Learn To Be A Fix & Flip Investor: Separating the Arizona Hard Money Lenders From the Scam Artists

Friday, May 3, 2019

Separating the Arizona Hard Money Lenders From the Scam Artists

Arizona Hard Money Lenders are great resources for real estate investors. But first, you need to know the signs of the scam artists to be sure that you don’t get taken.

Texas Hard Money Lenders are often misunderstood by borrowers who are not familiar with the process of hard money lending. The thing that all Texas Hard Money Lenders are shady and just about the same as a loan shark which could not be further from the truth. But borrowers do need to know the signs of the scam artists who masquerade as legitimate lenders in order to protect themselves and their business.

As with most professions, there are rules and regulations that govern hard money. In addition, there are licenses and certifications that lenders need to procure to become a legitimate hard money lender. Borrowers need to verify that any potential lender is licensed and that he or she has a current brokerage license as well. And as with any business, being bonded and insured is just a cost of doing business. If a lender refuses to provide proof of any or all this information, then chances are, that he or she is not a legitimate lender and you should seek a person whose credentials can be verified.

If the terms of a loan appear to be too good to be true, then chances are that is the case. If a lender is offering you a very low-interest rate and no upfront costs, beware. Ask for a written explanation of all of the costs and fees for the life of the loan. In most cases, the lender will stop communicating with you and you will know that the offer was a fraud. In the same vein, if a lender requires a lot of upfront money before signing any loan agreement, beware of a scam. In some cases, fake lenders will offer a loan that sounds great and could have a very reasonable interest rate. The hitch is that you must pay a bunch of fees upfront. In these cases, the would-be lender disappears with your fees and never comes through with a loan.

Get Promises In Writing

If a lender is legitimate and really has nothing to hide, he or she will be very transparent about the entire hard money loan process. It is not uncalled for to ask for a list of all fees, expenses, and interest that will be charged on a loan prior to applying. You will not get exact dollar figures unless the lender has set flat rate fees for some tasks. But you should get a complete list of the fees so that you can roughly calculate the costs. If the lender is not willing to be transparent, then you are possibly dealing with a scam artist or at the very least a lender who will hit you with hidden fees.

Evaluate Your Options

There are many reliable and honest Arizona Hard Money Lenders out there, and you can find them simply by asking questions and verifying the credentials of the lenders that you are considering. Investing the time to choose the right lender will pay off both in peace of mind and in the cost of your loan.

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.