Using Arizona Hard Money to Invest in Real EstateJune 11, 2012
Hard money – despite the name, it’s easy, not hard.June 11, 2012
Arizona Hard Money Lenders Want To Lend
HARD MONEY LENDERS ARIZONA ARE USUALLY PEOPLE WHO HAVE ACCESS TO A LOT OF MONEY AND ARE LOOKING FOR A WAY TO GET A HIGH PERCENTAGE RETURN ON THAT MONEY. THAT IS WHY THEY WILL LEND TO YOU WITHOUT MUCH RED-TAPE. HARD MONEY LENDERS ARIZONA ARE ALSO KNOWN AS PRIVATE MONEY LENDERS ARIZONA, SINCE THEY ARE INDIVIDUALS AND NOT A BANK OR CREDIT UNION WHERE YOU WOULD NORMALLY GET A HOME Mortgage. MOST PRIVATE MONEY LENDERS ARIZONA ARE GOING TO LEND TO REAL ESTATE INVESTORS WHO ARE LOOKING TO MAKE A PROFIT BY FLIPPING A HOME AND THEN SELLING IT FAIRLY QUICKLY.
The way that hard money lenders get a good return on their money is because they charge higher interest rates than a conventional Mortgage would. They normally do not lend to someone who plans to live in the residence. Basically, they want to be able to take the home easily if the investor whom they leant money to defaults on the Mortgage. That way, even if they don’t receive the return on their investment in cash, these private money lenders Arizona are still going to get their money back—probably even more than they would have—after they sell the property purchased using their hard money. It’s a win-win situation for them, as long as they have a good lawyer and set themselves up for success. Either they are going to receive back their money with a lot of interest, or in the case of default, the hard money lenders Arizona receive a property that is worth enough for them to still make that money or more.