Learn To Be A Fix & Flip Investor

Wednesday, November 21, 2018

How to Benefit from Fix and Flip Loans in Arizona

Renovating a fixer upper can lead to great success and profit, but planning the process and making informed decisions about your finances will be a major factor within that success. Read more to learn what kinds of loans you are most eligible for to lead to a successful flip.

There are a variety of different loans available for each person and financial situation. For those planning on renovating a fixer upper, it usually come down to choosing between loans from traditional lenders and private lenders.

Traditional lenders are oftentimes the first place people look when seeking out a loan because they work much like any other mortgage loan. Traditional lenders consist of investors like banks and credit unions. When working with a traditional lender, there is less flexibility and greater loan guarantee requirements, such as solid credit standing and, sometimes, a history of successful flippers. Because ideal candidates will have had previous flipping experience, other loan options may reap greater benefits and success if you are new to flipping.

Arizona Hard Money Loans are provided by a private lender. They are different from traditional lenders like banks because of their speedier approval process. Unlike a bank, they do not heavily consider credit score or income history. Arizona Hard Money Loans are great for people who need to act fast and have imperfect financial standings. Asset-based loans and bridge loans are similar loans also based on real estate.

Arizona Hard Money Loans tend to be the most popular decision for fixer uppers because of the speed it takes to acquire one. Being able to use it towards a bid can happen very quickly. Because of their short repayment period, the money then obtained from the fixer upper can then be applied towards repayment. Experienced fixer uppers with a successful history and strong portfolio are usually able to heed the steep interest rates and fees.

Evaluating Your Options Based on Loan Differences

Taking into consideration the differences between these types of loans and lenders can help make your decision easier. Do you want to borrow from a private or public lender? Do you have experience or do you need to act fast? Evaluating the differences between your options can help break down the needs of your individualized situation. Providing an evaluation of the property you intend to acquire with the loan will be equally important. Lenders will want to evaluate your proposal themselves based on the property’s location, asking price and renovation budget.

Reading Between the Lines to Find the Right Fit for You

Being eager about the prospects of your Fix and Flip Loans in Arizona can make it easy to overlook relevant information about your financial standing, long-term, and short-term goals. Before committing to a loan lender and project, it is important to keep several things in mind: repayment plan, possible closing costs, fees and interest, as well as the cost of house renovations. Putting all financial spending and borrowing into consideration over a lengthened period of repayment. The differences between these Fix and Flip Loans in Arizona can be the difference between risky decisions and dreams come true.

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.

How to Obtain Loans to Flip Houses in Arizona Like They do on HGTV

Flipping houses seems so easy on TV—but is it? Read more to learn how to obtain loans and establish strong financial foundation to flip houses just like they do on HGTV.

There are many types of Loans to Flip Houses in Arizona available for people interested in investing in a property. Arizona Hard Money Loans are great for people immediately interested in making a bid on a piece of real estate. The speed at which one can be obtained is much speedier than one given from a traditional lender such as a bank because these lenders have a greater acceptance rate. In this case, the approval process may be easier because things like income history and credit score aren’t considered as heavily. The value of the property is what is most important in this case. The speed and approval process is accompanied by a higher investment rate and a shorter pay period. If this isn’t right for you, other options are available.

Depending on your situation, a bridge loan may be ideal when dealing with two transactions. A bridge loan will allow you to purchase a home for flip, without the stipulation that your initial property must sell first. Like Arizona Hard Money Loans, they are short term and have higher rates. Also like Arizona Hard Money Loans, the focus is less on credit score and more about the value of the property.

Cash-out refinancing and home equity line of credit are other options for those looking for Loans to Flip Houses in Arizona. Refinancing will allow you to utilize some of your home’s equity. Obtaining this kind of loan will replace the current mortgage you owe on your house, for a new one with the cash you are wishing to take out to flip a home. Doing this will require a good credit score and debt-to-income ratio, and while you may save some money on interest, you will have to pay closing costs. Your mortgage rate will ultimately determine if this loan would be worth it over a period of time. Home equity line of credit is an option that would allow you to use your home as a second mortgage.

Asking for Loans Personally

With small interest rates and a minimum credit score of 650, personal loans can be great options for people who only need to borrow a small amount. Personal loans can also be combined with other types of loans, and are approved for just about any personal use. Arizona Hard Money Loans are options through private lenders with a speedy process and easy acceptance, but higher interest rates if a public lender like a bank rejects your proposal. Another way to personally ask for loans is quite personally. Depending on who you know, friends and family may be willing to lend you some money for your fixer upper, and, in this day and age, it is not uncommon for people to source funds from crowds. Across sites like GoFundMe and Kickstarter, people fundraise for all kinds of various reasons. If obtaining a loan from the bank is uneasy, these are three alternative routes.

Expectations of a Successful Flip

If you are in need of Loans to Flip Houses in Arizona, it is important to consider all of your options. A successful house flip will refer not only to the final product, but the use of money and time that was put into it. For a successful flip like those seen on TV, consider the benefits of each loan type so that you can make a successful flip.

Considering Arizona Hard Money Loans

In situations where you need to act fast, borrowing from a private investor may be a great option that speeds the lending process along as well as amplifies your ability to obtain property. Read more to find out if hard money from private lenders offer benefits that public lenders can’t.

Arizona Hard Money Loans are not offered by traditional lenders like banks, but by private companies and investors. Arizona Hard Money Lenders have higher interest rates and a shorter payback period. Because of this, they are often times used in competitive bidding for property or in the event of preventing a foreclosure.

While receiving a Arizona hard money loan often results in a speedy process, there are a few drawbacks to consider. First, it is important to consider that the payback period is short, usually only 12 months. Sometimes, though, it can be extended between two and five years. Furthermore, it is also important to note that these kinds of loans have a higher interest rate. Interest ranges from 10 and 15 percent, which is more than what a traditional lender such as a bank would charge.

However, unlike a bank, Arizona Hard Money Lenders impose less strict limitations. For example, banks will be highly concerned with your credit score and income history. Unlike a bank, Arizona Hard Money Lenders are concerned with the collateral and value of your property. Even if you have an imperfect credit score, Arizona Hard Money Lenders will be likely to work with you because they assess the value of the property with an LTV (a loan to value ratio). Some ratios can lead to investments as high as 75 percent of the property’s worth. What may be referred to as the “risk” they take with this is reflected in their interest rates and fees. While the expense may be a drawback, sometimes they are the only option for people who can’t receive funding elsewhere.

Meeting with Arizona Hard Money Lenders

Arizona Hard Money Lenders can be found locally. Sometimes they can be referred to you by a mortgage broker, but lists of Arizona Hard Money Lenders are always available on the internet. When committing, it’s important to always evaluate the legitimacy of your lender. If you have any concerns or questions, a real estate attorney may be helpful in identifying any major stipulations regarding loan fees, interests or rates. Under legitimate circumstances, relationships with Arizona Hard Money Lenders are transparent, flexible and individualized.

Deciding if Hard Money is Right for You

Arizona Hard Money Loans are not for everyone, but they can definitely lend a helping hand to people in financial need, specifically those who need to act fast to obtain a property or prevent a foreclosure. Not all financial situations will lend themselves to speedy benefit of hard money, and oftentimes it is those who aren’t able to obtain financial funding from banks that benefit from it. The short-repayment period and high rates cater to a specific market, but depending on your situation, they could be the right option for you.

Why the Expense of Arizona Hard Money Lenders Can Be Worth It

While a hard money loan can be more expensive than a traditional loan, the speed, flexibility and approval process can make the expense worth it. Learn more about the pros and cons of hard money loans and determine if it’s the right option for you.

A hard money loan is one funded by a private investor. Unlike traditional lenders, Arizona Hard Money Lenders are not concerned with an individual’s credit. Because of this, they are more likely to work with an individual rather than a bank or credit union who will reject appeals based on financial situations.

When lenders fund investments, they are focused on the property’s collateral. This means that they will be willing to lend the value of the property. Lenders, however, have higher interest rates that may range between 10 and 15 percent. If the desired property needs excess work, the interest rate of hard money loans may make them seem unreasonable. However, if the property is good and you are in a state to be able to repay the loan, speed, flexibility and approval are a few benefits that may outweigh the costs of interest.

Benefits of Borrowing from Untraditional Lenders

Typically, the process of receiving a loan is much faster when done with an untraditional lender. Oftentimes, this process can begin within the week or, sometimes, the same day. A traditional lender may take as long as a month or more. Speed for the borrower may be important if bids for obtaining property are competitive and it is necessary to act fast.

Flexibility is another selling point. Unlike traditional lenders, Money Lenders Arizona Hard work on an individual basis. Limitations imposed by banks and other traditional lenders are not as strict working with someone in this type of relationship. This means less concern over credit score and income history. Using an alternative lender leads to a more individualized process and more flexibility when considering finance history, and in general the approval rate is much higher. However, even with a higher acceptance rate, it is important to consider all terms within the process to know if it is really the best option for your situation.

How to Know if Alternative Options Are Right for You

Hard money loans are commonly borrowed for fixer uppers, by competing real estate agents, and to prevent foreclosure. While speed has its benefit in these scenarios, it also works in the reverse. Arizona Hard Money Lenders offer a shorter repayment period than traditional lenders. Coupled with the higher investment expense, it’s important to consider how quickly you will be able to repay the loan and develop a plan that will allow you to repay in the allotted time period.

Seeking an investor who offers hard money loans means looking in your area for real estate investors or real estate investor groups. Even conventional mortgage brokers may provide you with further information in seeking out someone who is right for you in your situation. While the expense may be intimidating at first, beginning a relationship with an untraditional lender may provide more benefits at second glance.

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.

Friday, November 16, 2018

CAN YOU GET A SMALL-BUSINESS LOAN WITH BAD CREDIT?

If your credit has been damaged and you want to start a business—you can still get a small-business loan with bad credit.

The biggest reason lenders turn down small-business applications is the borrower’s credit. Banks consider bad credit anything below a 620 FICO score. Because of their past, applicants with bad credit are considered a high risk for defaulting on loans. Have no fear—there are still options out there for entrepreneurs that need a small-business loan.

HOW TO FIND A PRIVATE HARD MONEY LENDER

There are lenders out there that will work with you to get a small-business loan with bad credit. There are lenders that will provide options for borrowers with shaky credit. Typically, they require a FICO score of at least 500. And, believe it or not, there are lenders that have no minimum score requirement. These lenders will look at your business and determine if it is strong enough to be successful thereby giving them confidence that you will repay the loan.

A borrower with bad credit must realize that the lower their credit score is the bigger chance they have in having a higher APR—interest rate and fees that accrue on the loan. A borrower with a low FICO score, no collateral and a brand new business should look toward the option of business credit cards and secured personal credit cards. If you want to manage your cash flow and working capital, a line of credit will be your best bet.

Hard money lenders can help with small-business loans

If you need a small-business loan—even with poor credit, but you have collateral, a hard money lender can work with you. Hard money loans are collateral-backed loans that can give easy access to small-business owners. They are secured by real estate. Hard money lenders are less concerned with a borrower’s credit and more concerned with their hard assets. If a borrower defaults on a loan the lender can foreclose on their property.

Hard money loans offer an execution that is fast. A borrower can be approved within 24 hours and have funds in as little as 10 days. They also don’t have the regulations that traditional banks do. While a traditional bank must adhere to state and federal regulations, a hard money lender creates their own regulations. These lenders still have an underwriting criteria; they are just more lenient.

Why a hard money small-business loan may be for you

If you are an entrepreneur with a vision and you have collateral, but unfortunately your credit is damaged a hard money small-business loan may be the best option. Along with speedier approval and closing time, hard money lenders work with each borrower individually. They have more leeway with underwriting and the repayment schedule. All in all a hard money lender can be more flexible than a traditional bank loan. These private lenders are entrepreneurs themselves and want to help others with that same entrepreneurial spirit.