Learn To Be A Fix & Flip Investor: Arizona investment property

Showing posts with label Arizona investment property. Show all posts

Sunday, October 14, 2018

3 Ways to Get More from Your Arizona rental property Loans

If you’re taking out Arizona rental property loans, finding ways to improve your ROI is essential. However, most advice you’ll hear could wind up costing you money, so stick to the tried-and-true methods to keep your cash flowing.
Maximizing the return on your investment should always be a priority, but if you’re paying on Arizona rental property loans, that monthly check serves as a constant reminder that it takes money to make money. It also likely makes you want to work that much harder to improve your gains. Here’s how to do it without unintentionally sabotaging yourself.
1. Focus on staying full. Oftentimes, landlords come in with the intent to make improvements and then bump up rents to generate more cash. This can actually backfire because it frustrates tenants and often places their existing home outside their budget. Before you make a move to hike up rates, consider what it will cost you to replace your tenants. Chances are, you’ll make more money by keeping their rents as-is and increasing rates as people move on. This is especially true if you have really great tenants who pay on time and make life easy, so always work out what costs you might incur by having to fill vacancies.
2. Allow tenants to sublet for a fee. The Airbnb craze is here to stay. Some landlords detest it because of the potential for damage and uncertainty of who will be renting, but it’s worth noting that your tenant is still ultimately responsible for what happens in the home. Consider including a clause in your contracts that allows your tenants to use services like Airbnb, but only if they sign up for it and agree to an additional monthly fee for the duration of their lease.
3. Have a late fee clause. Nobody likes to be the bad guy, but the reality is you rely on your tenants to pay in a timely manner in order for you to make good on your obligations. Having a late fee clause can help get them to have better payment habits and will give you a small revenue boost when they don’t. Follow-through is paramount, though. If you’re uncomfortable requesting the fee face-to-face, consider using a service to process payments instead. You might find that this saves you time and money as well.
Hard Money Can Help You Add to Your Portfolio
Getting approval for Arizona rental property loans isn’t always easy, especially if you don’t have great credit or don’t have much experience with property management. If you’re in the process of picking up your first property or you already have one and want to have more but traditional funding won’t work, the more relaxed approval process offered by alternative lenders can help you pursue your dreams.
Find out if alternative Arizona rental property loans are right for you.

There are lots of ways to grow your portfolio, but finding the best terms and the right options are key in ensuring your ROI is all that it should be. Have a chat with a broker about your goals and portfolio plans to learn which options are best for your needs.

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.© 2016 Level 4 Funding LLC. All Rights Reserved.
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How to Get Arizona investment property Loans without 20-40% Down

Banks usually expect you to make a massive down payment when you apply for Arizona investment property loans, which puts them out of reach a whole lot of investors. The good news is, there’s a way to get around the standard 20-40% most expect.
Checking out Arizona investment property loans can be a rude awakening for someone getting into the business. Most people at this stage have purchased a home to live in before and expect the process to be somewhat similar. You apply for a mortgage and your broker works some magic, then comes back with numbers and tells you what you qualify for. But, when the property you’re buying is not going to be your primary residence, a lot of that magic disappears and the yesses are replaced with nos. What gives? You haven’t changed at all, your credit is the same, and you’re diversifying. Shouldn’t the banks be happy? Not exactly.
When it comes to traditional mortgages, the bank knows you plan to live there and that you’ll do everything you can to keep your home, even when times get tough. So, they’ll sometimes give a bit of wiggle room with their options. On top of this, if you don’t have the full 20% to put down, you can often get mortgage insurance. Although you pay for it, it actually protects your lender in the event you default. When you’re making a purchase with the plan to rent it out, fix-and-flip, or fix-and-hold, mortgage insurance is not an option. Ergo, the bank is going to expect you to bring at least 20% to the table.
From there, they may expect a greater down payment if your credit isn’t excellent as well, among other things. Depending on the circumstances, that down payment can skyrocket as high as 40%. And, that’s if they approve you at all. Without a couple years of property management experience under your belt, many of the big banks won’t even consider helping you out.
Alternative Funding Can Help You Out When Banks Can’t
The good news is, there are other places you can turn to for Arizona investment property loans that are easier to qualify for and don’t require the same massive down payments. Hard money is one of those choices. While lenders still look at things like your credit and your plans or ability to manage your Arizona investment property successfully, the biggest thing they consider is its value. What’s more, it’s possible to get up to 90% of the value, meaning you could wind up only needing 10% or less, if you grab a sweet deal for less than it’s worth.
Find out if alternative investment property loans are right for you.

When people go for hard money, having an exit plan is essential. If you’ll be fixing and flipping, the natural exit is selling the home after you’ve finished the work. However, if you plan to rent it out right away or fix and hold it, you’ll either need a plan to refinance at the end of your term or have another way of paying off the balance, as lenders usually expect the balance paid off within a matter of months or just a few years. If you’ve got a property in mind, a comprehensive plan, and the banks aren’t able to help, talk to a broker to learn more about hard money and the terms you qualify for.

The Guide to Arizona Investment Property Loans

Many real estate entrepreneurs turn to Arizona Hard Money Lenders for Arizona investment property loans. There are several options available when looking to obtain a loan for your investment.
All of a sudden, the market takes a 20 percent corrective move. One of the hedges is the real estate market. Afterall, owning an investment property offers a number of perks. Becoming a landlord is a very good way to realize a passive income stream. Keep in mind that there are a number of lenders they will require that you have skin in the game or cash to invest. Taking a loan out when you do not have a positive cash flow is one way to close the deal.
Arizona investment property loans can take several forms, including the criteria that the borrower needs to meet. If you do not do your research and choose the wrong type of loan, it can impact your ROI or Return on Investment. You will need to do your research on the various types of lenders in your market.
You’ve probably all heard or worked with conventional bankers. Expect to put close to thirty percent down of the purchase price when your loan is on an investment property. Lenders will look at debt-to-income calculations. Keep in mind that future rental income is not figured into this calculation. Be prepared to have six months of cash set-aside to meet the mortgage obligation as this may be a lender requirement.
One popular investment these days is the fix-and-flip model. Flipping a property is most attractive because it allows the investor to receive their profit in a lump sum after the sale of the investment property as opposed to waiting for a rent check each month.
Fix-and-flip loans are short term loans which allow the investor/landlord to make the needed renovations. Once the renovations have been completed, the investment property is put back on the market as soon as possible. Fix and flip Arizona investment property loans are secured by the property. You may want to also look at a real estate crowdfunding site as an option.
The advantage of using a hard money lender as opposed to a conventional lender is that it is easier to qualify. The hard money lender looks at the after-repair value (ARV) as to if you are able to repay the loan. The advantage of a hard money lender versus a conventional lender is the speed of getting the loan, days as opposed to weeks or months as is customary with a conventional lender.
Interest Rates
Expect to pay higher interest rates when compared to conventional lenders. You will also need to pay points of the Arizona investment property loan amount upfront to close the loan. Some lenders allow you to take the cost of the points out of the proceeds of the loans.
More home owners are looking to Arizona Hard Money Lenders for home equity loans.

If you are a home owner and have equity, then you can access the equity through various loan programs. There are some loan programs that access the equity like a credit card and allow interest-only payments. A cash-out refinance is another option and a long-term loan is the final option. Both rental properties and fix-and-flip ventures are risky. The opportunity for big returns, however, is attractive. If the obstacle you face is funding the necessary money, consider a hard money lender for your next investment property.

Happy senior business man making his notes at work 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

Friday, October 12, 2018

What You Need to Know If You Are New to Investment Property Financing

If you think that obtaining investment property financing will be as easy as getting your home mortgage, think again. Prepare for funding your first investment property with these tips.
The default rates for borrowers on investment property loans is higher than home mortgages. Because of this, lenders require higher down payments and rely on strict underwriting for Arizona Investment property financing. This means that, if you’re purchasing an investment property, be prepared to put down at least 20 percent of the purchase price. There are, however, exceptions and percentage rates are often based on the type of property. For instance, anywhere from 25 to 40 percent may be required for multi-unit properties.
The advantage of a commercial loan is that the borrower is not required to carry mortgage insurance. Conventional loan programs allow 80% LTV and, for investment properties, this is a best-case scenario. You will also want to explore crowdfunding websites for real estate. While these tend to be more expensive, they are often more flexible than conventional loans. Before entering into an investment property, you should have at least three months payments as reserves.
Both interest rates and upfront lender fees are higher than conventional mortgage lenders. Lenders advertise that their rates will be 0.25% to 0.5% higher than their homeowner loans. You should expect 1 to 3% points higher than owner occupied loan rates. If the lender charges 4% interest for their homeowner loans, you can guestimate an interest rate of 5%-7% for investor loans.
In addition to the interest rates, you will be charged up front points for a mortgage loan. One-point equals one percent of the total amount of the loan. You can see how these fees add up quickly. Make sure you have reviewed your credit report and credit score. If your credit score is below 740, you will have higher interest rates, higher lender fees, and lower LTVs for your investment property. If you have a mid-level score, then a conventional loan may not be an option. However, the collectable (property) is reviewed more than you as a borrower. As we mentioned earlier, homeowners are far less likely to default than investors. Lenders have built in loan programs with lower LTVs as caution to default.
The Effects of Multiple Mortgages on Investment Property Financing
If you are carrying multiple mortgages on your credit report, your options are dwindling. Once you hit the threshold of four mortgages on your credit report, you may be untouchable by conventional lenders. Fannie May has established a program to help investors that allows 5 to 10 mortgages. Fannie May’s program requires 6 months payments in liquid reserves at the time of settlement. The program requires 30% down for 2 to 4 units and 25% down for single family homes. You are persona non-grata if there are any foreclosures or bankruptcies or late mortgage payments. You will need a credit score no less than 720+ if you have 6 or more mortgages.
If you have 10 or more properties, you have slim options. A good starting place is community banks. Blanket loans issued by commercial lenders are secured against multiple properties. Be sure to ask what happens if you want to sell a property in the package.
Hard money lenders are an option that many investors turn to.

Level 4 Funding solves Arizona investment property financing issues while offering the lowest possible rate term. Real estate investing has made millions of individuals millionaires. Don’t hesitate because you are unsure of your investment worthiness. Call us today for a no-obligation quote.

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

Do You Wish You Could Retire Early? Arizona Real Estate Lines of Credit Can Help!

Arizona Real Estate Lines of Credit or investment property lines of credit can be the perfect financing option for you and your financial needs. Learn how these lines of credit can expand your horizons and change your life for better.
Are you stuck in a job that you hate? Have you missed holidays, family vacations, important events in your life, or another significant time just because you had to work? Don’t be chained to your job forever and start making money today through real estate investing. By building up Arizona real estate lines of credit, you will be well on your way to achieving that goal of an early retirement so that you can get back to doing the activities that you enjoy and spending more time with the people you love.
What is this type of credit? Well, when an investor is beginning to purchase different properties, they will begin to build up a portfolio of all of these items. In most cases, lenders will allow a single line of credit per the property that is invested in. So, building up this line of credit simply mean investing in multiple real estate ventures!
You CAN make real money investing in real estate. These Arizona lines of credit will give you the opportunity to do a variety of things in the real estate world from purchasing homes to flipping houses. You’ll have the freedom to purchase items wholesale or hold a property for a period of time.
Get started with commercial real estate loans or, if you suffer from a poor credit score, choose a different lending opportunity. That’s right – even if you have a low credit score, you still can make money investing in real estate. Whether it’s through a hard money lender or a different private lending opportunity, there are plenty of ways a person with a low credit score can obtain a loan even with absolutely no collateral held against them. Stop making excuses for yourself. The time to start investing in real estate is right now.
How Will You Enjoy an Early Retirement?
We spend most of our lives at our place of business rather than spending valuable time with the people that we love and cherish most. Don’t be part of this routine and demand something better for yourself. Through real estate investing, you can have the opportunity to achieve your financial goals and retire much earlier so that you can get back to living the best life possible.
Establish a strong financial future today so that you can have the freedom to do the activities you enjoy and reach the opportunity to retire as early as possible.

Are you making excuses for yourself? Hopefully this guide shows you that there are absolutely no excuses for not investing in real estate right now. Bad credit? No problem! No collateral? No problem! There are plenty of lending opportunities available so that you can start building up these lines of credit today and be well on your way to an early retirement.

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Sunday, October 14, 2018

3 Ways to Get More from Your Arizona rental property Loans

If you’re taking out Arizona rental property loans, finding ways to improve your ROI is essential. However, most advice you’ll hear could wind up costing you money, so stick to the tried-and-true methods to keep your cash flowing.

Hard Money Can Help You Add to Your Portfolio

Find out if alternative Arizona rental property loans are right for you.

How to Get Arizona investment property Loans without 20-40% Down

Banks usually expect you to make a massive down payment when you apply for Arizona investment property loans, which puts them out of reach a whole lot of investors. The good news is, there’s a way to get around the standard 20-40% most expect.

Alternative Funding Can Help You Out When Banks Can’t

Find out if alternative investment property loans are right for you.

The Guide to Arizona Investment Property Loans

Many real estate entrepreneurs turn to Arizona Hard Money Lenders for Arizona investment property loans. There are several options available when looking to obtain a loan for your investment.

More home owners are looking to Arizona Hard Money Lenders for home equity loans.

Friday, October 12, 2018

What You Need to Know If You Are New to Investment Property Financing

If you think that obtaining investment property financing will be as easy as getting your home mortgage, think again. Prepare for funding your first investment property with these tips.

The Effects of Multiple Mortgages on Investment Property Financing

Hard money lenders are an option that many investors turn to.

Do You Wish You Could Retire Early? Arizona Real Estate Lines of Credit Can Help!

How Will You Enjoy an Early Retirement?

Establish a strong financial future today so that you can have the freedom to do the activities you enjoy and reach the opportunity to retire as early as possible.

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