October 2019 - Page 4 of 4

If you’re a newcomer to fix-and-flips, residential Arizona Hard Money Lenders can be your best ally. Learn a bit about what they’re expecting before you apply to ensure you get approved.

1. Credit doesn’t matter, but experience does. One of the reasons why working with residential Arizona Hard Money Lenders is awesome is that your personal credit score doesn’t usually matter. You can have rotten credit and still get a loan to finance your flip. Newcomers can get financing as well, but the terms you’re offered are likely to improve as you gain more experience. If you’re cash poor but idea rich, plan to start off on smaller projects first, then build up to bigger and more expensive ones after you’ve demonstrated you’ve got what it takes to be successful.

2. You’re going to have to have some of your own cash. A great broker can work miracles and find alternate ways to get you financed, but you’re likely going to have to have some of your own cash in the deal, even if it’s just to cover the cost of getting financing set up. If you’re struggling to scrape up your own cash, focus on finding one really good deal; a home that’s being sold for far less than it’s worth. Sellers can become especially motivated to slash prices during divorces or when they’ve gotten in over their heads with projects. These situations may be your best bet if you’re trying to break in with minimal cash.

3. You need to be 110% certain you won’t run out of cash. Always leave room in your budget for unexpected expenses. Sometimes newcomers are eager to get going and work with a tight budget or, worse yet, assume they’ll be able to get additional funding after the project gets underway. In reality, it’s really difficult to get extra funding partway through and most projects that run out of cash simply stop.

Your Team Wants You to Be Successful

Generally speaking, residential Arizona Hard Money Lenders are people just like you, but they’ve grown their wealth enough that they can begin investing in projects like yours. Their approach to lending is different than most. What they care about more than anything else is that you’ve done your diligence and have the ability to carry out a successful project. When you work with a seasoned broker, he will also be part of your team, helping make sure you’ve got everything in order and that what you’re bringing to the table is presented to investors in a way that gets them excited about what you’re doing.

If you know how to evaluate a good deal and need some cash to get going, HMLs can lend a helping hand.

While you don’t need to have good credit or a ton of cash to get started with fix-and-flips, you do need to have the right mindset and do your homework before jumping in. If you’re set on those, talk to an established broker who will help you get the best terms possible from residential Arizona Hard Money Lenders and get you started on the path to wealth.

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

111 Congress Ave | Austin | Texas | 78701

About: 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.

Taking out an Arizona Airbnb Loan and starting a business is a great way to diversify your revenue streams or begin working from home. However, there are a few key things to consider before making a purchase

1. Laws: Home sharing and short-term home rentals soared when the economy slumped. It gave homeowners the opportunity to earn some cash and vacationers a way to pick up a cheap rental. Since then, it has morphed into real businesses, and hotels are not happy about that. The good news is, letting a home is legal in most places, but there are some, such as certain parts of California and New York City where regulations are tight. Check your local codes to make sure you’re in the clear before you take out an Arizona Airbnb Loan and get started.

2. Competition: The average person is now netting $21,000 per year by renting out a second home. The opportunity for profit is big enough that competition can be a concern in certain areas. If you find an area or property you like, check how many homes within a 5 or 10-mile radius are already available and whether they’re fully booked or not.

3. Location: Demand soars in specific areas. Beaches and other types of vacation destinations have high demand. You can also target locations by airports, business centers, hospitals, and other places out-of-towners may frequent.

4. Distinction: Although short-term rentals became popular because people were simply renting out unused space, today’s market is a bit different. Your rental will need to have distinguishing features or amenities. Some people craft their places around a theme, such as a beach or local attraction. Others focus on luxury, perhaps by using premium linens and offering concierge services. Some focus on making homes family-friendly. Identify a niche and run with it. Not only will you rent out your space more, but you can command more for it.

Create Realistic Expectations when You Evaluate Your Cash Flows

As you map out the potential profitability of any given location, keep in mind that the average renter is looking for at least a couple of bedrooms and wants to spend under $1,000 per week. Add up what your expenses will be as well. Things like making payments toward your Airbnb loan, covering repairs, cleaning between guests, and stocking household necessities should all be part of your budget. If the anticipated earnings don’t leave much profit for you, move on to a different location.

You can launch your own business and work from home without needing a bank loan.

More than half of all people purchasing a second home are doing so with some form of financing, and bank loans are one way to do it for sure. However, if your credit is rotten or you don’t have other criteria the banks look for, getting an Arizona Airbnb Loan from a private hard money lender may be your best option. These are based off the value of the property you select and the home is used as collateral, so you don’t have to meet rigid requirements. Best of all, most are set up as interest-only loans, which will give you the option to begin renting your place out and generating cash without making monthly principal payments—just be sure you’re prepared to pay off the balance of the loan in its entirety when it’s due. With these things in mind, it’s easy to begin a lucrative rental business and create new streams of cash.