Learn To Be A Fix & Flip Investor: arizona hard money loans

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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!"
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.

Monday, November 19, 2018

Business Loans: Does God Want Your Company to Survive?

Surviving as a start-up is difficult. Considering Arizona Business Loans could keep you in the game.
The short-term survival rate for a business is 50%. Confirming this, the US Bureau of Labor states, “About half of all new establishments survive 5 years or more.” This means: start a business and flip a coin—you’ll find heads or tails to be your odds of survival.
While this statistic is daunting, how do you break the chain? Many experts claim that a healthy cash flow is one of the main indicators of a business’s survival. Regarding this, a recent article from Forbes states that “cash is king, and cash-flow management is the deciding factor whether or not your business succeeds or fails.” While this is good to know, how do you obtain cash flow when you have been down on luck, your market has made an unpredictable shift, or you have not yet qualified for a loan?
Struggles in obtaining lending may be due to:
Low credit score
Limited credit experience
Bankruptcy
Foreclosure
Don’t let the challenges of your past impede your future potential. You’ve put skin in the game to be in business. You want to survive and thrive. Level 4 Funding’s Arizona Business Loans may be able to help you obtain the necessary cash flow to outlast the first five 5 years.
Other Reasons for Seeking Business Loans
Perhaps your business is up and running the way you want it. However, you may need more cash to improve upon what you’ve created.
Other reasons for obtaining Arizona Business Loans may include:
Expansion real estate, inventory, space
Debt consolidation
Expansion may be crucial to getting an edge up your competition. Many times, for businesses that have been established for many years, acquiring property without diminishing cash flow is a dilemma. To add to this, traditional loans may be hard to acquire for some. Hard money Arizona Business Loans may be the answer to buying more property for office space, inventory management, or additional manufacturing. These investments increase the potential output and profit your company is capable of achieving.
Why Not Consolidate Many Loans into One?

Debt consolidation may be another concern. Multiple credit card payments, property loans, and interest rates may be a burden. E Plurbus Unum—Hard money Arizona Business Loans may allow you to consolidate many debts into one payment and one interest rate.

Saturday, November 10, 2018

Can Arizona hard money loans Give a Helping Hand when Facing Foreclosure?

People who are facing foreclosure often look for creative ways to save their homes. Arizona hard money loans can help in these situations, but you must know how to evaluate which options are best.
If you’ve found yourself in hot water with your mortgage company, the first decision to make is whether you genuinely believe you can catch up your payments or if the best solution is to give up your home. If your plan is to save your home, you will need to work out a budget and plan for repayment of the past due balances. If you believe you cannot get caught back up, then the best course of action is generally to identify which options will help you move on without sinking your credit.
Ideally, your first point of contact should be to your existing mortgage company. If you already know how much you can afford to pay back each month, they may be able to give you an alternate payment plan that will help you avoid foreclosure to begin with. Sometimes, banks will also agree to a “deed in lieu of foreclosure,” meaning you’ll sign the home over to the bank, or they may agree to a “short sale,” which refers to selling the home for a price that’s short of what is owed. This option is generally only viable if the bank is considering auction and you’ve got a reasonable offer. It can help minimize the impact on your credit, but it can still drop your score 100-150 points. Considering that bankruptcy can reduce a score by 150-240 points and still may not help you save your home, a short sale may be the preferable option. Conversely, speaking to your mortgage company about having someone assume the mortgage, or take it over, could also work, though most contracts specifically exclude this option.
Lastly, Arizona hard money loans can be a viable option to help you bridge the gap, regardless of whether you plan to keep your home or not. Depending on the terms offered, you may be able to qualify for as much as 90% of your home’s value. The funds can then be used to pay off your existing mortgage, buying you some time to sell the home for maximum value, in which case your credit score won’t take the same hit as it would with a short sale or bankruptcy. Or, you may take advantage of reduced/ interest-only payments for some time until you’re able to qualify for a traditional mortgage again.
If You Can Work Out a Strategy, You Can Save Your Home
Whether you’re going with Arizona hard money loans or any of the other options mentioned, having a strategy is paramount. You will need to know what your end goal is and have worked out your financials in advance; do not move forward unless you know you will have the funds to meet obligations. Granted, this is common sense, but the possibility of losing one’s home can cause some to make emotional decisions, such as moving forward with the hope they’ll be able to pay, rather than the knowledge they will.
Set realistic expectations before settling on a plan of action.
When you’re facing difficulties, such as a potential foreclosure, there are no magic bullets. Explore your options carefully and learn the benefits as well as drawbacks of each. If Arizona hard money loans seem like the best possible option for your needs, talk to a seasoned broker to get the best terms possible.

Thursday, November 8, 2018

HELPING YOU UNDERSTAND ARIZONA HARD MONEY LENDING

What exactly is an Arizona hard money lender? How are they different from a traditional bank loan? How can they help you?
You have heard the term, “Arizona hard money lender.” But, do you actually know what one is? Arizona hard money loans are asset-based loans. With this type of loan a borrower must have property that will secure the loan. A traditional bank loan can be a grueling, time consuming project; and you may have to wait a long period of time for approval. Also, with traditional bank loans, your credit is of utmost importance. There is no elaborate underwriting when it comes to these loans so developers find them useful for time-sensitive projects.
Arizona hard money loans are primarily used for short duration projects. These types of loans are typically used for purchasing real estate, improvements, renovations and construction. There are a variety of other reasons for these loans. Most reasons involve some type of improvement that will add value to a property.
Hard Money Lenders Approach
Arizona hard money lenders are more concerned with collateral; unlike traditional banks who routinely dig deep into a borrowers credit. The value of your collateral gives the lender security; it is more important than your financial situation. If you are unable to repay the lender they can take your collateral, sell it and get their money back. Lenders will lend the borrower as much as their property is worth based on the loan-to-value (LTV). The lender determines this by the ratio of the loan amount divided by the value of the property. These lenders are able to make much quicker decisions because they don’t have to investigate your entire financial life. The loan will be a much shorter duration than a traditional loan, usually lasting between 6 months and three years. Arizona hard money loans typically charge a higher interest rate than a traditional loan, ranging from 10% to 18%. Arizona hard money lenders are able to help many borrowers who don’t have perfect credit; they can also help borrowers who are having financial issues such as bankruptcy. As long as you have collateral that can be used as security, these lenders can work with you. Also, due to the absence of a complex underwriting, lenders can work with a borrower on repayment schedules. The flexibility of these asset-based loans can save many hungry borrowers.
Things to consider when deciding if a traditional bank loan or finding an Arizona hard money lender will work best for you.
Working with Arizona hard money lenders will benefit borrowers that are working on a short duration project, may not have perfect credit (or have some marks on their credit) or need quick financing and own assets that will cover their obligation in case they are unable to repay on time. These lenders can be found in organizations that specifically offer these loans. If a non-conforming loan will not work for your situation you may find the funding, you require through a Arizona hard money lender.

Tuesday, November 6, 2018

HOW TO UNDERSTAND ARIZONA CONSTRUCTION LOANS

Benefits of Arizona construction loans and how to understand them.
Home development is a pretty complex process. Taking out a loan can be a very complicated part of the process. What exactly is a construction loan? In essence a construction loan is short-term, interim loan for the construction of a house. The terms of a construction loan are usually a maximum repayment period of one year; and the rates on these loans are higher than traditional mortgage loans. They also have variable rates. A variable rate means the monthly payment will slide up and down with the prime lending rate.
There are two types of Arizona construction loans. The first is a construction-only loan. In this scenario the borrower takes out two separate loans. The first is exclusively for the construction of the loan. After you move into the completed home, you will take out a mortgage loan. A construction-only loan will not require a large down payment. If the borrower has limited cash flow, but knows their financial situation will improve after the sale of the home, this is a good choice.
The second type of construction loan is a construction-to-permanent loan. With this type of construction loan you borrow the funds for the construction of the home. Then, once the construction is complete, that loan is turned into a traditional permanent mortgage. When the borrower is approved they will follow a schedule of the construction of the home. During the construction of the home the borrower will typically make interest-only payments.
How to qualify for a Arizona construction loan
Gaining approval for a construction loan can be more difficult that qualifying for a traditional mortgage. When you have a traditional montage your home acts as an asset. In case of default, the bank can take your home for collateral. With a construction loan, the bank has nothing to seize because nothing has been built. So, what will you need to qualify for this type of loan? You will need to be prepared for a down payment up to 20%, a history of stable employment (income), have a low debt-to-income ration and impeccable credit. You will also need to gather pertinent information concerning your building plan. (This will be everything from the house size to what contractors will be employed to build the home). Lenders will want to know everything about the home there is to know. Very often, the lender will send an employee to check on the construction’s progress.
Are you eager to build a new home?
Be aware that Arizona construction loans can be more convoluted than traditional mortgages. It is necessary to look at many lenders to find out their expectations of the borrower; learn their rates and terms. There will be many lenders that do not want to work with this type of loan. Typically, credit unions and smaller banks will be more wiling to work with you. Be sure that before you shop around for a contractor you are pre-approved for a loan. Once you work with a contractor you will pay for blueprints and the design of the home. Wait until you know where your funds are coming from before diving into this project.

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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.

Monday, November 19, 2018

Business Loans: Does God Want Your Company to Survive?

Other Reasons for Seeking Business Loans

Other reasons for obtaining Arizona Business Loans may include:

Why Not Consolidate Many Loans into One?

Saturday, November 10, 2018

Can Arizona hard money loans Give a Helping Hand when Facing Foreclosure?

People who are facing foreclosure often look for creative ways to save their homes. Arizona hard money loans can help in these situations, but you must know how to evaluate which options are best.

If You Can Work Out a Strategy, You Can Save Your Home

Set realistic expectations before settling on a plan of action.

Thursday, November 8, 2018

HELPING YOU UNDERSTAND ARIZONA HARD MONEY LENDING

What exactly is an Arizona hard money lender? How are they different from a traditional bank loan? How can they help you?

Hard Money Lenders Approach

Tuesday, November 6, 2018

HOW TO UNDERSTAND ARIZONA CONSTRUCTION LOANS

Benefits of Arizona construction loans and how to understand them.

How to qualify for a Arizona construction loan

Are you eager to build a new home?

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