You might have heard of Arizona Private Money Lenders as an alternative to banks and institutional brokers, but what exactly are they and how do private money loans work? Here's everything you need to know.
Let's start with the basics: a private money loan is simply a loan that comes from a private party, not an institution like a bank or a credit union. That could mean getting funds from a friend or a relative, borrowing from a colleague or a professional acquaintance, or securing financing from Arizona Hard Money Lenders or accredited investors. That's why they're often referred to as "relationship-based loans." Of those three sources of private money, Arizona Hard Money Lenders are considered the most reliable and offer trustworthy loan terms, fees, and interest rates.
The terms of third-party private money loans are quite different from those of a traditional bank loan. Because they're usually intended for real estate investments like fix-and-flips, they are short; typically one year but sometimes as much as five years. Interest rates for private money loans generally fall in the 7 percent to 12 percent range, with lenders fees between 1.5 percent and 10 percent. Finally, private funds don't need to go through an extensive verification and underwriting process, so they can be secured much quicker. In fact, approval can come through in a day or two and funds can be in your account in a week or two.
Who Can Benefit from an Arizona Private Money Lender the Most?
These are the types of people who can benefit most from a Arizona Private Money Lender:
● Experienced flippers who can turn a property in under a year.
● Short-term investors who need money quickly to jump on a great opportunity.
● Investors who don't fit into the bank's tight criteria for credit scores and financial history.
● Investors with short sales, foreclosures, or bankruptcies in their past.
● Investors who plan to refinance once the waiting period for credit dings expire.
● Borrowers with hard assets to put up as collateral.
Where to Get an Arizona Private Money Loan
As we discussed before, private money loans can be secured through friends, family, colleagues, and third-party lenders. If you're looking for a reputable Arizona Private Money Lender to help fund your real estate dreams in Arizona, Setabay offers competitive rates, fast qualification, and funding in as little as two weeks. Send us an email or give us a call today so we can talk about your 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.
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