Learn To Be A Fix and Flip Investor: Considering Owner Occupied Hard Money Loans

Thursday, April 11, 2019

Considering Owner Occupied Hard Money Loans

If you have rotten credit, you may have been referred to a hard money lender—but what is hard money, and what situations work best for it? Read more below to find out!

Arizona Hard Money Lenders are private lender. They are alternative options to traditional lenders like banks and credit unions. Traditional lenders have high standards when it comes to the loan approving process. A great credit score and debt to income ratio can make or break you when it comes to qualifying. Arizona Hard Money Lenders are there for you when you cannot meet these high standards or have an imperfect financial history.

The value of the property comes first when it comes to the approval process of hard money. Private investors want to know the plans and potential. Then they will consider your financial history. It’s not as important here, but it will still be considered. When people aren’t turning to Arizona Hard Money Lenders for their ability to approve them, it’s for their ability to be speedy when it comes to starting the loan process.

Borrowing Hard Money

If you are considering owner occupied hard money loans, it is likely because you need to fund some basic home renovations, like repairing the roof. Owner occupied Texas Hard Money Loans refer to the fact that the borrower is funding a lived-in property and working on something that needs an immediate fix. Renovations are the most common reason to use hard money, whether it’s owner occupied or for another reason like a fixer upper. Fixer uppers are actually the most common reason people borrow hard money. The speedy loan process and the short repayment period compliment the timeline of obtaining a competitive property off of the market fast and selling quickly with a hopeful profit. While the short timeline works well for fixer uppers, you really want to consider your options before diving into hard money for your current home.

Risks of Hard Money

Arizona Hard Money Lenders are great solutions to bad credit and short timelines. However, before seeking them out as your alternative lender, there are a few things you should consider. First, most Arizona Hard Money Lenders have high interest rates—much higher than the average lender on the market—and some are known for hiding fees within the terms to their loan agreement. You need to know the lender you are working with is reliable, and you don’t want someone whose only goal is to rack up as many fees as possible. If you want reassurance, you can always go to a real estate attorney who can help you look over the terms of the loan agreement if you have doubt. The other thing you want to consider is the short timeline. Coupled with the interest rates, Arizona Hard Money Lenders may not be a great idea. Extensions can be given to these loans, but owner occupied Texas Hard Money Loans may not be the best if you don’t know how you will begin to approach the repayment period. Some extensions can be given, as Arizona Hard Money Lenders are generally transparent with their borrowers, but you really need to consider what’s best for you in the long run.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC 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

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.