There are many misconceptions surrounding Arizona Hard Money Lenders. Learn the truth so that you can take advantage of the many loans that they offer real estate investors.
Hard money lenders in Arizona finance projects that other types of lenders, such as conventional banks, will not. Private lenders that provide money for real estate deals are known as Arizona Hard Money Lenders. The property that the investor is trying to finance becomes the collateral for the loan. These types of lenders evaluate the return-on-investment (ROI) and potential business of the targeted investment. The loans are short term in nature, usually up to a year, and can carry higher interest rates, organization fees, and points (a percentage of the loan amount), as well as closing fees.
Since the targeted property is the collateral, private lenders are willing to finance projects that conventional lenders are not willing to. If the borrower defaults on the Hard Money Loans in Arizona, the lender simply repossess the financed property and sells it to recover the investment of the lender. Repossessing the property is a solution of last resort. A successful hard money lender stands to make thousands on each successful project from the high interest they charge, often as high as 18 percent.
Compared to conventional lenders, Arizona Hard Money Lenders have a number of distinct benefits:
· Move faster: On a conventional loan, the approval process can take months. Real estate investors need to act fast to purchase a property before a competitor underbids them. An Arizona Hard Money Lendercan approve a loan in a matter of days.
· Offer more financing: When seeking a loan from a conventional lender, they may require 30% down. An Arizona Hard Money Lender will offer a loan of as much as 80 percent of the purchase and as much as 70 percent of the rehab costs.
· More properties can be financed: The maximum that conventional lenders can finance are up to 10 properties whereas Arizona Hard Money Lenders can finance more than 10 properties and are not limited by the number of projects. Arizona Hard Money Lenders can also finance large projects.
· Requirements to meet: Private lenders are less concerned with the borrower’s credit score, financial history, employment history or other factors that a conventional lender would take into account. The hard money lender is more concerned with the value of the target property. You will need to present to them a business plan for the project identifying how you will repay the loan. The business plan will also detail how the advance or draws, also known as progress payments, will be taken on the project. The business plan will also detail how you will engage contractors to rehab or build your project.
At Level 4 Funding, we offer rates as low as 5.99 percent. We work with hundreds of private investors, many of which specialize in various types of real estate investment strategies.
Since there are many Arizona Hard Money Lenders in the country, each has their own set of criteria for approving or denying loans. Do your due diligence and research, and when you find a lender that is willing to work along with you then build a relationship with the lender for future projects. Building a relationship may result in offering you better terms and fees for your many projects that you will be adding to your portfolio.
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: 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.
© 2019 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.