Setabay Private Money Lender: January 2019

Thursday, January 31, 2019

Find a Lending Niche: Private Money Lenders Arizona Form a Lending Mecca for Real Estate Investors

Private Money Lenders Arizona may be the means to setting estate investments into motion.

According to a recent article by Forbes, private money lenders are changing the lending industry by financing real estate investors rejected by conventional lenders. Supporting this notion, Bobby Montagne from the Forbes Real Estate Council writes: this “reluctance [to fund real estate investors] has created a growing national market for Private Money Lenders Arizona and a lucrative opportunity for investors in private loan investment funds.” In the US, a capitalistic economy were businesses depend on venture investors, this is great news—the possibility of having lenders lending more money at more competitive rates. Supply and demand.

So why all of the fuss about Private Money Lenders Arizona? What is moving so many investors to get funded by them? Well, many real estate investors are shrewd and eager to see a good return. Whether they are a first-time, ma-n’-pa outfit or a seasoned band of weekend warriors, real estate investors typically look to invest in distressed property, renovate, and generate profit. The problem many real estate investors run into is that banks typically do not like lending on undeveloped property or distressed property. This is problematic for contractors wanting to build a spec home from the ground up. Also, this is problematic for flippers and those who rent because buying destressed property at wholesale value and fixing it up offers more profit than buying a property that needs minimal renovation.

The stone cast out by the builders has becoming the corner of the foundation. Setting the banks aside at first is a good strategy for many real estate investors because they can initiate funding: Private Money Lenders Arizona who step up to the plate and fill in a needed lending gap.

Who Benefits from Private Money Lenders Arizona

Filling the gap is no small thing. Montagne goes on the state that “With the median flip priced at $189,000, [it’s] a $56 billion market.” That’s a lot of money, folks, and a lot of money coming from private investors. Where the proverbial door of conventional banking closes, the door of private lending stays open. This is quid-quo pro. Private Money Lenders Arizona get a good return on roughly 7%-14% of their investments and are covered by the LTV they wish to set. By charging more than conventional lenders they are rewarded more. Real estate investors win by finding a funding niche.

Private Money Lenders Arizona are the financing start that allows for a strong and profitable finish.

For real estate investors with poor credit, the advantage is the ability to find sub-prime lending in the wake of Dodd-Frank. For real estate investors with stronger credit scores, the advantage is finding lending to get the job started. Grease the wheel and get it turning, get a loan on barren or destressed property, build or renovate, then acquire conventional funding. Private money can bridge between hard and conventional, it can start the pace and allow the money to trickle in. Though higher at first, it is a start that allows for a strong finish, a profitable finish.

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 and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Start a Profitable Business: Get Hard Money Loans to Flip Houses in Arizona

Loans to Flip Houses in Arizona are available to those wanting try their hand in the flipping industry.

The average profit on smaller flip homes in the States can range from $20,000 to $30,000. Three to four months is the average time it takes an experienced flipper to flip a home. With three to four completed flips per year, a flipper could possibly earn a profit of $60,000 to $120,000 per annum. The possibility of obtaining these types of returns, add in an increase in TV shows glamorizing real estate investment, has driven many individuals to try their hand in the flipping business. Great right? The ability to start a business that can generate six figures without pricy investments in an academic or trade education.

So, after looking at the earning potential of flipping houses and deciding that is the best real estate investment route, acquiring property to flip houses and financing to run a business are the next major steps that individuals come up against. What type of home should these investors flip? Well, usually, in the flipping industry, foreclosed, distressed, and short-sold homes are desirable. Property that will be sold at an enticing, wholesale rate. Sometimes, the right piece of property is no easy find, it is not a low hanging fruit to be snatched from above. Effort, research, and beating the bushes to find the right wholesale piece. Balancing the wholesale price, the foreseeable refurbishment cost, and the after-repair value ARV are important steps in evaluating if the investment is worth undertaking and, more importantly, if the investment is capable of generating sizeable return. After completing these analyses and others, financing becomes the next question to answer.

Due to the fact that most conventional lenders will not lend for the acquisition of distressed property, hard money Loans to Flip Houses in Arizona is crucial element to understand when flipping homes. Once a property is selected and the numbers are drawn out, a hard money lender is usually consulted in order to present financing options.

Make More Money with Loans to Flip Houses in Arizona

Though most investors making their way into the flipping business may not have a sizeable portion of cash to put down, some sort of property equity or initial cash down is needed to secure hard money Loans to Flip Houses in Arizona, this leverageable collateral or equity may be in the form of real estate already owned by the potential borrower.

Talk to a hard money broker at Setabay to get Loans to Flip Houses in Arizona today!

With the collateral and the equity decisions under control and agreed upon, a hard money lender or broker will calculate rate, conditions, terms, and lending fees if applicable. He or she will be able to tailor a lending situation that is favorable, short, and able to secure a favorable investment situation for both lender and borrower. If receiving Loans to Flip Houses in Arizona is right for you talk to a hard money broker at Setabay today and make your way into the lucrative industry of flipping homes.

Hotels Are Losing Money: Investors Earn an Extra Buck with an Arizona Airbnb Loan

Arizona Airbnbs are helping small investors eke out a living by taking businesses from the goliath of the hotel industry. Backed by the tech firepower of Arizona Airbnb applications, little guys are rope-a-doping giants.

In the past, hotels were the way people vacationed in the States. Families would plan a vacation to a remote and exotic region, do research about that particular area noting the touristic attractions, and finally book a hotel that was of a reasonable name, rating, and price. For years, this was the ritualistic pattern: In the prehistoric Age of Analog, travel agents, salespeople, and a vast amount of phone calls were needed to go on vacations, buy things, do things, stay places. The process was arduously long, may have taken months to plan, and possibly a good chunk of change to set in motion.

Then, from the obscure depths of algorithms, turning machines, and half-mad scientist and mathematicians, the computer emerged. Next, a labyrinth of networks—then, networks of networks leading up to the internet. Al Gore claims to have created it. People could now talk to each other over vast distances. Businesses could now post product prices online. Travel agents fell out of vogue. Middlemen and their commissions lessened. Software caused fluctuating market standards.

The year—2008. Enter Airbnb. Arizona Airbnb created a software platform that allows people to rent out houses for a fraction of the cost of a hotel room. Arizona Airbnb at first was a small threat to hotels and vacation rental companies. Then it grew, exponentially.

The year—2018—the present. Arizona Airbnb has reached a value of $30 billion plus. The hotel industry is now running scared. It has lost billions of dollars over the past few years. Not only is Arizona Airbnb making a lot of money, but people using Arizona Airbnb are incentivized to make money by renting out property. Quid quo pro. People are using services that fill their own pockets. Though a tech giant, Arizona Airbnb helps the little guy rake in some more dough.

Arizona Airbnb Loan for an Arizona Airbnb Business

How are people renting out property? Well, many individuals already have a mortgage on a home. Maybe they have a guest room or guest house to rent out. Renting out rooms helps them pay their mortgage off faster. However, there is another category: those looking to make an Arizona Airbnb business with an Arizona Airbnb loan. By using hard money brokers and lenders, these individuals find an attractive vacation rental property with a favorable occupancy rate. Next, they find a hard money lender who is willing to give them an Arizona Airbnb Loan at a favorable LTV percentage. Occasionally distressed property is renovated to save money on acquiring a rental property.

Start an Arizona Airbnb business with an Arizona Airbnb loan.

In the end, a property is purchased and rented out ideally earning more per annum than the debt owed to the hard money lender. With an evident and favorable return percentage this step may be repeated. An Arizona Airbnb loan forms a vacation rental chain with a decent return may be established.

Wednesday, January 30, 2019

Reap the Returns: Arizona Spec Home Financing Helps Builders to Meet Market Demand

In a bullish housing market, Arizona Spec Home Financing is helping builders acquire greater returns.

Spec homes are hot, “like Africa hot.” According to a recent article from the Washington Post, “home buyers across the country are scrambling for properties, and real estate professionals are begging for more houses to be built to answer the high demand.” That’s right, the demand for homes is so high that people are “begging” for more homes to be built. While this may be difficult for some niche real estate investors, conversely more demand for homes is phenomenal news for those involved in building and selling homes.

Where chaos strikes a market, the opportunity for increased returns arises. More individuals buying homes leads to a scarcity of available houses. Thus, higher prices are charged to produce homes that are in short supply. For spec home investors, this means a possibly of shorter intermediary periods between investment and return. Confirming this, the Post’s article continues to state, “in today’s hot housing market . . . most houses selling fast . . . . Builders [are] building houses as fast as the lots are developed.”

Why such a demand for spec homes? Well, with a growing housing market and a growing number of individuals selling homes from positive equity positions, there is an influx of individuals looking to move immediately into a new and reliable housing after selling their former properties. Spec homes, according to the same article, are fulfilling this niche. Since spec homes are based off of a generic, reliable, and cost-effective plan, individuals itching to find a new home within a short amount of time tend to find spec homes to be secure, new, and reasonably priced answer to their market demands.

Arizona Spec Home Financing for Real Estate Developers is Fast, Easy, and Attractive

While this is great news, while there is a growing market for building these types of homes, where does one acquire Arizona spec home financing? Great question. Arizona Spec Home Financing is available through Arizona Hard Money Lenders. Many spec home builders use Arizona Hard Money Lenders as a Arizona Spec Home Financing source because conventional lenders are fickle when it comes to granting loans on lots of land devoid of buildings. Though hard money may have a higher interest rate than a conventional loan, it is quick and painless to set in motion as a funding source and many times the only available financing source to be found.

Arizona Hard Money Lenders form a funding base for those looking for spec home financing.

Join many spec home investors in acquiring Arizona spec home financing. Talk to your hard money broker today at Setabay to see what rates and terms apply to any foreseeable spec home investments on the horizon.

How to Get Residential Arizona Hard Money Loans

What are residential Arizona Hard Money Loans? How through your hard money broker at Setabay, you can get the necessary help and the financing you need.

Residential loans are home loans that are not intended to be used for commercial returns. Instead they are intended to allow a borrower to purchase a property in order to use it for personal housing. Loans can be received to finance a variety of different property types in a variety of different locations.

In the spectrum of hard money lending, Residential Arizona Hard Money Loans are not offered by most Arizona Hard Money Lenders. This is due to the restrictions of the Dodd-Frank, which after the Great Recession changed many of the residential housing regulations especially regarding subprime lending. Because of the Dodd-Frank Act, there are more regulations private money lending for residential purposes. Most Arizona Hard Money Lenders do not want to deal with the bureaucracy and the difficult processes associated with Residential Arizona Hard Money Loans or do not specialize in this area of loans. Those lenders who do deal with Residential Arizona Hard Money Loans tend to focus on a subniche: residential rehab, family residential, multi-family residential, etc..

Residential hard money is able to help individuals purchase: apartments, condos, mobile home trailer parks, multi-family units, raw land, single-family properties, and vacant land. Financing for these types of loans requires cash down in order to fulfill the loan to value stipulations of Arizona Hard Money Lenders. An acceptation to LTV cash down restrictions would depend on personal assets with a strong, positive equity position which would create enough security for the hard money lender.

Talk to Your Residential Arizona Hard Money Loans Broker at Setabay Today. Get started and Find the Funding You Need

Determine the type of residential property that you need a loan on. Evaluate what assets or cash down you have to leverage in order to begin the application process to receive a hard money loan. Then speak with your hard money broker to find the right lender and rate to finance the property you are interested in.

Avoid pitfalls! Setabay is here to help you receive your hard money residential loans. Talk to a broker today!

Your hard money broker will guide you through the process and help you to understand whether you qualify for a hard money residential loan and if so what type of hard money residential loan would work best for you.

Who Finances Arizona Spec Loans Investors?

Arizona Spec loan investors use hard money to take advantage of real estate opportunities.

In real estate investing there are two common types of investments: investments in spec and in custom homes. To start, instead of meeting the general preferences of a larger community, custom homes are constructed with a specific client in mind. This client will have a drawn out and specific plan for the construction of the house. Floor plans will represent what an individual client finds appropriate, economical, and appealing. All of the supplies for building, the colors, and the arrangements will be considered and constructed based upon agreements between the both the purchaser and the contractor.

On the other hand, spec homes or speculative homes, are homes made to suit the general needs of the housing market. These homes will be constructed by Arizona Spec Home Investors who do not have a specific client in mind, but rather are looking to create a home consistent with other designs that are selling well in a given area. To do this, Arizona Spec Home Investors will have researched a favorable floorplan and will have measured out the general costs of the materials needed to build a decent looking home. Suiting the markets general needs permits the builders to receive a quicker turn on investment than dealing with the idiosyncrasies of trying to reach an individual.

By building a general fit for market needs in a profitable and attractive area, Arizona Spec Home Investors are able to get a quick return on investment. Many Arizona Spec Home Investors find that they have buyers before completing construction. Another reason for the popularity of spec homes and the ease of selling is that buyers generally know what they are getting into since they are able to look at other spec homes previously built.

Hard Money for Arizona Spec Home Investors

Arizona Spec Home Investors who have been in business for a long period of time are sometimes able to acquire conventional lending. This is often due to a favorable credit history, a strong credit score, a leverageable asset, or a great record of completing ventures and paying off debt. The advantage of obtaining conventional lending is that it offers some of the lowest available rates. These rates diminish the total amount of interest to paid off in the long run. On the down side, is the red tape and the length of the paperwork. Conventional lending offers great rates, but potential debtors are subject to rigorous credit evaluation and stipulation requirements, these taking at times months to complete.

For Arizona Spec Home Investors, finding the right source of financing is a crucial step to reaching potential returns.

If potential Arizona Spec Home Investors, are unable to meet these stipulations, that is to say they do not have stellar credit scores, businesses with a favorable lending history, or properties to leverage, hard money lending may be the best option. Since hard money lending bases collateral off of property, Arizona Spec Home Investors interested in these types of loans will require property to leverage instead of creditworthiness. Whether the collateral is property that is already owned, or it is created by putting cash down the future investment, it does not matter. For more information on spec loans talk to a broker at Setabay.