Beginning a relationship with an alternative money lender may be the only option when a traditional lender won’t approve a loan. Read below to learn who they are and how they can help you with financial success.
Private investors are alternative loan sources for people who aren’t approved by traditional lenders like banks and credit unions. While most people may think of private investors involved with real estate, they can really range from any untraditional source. This may include people such as friends and family who offer a loan to professional acquaintances, crowd funders and typical Arizona Hard Money Lenders.
Typical Private Money Lenders in Arizona are private investors that differ from banks in that they can offer speed, flexibility and approval. Usually people with rotten credit or low income go to Arizona Hard Money Lenders because these types of lenders focus on the property instead of financial history. While financial history is important, as is the repayment of the loan, alternative lenders focus on property potential. Compared to a bank, private lenders have a more transparent relationship with their borrowers. When evaluating potential loans, private lenders typically evaluate the LTV loan to value or ATF after repair value; for them, collateral trumps finance history. Appraising the property’s potential will likely be the first step. One major benefit of utilizing a private lender is speed. Banks can take as long as a month or more to begin the loan process, but some private lenders can start as soon as the day of. This is attractive to people who need money to bid on competitive property or to prevent a foreclosure fast.
Who Alternative Lenders Work with Best
As mentioned, agents bidding on property or families wishing to prevent a foreclosure may benefit the most from private Arizona Hard Money Lenders. The short repayment period and speed in the loan process loans itself to these options specifically. Fixer uppers are another example of those who may take advantage of the benefits of private money lenders. Experienced and successful renovators would definitely take advantage of the short repayment period, as they are likely to resell their property and make a profit fast. Thinking outside the box into other type of private lenders such as crowd funders or family and acquaintances could be helpful if a small amount of money is needed. If the public believes in the investment or a personal connection knows you to be reliable, they are definitely options that may be more successful than a bank—especially if the rates of Arizona Hard Money Lenders are too high.
Determining the Right Option for You
Private Money Lenders in Arizona provide opportunities for many people unable to receive traditional funding. However, this does not mean they are for everyone, especially in cases of Arizona Hard Money Lenders. Determining your qualifications for both traditional and untraditional loans will help you evaluate the types of opportunities work best in your particular situation. Taking account of all variables in your situation and comparing each alternative option will likely lead you to success. Sometimes it just requires you think outside of the box.
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