Like most businesses, no two Hard Money Lenders in Arizona are alike. Find out what to look for when considering obtaining a loan from residential Hard Money Lenders in Arizona.
So, you’re ready to start the adventure of looking for a residential property to buy for an investment. Well, you are about to find out how challenging and time consuming locating a lender can be. Many real estate investors turn to the hard money broker who acts as intermediary between you and the investors who loan the money. This intermediary is, in essence, your loan officer for the Hard Money Loan in Arizona.
The advantage of residential Hard Money Lenders in Arizona is that the loan can happen quickly, and they have a higher approval percentage rate than traditional lenders. Most lenders are concerned with your credit score and proof of your income to repay them. Getting approved by a traditional lender is often a painfully slow process. It does not matter if you have a great credit score and plenty of income, you will be faced with a longer process and may not get approved, particularly if your income is difficult to verify.
A different approach awaits with a hard money lender who depends on the collateral securing the loan. These lenders are less concerned about your credit and financial statements and more concerned about the hard asset. If you default, they will take the collateral, sell it and get their money back. Hard Money Loan in Arizona are short term in nature, usually from one to five years. If you are planning to hold onto the property, you will want to refinance the loan following rehab since the interest rates are higher than conventional loans.
Why Investors Turn to Hard Money Lenders in Arizona
Speed: The loan process is much quicker since these lenders are more concerned with the collateral than your personal financial situation. If you default, the hard money lender will take possession of the property and sell it.
Flexibility: Traditional loans are very strict in process while Hard Money Lenders in Arizona are much more flexible. Standard underwriting processes are not utilized. Each deal is individually evaluated. You will be borrowing from an individual instead of a corporation.
Approval: The most important concern with a hard money lender is the collateral. If your project is an investment property then the hard money lender will lend what the property is worth. Even if you have a foreclosure or other negative information on your credit report, you may still be approved. Some of these lenders may not even look at your credit report.
Hard Money Lenders in Arizona will look at the loan to value ratio. For some, the maximum LTV ratio might be 50% to 70% which means that you will need additional assets to qualify.
Be sure to obtain references before signing on the dotted line with a hard money lender. Real estate agents are a good resource. Reach out to investors and discuss your needs with them. At Level 4 Funding, we are happy to speak with you about your individual needs. We offer quick funding—within as little as two days, and rates that start at 7.99 percent. Call us for a no-obligation quote.
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.
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