Whether you're doing a buy and hold or a fix and flip, if you're going to use a Arizona Hard Money Lenders to get funding, there are a few things you'll want to know that will make the process quicker and smoother. Let's dive in!
Since the Dodd-Frank Act tightened regulations on the banks and big financial institutions in the country, real estate investors have turned more and more to Arizona Hard Money Loans for funding. This is a good thing — just like competition in business is good the consumer, the real estate market can only benefit from having multiple funding options for potential investors.
That said, hard money is still foreign to some, either because they've bought into the stigma of it or they've just always gone through the bank for one reason or another. Don't worry if you fall into this category. Hard money isn't anything scary or even complicated; it's simply private lenders (outside the system) lending money to people buying or rehabbing real estate. In fact, if you're used to the banks, with their extensive credit checks and mountains of paperwork, you might be surprised at how simple things are with Arizona Hard Money Lenders.
What You Should Know Before Going In
There are four things you should absolutely know before applying for a Arizona Hard Money Loan:
- How much you need. You'll need to crunch some numbers for the property you're hoping to buy and figure out how much you need. Include all the little things, too, like closing costs, insurance and title fees.
- How much your collateral is worth. Because you'll secure your loan with collateral — this can be the property you're buying or another property you already own — you'll need as accurate a number as possible when it comes to value.
- The after-repair value. If you're planning a fix and flip, you'll want to do your best to come up with a realistic value for the property after you've done the rehab.
- Your exit strategy. Perhaps most importantly, the lender will want to know your exit strategy because that's when they'll see their money again. Before going in, have a budget and schedule for the purchase, the flip and the resale.
Finding the Right Hard Money lender in Arizona
If all of that seems daunting, don't worry. The right Arizona Hard Money Lenders in Arizona can sit down with you and help you solidify your plans and let you know everything you need to gather for your application. Here's how we look at it here at Level 4 Funding — your success is our success so anything we can do to help you be successful is a win-win situation! When you're ready to talk, give us a call!
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.Copyright | Privacy Policy | *Terms & Conditions
No comments:
Post a Comment