Not every aspect of Arizona Hard Money Loans is perfect for a borrower. But the advantages can often outweigh the drawbacks.
Nothing in this world is perfect and there is no perfect loan for every type of purchase or for every borrower. In the perfect world, money would be offered with no interest and the terms would be up to the borrower to determine. But in the real world, everyone must understand that lenders are also in business to make money so fees and interest are just the cost of borrowing money.
Arizona Hard Money Loans do have more fees and a higher interest rate than some traditional banks and mortgage lenders. But the justification for these added fees can be understood when you compare a hard money loan and the process of obtaining hard money to a traditional loan and working with a traditional lender. Everyone knows that time is money, but hard money puts that saying to the test. The application process for a hard money loan is only a fraction of the paperwork and time that you would need to invest in secreting a traditional bank loan. And the approval for hard money is also much faster. It can take up to 90 days for a bank to respond with an approval of your loan application but a hard money lender can often respond in just a few days and have your loan funded in just about a week.
And while the interest rate on Arizona Hard Money Loans is higher than the interest rate on a mortgage loan, the time savings can make it a good investment. In addition, hard money is going to be an opportunity for someone with no credit or less than perfect credit to secure a loan. This lower creditworthiness means that the lender is willing to assume a higher risk when making the loan and in return, he or she should be able to expect to make a little bit more money in the form of interest.
Know The Uses
Being funded by a private lender, hard money is also a good option for a borrower who is looking for some custom loan terms. No bank or mortgage company is going to change the standard terms of their loans. But working with a private lender allows for much more negotiation when drafting the terms of your loan. This convenience is certainly worth paying a little more for.
Be Smart
Knowing how to best use Arizona Hard Money Loans is critical to the success of your real estate investment business. Short term loans are almost always perfect for hard money, but there are also times when making an initial purchase on a long-term deal is also best done with hard money. Only after researching all of your options and requesting multiple quotes, will you be able to determine which loan is going to be the most profitable for a specific purchase. Sometimes hard money is the only choice and other times it is just one of many options.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
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.© 2016 Level 4 Funding LLC. All Rights Reserved.
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