Learn To Be A Fix & Flip Investor

Thursday, May 30, 2019

Pros and Cons of Working with Arizona Hard Money Lenders in Phoenix

If you don’t qualify for a traditional loan, you may be referred to an untraditional lender who offers hard money—but, are they right for you? Read more below to find out what you need to know before signing a loan agreement with a private money lender.

Not qualifying for a loan with a traditional lender, like your local bank or credit union, is not the end all be all. There are always untraditional options. This means seeking out a private company or investor who offer hard money. The qualification process for Arizona Hard Money Lenders is a little different. Usually the process is fast, transparent and individualized—which are all very important things to borrowers.

Pros of Working with Private Investors

Because Arizona Hard Money Lenders offer speed, there is greater opportunity to obtain your property. On a competitive market, the last thing you want is to have to settle on another, less promising property just because you weren’t able to obtain the funds fast enough. Obtaining funds can happen as soon as the week of, if you are approved by your lender. In more extreme and exciting cases, the process can begin the day of. Either way, this is much faster than the traditional lender who needs at least a month to get things rolling. Two other great characteristics of private lenders are transparency and individualization. The ability to work honestly with your lender will be extremely beneficial. Because Arizona Private Money Lenders approve borrowers based on the property, instead of financial history, they are able to focus on you and your project—this includes the plans and potential. Your financial history is still of some importance—they do want to know you can be reliable—but it doesn’t bear the same weight it does at the bank.

Cons to Consider

Arizona Private Money Lenders may sound too good to be true. They can offer you money, and they can offer it fast, but at what cost? Literally, at what cost? Well, first, higher interest rates—as much as five percent higher—and, sometimes, fees. Like any new endeavor, you need to tread carefully. The same energy and research you are putting into your actual project should also be put into the search for your lender. Remember that, like lenders can reject you as a borrower, you, as a borrower, can reject lenders. Work with the team who transparently supports you and your project and, if you don’t feel confident in the terms to your loan agreement, hire a real estate attorney to look over the conditions with you before you make your decision—or, better yet, begin your search again. Focusing on what is best for you is going to be what’s better for you in the long run if you want to complete a successful project and make a profit. Lastly, you want to consider the timeline of your lender Arizona Hard Money Lenders work on the short term. If you are in the throes of working on a fixer upper, with a quick renovation process and resale, or need to act fast in the situation of a foreclosure they may be just for you.

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.

Wednesday, May 29, 2019

How to Make Money with Arizona Hard Money Lenders in Phoenix

A few hours of binge watching HGTV can easily turn into hours of inspiration on how to renovate your own fixer upper. However, it’s not always that easy and, without the guidance of one of the Gaines or a flashy camera crew, who knows how best to make the most of your options. Read more below for some tips and tricks!

Getting swept away by the dazzling before and after HGTV showcases on their many shows is easy. From beautiful gardens, contemporary color palettes, and updated cosmetics, renovating a home may seem easy—and it is, at least visually.

Renovating a fixer upper successful is possible. You must be realistic, plan, and work with a reliable team. As a new person to the housing market, you will have to do your research, but a solid foundation of research could equate to the solid, physical foundation of the house.

Benefits of Using Arizona Hard Money Lenders for Your Fixer Upper

If you want to renovate a home, you are likely going to need a large chunk of cash. When it comes to fixer uppers, many people use private money lenders. Arizona Private Money Lenders are untraditional lenders who offer hard money. Hard money is one way to get cash fast—which is absolutely ideal in cases of fixer uppers. You want the opportunity to bid and obtain a property fast, and you won’t be able to do that without cash. Some Arizona Hard Money Lenders can lend you funds within the week, which is several weeks sooner than your local bank would be able to. Additionally, hard money has a short repayment period. This falls right in line with the timeline of your fixer upper. Ideally, you want to obtain a property, flip and sell successfully. A successful renovation literally lends itself to the timeline of hard money.

Tips on “Fixing Up” the Housing Market

Making the most of Arizona Hard Money Lenders is one step. As you continue making your way through the housing market, you want to play it safe—especially if this is your first major project. You want to be working with a reliable team who can take on the needs of the project. Not only that, but you and your team need to be realistic. Think about what you can realistically accomplish in the timeframe you have. Another thing to consider is marketability. How will you market your fixer upper, and what kinds of things are people interested in investing in? You may have a vision for something particular, but you may need to adapt your vision into something that can be sold to bring in the big bucks. Ultimately, you are renovating to make a profit. Follow deadlines, put in the research, and make informed decisions. If you are working with a team and lender who believes in you and the project, renovating successfully won’t just be the thing of TV.

Triple Your Chances of Qualifying for Loans with Private Money Lenders in Phoenix

If you don’t qualify for loans with traditional lenders, there are other options that are much faster and work on an individualized basis. While untraditional lenders can pose risks, they may offer just what you need to complete your project. Read more below to find out if they are right for you!

The loan process can be a long one—even before you officially qualify. Depending on your project, you may spend months planning and researching before you even really get started. When it comes time to seek a loan lender, the loan process won’t even begin immediately—it can take as long as a month or more to get things rolling. So, what should you do when you don’t qualify for a loan from your traditional lender? Easy—seek out other lenders.

What kinds of lenders are there, though? And what type of lender is best for you? Usually it comes down to understanding the difference between public and private lenders and the types of loans they offer.

The Benefits of Working with Untraditional Lenders

Traditional lenders are usually compromised of local banks and credit unions. They have high standards when it comes to borrowing money. They value experience, reliability, and reputability. A great credit score, financial history and debt to income ratio will all be important things they consider before approving you for a loan—any or all of these things can make or break you. Fortunately, there are untraditional lenders who put collateral before financial history, and therefore give greater chances to people who otherwise wouldn’t qualify with traditional lenders. Untraditional lenders, or private money lenders, focus on you, your property and your plans. They are generally blunt with you, and if they don’t support your plans they will tell you. The transparency they offer is part of the individualism that isn’t always present with public lenders. In addition to the opportunity they offer through their selection process, Arizona Private Money Lenders also allow opportunity through their speed. A traditional lender may take a month or more to get the process going—a private lender can get the process going as soon as a week and, sometimes, the day of. Every situation and project is difference, but speed is never a bad thing.

Are the Risks Worth the Benefits?

If you aren’t eligible for traditional loans, private lenders offer a few benefits you won’t see elsewhere. However, there are some risks of working with Private Money Lenders. For one, they have high interest rates and fees. Unlike the rest of the market, the costs of private lenders can be up to five percent higher. Not only that, but they have short repayment periods. Depending on what you need your loan for, this may not be the best option. Private lenders offer hard money that is expected to be paid back fast. Generally, this makes hard money ideal for cases of fixer uppers and foreclosures. Determining if a hard money lender is right for you will require you to evaluate your situation. Just because they can get you the money faster or at all, compared to other lenders doesn’t mean they are the best option.

How Private Money Lenders in Arizona Can Help You

Are you struggling to obtain a loan or find it difficult to qualify with traditional lenders? If you’re in this situation, read more below to find out what kinds of alternative options untraditional lenders can provide for you!

When it comes to obtaining a loan from a traditional lender like your local bank or credit union, approval doesn’t always come easy. Banks have high standards during the loan approval process. This means things like debt to income ratio and credit score play a large determining factor in whether or not you will be approved for a loan. If you cannot meet these standards, you may have to seek out an alternative route and work with Arizona Private Money Lenders who offer hard money.

Private Arizona Hard Money Lenders are just as they sound—private companies or individuals who invest in projects. Hard money can be a great option for people seeking out loans who are looking for other loan opportunities.

Benefits of Private Hard Money Lenders

Arizona Private Money Lenders are often referred to people who cannot obtain traditional loans because of their ability to approve a wide variety of borrowers fast. Private lenders focus on the property’s collateral instead of the borrower’s financial history. In doing this, they are able to choose projects to invest in that have high potential for success. Before approving the project, they then consider the borrower’s financial history to determine if they are a reliable client with solid plans. Another benefit of private lenders and investors is that they are generally transparent with their borrowers. Because they are working on such an individualized basis, it is not uncommon for them to be blunt with you. If they don’t support your plans, your lender will be very direct with you.

Is Arizona Hard Money Lenders Right for You?

There are many benefits of hard money lenders; however, there are also some things to consider. Arizona Private Money Lenders work short term. Depending on your situation, this may not be ideal. For example, the repayment period for Arizona Hard Money Loans is typically a year which makes them absolutely ideal for fixer uppers. Working on a fixer upper generally means a successful renovation and a quick sale with a profit which would help contribute to any outstanding loans or fees. Private lenders can still be options for people who need money fast—like to prevent a foreclosure—but it’s not the most ideal situation. Additionally, private lenders have high interest rates. These rates can be as high as five percent more than typical rates on the market. Arizona Hard Money Lenders may sound ideal, but may not represent all of your needs on paper. When you dive into the housing market, you want to make decisions based on what is best for you in the long run—not only what will satisfy short term solutions.

Tuesday, May 28, 2019

Can You Really Make a 12% Return with a Trust Deed Investing?

Banks give you crumbs now and the stock market can be volatile, so many are turning to Trust Deed Investments to make a nice return on their money. How does it work and how much can you expect to make? Let's take a look.

Figuring out the best place to put your money can be a challenge. You want your money to work for you but you don't want anything too volatile. These days, the average interest rate for banks clocks in at under 1%. With the rate of inflation, you'll lose money using this route. The stock market can be a good bet but without constant vigilance and a solid plan, you can end up losing everything.

What if I told you there was a way to invest in real estate without actually investing in real estate? It's called Trust Deed Investment. It's been around for a long time but doesn't get a whole lot of press. With this type of Investing, you can enjoy the healthy returns of real estate without having to get involved with finding, buying, fixing or selling real estate.

What is Trust Deed Investing?

Here's how it works in a nutshell. A buyer gets a loan to buy a property but doesn't use a traditional bank but instead uses an asset-based loan. The borrower agrees to pay back the loan and the lender holds the deed to the property that's securing the loan. If the borrower fails to live up to the terms of the loan, the lender can look into that property to recover the money.

Now, you can be the lender and work directly with the borrower to set up terms. However, most investing is done through a "middle man" who does the legwork of the lending. As the investor, you would just look at the opportunity this middle man is offering, make your investment and collect your payments. The middle man may take a small fee, but that is typically paid by the borrower. By dividing things this way, you reduce your risk, the lender has funds to lend and the borrower has funds to use in their real estate endeavor.

How Much Can You Make from Trust Deed Investing?

At Level 4 Funding, we bring you opportunities for Trust Deed Investing. Your rate of return can vary between 9% and 29%, but the usual rate is 12% for 1st Trust Deed (meaning you're in the first position to get paid). You can take your payments in nearly any schedule that works best for you. So how do you get started? Give us a call or fill out the form on our site and we can talk about how you can start your Investing.

How to Use a Commercial Arizona Hard Money Loan to Start a Cannabis Business

There's no question about it — cannabis the nation's next (and current) big boom industry. The stakes are high and so is the buy in, but that doesn't mean you can't cash in on this massive trend with a commercial Arizona Hard Money Loan.

Cannabis is becoming big business. That may be the understatement of the century. According to Statista, medical marijuana alone made $4.5 billion dollars in 2018. Impressive right? Wait for it; the same statistics group estimates that medical and recreational marijuana will bring in a combined $37.3 billion by 2024. That's just five years away. And CBD, the non-psychoactive mood aid? Rolling Stone predicts sales will hit $22 billion by 2022.

Let's throw even more numbers at you. Since recreational marijuana became a thing not that many years ago, some 28,000 cannabis businesses have popped up around the country. The average price for an ounce of marijuana in the U.S. is $320. In California, a little over 23 people per 1,000 are medical marijuana patients.

You get the idea; cannabis, CBD, and medical marijuana is a good business to get into if you want to ride this wave. But how do you go about getting funding for one? Let's take a look at your options.

Getting Funding for a Cannabis Business

You could go through the bank and get a traditional bank loan. Rates will be low, but many banks are more conservative and reticent to get into what they perceive as a legal gray area. Even if they're willing, you need a stellar credit score, amazing credentials and a spotless history.

Commercial Arizona Hard Money Loans, on the other hand, would be secured with collateral, so your scores, numbers and financial history are less important. Still part of the equation, but less so than the banks. Approval can happen in a day and funds can be yours in as little as a week.

Using Level 4 Funding for a Commercial Arizona Hard Money Loan

I not only have years of experience in the commercial Arizona Hard Money Loan business, but I've also had years of experience in the cannabis industry, working for grow houses when things were just beginning to take off in California. Let me put that expertise to work for you — give me a call today to talk about starting your cannabis business!