Finding the right property to invest in is key. You need something manageable, with a reliable team and a solid set of plans. When seeking out a property, you should highly consider choosing one that is already improved. An improved property will already have major key features, like sewers and water lines, that you won’t have to worry about investing in later. Additionally, your property should be in an appealing location. It should not be too remote, and close enough to popular entertainment districts, restaurants and businesses, making it marketable in the future.
So, you’ve found the perfect property! What now? You’ll need to consider how exactly you’re going to invest—this involves researching public and private lenders, and determining who can best help you. Truly understanding the differences can make or break you, especially when you are working on making a profit!
When it comes to loans, you have both traditional and untraditional options. Your local bank or credit union is a common option if you are seeking out a public lender. They will be able to help you, but will have strict loan requirements and regulations. Depending on your current and past state of finances, it may be difficult proving yourself to be a reliable lender. If this is the case for you, research a local hard money lender. They are untraditional options, however, they offer speed and flexibility that is unmatched by banks. If you don’t get approved by a bank, there is still a chance you can be approved by a private lender. You will have to prove yourself as a reliable borrower, but not all of it comes from your financial history. Your property and plans will play a large part in whether or not you gain approval. Generally, there are higher interest rates and fees associated with private lenders—in addition to a short loan repayment period. Some borrowers consider the speed and flexibility of a private lender significant enough to outweigh the cons—it just depends on you! Additionally, the short repayment period lends itself to investment properties, especially on ones that come with success and a quick profit.
Don’t stop searching for a lender after the first one you meet. Choose someone who believes in your project, but who you also believe in! Take the time to truly understand the agreements to their loan and, if necessary, hire a real estate attorney. Nothing is better than moving forward with confidence when making such major decisions, and a real estate attorney is someone who can break down the legal agreements into something more comprehensible. If you are considering a private money lender in Arizona, discuss your options with the lenders at Level 4 Funding. Give us a call today and let us know how we can help you!
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: 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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