Steps to Get Approved For an Investment Property with Arizona Hard MoneyJune 11, 2012
Variations in Arizona Hard Money LendingJune 11, 2012
Arizona Hard Money is a Great Alternative to Conventional Mortgages
With the current state of the economy and the tightened financial markets, the use of private money lenders Arizona has skyrocketed over the last couple of years. Adding fuel to the fire is the fact that our so called “Great Recession” has put many people into bad credit situations that prevent them from obtaining financing through traditional lending sources. You know that you need private money lenders Arizona
in some way shape or form. Perhaps it’s to finance a fix and flip investment or maybe it’s a cash out re-finance on a property you own to get some liquidity for your business. There are any number of reasons—you’re just searching for the best private, also called hard money lenders Arizona, out there before you pull the trigger. Or you are thinking about getting started as a real estate investor and have just been introduced to the concept of private money. You’re doing your research to get a full understanding of how it works and to find hard money lenders Arizona
that you can trust when you are ready to move forward.
If you are taking a Mortgage from private money lenders Arizona, that really just establishes that no financial institution is involved. The money given is directly from private people or a group of private people and not from a financial institution. Traditional Mortgages are done by a lender giving Mortgages that meet certain criteria, once the lender has given so many of these Mortgages that fit in certain boxes they then sell the “package” of Mortgages out to what is referred to as a “secondary market” this is typically Wall Street. Do you think that you are going to have a hard time getting that type of a Mortgage from a traditional lender? The answer is YES, the reason is that if the lender does not sell the Mortgages they have to keep it on their books, this limits their lending ability. Traditional lenders get paid to package Mortgages not to keep them on their books, they need to get their money back so they can lend it out again. In contrast, hard money lenders Arizona write their own rules. They are able to make their own guidelines and not make funding decisions based upon the “box” that Wall Street or secondary market may put on them. Private money lenders Arizona are basically a conduit between people who have money that they want to invest and people who can use it, like you. One thing you should be aware of, though is that you’ll be looking at higher interest rates with hard money lenders Arizona because the Mortgage is given out based solely on the credentials of the asset (typically a piece of real estate) and not the credentials of the borrower (your credit, job history, income, etc.).
THAT’S THE BEAUTY OF ARIZONA HARD MONEY!
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