Not all deals are right for hard money. But knowing when to use Arizona Hard Money Lenders will help you to increase your profit on your next deal.
Arizona Hard Money Lenders normally loan money to real estate investors as hard money cannot be used for an owner-occupied property purchase. There are many reasons that investors choose to use hard money over traditional bank loans, even though the Arizona Hard Money Loans have a higher cost.
Being new to the real estate investing business presents a huge number of challenges. Everything from learning about the local real estate market to the contractors and the current trends can be a challenge But by far the greatest challenge facing many new real estate investors is finding funding. Traditional banks often require a great deal of personal financial information as well as a great credit score and virtually no personal debt. In addition, they normally want to see w2 verified income to prove that the investor can make the loan payments. All of this is impossible for a new investor who is struggling to start and grow a new business. But Texas Hard Money Lenders are going to base the approval of a loan request on the value of the property being used as collateral with only a minor glance at the borrower's personal finances.
Because hard money is asset-based, the process to evaluate a loan request is much less complex than the process that a bank goes through when vetting a new borrower. This means that Texas Hard Money Lenders can evaluate and approve Arizona Hard Money Loans in just a fraction of the time needed to evaluate a traditional bank loan. Borrowers know that when they find a great property and need to move quickly, hard money is the way to go. Then they always have the option to refinance to a more traditional, lower cost loan once they own the property.
The Terms Are A Perfect Fit
Flipping houses has become a huge segment of the real estate industry, and hard money terms are the perfect fit for a fast flip project. In most cases, hard money terms are less than one year. That allows a flipper to make a fast purchase and then complete the needed work on the property and sell it before the term of the loan is over. Flipping and hard money have both benefited greatly from one another and are very popular among real estate investors.
It’s Easy and Less Stressful
Getting a loan from a bank can be a long and stressful process. There are mountains of forms and paperwork that must be completed and then you must sit and wait for a response. In many cases, it can take more than a month from the time the request is submitted to even hear that the loan is approved. But using hard money, real estate investors can forget about all of the paperwork and stress. They complete the request and then have an answer in just a few days and cash in hand in just a few more days. Investors know that time is just as important as money in some cases and hard money is a great way to save time.
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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