What Matters (and what doesn’t) in Arizona Hard Money Loans

First and foremost, what matters is that you need to be approved for a loan quickly and easily. That’s the good news. Fortunately for you, there is much more good news that comes when dealing with Arizona hard money loans. You need to do your research and find the right hard money lender for you. Obviously, you want to find one with low interest rates and a quick approval time, but that’s not all that matters in Arizona hard money loans.

It’s good to know that hard money loans are equity based and are usually approved for an amount somewhere between 60% and 85% of the value of the home property. This is a significant amount of the mortgage and can help you greatly if you cannot get approved by another lender. Arizona hard money loans are typically short-term, ranging from 6-36 months, so that’s important to know too.

It matters that you are professional and truly striving to make the payments of a hard money loan. Lenders are taking a significant risk in loaning the money to you because they are only basing their decision on the value of the home.You need to do all that you can to show them you value their business and are willing to hold up your end of the agreement.

What doesn’t matter in an Arizona hard money loan

There are other benefits for you in an Arizona hard money loan. If you have had trouble getting approved for a loan in the past, it could be due to your inability to pay or prove that you can handle the responsibility. However, if you have turned things around and are ready to take on another financial obligation, you can get approved for an Arizona hard money loan quite easily. Lenders do not check your pay stubs, tax information, or even your credit.

So basically, it is quite easy to get approved. If a lender can see that your home or project is worthy of investing in, they will approve you for a loan. Remember though that when you purchase your home, it is then used as collateral for the lender and can be used against you if you do not make your payments.

There are pros and cons in the hard money lending industry, as in any other industry involving money. You might find that interest rates are high, but that eligibility is easy. The approval time for an Arizona hard money loan is usually around 24 hours, so the money comes quickly. If you are looking for a way to fund your next home purchase or project, hard money lending could be right for you.

The Truth about Arizona Hard Money Lenders

Many first time investors are curious about hard money  loans. What do these loan companies do? Who are they? Where does the money come from? These are all common questions coming from those with little to no experience with the hard money industry. Let me enlighten you on what Arizona hard money lenders do and a little bit about how they work.

The term “hard money” is important to understand. Clearly the opposite of what investors call “soft money” (that referring to loans that are easier to qualify for and are more flexible), hard money is a little more restrictive. This makes perfect sense because most hard money loans come from private Arizona hard money lenders and are not based on credit or ability to pay so the risk is much greater. This money does not come from a bank or typical lending institution, but rather from a private investor with extra money on hand.

Things to know about Arizona Hard Money Lenders

First, know that Arizona hard money lenders are on your side. They understand that a difficult financial past can damage your qualifying power but should not keep you from pursuing your dreams. That’s why they don’t check your credit, ask you to provide pay stubs, or investigate your financial history. The loans are completely equity-based, so they have less to do with you than you think.

Most Arizona hard money lenders will loan you anywhere from 60% to 85% of the value of the property or home you are looking into buying.  Typically these loans tend to be on the short side (about 6 to 36 months) and have higher interest rates than most loans. The interest varies according to your credit score and experience.

Do your research before deciding which Arizona hard money lender to pursue. Compare and contrast the interest rates, loan lengths, etc. so that you find the deal that is right for you. The most important thing to keep in mind is that you not ask more than necessary and that you have some sort of repayment plan in place.

Why Choose an Arizona Hard Money Loan over a Traditional Loan?

Some people might think opting for a hard money loan over a traditional loan is a crazy decision to make. With higher interest rates and shorter loan lengths, why on earth would anyone make this decision?

There are many misconceptions about Arizona hard money loans. (A few of which are stated above.) There are also many reasons why hard money loans are a legitimate option for borrowers. Most of the time, borrowers who choose Arizona hard money loans simply cannot meet the compliance requirements of their bank’s or traditional lender’s guidelines. Sometimes when the only option you can qualify for is a hard money loan, you must proceed.

Another plus to Arizona hard money loans is that they are much more prompt than other lenders. In fact, a loan can often be approved and funded all in a day’s work. Many other lenders can take up to two weeks to process and approve the loan. That can be a long time to wait to possibly hear bad news.

What can Arizona hard money loans be used for?

There are a variety of uses for Arizona hard money loans. Another misconception about hard money is that it can only be used for home purchases such as short sales. However, that is not always the case. Funds from an approved Arizona hard money loan can also be used for fix-and-flip projects, property development, foreclosure bailouts, debt consolidation, probate resolutions, etc. The possibilities are practically endless with this type of money lending and exchange!

Before deciding which hard money lender is right for you, be sure to do your research! Compare and contrast several companies before making your final decision and go with what feels right. Obviously, this is a professional agreement, so you need to make sure  the company you choose has the highest level of professionalism.

Qualifying for an Arizona Hard Money Loan

You probably have some financial experience or at least some knowledge of traditional financing. If all you know is that getting approved for a loan is difficult, then you know enough. If you know that you have poor credit, you may not have even attempted to apply for a loan in the past. However, Arizona hard money loans could be the answer to your problems.

With Arizona hard money loans, you don’t have to worry so much about your personal financial profile--things such as credit, income, employment history, and ability to pay don’t have much to do with it. Arizona hard money loans are equity-based, so it’s more about the property than it is about you.

What Arizona Hard Money Lenders Consider

The first and biggest thing lenders consider is the equity of the property. Is it worth it? Or is your investment project not going to lend any positive results? Lenders consider the LTV (loan to value) ratio between the amount you want to borrow and the value of the property. In this case, make certain you are not asking to borrow an outrageous amount of money for a home that isn’t worth much. For the most part, Arizona hard money loans are usually between 65% and 80% of the value of the property.

Another factor lenders consider is previous liens. Do you have any other liens on the property? If so, you may not get approved for a loan. Hard money lenders will not agree to loan money on a secondary basis. They must be the PRIMARY lienholder. f

As stated before, qualifying for Arizona hard money does not mean that you have to have good credit or a high income. In fact, one of the main reasons people seek out hard money loans is that they do not have the credit or income necessary to qualify for a loan from the bank or other financial institutions.

Overall, Arizona hard money loans are less restrictive than traditional loans. There is less turnaround time, no need to provide proof of income, and you get to work out the plan personally with your investor or hard money company. Many people find that Arizona hard money loans are viable and trustworthy places to get the money they need quickly and easily.

Types of Arizona Hard Money

There are lots of ways to make Arizona hard money work for you. While most people think of hard money loans as those high-interest, last-resort, type of money options, they can actually be used creatively and efficiently so that the lender and the borrower both end up profiting in the end. How can this be done, you ask? Read on to find ways to make Arizona hard money fit your circumstance!

Arizona Hard Money can be used in diverse situations.

The first and most common example of Arizona hard money loans is a residential investment loan. This is for a personalized and individual situation (not commercial) and the property is used as collateral. This type of loan, or any hard money loan for that matter, is not based on personal finances or income, but rather on the value of the property.

The second type of Arizona hard money is for commercial investments. This is for companies looking to invest in property or in a “fix-and-flip” project. In this case, your company might not have ownership of other property to use as collateral, so instead, they may accept interest in your company. Basically, the Arizona hard money lender would be a part-owner of the business.

Once again referring to the “fix-and-flip” type projects, Arizona hard money can be used for this type of situation. Basically, the hard money lender would give you a short loan (6-36 months) that you could  use while you are revamping the property. Then, you can turn around and sell the property you renovated for more than you bought it for, pay your loan off, and make a profit. This is a new and creative way borrowers are utilizing the services of Arizona hard money. In fact, in this instance, 3 people are benefitting: the lender, the borrower/project person, and the buyer of the home who just purchased a completely revamped and fabulous home or property.

These are only three ways you can make Arizona hard money work for you. The possibilities are endless! And, since each situation is completely unique, hard money consultants and companies can walk you through the process and help you explore your options.

Finding the Right Arizona Hard Money Lender for You

Finding an Arizona hard money lender could seem like a daunting, insurmountable even, task. In fact, you may be so deep in financial hardship, it’s taking all of your strength just to keep your head above water. However, this situation does not have to be your reality. Arizona hard money lenders are available and ready to loan you the money you need and get you on your way to financial freedom. There are a few ways to find the right Arizona hard money lender.

First, you need to determine the kind of hard money you are seeking. Are you a commercial developer in need of hard money? Or are you an individual interested in a residential hard money loan? Deciding which category you belong to is the first step to consider before looking further.

Then, decide how much money you need. You probably already have your purchase in mind, so do the math. How much can you afford? How much do you need to borrow? What can you do to minimize costs? Remember that Arizona hard money lenders will loan you up to 80% LTV (loan to value), but this amount could also be as low as 65%. Keep your number somewhere between that range and then start doing your research.

The Research Process involved in finding an Arizona Hard Money Lender

Start with the internet. Use a search engine such as Google or Bing and type in the words you are looking to find. For example, if you wanted to find a lender in your area, you may type “Arizona hard money lenders.” Undoubtedly, several hundred (if not thousand) websites are going to pop up. Click on some of the sites and compare and contrast what you see. Make a few lists of the things that seem legitimate to you and also keep a list of lenders that seem a little sketchy.

Since you are about to receive a large sum of money from an Arizona hard money lender, you want to make sure that what you are getting is legitimate. If they are a trustworthy company or lender, you will be able to tell by your first impression of the website. Remember that, if it seems too good to be true, IT IS! Don’t do anything you feel uncomfortable with, even if it seems like a good deal. Trust that gut feeling of yours, even if it means the lender you decide on has slightly higher interest rates.

After you have found a few Arizona hard money lenders that look appealing to you, go back to your search engine. Even the most legitimate looking companies can fool their consumers, so it is important to look at customer reviews. Type the name of the business or individual hard

How do Arizona Hard Money Lenders Help to Stimulate a Troubled Economy?

Financial burdens are all too abundant in this day and age. Between home repairs, medical bills, children and family needs, grocery bills, cell phone, tv, internet, and unexpected costs, there never seems to be enough money to go around. An unexpected job loss or pay cut can devastate a family that is just barely getting by. It is no surprise that most Americans are struggling to make ends meet with high unemployment rates and people working underpaid jobs that they are overqualified for. Many of these people are looking for other viable, trustworthy alternatives to make changes in their lives.

Arizona Hard Money Lenders as a Solution

Because so many Americans are experiencing the financial hardships mentioned above, there is not a chance that they could be approved for a loan. Sadly, most financial institutions and banks wouldn’t even consider lending to them!  This has created a ripe market for Arizona hard money lenders.

Arizona hard money lenders stimulate the economy by lending to individuals when other lending institutions and banks won’t. Obviously, the lending process alone does not directly stimulate the economy. It must go one step further than that. When borrowers receive hard money, they normally spend the funds on the goods and services required for fixing up their new home purchase. This creates commerce for all parties and manufacturers involved in the process, whether directly or indirectly. Make sense?

If you have the funds to become an Arizona hard money lender, contact a hard money institution today. Then, you can loan your money to borrowers who need it and sit back and watch your money grow. If you are on the other end of the table and are looking to be approved by an Arizona hard money lender, look no further. With no proof of income required, no application fees or closing costs, and little wait time, you could be approved for a hard money loan in no time. Basically, hard money loans are a win-win situation for all involved.