(Many consumers believe that Arizona Hard Money Loans are a somewhat dishonest business operated by loan sharks. But that could not be further from the truth.)
Arizona Hard Money Lenders are either comprised of a small group of individuals who work together to lend money or a private individual who is in the business of lending money. The business is somewhat different than that of a traditional lender such as a mortgage company or a bank, but they are every bit as legal and legitimate. Borrowers should not worry that they are going to be seeking a loan from a criminal or getting involved in anything that is even questionably legal.
Arizona Hard Money Loans offer borrowers many benefits that are not a part of a traditional loan such as very fast funding and much lower stress levels. This is because there is far less documentation required to apply for a hard money loan. The loan approval is based on the value of the collateral that is going to be used to secure the loan. Another name for these types of loans is asset-based, due to the use of physical collateral. In most cases, the collateral is the real estate that is being purchased with the loan, but there are exceptions to that rule. Some people will use hard money to start a business or to fund other projects.
This huge reduction in paperwork and busy work verifying information also allows the lender to approve loan requests much more quickly. In some cases, a loan request can be approved and even funded in about a week as compared to a month or two with a bank loan. This makes hard money the perfect option for real estate investors who need to get approval and funding quickly to secure a deal. Flippers like the fact that the loans are often written for a year-long term which allows for their renovation time and resale before the loan term ends. And investors who are planning to keep a property for rental income enjoy using these loans to secure a fast sale, and then they refinance with a longer traditional mortgage when time is not an issue.
A Legal Contract
Arizona Hard Money Loans will have a loan agreement or contract, just as any other loan would. And even though the loan is coming from a private lender, the agreement is still legally binding. This means that if a borrower fails to make the loan payments that were agreed upon, the borrower can take possession of the collateral. Even if the collateral is worth far more than the loan balance, the entire amount belongs to the lender.
A Different Option
Arizona Hard Money Loans are just another option that is available to anyone who is interested in borrowing money. The terms and conditions of the loan are up to the discretion of the lender but once the agreement is signed by both the borrower and the lender, then it is legally binding just like a loan from a bank.
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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