If you are having trouble securing a traditional loan, then you might think that you will never be able to become a real estate investor. But in most cases, you can work with Arizona Commercial hard money lenders and find the loan that you need.
Most borrowers turn to a bank, credit union, or mortgage company when they are in the market for a loan to purchase a commercial property. But the challenge there is that borrowers need to have a credit score of over 700, a ton of documentation regarding their personal and business financials, upfront fees for inspections and appraisals, and about three months to wait for the loan to get processed and the money to be in hand for the closing. But when all of those things are not falling into place, there is a solution.
Arizona Commercial hard money lenders are private lenders who offer legitimate commercial loans but with a few different criteria and qualifications than a traditional lender. These loans do not require a really great credit score, there are no upfront fees, the documentation required is minimal, and the loan can be approved and funded in less than two weeks! All of this is possible because the loan is secured by the property that you are purchasing. This makes asset-based loans far more flexible and accessible to many borrowers.
But there is a slight drawback to working with Arizona commercial hard money lenders, and that is the cost of the loan. Because the lender is assuming a greater risk by lending to someone with a lower credit score, he or she is going to want to earn more for that increased risk. In some cases, the loan fees and increased interest rate will make the loan 20-30% more costly than a traditional loan, but it is still far better than not getting any loan.
Benefits Of Commercial Hard Money Lenders
One of the most important features of hard money lenders is that the deal can be completed quickly. This is critical when you are working in the real estate investment business and need to grab a hot property quickly. The short term of hard money is also perfect for the fast fix and flip deals in real estate investing. And if you are carrying a lot of debt or just have really bad credit, then hard money lenders are going to be your best friends.
Not All Borrowers Have Bad Credit
In addition to the borrowers who can’t secure a traditional loan due to credit issues, there are many other ties that hard money is very useful. When you are purchasing a unique property or there are very unusual terms, most banks are not interested in funding the loan. These loans are also a great way to use the equity in a property to make renovations or even to purchase another property. And if you are not a citizen but need a loan for a property purchase, hard money is certainly the way to go. While the cost of the loan is a little bit higher than a bank loan, hard money opens up many opportunities that banks are not willing to fund.
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: 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.
© 2019 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions
No comments:
Post a Comment