Monthly Archives: January 2019

How to Increase Your Chances of Getting Arizona Spec Home Financing

January 26, 2019Uncategorizedbigdaddydennis

Loans for spec houses are a tiny percentage of loan market, so they can be confusing for would-be borrowers. Here’s how they work and how to increase your chances of getting approved for one.

A spec loan is loan for the construction of a “speculative” home. In other words, it’s a home for which the builder has no buyer. If you’re thinking of building a spec home and you don’t have millions of dollars at your disposal, you’ll want to apply for Arizona Spec Home Financing. Let’s look at what you’ll need to get started and how you can boost your approval chances:

● Go for an improved lot. Spec loans are risky but you can reduce your risk by opting for an improved lot. Improved land — as opposed to raw land — already has roads, sewer lines, electric wiring, and usually a proximity to recognized urban spaces. This makes the construction significantly faster and easier, which in turn makes the loan less risky.

● Think about speed. If this is one of your first spec homes, choose a plan that you can knock out quickly. A shorter construction schedule will keep budgets lower and offer less chance for major hiccups. To a spec home lender, this makes the loan less risky.

● Secure the loan with the lot. If you’re worried about getting approved, one option is to offer the lender equity in the lot as a down payment.

● Spec loans are nicknamed “story loans.” There’s no buyer, so the builder and lender have to use their imagination to envision the final product and its viability in the market. To frame the loan as an opportunity and not a risk, you can tell a “story” — where you got the idea, what you want to do with it, and where you see it ending up down the road.

Documents You Need for Arizona Spec Home Financing

What do you need to have on hand to qualify for Arizona Spec Home Financing? It’s a lot less than you might think. Much of it is documents you’ll already have for your project. Namely, detailed budgets, precise plans for the property, and all the requisite permits for building in the area.

Start Your Spec Home Adventure Today

Once you’ve got your plan together, getting funding is the key to finally breaking ground. Here at Level4Funding, we offer Arizona Spec Home Financing for up to 24 months, customizable draw programs, loan-to-value ratios of up to 90 percent, and rates starting at just 9.5 percent. Speak with us today to see how we can partner on your spec home.

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.

Why Arizona Private Money Lenders Can Be a Better Option Than the Bank

January 26, 2019Uncategorizedbigdaddydennis

Many real estate investors go directly to the bank to get their financing because that’s the accepted route. But in some cases, a loan from a Arizona Private Money Lenders may be a better option.

How do you know when you should go to the bank and when you should look for private investors? To determine this, let’s look at some of the ins and outs of both loans:

● A bank loan will require an in-depth rummaging through your financial history, a bright, shiny credit score, and a pretty sizable down payment. You’ll probably be rejected if you’ve had a previous blemish on your financial track record, a credit score below 700, and an income that doesn’t match their threshold.

● A private money loan is secured using collateral, so your history, income, and credit score play a much smaller role. If the collateral property — whether it’s a currently owned property or one you’re purchasing — passes the sniff test, you can get approved.

● Bank loans can take up to a couple months to go through the approval and granting process.

● Private loans can be in your account in a matter of weeks. The approval process is quick and the funds don’t have to go through all sorts of red tape.

● Bank loans come from giant conglomerates that may or may not have a vested interest in your success.

● Private money loans use funds from individuals who hitch their wagon to your plans. Your success is their success.

Is a Arizona Private Money Lender the Right Option for You?

Now that you know some of the differences between Arizona Private Money Lenders and the bank, you’ll have a better idea if it’s the right move for you. If you’ve got amazing credit, a spotless history, and plenty of dough to plunk down on a property, the banks may be your best option. Conversely, if you need to move quickly on your investment opportunity or you’ve been turned down by the big financial institutions, going the private route may be the better option.

Finding an Arizona Private Money Lender in Arizona

Hard Money Loans in Arizona do come with much shorter terms and higher interest rates and that can feel scary at first blush. However, for the right situation, this arrangement can be a win-win for both the real estate dreamer and the Arizona Private Money Lenders.

Owner-Occupied Hard Money Loans in Arizona

January 26, 2019Uncategorizedbigdaddydennis

If any of those reasons resonate with you (or you’ve got your own reasons), you’re probably wondering about the specifics. These types of loans are incredibly quick. The application takes minutes and the funds can be in your account much faster than a bank loan. Interest rates vary, but they are typically in the six to 12 percent range. To qualify, you’ll simply need a tax return or 3 months of bank statements.

Level4Funding and Owner-Occupied Hard Money Loans in Arizona

Our owner-occupied Hard Money Loans in Arizona have no pre-payment penalty, they don’t cost anything to apply for, and we guarantee the lowest rates in the business. Speak with one of our representatives or fill out one of our quick loan applications today!

How to Apply for a Residential Hard Money Loan in Arizona

Thinking about finding a Arizona Residential Hard Money Lender in Arizona to get financing for a single family home? Delving into the world of residential loans can be daunting, so let’s demystify it by taking a look at the first step in the process — applying.

Hard Money Loans in Arizona use funds from private investors and individuals and are secured by collateral. As such, the application process is different than a typical bank or credit union loan. A big bank might ask for a pile of documents to verify every dime of income, show every asset, and prove that your credit score is up to snuff. With hard money, here are some of the common steps you’ll go through:

Find a reputable lender. An upstanding lender will have a professional website, an easy way to contact them, and, most importantly, a proven history of funding successful residential projects.
Do your research. If you’re making an investment in residential real estate, you’ll want to know every detail about it — what’s its growth potential? What is the market’s history in the area? What will your after-repair-value (ARV) be?
Show the value of your collateral. Since collateral is the lynchpin of a Hard Money Loan in Arizona, that’s where lenders will focus. You’ll provide documentation that shows the value of your collateral property. This can include things like architectural plans, contractor bid sheets, detailed budgets, and plans for renovations.
Prepare other documents. In most situations, the above documentation will be all you need. In some cases, though, Hard Money Lenders in Arizona might ask for a few other documents, including paystubs, W-2s, credit history, or bank statements.

Moving Quickly on Your Residential Investment

Here’s the best part about opting for a Arizona Residential Hard Money Lenders over a common bank loan — the process is really fast. Without complicated underwriting processes and all sorts of verifications, Hard Money Loans in Arizona can be approved in a matter of days and you can have the money in your account in a matter of weeks. That speed means you can move quickly on an investment opportunity. After all, the faster you can get started, the faster you can make a profit.

Apply for a Residential Hard Money Loan in Arizona Today

The application process is easier than you might think. An Arizona Residential Hard Money Lender in Arizona, like Level4Funding, can sit down with you, walk you through the process step by step, and help you get the funding you need for your project.

6 Reasons to Consider an Owner-Occupied Hard Money Loan in Arizona

January 26, 2019Uncategorizedbigdaddydennis

Despite what you may have heard, some lenders still do owner-occupied Hard Money Loans in Arizona. Here are a variety of reasons to consider one for your situation.

If you’ve done any looking around, you’ve probably found that not many Hard Money Lenders in Arizona are willing to do owner-occupied loans these days. Even the ones that are willing to do them will only go forward if the funds are intended for a business purpose. That’s because the regulations surrounding them can be daunting and many lenders just don’t want to deal with it.

However, there are still Hard Money Lenders in Arizona who will give primary residence loans. Here are some reasons to consider one an owner-occupied Hard Money Loan in Arizona:

You’ve got bad credit. The banks and credit unions have turned you down because your credit score didn’t fit into their little box.
You’ve got income that’s difficult to prove. If you’re self-employed or your income isn’t “normal,” you’ve probably found that typical lenders don’t want to deal with you. Unfortunately, not everyone has a 9-5 desk job with a regular paycheck.
Your property is “problematic.” If your primary residence has major issues, the banks may not want to let you refinance.
You just don’t qualify for traditional or FHA/VA financing. There are all sorts of reasons banks turn down borrowers and you’ve got one or two problem areas that made you too much of a risk.
You need to do repairs. Whether it was a catastrophe or just the ravages of age, your primary residence is long overdue for repairs and refurbishment and you need an influx of cash to get it all done.
You want to pay down debt. You’ve got debts outside of the mortgage that are critical, and you need to pay them off at a lower interest rate.

Can You Get an Airbnb Loan in Arizona with Rotten Credit?

January 25, 2019Uncategorizedbigdaddydennis

Is it possible to get an Airbnb Loan in Arizona if your credit stinks? It might seem impossible, but there are ways to work around the system and start making your hosting dreams come true.

It’s a catch-22. You’ve had financial problems in the past, so you’re looking to bring in some extra income to help pay the bills. Airbnb is a great option because it’s something you can do on the side. After all, the average host brings in an extra $924 every month. Unfortunately, the banks won’t give you the financing you need to make it happen. Are you completely out of luck? Not necessarily.

If the banks and credit unions have given you a firm “no” because of a low credit score, a precarious financial situation, or a past transgression, don’t worry. You still have options.

Using Hard Money to Finance an Airbnb Property

You’ve probably heard the term “hard money” before but you might not be completely clear on what it is. Put simply, Hard Money Loans in Arizona are loans that use funds from private investors. They offer a range of benefits that the banks can’t:

● Since the money comes from private sources, they’re not as heavily regulated and they don’t require as much complicated underwriting. This makes the process incredibly fast. With a typical bank loan, you might wait weeks to get approved and up to a couple months to see any money in your account. Hard money Airbnb Loans in Arizona can be approved and financed in as little as two weeks.

● Hard Money Loans in Arizona are secured using collateral. This means that Hard Money Lenders in Arizona don’t care as much about your credit score or any mistakes you’ve made in the past. If your investment is sound and your collateral is solid, you should be able to get approved.

● Hard Money Loans in Arizona come with higher rates and shorter terms — usually anywhere from six months to a year. The idea, then, is to use the proceeds from the Airbnb to pay the loan back quickly. Then you’re free and clear and everything after that is profit.

Finance Your Airbnb Property Quickly

Opening an Airbnb property may be the perfect way to take advantage of the gig economy and bring in some extra money. If hosting has always appealed to you and the banks have turned down your dream, a hard money Airbnb Loan in Arizona might be the way to go. Call us, email us, or chat with us to find out how we can help fund your rental property goals.

Try These 4 Options for Arizona Fix and Flip Loans

January 25, 2019Uncategorizedbigdaddydennis

Arizona Fix and Flip Loans are short-term loans that are used for purchasing and refurbishing a property before selling it for a profit. They come in a variety of forms and with a range of options; here are a few to get you started.

Cash out refinancing. A cash-out refinancing involves refinancing an existing property and using the cashed-out equity to pay for renovations. If there are any liens on the current property, they’ll need to be paid off before you can have access to the equity. Cash out refinancing loans are typically limited to 75 percent of the property’s LTV (loan to value ratio). This is a good option for people with a property that’s got a significant amount of equity.
Bridge loans. Bridge loans are exactly what they sound like — they’re designed to get you from one real estate transaction to the next. Let’s say you’ve got a property for sale and you plan to use the proceeds to buy your next flip. If an amazing deal comes along and you don’t have the cash flow, you might miss out on the opportunity. Instead, you could use a bridge loan to purchase the property, then pay it off once you’ve sold the first property.
Permanent bank loans. Most flippers wouldn’t think of doing a permanent bank loan for a fix and flip because the terms are generally too long. However, buy and hold investors who plan to fix the property over five years or more may benefit from this type of financing.
Hard Money Loans in Arizona. Hard money loans come from private investors and individuals, so they boast lower approval qualifications than any of the above options. They are also lightning fast — you can get the money in around 15 days — and they have much shorter terms, making them perfect for rehabbers who plan to refurbish and sell within a year.

Is a Hard Money Loan in Arizona Right for Your Fix and Flip?

As we detailed above, Hard Money Loans in Arizona’s are a fantastic option as Arizona Fix and Flip Loans because they offer ultra-fast approval, short loan terms, and less rigorous requirements than the bank. They also come with higher interest rates. This makes them ideal for flippers with at least a few projects under their belts or novice flippers who are working with an experienced contractor.

Where to Get a Fix and Flip Loan

Whether you’re ready to dive into your first flip or you’re off on your next real estate investment adventure, we offer Arizona Fix and Flip Loans that will work for you. Give us a call today!

3 Options for Getting a Loan to Flip Houses in Arizona

January 25, 2019Uncategorizedbigdaddydennis

House flipping is as hot as ever and, for the right kind of person, it can be quite lucrative, too. Unless you’re already loaded, you’re going to need to find a loan to do it, so here are some tips for doing just that.

According to the research firm Attom Data, over 200,000 homes were flipped in the year 2017. The average profit on each flip? A whopping $68,143! That’s a pretty good take for a three, six or even 12-month project. Of course, to get there, you need to find a great fixable property and secure financing. There are a number of ways to get loans to flip houses in Arizona, and here are three of the most popular.

Go to a friend or family member. It could be a cousin, an uncle, a parent, or a brother, but if a family member has the cash on hand, they may be interested in investing in your fix and flip property. They may charge you lower interest rates because of your personal connection, or they may want to arrange of cut of the final profits. However, you choose to proceed, make sure you get everything in writing. There’s no faster way to lose a friend or family member than getting involved with a loan.
Go for a home equity line of credit (HELOC). Many banks will let you borrow against the equity of your current home. By equity, we mean the difference between your home’s market value and the remaining mortgage balance. The nice thing about a HELOC is that you have a pool of funds from which to draw, and you’ll only pay interest on the amount you use. The downside to a HELOC is that you must already own a home with significant equity.
Go for a Hard Money Loan in Arizona. Hard money loans use funds from private individuals and investors. The requirements for qualification are less than a bank loan because the loan is secured by collateral. Hard Money Loans in Arizona to flip houses also come through much faster (in as little as 2 weeks).

Going the Hard Money Route

Hard Money Loans in Arizona are a great option if you’ve been turned down by the banks or you don’t have relatives who are willing to invest. Keep in mind that the terms of a Hard Money Loan in Arizona will be shorter, and the interest rates will usually be higher. That’s what makes them perfect for flipping — the idea is you get your property, fix it up, and then sell it for a profit before the terms are up.

Finding a Hard Money Loan in Arizona for a Fix and Flip

Thinking about going with a Hard Money Loan in Arizona to flip houses? If you have questions about whether to qualify and how the process works, we’re here to answer them. Give us a call or chat with us today to see how we can help.

4 Burning Questions About Commercial Hard Money Loan in Arizonas

January 25, 2019Uncategorizedbigdaddydennis

If you’ve got a commercial real estate investment on your radar and the banks have turned you down, you’ve probably thought about a Hard Money Loan in Arizona. You’re probably full of questions about this type of financing. Luckily, we’re full of answers.

Thinking about going the hard money route to finance a commercial real estate project? If so, don’t worry — you’re not alone. Plenty of people have started where you are and they’ve been incredibly successful. But it starts with the basics, so let’s go over some of the most common questions we get from prospective borrowers.

How fast is the process? It’s really fast, especially when compared to a bank loan. Approval can happen in a matter of days and funding can come through within 72 hours of getting the green light from the title company.
What about the interest rates? Interest rates for commercial Hard Money Loan in Arizona are higher than through the bank. How much higher? That depends on the lender you choose. Most often, the rates will vary from 10 percent to 18 percent.
How long are the terms of the loan? Since they’re typically used as a bridge until you get long-term financing, most Hard Money Loan in Arizona s fall in the 3-month to 12-month range, although there are some that can be as long as 3 years. Generally, the longer the terms, the higher the rates and costs.
Does my credit make a difference? Perhaps. Most Hard Money Lenders in Arizona will do a credit check, but it won’t weigh as heavily as it does in a bank loan. The lender will spend more time examining the property that’s being used as collateral.

How Hard is it to Qualify for a Hard Money Loan in Arizona?

January 24, 2019Uncategorizedbigdaddydennis

It’s a question we get all the time — how hard is it to get approved for a Hard Money Loan in Arizona? Let’s answer that right here and right now.

There’s a lot of mystery surrounding Hard Money Loans in Arizona, and for good reason — they admittedly have a spotty history after some unscrupulous lenders took advantage of borrowers in the past. Add to that the housing loan debacle and the passing of the Dodd-Frank Act, and you’ve got a lending industry that’s harder to figure out than ever before.

Before we delve into getting approved for a Hard Money Loan in Arizona, let’s look at the approval process for a typical bank loan.

● Banks will dive deep into your financial history. Any issues — like a foreclosure, short sale, or bankruptcy — will most likely be a deal breaker.

● Banks require a good credit score. Most big banks want you to have a credit score of 740 and some will go down to 700, but the interest rate will increase the closer you get to that minimum number.

● Banks want a sizeable down payment. If you want to get approved for a bank loan, you’ll be asked to have at least 20% of the value of the property on hand to use as a down payment.

Getting Approved for a Hard Money Loan in Arizona

The application and approval process for a Hard Money Loan in Arizona is completely different. First of all, there’s no complicated underwriting process. This means the entire thing can be completed in as little as a week or two. Secondly, and most importantly, this type of loan is secured by collateral. So, instead of condemning you for blemishes in your past or looking at arbitrary numbers, a Hard Money Lender will listen to your plans and check out the collateral you have. Finally, lenders in this field get money from private sources, so it makes it a quite simple equation — if your investment is sound and your collateral works, you can get approved.

Find a Reliable Hard Money Lender in Arizona

If your real estate investment is in Arizona and you don’t qualify for a bank loan, here’s the good news: you’re already in the right place. Level4Funding offers hard money to real estate investors, and we’ve been doing it successfully for decades. Give us a call today to see how we can help get you financing.

How to Find a Reputable Hard Money Lender

January 24, 2019Uncategorizedbigdaddydennis

Considering using hard money to finance your real estate investment? The process is much different than going through the bank, so we’re here to help you get approved for one.

Hard Money Loans in Arizona are loans that are backed by collateral. That is, they aren’t based primarily on credit scores and down payments like a traditional bank or credit union loan. Often, they’re used as a bridge between a construction loan and long-term financing, or as a way to finish a fix and flip to turn a profit quickly. Hard Money Lenders in Arizona aren’t regulated by the Office of Thrift Supervision or the Federal Reserve, so finding a reputable one can be a challenge.

Here are some questions to ask yourself when looking for a trustworthy lender:

What projects has the lender financed previously? If you’re looking for a Hard Money Loan in Arizona for a fix and flip, look for a lender who has completed financing for fix and flip properties. If it’s for spec construction, do your research and find one who has experience in that niche field.
How does the website look? Some lenders are fly-by-night; others just collect your information and pass it on to third parties. A legitimate Hard Money Lender in Arizona will have a professional website with a wealth of relevant information about what they do.
Are they easy to get ahold of? Their website should have a phone number, an email address, or a live chat where you can speak with a contact one-on-one. A reputable lender will want to talk with a potential borrower to hear about their project personally.

Make Sure to Do Your Research

Unfortunately, it’s true — some lenders in the hard money game are essentially loan sharks looking to take advantage of people who’ve been turned down by the banks. Thankfully, there are many lenders out there who are genuinely interested in your real estate dreams and want to help them come true. By using our questions above and speaking with a lender, you’ll typically be able to weed out the fakes from the real deals.

Hard Money Lenders in Arizona

Finding a reputable Hard Money Lender in Arizona is actually quite easy. Level4Funding has decades of experience with fix and flip, rentals, buy holds, and real estate sales in Arizona. We’re a phone call, email, or live chat away — if you’ve been told “no” by the banks and credit unions, contact us to see how we can help fund your real estate goals today!

Loans for spec houses are a tiny percentage of loan market, so they can be confusing for would-be borrowers. Here’s how they work and how to increase your chances of getting approved for one.

Documents You Need for Arizona Spec Home Financing

Start Your Spec Home Adventure Today

Many real estate investors go directly to the bank to get their financing because that’s the accepted route. But in some cases, a loan from a Arizona Private Money Lenders may be a better option.

Is a Arizona Private Money Lender the Right Option for You?

Finding an Arizona Private Money Lender in Arizona

Level4Funding and Owner-Occupied Hard Money Loans in Arizona

How to Apply for a Residential Hard Money Loan in Arizona

Moving Quickly on Your Residential Investment

Apply for a Residential Hard Money Loan in Arizona Today

Despite what you may have heard, some lenders still do owner-occupied Hard Money Loans in Arizona. Here are a variety of reasons to consider one for your situation.

Is it possible to get an Airbnb Loan in Arizona if your credit stinks? It might seem impossible, but there are ways to work around the system and start making your hosting dreams come true.

Using Hard Money to Finance an Airbnb Property

Finance Your Airbnb Property Quickly

Arizona Fix and Flip Loans are short-term loans that are used for purchasing and refurbishing a property before selling it for a profit. They come in a variety of forms and with a range of options; here are a few to get you started.

Is a Hard Money Loan in Arizona Right for Your Fix and Flip?

Where to Get a Fix and Flip Loan

House flipping is as hot as ever and, for the right kind of person, it can be quite lucrative, too. Unless you’re already loaded, you’re going to need to find a loan to do it, so here are some tips for doing just that.

Going the Hard Money Route

Finding a Hard Money Loan in Arizona for a Fix and Flip

If you’ve got a commercial real estate investment on your radar and the banks have turned you down, you’ve probably thought about a Hard Money Loan in Arizona. You’re probably full of questions about this type of financing. Luckily, we’re full of answers.

Other Common Questions About Commercial Hard Money Loans in Arizona

Applying for a Commercial Hard Money Loan in Arizona

It’s a question we get all the time — how hard is it to get approved for a Hard Money Loan in Arizona? Let’s answer that right here and right now.

Getting Approved for a Hard Money Loan in Arizona

Find a Reliable Hard Money Lender in Arizona

Considering using hard money to finance your real estate investment? The process is much different than going through the bank, so we’re here to help you get approved for one.

Here are some questions to ask yourself when looking for a trustworthy lender:

Make Sure to Do Your Research

Hard Money Lenders in Arizona