A private money lender may be the answer to your funding problems particularly when you can’t use the more traditional types of financing. Look into these loans and find out if this path is one you should take.
You are someone who wants to invest in a good area that can make you some money and a couple of your friends suggested real estate. You think it’s a great idea, but just last year some property you had acquired when you had personal funding was foreclosed on. Since you are a private contractor with income received by the job, you are often classed as not having a steady income despite business being rather good the majority of the time. These things, as you have found out, will hold up any conventional loan application you make if not completely deny it to you altogether.
Then someone suggests that get private or hard funding, stating that Arizona private money lenders approach loans with a different focus and have numerous types of them—Arizona Bridge Loans, rehab loans, commercial loans, etc.–to offer a customer. The first thing to do is find a list of private lenders and choose several who offer the type of loan you are searching for.
Arizona private money lenders arrange their financing through secured or collateral-based loans, mostly for property that is to be bought, renovated and then sold (termed mostly as a ‘fix-and-flip’ loan). A property lien protects the lender’s interests in the event that the borrower dies or is otherwise unable to pay back the money. It also is a benefit to both parties’ taxes as long as everything is set up correctly. A fee, generally negotiable, will be charged by the lender to the borrower.
These lenders, termed ‘relationship based investors’ can be a close friend, a professional colleague or companies (hard money and accredited) set up for just the purpose of dispensing short-term-investment loans.
You need to check into all the details of a private loan since they are set up based on individuality and have varying conditions covering everything from what type loan and the repayment time to interest amounts and down payment percentages. Set up mainly involves a down payment with the borrower making interest payments during the repayment period and paying the balance off at the end of that time. Arizona private money lenders sometimes charge prepayment fees if the loan is paid off early. However, payments might be smaller than conventional mortgages since private loans are amortized like the standard mortgage. Repayment time on the average is generally a year.
Be a detective—one who notes if all the i’s are dotted and the t’s are crossed–and check further into private investors. Learn where you stand, how much you have to gain and pursue your goal from there.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
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 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 and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.