Arizona Hard Money Lenders are individuals that have money to lend to projects. They will finance a borrower’s who bring projects to the table that an Arizona Hard Money Lender can anticipate will have a large return.
Why would anyone need an Arizona Hard Money Lender when they have a bank? Great question! There are many reasons to use hard money. A huge advantage to working with an Arizona Hard Money Lender is they do not focus on your credit report or your monthly generated income. Their focus is on your assets. Why? Because banks and individuals want to know they will have their money returned to them—while banks focus on “if” a borrower can pay the loan back, an Arizona Hard Money Lender focuses on “knowing” the money can be paid back. In plain language—your assets are their insurance. If a borrower defaults the lender can repossess the property and sell said property.
Arizona Hard Money Loans are short-term loans and, although there are situations where people in need of long-term financing use these loans temporarily, make the most sense for fix-and-flip investors. Fix-and-flip investors buy a property, quickly rehab it and sell it for much more than they purchased. These investors usually are in need of financing for only a very short period. Typically, Arizona Hard Money Loans are interest only loans with a balloon payment due at the end of the loan term. Most Arizona Hard Money Lenders do not impose an early payment penalty—meaning as soon as the property is sold the borrower is able to pay back the loan which decreases the pay back amount.
Arizona Hard Money Lenders can be more flexible in their loan terms than traditional banks can. These lenders do not have a standardized underwriting process. Each deal is appraised individually. Because of this flexibility lenders are able to adjust repayment schedules. An Arizona Hard Money Lender is one individual the borrower will work with— versus a team of people the borrower never sees at a traditional lending institution.
Arizona Hard Money Loans are closed quicker than conventional mortgages. Because their underwriting is much more lenient than a bank’s they don’t spend as much time on the loan application. They are focused on the collateral.
Arizona Hard Money Lenders work using a loan-to-value ratio. They keep this ratio anywhere between 50%-75% usually. However, in certain situations it can be up to 100%. If the borrower is buying an investment property, the lender will lend as much as the property is worth. Using this formula ensures the lender that in case of default the property can be sold back for the loan amount.
If you are a real estate investor or plan on becoming one it will benefit your business to find a Arizona Hard Money Lender you work well with. Being connected to an Arizona Hard Money Lender will prove priceless, especially during times where fast cash is needed.
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.