You are getting into the rental property business. Maybe you have done the research and have looked at various neighborhoods in a particular city, area, or neighborhood that are able to give a good return on long term housing rentals. Great. You have the idea, the research, and the iron will to push forward, but you are left with a crucial question: where is the money to do this? The answer for many investing into the renting business is found in locating a comfortable financing situation.
First, what type of loan are you looking into, hard money or conventional? If conventional, do you have a strong credit score, a record of financing and renting out homes, a comfortable amount of cash down (20%-30%), and a favorable debt-to-income (DTI) ratio? Also, is the real estate you are looking to buy in good shape—not distressed or in need of a solid renovations?
If not, Hard Money Rental Property Loans in Arizona are your next option. Hard Money Rental Property Loans in Arizona have less stipulations than conventional lenders. To receive such a loan as this, a borrower must have enough cash down, 20% to 60%, to create a favorable loan-to-value situation for his or her lender. Otherwise, he or she will need to leverage current real estate assets owned to mitigate the lender’s risk. By leveraging property, especially with excellent positive equity or with no debt owed, up to 100% LTV is possible.
On top of this, previous credit issues such as bankruptcy, foreclosure, and delinquency can be overlooked in favor of an optimistic equity situation. Don’t worry about the past, it is time to live in the glory of the entrepreneurial present.
Another benefit of using Hard Money Rental Property Loans in Arizona, is that you are able to buy distressed property. This is a benefit if you are interested in renovating to rent a house since purchasing a house is cheaper than purchasing other refurbished units in an area. Though this may take honing a few more skills and becoming one with your inner weekend warrior, many are able to get more returns by paying less in these instances. If hard money lending seems right for you, talk a hard money broker at Setabay.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
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 and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.