Reasons Hard Money Lenders in Arizona Might be Rejecting You

Are Hard Money Lenders in Arizona Turning You Down?

If you have done your research and have decided to pursue a hard money loan, getting approved should be no problem. However, sometimes it is; and that can be truly disheartening. But, don’t give up! There are ways for you to adjust your approach and get the money you need.

First, you need to keep your deals at our below 65% LTV. That means that you are not asking for an amount that is more than 65% of the property’s value. But, that’s not all there is to it. So much more goes into hard money lenders in Arizona decision than you even know.

Often, it is not just the dollar amount that matters. While it is important to keep that LTV at a reasonable amount, keep in mind that many lending institutions send out evaluators and appraisers to inspect properties on their own terms. It’s not that they don’t trust you or your appraiser’s judgment, they often just need to see it for themselves before making their decisions.

Reasons Hard Money Lenders in Arizona Might be Rejecting You

Like I mentioned before, it’s a tough situation to be in when you feel that your hard money lender is being harsh on you and unforgiving to your circumstances. However, they are trying their best to work with you, but are taking such a significant risk in loaning to you, that they have to protect their assets as well.

One thing hard money lenders in Arizona tend to shy away from is sketchy neighborhoods. This is true for fix and flip loans and investment loans. Several factors are taken into account when assessing a neighborhood: crime rates, cleanliness, the real estate market in that area, percentage of ownership vs. rental, etc. Don’t plan on  getting a large loan to fix up a mansion in the ghetto. It just won’t work.

Hard money lenders in Arizona want to see a return on their investment. That’s why they’re in the business in the first place; makes sense, doesn’t it? The funds available for these loans come from private investors looking to make a profit on the money they aren’t needing at the time. They need to know you can pay; if you can’t, you may not get approved.

Hard money lenders in Arizona are there to help you out, so understand their risk, do your research, and keep pursuing your loan until it works out.

Five Things to Think about with Arizona Hard Money

Know Before you Borrow Arizona Hard Money

It can be tempting to jump right into an Arizona hard money loan if you’re in a desperate situation to get some money for your home. However, as with any other investment dealing with a large amount of money, there are a few things you need to know before pursuing the loan. Arizona hard money loans are indeed a great way to get quick money for a short term, and they can even be quite profitable for those borrowing the money. Usually, hard money loans are for residential or commercial properties, but can also be used for fix and flip projects and other real estate investments. Here are a few things to keep in mind before you pursue hard money:

Five Things to Think about with Arizona Hard Money

1. Be ready to negotiate. Understand every dollar, every penny, of the loan before you sign the agreement. There is a reason hard money lenders don’t post flat interest rates on their site—these loans are negotiable and no two loans are alike! Negotiate in a reasonable manner so that you can get the best deal for you and they can get the best deal for them.

2.  Before you borrow, shop around. You definitely need to do your research before borrowing Arizona hard money, and I wouldn’t suggest just going forward with the first lending institution you run on to. Explain your financial situation to a few lenders and see what they are willing to do for you. Find a lender with a good reputation!

3. Consult with professionals. While you can often feel at ease in the hands of an Arizona hard money lender alone, I would suggest consulting with more experts than that. Remember, lenders are in this business to make a profit, so seek out someone who is objective and eager to help you plead your case. An attorney or real estate agent can help you find lower interest rates.

4. Only borrow what you need! It can be tempting to ask for more than what you need to help you with some of your other bills, but don’t do it. You will always regret it in the long fun. More money results in more spending and more debt. Calculate the numbers, know what you need, and stick with it.

5.  Be honest with the loan officer. But, also remember that they are making a profit from you, so protect yourself. However, if you lie your way into a loan, you could find yourself in a whole world of hurt. Most Arizona hard money lenders are willing to work with you, so share your financial information with them and try to get the lowest rates.

Hard money is a great way to get money for property and real estate quickly, easily, and efficiently.

Begin the Arizona Hard Money Process Today

The Timeline of Arizona Hard Money

Like we have mentioned in so many of our previous posts, no two Arizona hard money loans are alike. That’s the beauty of hard money—it is based on you. Your hard money lender will work with you to ensure the lowest rates possible, but there are really no across the board answers on hard money loans.

However, many of you are asking about the timeline to expect on Arizona hard money. Undoubtedly, the sooner you get your money, the happier you will be. But what can you expect from your lending institution? How soon is too soon and how long is too long to wait?

One of the most important things before making a loan application is to have the property under contract.  It’s really hard to get financing on something, which is not under contract.

Begin the Arizona Hard Money Process Today

If you get started today, you could have your money tomorrow. It’s entirely possible and it happens all the time. Again, that is not the case for all Arizona hard money loans. The whole process starts with you getting the ball rolling.

Many lending institutions will require you to fill out a loan application right away. At Level Four Funding, we try to keep the paperwork to a minimum so we don’t do that. The first step is for you to contact us and tell us your information.

Then, we take a look at the property you are looking to take out a loan on. We may send evaluators out to look at the property, or we may just go with the information you provide us. We need to know the value of the property in order to provide any sort of funding. Believe it or not, we can get you your loan approval within thirty minutes and your funding within 24 hours. This is significantly faster than most lending institutions, and that is because we have an entire team of professionals and experts working to approve you today.

All in all, the process could take up to a few days, but no longer than a week. Don’t stress if yours takes a bit longer—that certainly doesn’t mean you are going to be denied Arizona hard money.

Reasons Hard Money Lenders in Arizona Might be Rejecting You

Are Hard Money Lenders in Arizona Turning You Down?

If you have done your research and have decided to pursue a hard money loan, getting approved should be no problem. However, sometimes it is; and that can be truly disheartening. But, don’t give up! There are ways for you to adjust your approach and get the money you need.
First, you need to keep your deals at our below 65% LTV. That means that you are not asking for an amount that is more than 65% of the property’s value. But, that’s not all there is to it. So much more goes into hard money lenders in Arizona decision than you even know.

Often, it is not just the dollar amount that matters. While it is important to keep that LTV at a reasonable amount, keep in mind that many lending institutions send out evaluators and appraisers to inspect properties on their own terms. It’s not that they don’t trust you or your appraiser’s judgment, they often just need to see it for themselves before making their decisions.

Reasons Hard Money Lenders in Arizona Might be Rejecting You

Like I mentioned before, it’s a tough situation to be in when you feel that your hard money lender is being harsh on you and unforgiving to your circumstances. However, they are trying their best to work with you, but are taking such a significant risk in loaning to you, that they have to protect their assets as well.

One thing hard money lenders in Arizona tend to shy away from is sketchy neighborhoods. This is true for fix and flip loans and investment loans. Several factors are taken into account when assessing a neighborhood: crime rates, cleanliness, the real estate market in that area, percentage of ownership vs. rental, etc. Don’t plan on  getting a large loan to fix up a mansion in the ghetto. It just won’t work.
Hard money lenders in Arizona want to see a return on their investment. That’s why they’re in the business in the first place; makes sense, doesn’t it? The funds available for these loans come from private investors looking to make a profit on the money they aren’t needing at the time. They need to know you can pay; if you can’t, you may not get approved.

Hard money lenders in Arizona are there to help you out, so understand their risk, do your research, and keep pursuing your loan until it works out.

A Few Types of Arizona Hard Money

Is Arizona Hard Money Really “Hard”?

If you’re new to the money lending world, the term “hard money” might sound a bit intimidating. I can be the first to tell you that it’s really not. There is soft money and hard money in the world of loans, but without going into extensive detail, let’s just say the two are different. Arizona hard money is based upon hard assets. In all aspects, hard money is essentially the easiest to get approved for.

Arizona hard money loans are equity-based—so it’s about the assets, not your credit, income, or financial history. However, some hard money lenders will want more information about you; but, for the most part, they are more interested in the property you are looking to buy.

A Few Types of Arizona Hard Money

There are a few different types of Arizona hard money loans. First, there are commercial hard money loans. This is for commercial properties, not personal properties.
Then, there are business hard money loans. This is where the loan is based upon the hard assets of a business such as accounts receivables or cash flows.

The other (and perhaps most common) is residential hard money loans. These hard money loans are usually for individuals or families looking to fix up a property or purchase their dream home.
Keep in mind that an Arizona hard money loan is not a signature loan. (A loan without any assets whatsoever, but based on credit score, work history, income, etc.). If you’re looking for a signature loan, talk to your bank about that. The whole purpose of a hard money loan is asking for a loan based on the property you are looking to invest in.

That’s something that you should ask your bank to do and your bank is going to look at your credit, job history and all kinds of stuff and they are going to determine based upon you, not based upon your collateral because you don’t have any.

Talk to your nearest Arizona hard money representative to see if you qualify for this type of real estate loan today!