its private money from an individual backed up by a hard asset. Which means if the borrowers do not pay, the lender goes and “grabs the hard asset” and the borrower loses the asset (home).

Things to Consider When Obtaining Hard Money Loans

Are you wondering what Arizona hard money loans are and where they fit into your investment strategy? Here are the basics of these types of loans and what they can do for you as an investor.
This type of loan is an asset-based loan.  The borrower wishes to secure a loan backed by real property.  Private investors and companies are typical issuers of these loans.  Unlike banks, Arizona hard money loans can carry higher interest rates.  These interest rates are higher than a convention real estate loan because of the higher risk and the duration of the loan which is shorter than conventional real estate loans.

People using Arizona hard money loans are usually looking for funding for projects lasting from a few months to a few years.  The criteria for lending and borrower costs are similar to bridge loans. In fact, many hard money lenders specialize in bridge loans. Bridge loans are used for properties that are in transition and may not be able to qualify for traditional financing.  An example of a bridge loan is when a home buyer finds a new home they’d like to buy before their old home, which is on the market, sells.

Many hard money lenders will lend 65% to 75% of the current property value. The amount of the loan is determined by the loan to value or LTV. It is figured by the ratio of the loan amount divided by the value of the property. Arizona hard money loans are mainly used for commercial property.  These types of loans first started in the 1950s and have been growing in popularity.

Although mostly unregulated by state and federal laws, some restrictions on interest rates by states, commonly known as usury laws, prohibit hard money loans. Two of these states are Tennessee and Arkansas.

Federal Guidelines

Since the 2009 mortgage crisis and the passing of the Dodd-Frank Act, these loan programs have greatly expanded.  This is in part due to the strict regulations that were put on banks and lenders after the passing of this act. Truth in Lending and Dodd-Frank set out Federal guidelines for lenders, mortgage originators, and mortgage brokers requiring them to evaluate the borrower’s ability to repay the loan.  The ability to repay the loan is on the borrower’s primary residences. If the lender does not conduct the proper due diligence, they are faced with high fines for non-compliance.  Hard money lenders mostly lend on commercial loans or business purposes so that they can avoid non-compliance with TILA, HOEPA and Dodd-Frank guidelines.

Before any offer of financing, the lender will want to determine the LTV (loan to value).  The basis for the loan is the liquidation value of the collateral.

A BPO (Broker Price Opinion) or an independent appraisal by a licensed appraiser in the state that the property is located in, will value the property. Typical hard money loan interest rates range from 5% to 18%.  Despite these rates, investors often turn to them due to quick loan approvals, high flexibility, less documentation than conventional lenders, and offering the ability to put a bid on a property that may go quickly after hitting the market.



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 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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Sunday, December 2, 2018

The Best Place to get loans for Airbnb businesses in Arizona?

p1_img2 Short-term vacation rentals are now a viable source of income thanks to platforms like Airbnb. You may want to take advantage of this opportunity, but what's the best source of loans for AirBnB businesses?

In the past, it was challenging to secure consistent short-term rental income.

Vacation rentals were advertised through newspapers and other forms of advertising with limited reach.  How could Joe and Sally from Minnesota find out about a beachfront property available to rent on the coast of California?  Well, they really couldn't. In the 21st century, things are different. Finding a regular stream Joe's and Sally's to lay do   wn several thousand dollars a week to stay in a beachfront home is now possible thanks to platforms like Airbnb. Depending on your locale, owning a vacation rental property could pay for half or more of your outstanding mortgage.

However, you may not have the funds on hand to purchase a vacation property outright, and unfortunately, traditional bank bureaucracy hasn't quite come into the 21st century.

Getting an Arizona Airbnb loans can be difficult, bank regulations and FHA guidelines hamstring conventional lenders

A beachfront condo has just come onto the market. You know for a fact the best strategy here would be to rent it out on a short-term basis. So you go to your friendly neighborhood bank. It's all smiles until the loan officer asks " how do you intend to pay for the second mortgage?"

You explain that you intend to make money by renting out the property during tourist season.  The loan officer reviews his checklist, " short-term rental hmmm, I’m sorry, we can account for that type of income."

Essentially brick-and-mortar lenders haven't caught up to the opportunity offered by platforms like Airbnb. Traditional lenders are for the most part unwilling to underwrite loans based on short-term rental income, which means the vacation property you intend to finance will be grossly undervalued. In most cases usually only the best borrowers can qualify.

Say you've found a dilapidated beachfront property, in a popular hip location. Prices in the area are prohibitive, and this busted up cabin is your only way to get in on the action. You know once the property is up to a livable standard, you could charge 500 bucks a night to rent it out. But, don’t even bother with a regular bank if a property is anything less than livable. Your deal will not close due to FHA guidelines.

If a distressed, but steeply discounted property, comes onto the market in an extremely lucrative area, conventional lenders, unable to resell your loan to Fannie and Freddie, are going to reject your application out of hand.

Private money can be the help you need to get an Arizona Airbnb loan.

In such situations, a private money provider is your best bet.  This type of lender can consider the short-term income potential of the property you want to finance because private lenders set their own rules when it comes to underwriting. Private lenders are also not beholden to FHA guidelines.

With a private lender on board, that condo is yours, even if you have an outstanding mortgage or less than perfect credit. With a private lender, you can transform that run down cabin into a gem. Airbnb will then be sending you a stream of Joe’s and Sallies who will pay you thousands of dollars a week for the privilege of staying in your refurbished vacation home.

So when it comes to vacation rentals, skip the bank and approach a private money provider first.


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 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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Monday, November 26, 2018

Fix and Flip Loans: Exit Strategies.


iStock_000002512608_LargeYou 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.

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 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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Sunday, November 25, 2018

The Facts About Arizona Rental Property Loans


iStock_000002338446_LargeGet 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.   


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 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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions