Learn To Be A Fix and Flip Investor: May 2019

Friday, May 31, 2019

When to Turn to Commercial Hard Money Lenders

When borrowers seek out loans, they may consider both traditional and untraditional methods of borrowing. But what kind of borrowing works best? And when is one option better than the other?

Borrowers may turn away from traditional loan lenders because they don’t qualify and there are options with more potential elsewhere. Traditional loan lenders are composed of public lenders like banks and credit unions. In these cases, the standards to be a borrower are high. You must supply paystubs, financial and job history, as well as tax and credit reports. Great significance is placed on your financial history, and it can make or break you when qualifying for a loan with a traditional lender. Fortunately, there are other options. Many people turn to Arizona Hard Money Loans when they don’t qualify through traditional means.

Arizona Hard Money Loans are offered by untraditional, private lenders. Private lenders are individuals or companies who invest based on collateral. This means that they focus on the potential of the property as well as your ability to make a profit with your plans for it. In this way, commercial Arizona Hard Money Lenders can offer an extremely personal and transparent experience that public lenders can’t. They also offer speed. Their ability to begin the loan approval process is 4x faster than pubic lenders who can take as long as a month. Taking advantage of the speed they can offer is never a bad thing!

Things to Consider

While commercial Arizona Hard Money Lenders offer many benefits, there are a few things to consider. One is their high interest rates and fees. These interest rates can be as high as five percent more than average rates on the market. Additionally, they have a short-term repayment period, usually lasting six months to one year. Because Arizona Hard Money Lenders work on a much more individualized basis, it is not uncommon to obtain a loan extension from anywhere between two to five years. However, coupled with the high interest rates, it may not be the best decision for you. Being realistic is going to save you a lot of pain and misfortune in the long run, even if it seems a lot of your issues can be solved by speed.

Are Commercial Arizona Hard Money Lenders Right for You?

Every situation is different, as is every private money lender. If you are interested in pursuing a loan with a private lender, put in the research. Determine what lenders are local to your area, and research the kinds of projects they have worked on. Consider how your project functions in relation to your lender. Moving forward with the project will require that you provide documents outlining your property, plans and financial history. Go to your lender prepared. You will have to prove to them that you are capable of turning a profit—just make sure before you go you are confident in that yourself.

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 Make a Profit with Arizona Spec Home Financing

It’s possible to obtain funding for projects from both public and private lenders—but what’s the difference between them? How do you know what the best option is for you?

Public lenders like banks and credit unions are traditional loan options. They generally have strict requirements when it comes to qualifying for a loan, and it can be overwhelming if you know your financial history is imperfect. Unlike public lenders, private lenders are untraditional options that are less regulated. Many people who don’t qualify with traditional lenders seek out the benefits of private money lenders.

Arizona Private Money Lenders offer hard money. The process is quick and handled with much more transparency than public lenders. If you are seeking out a loan for Arizona spec home financing, maybe borrowing from private Arizona Hard Money Lenders is right for you.

What You Need to Know About Arizona Hard Money Lenders

While the benefits to working with a private lender on your Arizona spec home financing project, there are a few things to consider first. The most important thing to know is that they offer short-term loans with interest rates that can be five percent higher than most on the market. Sometimes there can even be extra fees, though that depends on who your lender is. All Arizona Private Money Lenders are different, but it’s definitely possible to get an extension. It’s not uncommon to get an extension for two to five years. In this way, private Arizona Hard Money Lenders are very individualized. However, they focus on you as the individual in another way: during the loan approval process, they significantly weigh the property’s collateral and your ability over your financial history. Focus is drawn to the property’s potential, your plans, and what you can do. Finances will play a small factor, but it definitely won’t make or break you—especially if you’ve put in the time, energy and research.

Becoming a Successful Borrower

If this is your first time funding a project with Arizona spec home financing, take small steps. Start by finding a local lender and an “improved” property. It doesn’t matter how great the property is, most lenders are only interested in projects within their geographical location. An improved property will already have key features including curbs, water and power lines, and sewers. Raw properties will not have these advantageous characteristics, and will require you to spend more money in the long run. Additionally, these characteristics look great to potential buyers. When you’re considering potential lots, you also want to consider its location in terms to nearby business districts. Homes close to restaurants and local businesses are more marketable than more remote locations. Whatever you do, don’t rush your decisions. Take your time in seeking out both your lot and your lender. Make decisions that support you, your finances and your plans. Investing in properties that have low-risk factors is always a great choice for the first-time spec home investor. Do your research and bring it when it’s time to meet your lender. Proving you are capable of the project will be a major part of the journey as a borrower with a private hard money lender.

How to Make a Profit with Arizona Spec Home Financing

It’s possible to obtain funding for projects from both public and private lenders—but what’s the difference between them? How do you know what the best option is for you?

What You Need to Know About Arizona Hard Money Lenders

Becoming a Successful Borrower

Taking Advantage of Arizona Spec Home Financing

Traditional and untraditional money lenders are regulated in different ways. These differences allow for borrowers to have different options when seeking out loans. So, how can you take advantage of these differences?

The difference between traditional and untraditional lenders is the difference between public and private. Banks and credit unions are examples of public lenders, and individual companies and investors are examples of private lenders. Arizona Private Money Lenders have less requirements and regulations when it comes to approving borrowers for loans, making them a great option for those who may need it.

Arizona Private Money Lenders offer hard money. They can offer it fast and with more transparency than banks. If you are seeking out a loan for Arizona spec home financing, perhaps a private hard money lender in Arizona is right for you!

The Basics of Arizona spec home financing

Before jumping into a Arizona spec home financing agreement with your local private hard money lender in Arizona, you need to understand how a few things work first. You need to know if a short-term high interest loan is right for you. Compared to other loans on the market, the interest rate can be as high as five percent more than average. The expected timeline of these loans is six to twelve months, but it is not uncommon to get an extension for up to five years. Working with your lender will be super individualized, especially compared to the bank. Legitimate private lenders are known for being generally transparent and personable. The goal is to invest in the potential of you and your project—and if they aren’t feeling it, they will tell you. When you meet with your lender you will want to provide a business plan, tax returns, bank statements and a marketing plan for your spec home. The ultimate goal of the spec home is to turn a profit—and you need to be able to prove to your lender you will be able to do so.

Tips and Tricks

Funding plans for Arizona spec home financing usually begins with finding a local lender. Most lenders only want to work on projects in their location. The lot should also be considered an “improved” lot. This simply means it is more than just an empty lot. It should have curbs, power and water lines, and sewers which will help increase its chances of getting a buyer. Your lot should also be near a populated area. Being close to local businesses and restaurants increases the appeal for potential clients who want the social opportunities. If it’s your first spec home, you also want to make sure you choose a project with low risk factors. Being feasible and realistic throughout the process will help ensure you’re successful, and have the opportunity again to profit off another project in the future. In general, private lenders can be great options because they emphasize collateral and your ability to complete the project, instead of a possibly imperfect financial history. If you are interested in utilizing a private lender for your spec home, research local lenders near you. Bring to them your documents showcasing your financial history, property information, and detailed plans so that you can start your dream project!

Thursday, May 30, 2019

How Borrowers Are Reaping the Benefits of Arizona Hard Money Loans

There are tons of options when it comes to seeking out loans. Both public and private lenders will have options for your investment, but only Arizona Private Money Lenders can offer the benefits of hard money. Though, what is hard money—and is it right for you?

A traditional lender is a public lender, like your local bank or credit union. Traditional lenders have high standards. They consider everything from your paystubs, job history, debts, and anything that could and can impact your current financial standing. Untraditional lenders, like hard money lenders, work a little differently. Arizona Hard Money Lenders are private companies or investors. They evaluate your eligibility with slight emphasis on your financial history. Collateral is the most important factor, which qualifies more people. Not only that, but they can offer speed and transparency which can play a large part on your success as a borrower.

Eligibility and Benefits

Because Arizona Hard Money Lenders accept borrowers on a different basis than traditional lenders, more people are eligible. When approved for hard money, your lender may be able to begin the loan process as soon as the day of. The speed is unparalleled to traditional lenders, who can take up to a month. If your lender isn’t speedy enough to get you your funds within the day, it usually takes about a week. The extra time can be key, especially if you are bidding on a competitive market and seeking out a property with potential. If you choose to move quickly! forward with Arizona Hard Money Loans, you will have the opportunity to work with lenders who are usually very transparent. They will be direct with you about your plans, and will be able to individualize the process for you. Private investors work for themselves, and when they invest in you and your project, they can focus on the best interests of you!

Specifics of Hard Money

Arizona Hard Money Loans have lots of benefits, but there are a few things you may want to consider first before blindly signing the terms to your loan agreement. First, you need to know that there are high interest rates associated with hard money. These rates can be five percent higher than those on the average market. Additionally, there can be extra fees. Depending on who you are and what your situation is, the fees may be affordable—and it may be worth it! However, the other thing to consider is the short timeline of Arizona Hard Money Loans. Because Arizona Hard Money Lenders can work on an individualized basis, it may be possible to extend the timeline, but usually hard money is expected to be paid off within a year. A two to five year extension isn’t uncommon to ask and obtain—especially when working with private, personable lenders. If you are interested in working with a private money lender, research local lenders in your area. Find out what their portfolio looks like and, once you have all your information in line, schedule a day to meet with them and determine if they really are what’s best for you.

Things to Consider Before Risking it all with Arizona Hard Money Loans

Hard money can be a great option if you need money fast and want to work with a transparent lender. There are some things to know about hard money, however, before you find yourself in an agreement that isn’t what’s right for you and your situation.

Arizona Hard Money Loans are offered by private money lenders. Arizona Private Money Lenders are untraditional, alternative options and can be great choices for people who don’t qualify for loans offered by traditional lenders. The high standards of traditional lenders, like local banks or credit unions, often disqualify many people. A great credit score, debt to income ratio, and financial history are all things that impact your eligibility. Traditional lenders will look at your taxes, paystubs, current financial standing, and even how long you’ve been at your job, just to name a few! Arizona Private Money Lenders don’t focus on all of those details as much. They will consider it, but the most important factor to them is the property’s collateral and potential. If you have an imperfect financial history, perhaps Arizona Hard Money Lenders are the right solution for you!

How Arizona Hard Money Lenders Can Help You

Arizona Hard Money Lenders are generally very direct and transparent. They are usually private companies and investors who can offer a much more personalized and individualized relationship than public lenders can. As you share your plans, budget, and research, they will be blunt with you. Not only that, but they can get the process going fast—much faster than a bank can and, sometimes, the day of. A bank may take as long as a month. Your local hard money lender may only need a week. Speed is great asset to have when approaching your project, and may even be necessary to obtain your desired property off the market. Arizona Hard Money Loans offer transparency and speed that can make all the difference.

How to Know if the Risks Are Worth It

Arizona Hard Money Loans can be great solutions. However, there are a few specifics to know that aren’t ideal in every situation. For example, there are high interest rates and sometimes more fees than traditional lenders. This seems to be the literal cost of their speed! Additionally, they work on a short timeline. Fixer uppers are generally fantastic opportunities to use hard money because the timeline of a fixer upper is just as fast. Ideally, you want to renovate and sell the home as fast as possible—while making a profit. Compared to using hard money as a loan for a long-term source of profit—like a rental property—fixer uppers are the superior choice. Only you know what you need best. If you meet with a hard money lender and don’t understand the complete terms of the loan agreement, you can always hire a real estate attorney to help break them down so you can go into it confidently or not at all—whatever is best for the investment of you and your project.

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Friday, May 31, 2019

When to Turn to Commercial Hard Money Lenders

When borrowers seek out loans, they may consider both traditional and untraditional methods of borrowing. But what kind of borrowing works best? And when is one option better than the other?

Are Commercial Arizona Hard Money Lenders Right for You?

How to Make a Profit with Arizona Spec Home Financing

It’s possible to obtain funding for projects from both public and private lenders—but what’s the difference between them? How do you know what the best option is for you?

What You Need to Know About Arizona Hard Money Lenders

Becoming a Successful Borrower

How to Make a Profit with Arizona Spec Home Financing

It’s possible to obtain funding for projects from both public and private lenders—but what’s the difference between them? How do you know what the best option is for you?

What You Need to Know About Arizona Hard Money Lenders

Becoming a Successful Borrower

Taking Advantage of Arizona Spec Home Financing

Traditional and untraditional money lenders are regulated in different ways. These differences allow for borrowers to have different options when seeking out loans. So, how can you take advantage of these differences?

The Basics of Arizona spec home financing

Tips and Tricks

Thursday, May 30, 2019

How Borrowers Are Reaping the Benefits of Arizona Hard Money Loans

There are tons of options when it comes to seeking out loans. Both public and private lenders will have options for your investment, but only Arizona Private Money Lenders can offer the benefits of hard money. Though, what is hard money—and is it right for you?

Eligibility and Benefits

Specifics of Hard Money

Things to Consider Before Risking it all with Arizona Hard Money Loans

Hard money can be a great option if you need money fast and want to work with a transparent lender. There are some things to know about hard money, however, before you find yourself in an agreement that isn’t what’s right for you and your situation.

How Arizona Hard Money Lenders Can Help You

How to Know if the Risks Are Worth It

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