Can You Get Arizona Rental Property Loans with Rotten Credit?

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Can You Get Arizona Rental Property Loans with Rotten Credit?

When you’re a landlord, you may have the opportunity to work at home or schedule most of your workday around your personal needs, but getting started in the field can be a challenge for those with rotten credit. The good news is, you can still get Arizona Rental Property Loans even if the banks won’t touch you.

Banks have very strict criteria for their borrowers, even when the individual is trying to get a loan for business purposes. They’re looking for things like a strong credit score, a good history of payments, stable income, and a whole lot more. The fact is, you’re under immense scrutiny when you approach a bank, and most people don’t make the cut.

Thankfully, banks aren’t the only ones who offer Arizona Rental Property Loans. Alternative lenders will work with you even if you have rotten credit or haven’t had enough time to establish credit yet. This realm of lending is typically known as hard money. Your potential to get a loan is based on the value of a hard asset. In the case of running rentals, it’s that property or multiple properties which serve as collateral.

The process for approval is also different. You’ll still have to go through some of the same processes you might have gone through with a bank, such as supplying documentation and having your credit checked, but eligibility is confirmed quickly and you can get funded within days.

Know the Differences Between Lenders

Not all Arizona Hard Money Lenders specialize in Arizona Rental Property Loans. Some like to work with other types of real estate investments, such as fix-and-flips, construction, or commercial buildings. Because of this, you’ll want to specifically seek out the help of someone who helps budding landlords. The best way to do this is to connect with a broker who works within this industry or across several, as he or she will likely know dozens, if not hundreds, of potential lenders and can match you with the right one. Moreover, your broker will also help ensure you get the best terms possible. His or her goal is to make sure you’re totally set and have everything you need to be successful, so that when you’re ready to expand your portfolio, you return for his or her help again.

If you can develop a solid business plan, you can get funded quickly.

To get Arizona Rental Property Loans, you need to be a details person. First and foremost, you’ll need to know all your numbers, such as the cost to make the initial purchase and what expenses you’ll have prior to beginning operations and what costs you’ll pay out to maintain the properties. You’ll also need to know what rate your rentals will command, which is typically done via comparative analysis. Following this, you’ll need a detailed plan outlining how you intend to get the home ready for your renters, what you’ll be doing to maintain it, and other important information. Having an exit plan is also crucial with hard money. During the duration of the loan, you’ll likely be making interest-only payments, but at the end, you’ll need to pay it off in full. It doesn’t necessarily matter how you do it, just that you’ve thought through the process and have a plan of action that will enable you to pay off the loan when you’re required to do so. In other words, you can get approved and start living your dreams, regardless of your credit, but you’ll need to do your homework and know your numbers first.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
Dennis Dahlberg


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 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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