Flipping hard money loans the right wayJune 11, 2012
The Appeal of Arizona hard money is great for home flipping.June 11, 2012
Hard money lenders Arizona – the basics, revisited
So let’s talk about some of the many benefits to a hard money Mortgage. But first, let’s go over the basics. You may recall that a hard money Mortgage is a form of asset-based borrowing that deals with real estate financing. Some borrowers also pursue Arizona hard money
Mortgages when their financing needs are more pressing and when more traditional and conventional financing sources cannot respond.
SO, IN MANY CASES A HARD MONEY LENDERS ARIZONA WILL OFFER A SMALLER Mortgage SIZE BASED UPON A LOWER Mortgage TO VALUE RATIO. THIS ONLY MEANS THEY MAY OPT TO Mortgage NO MORE THAN 65% OF THE PROPERTY VALUE. THEREFORE IT IS MORE COMMON FOR REAL ESTATE INVESTORS TO OFFER ADDITIONAL REAL ESTATE AS COLLATERAL IN ORDER TO OBTAIN A LARGER Mortgage AMOUNT. THIS IS KNOWN AS CROSS-COLLATERALIZATION. ADD THAT TO YOUR GLOSSARY.
Then, it’s simply a matter of contacting them with your idea or offer of investment. They’ll invite you into their office where they’ll give you free donuts and make you feel at home so when you discuss all the grimy details of this Mortgage type, you don’t feel uncomfortable.
Don’t think too much when dealing with these types of Mortgages. Remember, they are designed to be simple, even when they cost a little more than the average guy down the street. Furthermore, don’t let yourself be worked around by people who use a bunch of fancy words to confuse the snot out of you. You want your hard money lender to be someone you can trust just like your friends, because you’re dealing with some very risky number crunching.
hard money lenders Arizona