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No Money Down Arizona Fix and Flip Loans: Advice for New Investors

If you are new to be flipping business, you may have heard the prospect of no money down Arizona Fix and Flip Loans. You may be thinking “hmmm,  I can get into the flipping business without spending any of my own money, well sign me up!” 

You can use three methods to pay nothing out of pocket for your next flipping project, wholesaling, private money and hard money.

Let’s talk about wholesaling first. The Easiest way to explain the process is you sell the option to purchase the house to another investor. You don’t spend any money; you secure a purchase contract with a buyer  and before the date on the purchase contract comes around you sell off the option to purchase the home to another investor.

Wholesaling is not a good option for someone who is new to the rehab business.  A good wholesaler knows how to find the most attractive houses to flip, can compete with full cash offers to secure a bid and above all, they are in contact with a network of other real estate investors who are willing and eager to purchase their contracts.

As a new investor, it is doubtful you have any of these qualities. So what are your other no-money-down financing options?

Few new house flippers can qualify for no-money-down Arizona Fix and Flip Loans from private investors.

The situation with private money involves you seeking out a cash buyer to finance the full cost of your flipping project upfront. In this situation, you have to prove your value to an investor, and have an answer for him when he asks “why should I pay for the full cost of your project?” The investor needs believe that you can carry out the work,  and all he has to do is sit back and let the money roll in.

However, if you’re new to the flipping business, you don’t have the requisite demonstrable proven track record when it comes to rehabbing distressed properties. Given this lack of experience, you probably wont get an investor on board. What are your options when it comes to getting no money down financing, for your first flip?

Hard money can be a route for new investors to get no money down Arizona Fix and Flip Loans but carefully consider the risks.

If you have enough collateral on offer, even if you’re new to the flipping business you can still get a zero down hard money deal.

A hard money provider is a lender who offers you a loan based on the value of your collateral.  You need to find a hard money provider who is “creative,” when it comes to collateral. If you pledge enough of your assets, some hard money providers might not require you to make a down payment. To truly pay nothing out of pocket, you also need to find a lender who is willing to defer the payment of fees until your project resells. But, are you willing to pledge your primary residence,  401(k) or any other assets to avoid out of pocket expenses?

You need to consider this question carefully. If you are new to the flipping business, it might be better to make a steep down payment than to risk losing your house. The more experience you get with house flips, the more financing options you’ll have. You can get into wholesaling, partner with other investors and you’ll have a bit more confidence to get a no-money-down hard money loan.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Fix and Flip Loans: Exit Strategies.

iStock_000002512608_LargeYou are in the flipping game, and you’re just brimming with hopeful expectations about your next project. The house is a diamond in the rough, and in your capable hands, you will polish it into a sparkling gem. You are ready to apply for a loan, but what if things don’t quite go according to plan? With Arizona fix and flip loans its best to have an exit strategy in mind before you even apply.

Finding the right opportunity isn’t everything the flipping game, in fact, it might be even more critical to plan ahead in case things go wrong. Don’t be overconfident going into your next deal. No matter how beautiful the renovations you intend to make or how splendid profit your projections look on paper, math and reality don’t always line up. When it comes to flipping, there are two classes of exit strategy: preemptive and “well that sucks,” strategies.

Preemptive Exit Strategies for Arizona Fix and Flip Loans

A preemptive exit strategy involves you getting out of a deal before you begin the project in earnest. When it comes to taking preemptive action there are two basic strategies:

  • Keep it Simple:  in this case, you’ve lost confidence in the prospect of doing a full-blown renovation, but you still think there’s some money to be made. So keep it simple, narrow the scope of work, replace the carpet or give the interior a fresh paint job. Then you sell the house for a little less money to a prospective buyer.

  • Wholesaling: Basically you leave the house untouched, you don’t do any work, and you sell the house back to another real estate investor. Whatever preemptive strategy you choose you need to ensure the sale price can pay-off the remaining balance of your loan.

The worst-case scenario is that you’ve already gone full bore into a project, completed renovations and…

“Well, that sucks,” exit strategies for Arizona Fix and Flip Loans

Your once shambolic home is now full of snappy furniture and shiny finishes, but no one is buying.  The open door creaks in the wind and the cookie plates go unconsumed at every open house. All the while the home sits unsold and you are paying real estate commissions and the cost of carrying your loan. There are two basic things you can do in this case:

  • Rent it:  You find someone who is willing to pay for the privilege of living in your home every month.  Of course, if you go for this option, that high-interest short-term loan you took out the flip house in the first place might be too expensive. The rent you charge must at least equal your loan payments. If not you might need to refinance, 

But if you can’t refinance you might have to,

  • Eat it:  You keep lowering the list price until someone takes the house off your hands.  Hopefully, in the end, you’ll breathe a sigh of relief, you might not have made a profit but at least the final sale price paid for the loan. But this won’t always be the case, you might just have to eat the difference between the final sale price and the outstanding loan balance. But this better than going into default.

So how do you avoid eating it? Don’t just waltz wistfully into every opportunity, hold off a bit. If you have some uncertainty, ponder if you’ll be able to refinance if the property doesn’t sell. But if you regularly flip houses, sometimes you will simply have to eat it.

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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

The Facts About Arizona Rental Property Loans

iStock_000002338446_LargeGet more returns with Arizona Rental Property Loans.

First off, property investment attracts investors wanting to use funding from a bank, instead pulling an ungodly amount of cash out of pocket. Do you have to be a million or billionaire? No. Not at all. You just need to secure the funding and provide a percentage of cash down to protect a lender should a foreclosure occur. This is great! To start leasing, you do not have to fork out a fortune to buy a $200,000 home along with the added cost of renovations, marketing, and the works. Instead, you rely on a lender: an entity that evaluates value, equity, and risk in order to fund you, the investor.

Alright, you can get money from Arizona Rental Property Loans. So what. What does that get you? Well, “you gotta have money to make money,” and when it comes to property investment, you generally use Arizona Rental Property Loans to purchase real estate to build, fix real estate to sell, or renovate real estate to rent. If you have connections and experience with construction and contractors, building may be a viable option. If you are looking for a quick pop and a good return within a shorter period, flipping may be your niche. However, if you’re in the game for the long haul, if you want to build the next mecca of personal equity, or if you just want a steady trickle of cash from leasing, rental property is where it’s at.

Arizona Rental Property Loans allow for an individual to build equity by using profit from leasing to pay off debt. Equity is what you own: for example, you put down $35,000 to receive a loan of $65,000 at a certain interest rate. $35,000 is your equity in the property. The more you pay and the less you owe the lender, the greater your equity. Aside from paying off debt, renovation may increase the overall value of a property, worth of a debtor’s equity, and the price of rent.   

Arizona Rental Property Loans Create Long-Term Security

While constructing and flipping provide relatively quicker returns, investing in rental property may establish income via long-term renters. With a newly renovated property in a desirable area and at a market-conscious price, a landlord with a business knack can rake in consistent returns.

Build equity with Arizona Rental Property Loans.

Over time, investors hope to pay off the property. Owning property free and clear once again increases the returns. Should the market value of property rise, the owner is able to sell the property and reap the benefits of positive equity. If the owner chooses to continue leasing the property, he or she can then use the money to further invest and build more rentals, businesses, or savings.   


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

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions