The end of what we knew or a new beginning

Arizona hard money

In the most recent months, the U.S. economy has demonstrated numerous signs of improvement in property values, home building and a leveling off of unemployment–at ‘new normal levels’ that we can begin to enjoy and relax about. We are happy to report that it, luckily, isn’t getting worse. We are finally recovering. Sure we have some definite challenges coming up, but we are excited that the United States is beginning to see some change- and they are all positive.

We are beginning to believe that the year 2013 could lead to some great job opportunities and a relatively strong job creation in the private sector. Additionally, auto sales will be strong, home sales will continue to climb back, corporate profits and cash balances will remain high and rates are assured to be low through the next two years–these all paint an optimistic picture. However, the fiscal cliff, all uncertainty in the Middle East in connection with the commodity of oil, the possible economic collapse of the European Union and the consequences of inevitable tax increases in the future will hang over this optimism. There’s always something.

Of course, we know that in reality, we can’t predict the future, we can only surmise. This is of course a challenge to economists, business owners and consumers alike who are just trying to make the most of their information before they make a move. It just depends on negations around the federal budget go down. Depending on a number of factors, it could help or hinder the housing market. We just have to watch and wait and see.

While we know the market won’t be at quite what it was in 2006, we are confident that it is growing stronger every year. We are seeing more construction and more consumer confidence, which means that the home market will se it fairly soon after. We can only hope.

Arizona Hard Money

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

What Your Credit Score Has to do With Your Kitchen Sink

Arizona hard money

Everyone knows that the housing market is still only 30 percent of what it was in 2006 and this fact is heavily influenced by the 23 million potential workers being unemployed, a drop in household income, personal net worth, and an uncertain future for even those who are lucky enough to be employed.

These uncertain times can have people worried, but the good news is the housing market is not a boom- it is recovering- slowly- but it is recovering. And because it is recovering slowly, it is recovering well. This means the recovery will be more effective and offer better incentives to encourage a broader ‘credit net’ for borrowers who have good jobs, but have margin credit. The issue isn’t availability of loan programs, there are plenty of those. What it is about is about the availability of loans programs to those who can actually qualify for them.

There is some tough credit criteria that people have to live up to, and that’s suppressing home ownership. While this could be fixed with a proper understanding of the mortgage/banking industries, it simply is not happening.

Over-regulation or forcing banks to accommodate this is not going to yield the intended results and right now, forty percent of borrowers cannot get loans since the average consumer has a FICO of a 640 while the average FICO of the closed loan in October was 762.

As you can see, this is a significant number disparity between what the market is demanding and what the actual numbers seem to be.  Clearly, homeownership is in the best interest of all consumers at proportionate levels of income, versus what the market will actually offer.

This could mean that credit is about to be a little less restrictive as the administration is not pro-homeownership at all. In fact, they are they opposite; they are pro-tenting. This is an example of a powerful and true evaluation of where the political and economic landscapes appear to collide. While it is true that the FHA has done an effective job in providing broader opportunities, it can be said that there are still significant fiscal problems at FHA that will require a tax payer bailout to address a $16.3billion deficit. As one can expect, this will require a federal bailout and rather than a private sector solution, the spiral will unfortunately continue with further Federal oversight and involvement in an already heavily regulated industry.

Arizona Hard Money

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Builders: Looking to 2013 and the Big, Bright Future of the Housing Market

Arizona hard money

As mentioned in an earlier blog, home prices across the nation are rising as it joins the rest of the nation in a recovery –albeit slowly- economy.

How is this happening, you might ask. NAHB Chief Economist David Crowe claims the following points are helping this economy along:

►Pent-up household formations

►Rising consumer confidence

►Increasing builder confidence in all three legs of the industry: Remodeling, multifamily and single-family construction;

►Growing rental demand

►More than 100 metros currently on the NAHB/First American Improving Markets Index

Crowe also says that NAHB is forecasting a 21 percent increase in single-family starts this year to 665,000 units in 2013. The 2015 housing market and the push for new construction will definitely help when it comes to employment rates across the country as well by 2015. Job growth by 2014 will most likely go from two million per year to closer to three million in 2014 and 2015.

It’s important to keep the optimism going, it will help the market if people truly believe that we are on the way to recovery. When the economy goes up, people feel better and when people feel better and they’re financially secure, they are more apt to buy that dream home they’ve been thinking about.

Moreover, remember that this market and optimism will also be driven by the Federal Reserve’s role in keeping mortgages rates low through 2015, operating under assumption that banks will take advantage of near zero lending rates from the ‘window’ and turn this around to broadening qualifying requirements.

Remember, however, that banks, are still recovering from losses from the bust, so it is unlikely that this will occur to the extent that would do us well, if at all, which could turn the optimistic forecast we just reported on. Be on the lookout. As it is, it seems relatively unlikely that banks will be interested in reducing margins any time soon so that they can instead wait for more certain business conditions instead of these optimistic market conditions. Whatever does happen, the one thing for sure is that the housing recovery isn’t going to be growing without a great deal of effort by policy makers, bankers and real estate agencies.

Arizona Hard Money

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Let’s Be Real About Being Optimistic: 2015-2020 and the market ahead

Arizona hard money

Very recently, construction has increased six percent, which is already showing up as a strong 2013 trend. Of course, we aren’t doing as well as we did in the 1990s or the early 00s, it is still a nice surge and may see us back around 2005 levels in the year 2016. For people with capital under 50, the market will be a strong opportunity to capture market share and grow your business. If you are a little older, say are 56 or 57, maybe that means it is time to get in touch with your inner 40-year-old. It is time even for beginners to the market to think aggressively to take advantage of this opportunity.

That being said, new housing sales will take several years to reach peak levels to over one million units where it plunged in 2010 to a just 250,000 units. This drop in units was devastating to the economy and paralyzed families financially as well as leaving many builders to either go out of business or to consolidate. But now, new housing is seeing a rise of 5.7 percent from August and once again optimism is spreading across all housing market segments. We project that 2015 will be bright and that foreclosed property numbers will go down and result in a recovery market, creating a more, well, normal kind of normal.

What is the new normal? Let us break it down for you in a a production forecast report issued by Fannie Mae in January of 2013, that reflects the Mortgage Industry and the Housing Market.

The new normal means:

►Continued contraction in refinances—approximately 25 percent in 2013 and another 10 percent to 15 percent in 2014.

►Modest growth in new purchase production—expect this to fully rebound in 2017-2020 to 2006 levels. The main indicator here are new construction starts which is covered below as well.

►Competition for production will become fierce.

►Mortgage consolidation will continue–Another 30 percent of the existing approximately 3,000 mortgage banks will go out of business, be assimilated or be acquired by 2014. Mortgage brokers will suffer given the Qualified Residential Mortgage (QRM) and the three-point rule on compensation beginning in January of 2014. This is expected to further contract brokers by another 30 percent-plus. These two efforts will drive the consolidation further, while the larger and better capitalized firms will grow significantly.

►Non-depository mortgage banks, with a net worth of $15 million-plus will be the real winners in the forecast below.

Arizona Hard Money

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Recovery, Consolidation and Mortgage Production Forecasts for 2015

Arizona hard money

The housing market makes up approximately 15 percent of the U.S. GDP. As you might have seen, how well the housing market does directly reflects how well the economy is. We all know that the lack of growth in the housing market means that there is significant drag on the economy. A lagging house market means that economy will lag, too, and the unemployment rate will remain between 7.5 percent to 8 percent. So, while politicians play economic roulette we are trying to support consumers as they attempt to refinance their home or move.

The 2013 real estate housing forecast for next year, remains cautiously optimistic. We will find out in a year if we were overly optimistic. However, it should be noted that a rapid expansion of this market segment isn’t likely until after 2015. Credit qualifying requirements for consumers remain very challenging to say the least and with a slow economy, it will take several years– well into 2015 until we even experience meaningful growth according to experts such as economists–Kenneth Rosen of U.C. Berkeley and Bill Witte of Indiana University’s Kelley School of Business to name just two. These experts are optimistic but offer only “lukewarm” optimism for 2013. They throw around terms like ‘underachieve,’ ‘unambitious’ and ‘unfortunate’ while they talk about 2013, as if to say, don’t get too hopeful. One must admit, given what the housing market has gone through since 2009 however, this is still all good news. The market will continue to grow, albeit very slowly, but it will continue to grow out of the recessionary malaise the market has been under given the excess inventory, price of oil, instability in Europe (and now the Middle East) and not to mention the economy that continues to frustrate those looking for employment. And that’s something to be happy about.

Arizona Hard Money

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Housing Market Recovery: Let’s be Optimistic

Arizona hard money

Focusing on the growing economy, which has strong private sector growth, can show you that the housing market will most likely quickly grow right along side of it. Except more in the coming year, says expects. And be optimistic.

While the high unemployment rate and the challenges with qualifying credit standards will keep the housing market, a renting market for most Americans. In fact, in a survey from the Census Bureau Housing Vacancy Survey (2013), it was stated that renters dominate new household formation. Why, you might ask. This is actually in part due to the inability for borrowers to be approved for a mortgage or, a lack of confidence that if approved, given the lagging economy, their ability to keep paying their mortgage.  As you can see, the American consumer is in a bit of a fiscal crisis.

However, home prices are said to start a steady increases through 2016 starting this year, this according to a quarterly survey of more than 100 economists, real estate experts and investment strategists.

The survey, was conducted by research and consulting firm Pulsenomics LLC on behalf of real estate search, Zillow, between Aug. 30-Sept. 14, 2012 and involved asking 113 participants to project the path of the S&P/Case-Shiller U.S. National Home Price Index over the next five years.

The latest S&P/Case-Shiller Home Price Indices, that includes data through June, show national home prices up 1.2 percent from a year ago during the second quarter. In fact, all of the markets in the S&P/Case-Shiller 20-city composite posted annual gains for the second month in a row, and all but two—Charlotte and Dallas—posted better annual returns in June compared to May.

These results were optimistic. Economists now forecast home prices will rise 4.7 percent in 2013, eight percent in 2014, 11.4 percent in 2015, and 15.2 percent in 2016. Wouldn’t that be fantastic? That's an expected annual growth rate of 2.9 percent between 2012 and 2016. While it is slightly under the 3.6 percent annual growth rate experienced in the pre-bubble years between 1987 and 1999, it’s still very exciting.

Arizona Hard Money

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Are You Paying Too Much for My License Bonds?

Arizona hard money

You might be paying too much for your license bonds if you are paying a premium of more than $5 per thousand (or 0.50 percent) of the bond amount. However, the premium you pay is certainly dependent on various underwriting factors: 1. Do you have decent credit? Not great. Just decent. You probably do or you wouldn’t be licensed. 2. Do you have any skeletons in your past? Bankruptcies, felonies, prior bond claims, etc. You probably don’t or you wouldn’t be licensed.

But how much bonding do you really need? There is a level of bonding that is based primarily on underwriting the an owner personally. Above that level, business and personal financial statements are considered as the primary focus of the underwriting.

Meanwhile, some bond carriers are simply better than others at this particular line of business. Some carriers view mortgage bonds as more risky than other types of bonds so their pricing and underwriting process is very relative to that perception of risk. It may not be for you.

Similarly, the broker you use is your path to the surety market. Use their knowledge of and access to bond carriers because that has a direct relationship with what the price and process is for your bond.

However, it should be noted that the variable that obviously has the biggest impact on your bond pricing is your broker. That’s your access to the market.

Remember that the mortgage bond market has changed significantly over the past few years. Carriers began becoming increasingly nervous about what would happen when the industry bubble eventually popped. Some proactively began to increase prices, tighten underwriting, raise qualifications and limit exposures. Once the bubble burst, others reactively did the same and some even stopped writing mortgage bonds entirely.

A few years ago, the average surety pricing was at a widely-available rate of $7.50 per thousand. However, it quickly moved up to $10 per thousand after the big pop. A few carriers positioned themselves at even higher rates in order to absorb the flurry of claims and uncertainty brought on by the industry’s implosion and increased regulation. Those carriers that had been writing mortgage bonds for years and had large exposures were suddenly faced with game-changing events and conditions that forced them to endure financial losses and realign their perspective of risk. It is worth it to find the right one for you.

Arizona Hard Money

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

In April, Permanent Loan Mods Cross the 6.39 Million Mark

Arizona hard money

The April 2013 loan modification data released by HOPE NOW has determined that an estimated 70,000 homeowners received permanent, affordable loan modifications from mortgage servicers during the month. This total includes modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP). The April total of approximately 70,000 loan modifications brings the total overall number of permanent loan modifications to 6.39 million.

Meanwhile, for the month of April 2013, there were approximately 59,000 foreclosure sales completed. Compare that to 52,000 completed in March and that’s increase of 14 percent. Foreclosure starts were approximately 115,000 for the month of April. That’s relatively flat compared to the previous month’s total of approximately 116,000. Short sales for April were approximately 27,000. This is very similar, though a little lower, to March’s total of 28,000.

Delinquencies of 60 days or more were at 2.17 million for the month of April, compared to 2.38 million in March. This is a decline of approximately 9 percent in just a month. Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the first quarter of 2013.

Additionally, we are happy to report that loan modifications completed via proprietary programs once again showed characteristics of sustainability and affordability for homeowners. For the month of April, we saw proprietary loan modifications that included fixed interest rates of five years or more accounted for 93 percent (54,000) of the total. Moreover, proprietary loan modifications with reduced principal and interest monthly payments accounted for 83 percent (48,000) of the total and proprietary loan modifications with reduced principal and interest payments of more than 10% accounted for 76 percent (44,000) of the total.

HOPE NOW is a trusted source when it comes to numbers. They are proud of the efforts its members have made on behalf of the nation’s homeowners. While there is still work to be done in the housing market, significant progress has been made via loan modifications, short sales and other solutions.

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Distressed home: Foreclosures, and Short Sales: A Numbers Game

Arizona hard money

In May 2013, distressed homes, that’s to say, foreclosures and short sales accounted for 18 percent of May sales. This is unchanged from April. Fewer distressed homes, which generally sell at a discount, account for some of the price gain.

When you boil down the numbers, 11 percent of May sales were foreclosures, and 7 percent were short sales. The foreclosures sold for an average discount of 15 percent below market value in May, while short sales were discounted 12 percent.

Freddie Mac’s numbers show that the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.54 percent in May from 3.45 percent in April; it was 3.80 percent in May 2012.

Most homes were on the market for 41 days, that the median time, which is down from 46 days in April, and still this is 43 percent faster than the 72 days on market in May 2012. Meanwhile, short sales were on the market for a median of 79 days, while foreclosures typically sold in 43 days and non-distressed homes took 39 days.

In May, 45 percent of all homes sold were on the market for less than a month. This median time on the market is the shortest since monthly tracking began in May 2011. Of these homes, first-time buyers accounted for 28 percent of purchases in May, compared with a slightly higher 29 percent in April and 34 percent in May 2012.

All-cash sales were 33 percent of transactions completed in May. This is up from 32 percent in April and 28 percent in May 2012. Individual investors, who account for many cash sales, purchased 18 percent of homes in May; they were 19 percent in April and 17 percent in May 2012.

Additionally, single-family home sales rose five percent, making a seasonally adjusted annual rate of 4.60 million in May from 4.38 million in April, both of which are 12.7 percent higher than the 4.08 million-unit pace in May 2012. The median existing single-family home price was $208,700 in May, up 15.8 percent above a year ago, the strongest increase since October 2005 when it jumped 16.9 percent from a year earlier.

Existing condominium and co-op sales have slipped 1.7 percent to an annualized rate of 580,000 units in May from 590,000 just a month earlier in April, but are 13.7 percent above the 510,000-unit level just a year ago. The median existing condo price was $202,100 in May, which is 11.8 percent above a year ago.

Let’s talk regions. In the Northeast, existing-home sales rose 1.6 percent to an annual rate of 650,000 in May; that’s 8.3 percent above May 2012. The median price in the Northeast was $269,600, which is up 12.3 percent from a year ago. Existing-home sales in the Midwest also jumped: they’re up eight percent in May to a pace of 1.21 million, and are 16.3 percent higher than a year ago. The median price in the Midwest was $159,800, up 8.2 percent from May 2012.

Meanwhile, down in the South, existing-home sales rose four percent to an annual level of 2.09 million in May and are 16.1 percent above May 2012. The median price in the South was $183,300, which is 15.0 percent above a year ago.

Existing-home sales in the West increased 2.5 percent to a pace of 1.23 million in May and are seven percent above a year ago. With the tightest regional supply, the median price in the West was $276,400, up 19.9 percent from May 2012.

Big Daddy Dennis Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Improvement in May, Existing Home Sales Rise 4.2 percent

Arizona Hard Money

According to the National Association of Realtors, in May, there was happy celebration as existing-home sales improved and these numbers remain solidly above a year ago, while the median price continued to rise by double-digit rates from a year earlier. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 4.2 percent to a seasonally adjusted annual rate of 5.18 million in May from 4.97 million in April, and is 12.9 percent above the 4.59 million-unit pace in May 2012. With housing numbers positive and expected to rise, you might, but that may not be the case. Despite this gain, don’t expect the number of homes available to gain unless new home construction also begins to grow. However, this could moderate the price of new homes in the future.

Right now, existing-home sales are at the highest level they’ve been since November 2009. That’s when we saw the market jumped to 5.44 million as buyers took advantage of tax stimulus. Sales have stayed above year-ago levels for 23 months, while the national median price shows 15 consecutive months of year-over-year increases. Fantastic, right?

Want some more numbers? The total housing inventory at the end of May rose 3.3 percent to 2.22 million existing homes available for sale. That represents a 5.1-month supply at the current sales pace, which is down from 5.2 months in April. The listed inventory is 10.1 percent below a year ago, when there was a 6.5-month supply. The national median existing-home price for all housing types was $208,000 in May, up 15.4 percent from May 2012. This is a brilliant six straight months of double-digit increases; the strongest price gain since October 2005, when numbers jumped a record 16.6 percent from a year earlier, 2004. The last time there were 15 consecutive months of year-over-year price increases was from March 2005 to May 2006.

Let’s hope this keeps up!

Big Daddy Dennis Arizona Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Up to Twenty Percent of Foreclosed Properties are Vacated

Arizona Hard Money

Recently, a report released by RealtyTrac stated that as of June, homeowners had vacated 167,680 foreclosure properties all across the US. This represents 20 percent of all U.S. properties that are currently in the foreclosure process. These are in addition to 544,274 bank-owned owner-vacated foreclosures homes nationwide that have been foreclosed on but not sold to a third party.

The report went on to say that of the total 167,680 vacant foreclosure properties nationwide, Florida had been documented by far the most of any state, with 55,503, accounting for 33 percent of the national total. Illinois posted the second highest total (17,672), followed by California (9,802), Ohio (9,723), and New York (9,173). Additionally, the states where the percentage of owner-vacated foreclosures was above the national average of 20 percent included Indiana (32 percent), Oregon (28 percent), Nevada (28 percent), Washington (27 percent), and Georgia (27 percent).

Meanwhile, Chicago documented the most owner-vacated foreclosures of any metro area nationwide, with 14,717, representing 17 percent of all properties in foreclosure, followed by Miami (13,901), New York (10,074), Tampa-St. Petersburg-Clearwater (9,998), and Orlando (5,569). Florida was mentioned again when the report stated that the state accounted for 85 of the top 100 zip codes in terms of total owner-vacated foreclosures, led by zip code 34668 in the Tampa-St. Petersburg-Clearwater metropolitan statistical area.

It also came as no surprise that lower-end foreclosures had vacancy rates that were higher. 29 percent on homes valued below $50,000 and 25 percent on homes valued between $50,000 and $100,000. Meanwhile 12 percent of homes valued $1 million or more were vacant.

Who played best in this game among the servicers? Bank of America and GMAC (Ally) had the highest percentage of owner-vacated foreclosures, with 23 percent. This was followed by Chase with 21 percent and Wells Fargo and Citi lastly tied with 20 percent.

Big Daddy Dennis Arizona Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Summer home improvement trends: Sixty Percent of Homeowners are Making Improvements this Summer

Arizona Hard Money

Here’s the thing: More than 25 percent of homeowners nationwide are upside down on their mortgages. Nowadays, more and more homeowners are choosing to stay in their homes and invest in home improvements and make the most of their situation. It makes sense, considering not only the economy but the market. In fact, 60 percent of homeowners plan to make a home improvement or addition this summer. These statistics come from Zillow Digs Summer Home Improvement Trend and Spending Survey.

The Zillow Digs trend expert, Cynthia Nowak, says, "Zillow Digs is a leading resource for discovering up-and-coming design trends as actual consumers and professionals are sharing and discussing what they like."

She goes on to say, "As we head into the long days of summer, we are seeing increased interest in outdoor spaces with very natural elements such as stone fireplaces, as well as bringing more light into bathrooms with clear glass on the walls and shower enclosures."

These home improvement projects depend on the age of the homeowner, however. The type of projects being done varies by age, life-style, and life stage:

For example, the younger homeowners with children will more than likely be planning on adding an addition this summer. The percentage of people making improvements to their homes vary as much as the ages.

► 18-to-34-year-olds: 71 percent

► 35-to-54-year-olds: 61 percent

► 55 and older: 51 percent

► Homes with children: 65 percent

► Homes without children: 57 percent

But how much are they willing to spend? That depends, too. Homeowners plan to spend a median of $1,200 on summer home improvement projects. Homeowners with children as well as homeowners 54 years of age and younger plan to spend one-third more ($1,500) compared to homes without children and those 55 and older ($1,000).

Big Daddy Dennis Arizona Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

 

The Facts: Sixty Percent of Homeowners want to Make Home Improvements

Fulfillment Service Center

Here’s the thing: More than 25 percent of homeowners nationwide are upside down on their mortgages. Nowadays, more and more homeowners are choosing to stay in their homes and invest in home improvements and make the most of their situation. It makes sense, considering not only the economy but the market. In fact, 60 percent of homeowners plan to make a home improvement or addition this summer. These statistics come from Zillow Digs Summer Home Improvement Trend and Spending Survey.

The Zillow Digs trend expert, Cynthia Nowak, says, "Zillow Digs is a leading resource for discovering up-and-coming design trends as actual consumers and professionals are sharing and discussing what they like."

She goes on to say, "As we head into the long days of summer, we are seeing increased interest in outdoor spaces with very natural elements such as stone fireplaces, as well as bringing more light into bathrooms with clear glass on the walls and shower enclosures."

These home improvement projects depend on the age of the homeowner, however. The type of projects being done varies by age, life-style, and life stage:

For example, the younger homeowners with children will more than likely be planning on adding an addition this summer. The percentage of people making improvements to their homes vary as much as the ages.

 ► 18-to-34-year-olds: 71 percent
 ► 35-to-54-year-olds: 61 percent
 ► 55 and older: 51 percent
 ► Homes with children: 65 percent
 ► Homes without children: 57 percent

Fulfillment Service Center

But how much are they willing to spend? That depends, too. Homeowners plan to spend a median of $1,200 on summer home improvement projects. Homeowners with children as well as homeowners 54 years of age and younger plan to spend one-third more ($1,500) compared to homes without children and those 55 and older ($1,000).

Best West Direct Fulfillment Service
23335 N 18th Dr Suite 120
Phoenix Az 85027

Do you want to make money with Arizona Hard Money in a fix and flip?

You may ignore anything that has to do with a loan nowadays because you might think you just don’t have the credit needed for that loan you really want. Moreover, you don’t want to be in any more debt.

However, do you know that you can actually make money with Arizona hard money loans? The profit is significant enough to capture your attention, we guarantee it. Don’t believe me? What if I told you that the average profit for one fix and flip project is right around $30,000? It can be done my friend, it can be done.

What are the five steps to Make Money with Arizona Hard Money in a fix and flip?

1. First off, find the property that you think will really charm you when it’s all said and done.  Make sure that you do your research. You are going to want to consult a realtor and become an expert yourself. Make sure to constantly gather knowledge on the real estate market and find out how it works so you are always prepared. One of the most important things to know is the ins and outs of real estate in the location you are thinking of investing in. Ideally, there will be a high demand for real estate in that area. Look for a home with room for improvement and potential.

2. Evaluate the property you want. Much like step one, this part can be tough. After you've found a potential property, you need to do a thorough evaluation of the condition and the price. Crunch some numbers and see how things add up.

3. Apply for an Arizona hard money loan. This sounds like the scary part but this is actually where things get a little easier. Applying for an Arizona hard money loan is simple, and strictly equity-based- your credit will not be checked. Try to get a loan that covers most, if not all, of the property’s listed price. You likely will not have a lot of extra money to throw around on the project, so ask for what you need on a loan.

4. Start your repairs. Congratulations! If you've made it to this step, the hard part is over. It means you have the loan and you have finished most of the paperwork and, if you have a passion for rehabbing properties and homes, this is your time to really show what you can do. Make sure to create a timeline for your contractors and stick to it. Try not to have all home repairs take longer than one month.

5. List the property. The last and final step is fairly easy. Consult an agent, and price it right. Don’t overprice the home because you know how much blood, sweat, and tears went into it—otherwise it will never sell.

Making money with fix and flip projects and Arizona hard money is truly an easy and rewarding experience!

Big Daddy Dennis Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Do you need a loan? Here are a few tips on how to receive a Hard Money Loan from Arizona lenders.

There are soft loans and hard loans. You may be unfamiliar with a hard money loan. The basic definition is this: Loan approval is weighted mostly on the value and borrowers "equity" of the "hard asset" used as collateral with a lesser concern given to the borrower's credit rating. That means that you are borrowing against the property and not based on your credit rating whatsoever. That means the loan is easily approved and quickly granted to you. Usually within twenty-four hours.

This should give you a little bit of a better understanding of just what Hard money lenders in Arizona can do for you. They will provide you the loan you need for your business or personal use so you can get the property that you really want.

Here are some things you should look into if you are serious about the hard money loan in Arizona that you want to take out. Upon receiving your application, they consider the following:

·         Condition of the property

·         Length of the loan

·         Location of the property

·         Ability of the borrower to complete the project

·         Amount of work to fix the property

·         Amount of assets the borrower has to finish the project

·         Current and projected value when finished

·         Borrower’s information.

If you feel comfortable with all of this and where you stand with the above, then you will do well with a hard money loan in Arizona. 

A few facts about hard money loan lenders in Arizona.

This is just to go back over what was said before; hard money lenders in Arizona do not go by your credit rating in order to qualify you for a loan, but rather it is equity-based only. We can all breathe a sigh of relief for that! It’s okay if you have bad credit. You can rebuild your life and a hard money loan can help you do that. Another term this concept is referred to is “Private Money” or “Equity Loans.” These type of loans are unlike your typical loan from the more traditional route of a bank, but they are from methods such as private sources such as investor's personal funds, pension plans and other non-traditional sources. Arizona hard money lenders in Arizona are spread all over Arizona and other places around the United States to help you qualify for a loan. You can do this! And you don’t need a fantastic credit score.

Big Daddy Dennis Hard Money Lender

Level 4 Funding LLC
23335 N 18th Drive Suite 120
Phoenix Arizona 85027
623-582-444