Setabay Private Money Lender: March 2019

Saturday, March 30, 2019

What Makes a Good Investment Property?

Choosing an investment property is the first step to obtaining funds from a Colorado hard money lender. Here are some criteria you should be looking for to make a good selection.

Fixing and flipping is a great way to get cash as an investor. But how do you know which properties to choose? Many novice investors will make mistake when they choose their first properties and lose money on the project. Here are some things you’ll want to look for before applying to a Colorado hard money lender for your property!

Worst Property in the Best Neighborhood

As an investor you’ll want to know about the area you in which you want to make a purchase. It’s not a good idea to flip the best property in a neighborhood because the comparable properties in the area will bring your sale price down. You’ll want to choose a property that has good potential, but will be brought up in quality to match those around it to get competitive offers once it’s listed.

Don’t Go for the Money Pits

To go along with what we said above, you also don’t want to pick a property that’s going to be a money pit. You want it to be able to bring it up to the quality of its surrounding homes, but if that’s going to take far more money than you have, it’s going to dig you into a hole that can be hard to crawl out of. It can be easy to get sucked into a property that has ‘good bones’ and has the potential to be great, but if it’s not fitting into your budget then move along to the next one!

Unique Can Mean Harder to Sell

Another appeal to some investors is a unique property, meaning it’s different from the homes around it. Unique can be beneficial to a certain extent, but it can also deter buyers. Unique homes can cater to a certain audience and make it harder to sell. You’ll want a home that feels livable and appeals to the masses.

Once you’ve selected your investment property it’s time to put together your pitch for your Colorado hard money lender. That will include information like your rehab plans and finances for the remodel.

When you pitch your plan to a Colorado hard money lender you’ll be more likely to be approved if you’ve considered things like the area (schools, shopping, etc.) and the comparable homes in the neighborhood. The more prepared you are to present the information, the more sound your investment looks to your lender.

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.

Thursday, March 28, 2019

90% Arizona Hard Money Loans: Difficult In Some Ways, Very Good For Business In Others

If you would like to have partially-financed hard money set up for your latest project, there are loans out there set up specifically set up for investors who can work within the strictures required for this. Research the details of financing up to 90% hard money to find out if you can go this route.

LTV (loan-to-value) Arizona Hard Money Loans are on the very high end of the Arizona Fix and Flip Loans category. Depending on where you are, companies’ rules and regulations vary, but the general overall picture can look something like this. As an investor beginning an application for a 90% Arizona Hard Money Loan, you need to have a FICO score of 600 or above. You must also be relatively certain of selling the desired property within 12 months. From there you may:

· Apply for loans starting at $75,000 (Some companies begin their loans at $25K) and up to $2M, which if cleared, will definitely improve the condition of your real estate portfolio.

· Have a property appraisal that is scaled back and not overly involved since the lender is more interested in the value resulting after renovations are made.

· Receive up to 90 percent of rehab and purchasing costs.

· Get 12 months financing and the time period can even be longer—this is just the average time length. And to really make the package attractive, no prepayment penalty.

This process can be completed within a short period of application time normally. Following approval, closing can be done in less than a month.

What things do you need to include with your application for a 90% Arizona Hard Money Loan?

Documentation is required for these types of loans and bears a resemblance to more traditional lenders’ requirements than some other unconventional loans do. You must produce your sales agreement, tax returns for the past two years, two months’ banks statements showing your savings and checking accounts, a list of your current residential and commercial properties and a copy of your construction budget. There are other paperwork demands, but this shows the overall average requirements for most companies who do these types of financing.

These loans are mainly for the fix-and-flip investment areas--they do not cover owner -occupied properties. They do however cover a large number of other real estate investments, both residential and commercial.

A partial Arizona Hard Money Loan may be exactly the type financing you need. Do your homework and see if this area of borrowing is what you need to pursue.

To be certain, the requirements are more stringent than some other financing, but if you have credit problems and have gone the traditional route with no results, investigating one of these loans might be just the thing you need to do. Check things out with people you know and whose opinion you value, set up a few appointments with lenders who handle 90% LTV Arizona Hard Money Loans and find out how you can help your ideas become solid realities.

Wednesday, March 13, 2019

Are You Ready to Step Into Commercial Property Investment?

Many residential property investors think about moving into commercial property investment, but it can be a tricky transition. Here are some reasons it may be the perfect diversification for your funds.

Residential properties are a great way to dip your toe into the property investment waters, but there may come a time when you want to open yourself up to new opportunities. For some investors commercial property investment is the next step.

Commercial properties, which can be funded by Arizona Hard Money Commercial Loans, offer different cash incentives as well as other benefits to investors. Here are a few of those advantages!

Risk diversification

If you’re renting a single-family residential property, you’re dependent on that one tenant to pay you. In a larger commercial property, you have less of a chance going a month with no income even if a few tenants fail to pay. The earning potential also grows because commercial leases typically have longer terms than residential and also the rate of return is usually higher.

Some commercial properties have specific operating hours

Unlike residential properties, commercial properties will usually have operating hours meaning you are more likely to deal with maintenance calls during normal business hours. There is the potential for other issues to arise, but for the most part your day ends when theirs does.

There could be tax advantages

When you’re looking into diversifying your investment portfolio it’s important to discuss how it’s going to affect you long-term. One advantage of procuring a commercial property, whether through a Arizona hard money commercial loan or otherwise, is that there could be deductions for depreciation or upkeep. Speaking with a financial advisor is a good way to understand the potential for those tax breaks.

Speaking with a Arizona hard money commercial loan funding entity is a great way to get your questions answered before jumping headfirst into the commercial property pool. Here at Level 4 Funding we are committed to working with our investors to make sure they have a comfort level before taking their next investment step.

We can walk you through the process, discuss different types of funding, and help you work out your financial future. Give us a call today to learn more!

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.

Finding the Right Commercial Property Loan: Why a Hard Money Loan Is the Way to Go

Buying commercial property can be one of the biggest purchases for an investor. The high price means you’ll need to really investigate your options. Learn more about making a commercial investment and hard money commercial lenders in this blog.

Commercial properties are a great way to diversify your investment portfolio, but it’s a different ballgame than residential properties. The price tag is bigger, the capital needed to maintain is bigger, but the potential for income is also bigger. Securing a Arizona hard money commercial lender could be your first step into commercial investment. Here’s why taking that step could be the right move for you!

Commercial properties are less affected by the stock market

Residential properties have a high correlation with the state of the stock market in most cases, but commercial properties can sustain their asset equity better. Speaking with a financial analyst can give you good insight into information that will help you make a well-informed decision on the type of commercial property you should invest in, insuring your money is working for you.

There’s potential for stable cash flow

If the numbers for unemployment in your area are trending upwards, there’s a high chance you won’t have a problem finding tenants in a traditional commercial building. If housing prices are keeping steady, an investment in a multi-family property could provide that stable cash flow for you. This is also an opportunity to speak with a Arizona commercial hard money lender to see where they see the market moving. It’s the business they’re in so they could have some insights into which investments are giving the best ROI in your area.

The long-term growth potential is huge

As prices rise and inflation hits different areas of the country, that also raises the prices of commercial properties, allowing owners to raise rates for space in their buildings. Recessions are always a looming threat in real estate, but the organic growth while the market is good allows for investors to maintain a steady influx of cash flow in the meantime.

Commercial property investment is a good way to diversify your portfolio and while it poses a larger cash risk up front, you’re not depending on a single tenant to make or break your earnings.

If you want to learn more about how you can secure funding from a hard money commercial lender, call Level 4 Funding today.

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.

Hard Money Lenders are a Win-Win Solution

Financing a residential or commercial investment is quick and easy with hard money lenders. Here are some quick facts about hard money lenders so you can know what’s best for you.

If you’ve ever bought a home then you’re familiar with the guidelines and qualifications you had to meet in order to secure a lender. There was a ton of paperwork just to get started, then you had to get your prequalification, and then work with a lender to determine the best loan for you. Hard money lenders are more simple in their determination of loan funding.

Below you’ll find some facts about hard money lenders that you may not know.

They don’t fund traditional loans per se

Arizona Hard money lenders aren’t looking to fund owner-occupied properties, though some may from time to time. For the most part they want to fund opportunities for residential and commercial investments that will pull in a bigger return. Just as the investor is looking to make money, so are hard money lenders, just like traditional banks. The main difference is that they will fund that money quicker because it is an investment and they know that investors can’t wait for funding to come through.

They aren’t working with secondary mortgage markets

Arizona Hard money lenders are giving you, often times, their own money. Unlike traditional lending institutions your loan won’t be sold to Freddie Mac or Fannie Mae. Your money is coming from an investor, much like yourself, and they will see that loan through. That’s why their requirements for eligibility are different from those of big banks.

Eligibility is based on property, not owner

You won’t be asked to fork over tons of personal financial information by a Arizona hard money lender; instead, they’ll want to know more about the property. They’re investing in the opportunity and want to know that the risk is worth the loan. That’s why they’ll want to know your plans for the property so be prepared to answer questions such as that.

Short term loans is the name of the game

If you’re looking for a 30-year loan, this isn’t the place for you! Short term loans are what hard money lenders specialize in and that’s because they need to be able to free up their money for more investments. You’ll usually find loan terms somewhere between a few months and two years. The repayment terms will be negotiated between the lender and the borrower.

If you think that a hard money lender can help you realize your investment dreams, call Level 4 Funding today!

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.

Tuesday, March 12, 2019

Tips and Tricks: Choosing a Arizona Private Money Lender

You should be selective about choosing your Arizona Private Money Lender. In this blog we discuss the things you should look for and what to avoid.

Choosing a hard money lender is a big decision. Like any other loan, you’ll want to vet your Arizona Private Money Lender to make sure it’s a relationship that’s going to work for you and your investments. Whether you’re wanting to make a commercial real estate investment or get into the fix-and-flip business, here are some things you should know about your Arizona Private Money Lender before applying for your loan.

Make a list, check it twice

It can be simple to do an Internet search for Arizona Private Money Lenders in Arizona. Get yourself a list so you can begin the comparison process to narrow down your search. You’ll want to make sure that they will fund your type of purchase and that they match your expertise level. Do they take on first-time investors? Those are important questions to ask up front.

Do your research

You want to know as much as you can about your potential Arizona Private Money Lender. Check their qualifications and license and also don’t be afraid to ask for referrals. The best information you can get on a lender is from a current or previous borrower. Do some online searches and see what you can find out about them before keeping or crossing them from your list.

Take them on a date

You want to treat this like a relationship. Ask your lender some ‘get to know you’ questions. Ask about their loan terms and their qualification criteria. Ask about their most recent investor success story. The more you know going in, the less you’ll be surprised later. You want to work with a lender who is willing to answer any and all of your questions so that you aren’t going in blind.

Choose Wisely

Once you’ve gathered this information on a few lenders its time to make a decision. Be picky! This is your investment future and if they don’t seem committed to your success, then maybe it isn’t the right lender for you.

Arizona Private Money Lenders are there to help you with your investments, but they’re also in it to make money, as well. That means they need to be as interested in your investment plan as you are. During your selection process make sure to ask about all fees and the options for loan repayment and loan terms while also presenting them with your investment story. The information sharing should go both ways!

If you’re feeling comfortable with your lender it’s time to make your investment happen! As a Arizona Private Money Lender in Arizona, Level 4 Funding wants to help you do just that. Give us a call and see if we’re the right fit for you!

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.