What exactly is Arizona hard money lending? Does it differ from what you can get at a bank? Here are the answers you'll need to move forward in your search for funding.
If you're interested in investing in real estate, you've probably come across the term "hard money lending." But what exactly is it and how is it different from just going to a bank and getting approved for a loan? Hard money loans and loans from banks differ in a range of ways, from how you qualify for them to how much you can borrow and how fast your funds will come through.
Getting a traditional bank loan can be an arduous process. You'll have to prove that you have a healthy income, a good financial situation, and an almost unblemished credit report. On top of that, the bank will dig into your past to determine if you're worthy of receiving funding. All of this paperwork and digging can be time-consuming, too; and time is a valuable commodity in the real estate investment world.
How hard money loans differ from bank loans
Unlike a common bank loan, hard money lending is asset-based. This means the typical hard money lender is more concerned with collateral than your credit score, income, or financial standing. The collateral provides security — if the borrower is unable to pay, the collateral can be used instead. Because your life doesn't have to be scrutinized with a fine-toothed comb and there's no complex underwriting involved, hard money loans can go through much quicker. Even better, they can be secured by people with less-than-perfect credit (and even those dealing with bankruptcy).
How to know if a hard money loan is right for you
A hard money loan may not be right for everyone. They generally come at a higher interest rate than a bank loan and the terms are usually shorter; anywhere from one year to five years. Hard money may be the perfect fit for other investors, however. This includes people who don't have ideal credit, people who need to move quickly on a property, and people who have assets that will cover the loan should they not be able to pay it back. To put it succinctly, hard money loans are perfect for investors who want to purchase, improve, renovate, and construct with the idea of turning a relatively quick profit.
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.
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