Beretta Only: Is It About Time You Considered Using Arizona Hard Money?

One of the most common hurdles for new investors is finding hard money in Arizona to fund their deals.

While this can be a struggle at times, it is currently more accessible than ever to find the capital you are looking for. Between lines of credit, private lenders in Arizona, retirement funds, credit cards, and traditional bank loans, there are numerous options available to those that know where to look. The key is to find a funding source that works for you. Often, that source will be an Arizona hard money lender. Hard money has gotten a bad rap over the years but has proven to be a reliable way to fund deals. If you don't have a hard money outlet or have yet to use one, now may be the time to find as much information on them as possible.

An Arizona hard money lender is an individual or group of individuals that lend money on their terms. They put stock in the property and the actual financials of the borrower more than anything else. With traditional lender financing, if your credit score falls below a certain threshold, you may have trouble getting approved regardless of other factors. However, hard money lenders have their own set of criteria. For this flexibility, there are more fees and higher interest rates. Some investors will balk at those opting for lower rates that banks offer. This can work on specific properties and deals, but you need to act quickly on those that are time sensitive, and that's precisely what hard money allows you to do. Here are just a few of the benefits of using a hard money lender:

1. Speed: In today's real estate landscape, how quickly you can close is often more important than the amount you offer. Too many lenders have been burned in the past waiting for deals to complete that never do. Even if they close, a financed transaction's average length is approaching 45 days. Most sellers would take a slight discount with the assurance they can complete in a week rather than risk closing in 45 days. This speed allows you to make offers with five or seven-day closings. On borderline deals, you can bet that your offer will be the one that is accepted.

2. Volume: Instead of waiting 45 days to start working on the property, you can cut the time down to just a few weeks. Shaving a few weeks off every rehab project, you create the opportunity to close more deals over a year. Adding just one or two values to your portfolio will increase your bottom line exponentially. Often, you may be able to close two or three times the volume you locked the previous year. When the number of deals you complete starts to creep upward, so will the number of contacts you make. The people you meet are just as important as the deals themselves, if not more so. Remember, real estate is a people business. The more sales you make, the more contacts you can make. In turn, those contacts may even lead to more deals.

3. Quality: Having capital to close is only part of the benefits that coincide with hard money. With Arizona hard money in your corner, you can do whatever needs to be done for the property. Instead of cutting corners to save money, you can do the work you know needs to be done. This will help you maximize your bottom line and improve your reputation in the industry. In addition, realtors and fellow investors who see your finished products may want to work with you. Quality will also help get your property sold to end buyers much faster. Instead of hoping that an offer comes in, you will have your choice of deals.

4. Bigger Projects: Increased capital allows you to slowly build your way up to more significant projects. Instead of looking solely at single-family properties, you can start to look at multifamily and commercial deals. Furthermore, closing more deals will increase your capital and give you a significant share of more extensive sales. There is nothing wrong with sticking to condos and single-family properties, but having hard money behind you gives you to opportunity to explore other options that come your way.

Aligning yourself with a hard money lender doesn't mean you have to use them on every deal. For example, a property you want to buy and hold may be better served with a long-term interest rate of around four percent. However, most rehab projects need the efficiency that hard money brings. The ultimate goal should be to save some capital from every deal until you have committed enough to fund them yourself. You may have to make a little less per deal to increase your bottom line until you get to that point.

The biggest knocks on hard money in Arizona are the high fees and points. These accrue from the time of settlement until you can sell the property. In some cases, it can span several months. However, it is a small price to pay for what you get. In addition, the annual interest over a few months is a relatively minor factor compared to all the other expenses you will incur.

Additionally, you only pay these on deals you close. If you can't complete, you can't earn; Arizona hard money helps you close more deals. It is not for everyone on every sale, but it should be a part of your financing options.

Equal Housing Opportunity. This is not a Good Faith Estimate and this is not a Guarantee to lend and should not be considered as such. Costs, rates, estimates and terms can only be determined after completion of a full application. Actual payments will vary based on your individual situation and current rates. APR for loans vary from 7.99 - 29.5% and is based on Credit Score, Down Payment, LTV, Income. Mortgage rates could change daily. To get more accurate and personalized results, please call 623 582 4444 to talk to one of our licensed mortgage experts. Terms and conditions of all loan programs are subject to change without notice. Level 4 Funding LLC, 22601 N 19th Ave Suite 112, Phoenix AZ 85027, 623-582-4444 NMLS 1018071 AZMB 0923961 This e-mail is for the exclusive use of the intended recipients, and may contain privileged and confidential information. If you are not an intended recipient, please notify the sender, delete the e-mail from your computer and do not copy or disclose it to anyone else. Your receipt of this message is not intended to waive any applicable privilege. Neither this e-mail nor any attachment's establish a client relationship, constitute an electronic signature or provide consent to contract electronically, unless expressly so stated by Dennis Dahlberg RI/CEO, Level 4 Funding LLC, in the body of this e-mail or an attachment. To the extent this message includes any tax or legal advice this message is not intended or written by the sender to be used, and cannot be used, for legal or tax purposes or advice.

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.

Beretta Only

Thursday, February 9, 2023

Is It About Time You Considered Using Arizona Hard Money?

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