Beretta Only: Tips For Success Using Hard Money Loans

Tuesday, January 1, 2019

Tips For Success Using Hard Money Loans

As a new borrower in the world of hard money loans, there can be many confusing questions. But a few tips can ensure that you are getting a great deal using hard money.

Hard money loans in Arizona are a great tool for many borrowers who are having difficulty qualifying for a traditional loan or who are getting into the real estate investment business. Low credit scores or multiple loans can have an adverse impact on your application and can be very disheartening. But knowing how to use a hard money loan correctly can solve your loan issues very quickly.

Hard money loans in Arizona are short-term and are secured by collateral rather than the borrower's credit rating. So understanding this and knowing how to get a great deal from a hard money lender is important to secure your loan and your future. When you are shopping for a hard money loan, be sure to ask each lender for a complete list of all of the fees that he or she charges on a loan. This will ensure that you can calculate the total cost of each loan option to choose the most affordable loan. Also, beware of lenders who require a very large, non-refundable deposit. Many of these are not real lenders. Instead, these are scams and the person posing as a lender has no intention of ever funding any loans. He or she is just stealing application fees and possibly even personal information and identities from potential borrowers.

Another costly mistake is working with a person who is a broker but is not the actual lender. In these cases, you will end up paying fees to the broker who then passes you on to the actual lender. But paying the extra fees can make your loan much more expensive than it should have been. One way to be certain that you are working with the actual lender is to ask for a list of references and previous clients to speak to about their experiences. A legitimate hard money lender will be happy to provide you with this information and to have you confirm that he or she works in a professional and upfront manner.

Bait And Switch

When you are researching lenders, it is always best to request that all information be provided in writing. This is a good way to make sure that the lender does not offer a certain rate and then change it later after you have begun the process of completing the loan documents. In most cases, Hard Money Lenders in Arizona are very legitimate and are happy to provide this information in writing. If you find that your lender is not forthcoming with information, then that is a possible sign that you need to find a new lender.

Terms

Private lenders are free to set the terms of Hard money loans in Arizona as they see fit. Be certain that you request a complete copy of the loan document to review prior to signing it. If you are not familiar with loan documents then it is wise to have the agreement reviewed by a legal professional to be certain that you understand all of the terms such as late payment penalties, the definition of defaulting on the loan and any penalties for early loan payoff. Know how to shop for a loan is almost as important as knowing which type of loan will best meet your needs.

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.