Hard Money Lenders
Funded by private businesses and individuals, hard money
lenders near me provide short-term, high-rate loans for real estate
investors. This financing option, which does not conform to bank standards of
creditworthiness is typically used by rehabbers looking to renovate a
property.
Hard
money financing is generally determined by the value of the investment the property itself, with lenders analyzing the “After Repair Value” (ARV) to
determine the size of the loan. Hard money
lenders near me generally will not fund an entire deal but rather fund a
percentage of the purchase price or the after-repair value, which will range
from 50 to 70 percent.
Hard money lenders also charge fees apart from the interest
on the loan. These fees are generally delineated in points (three to five),
representing additional percentage fees based on the loan amount. In general, hard
money lenders Phoenix Arizona charge much higher interest rates – sometimes
double the amount of a traditional mortgage, plus fees. In the end, all hard money
lenders near me will have different requirements, and real estate investors
need to be fully aware of what they are getting themselves into.
Private
Hard Money Lenders near me
Private
hard money lenders near me Phoenix Arizona are integral to the growth
of every new investor. They have the means and intent to invest capital into
your business and they are just as interested in working with you as you are
with them.
Generally speaking, private
money lenders near me Scottsdale Arizona will provide investors with cash
to purchase real estate properties in exchange for a specific interest rate.
These terms will generally be established upfront and with a specified payback
period – anywhere from six months to a year. These loans are most common when
investors believe they can raise the value of a particular property over a
short period of time, typically through renovations. It is also important to
understand that private
money lenders near me Las Vegas Nevada should only be used when you have a
clearly defined exit strategy like hard money.
Seller Financing
There are some scenarios when both an investor and a seller
can strike up a mutually beneficial seller financing deal. In seller financing,
the property buyer will make payments directly to the seller of the property
rather than going through a bank. This can help a motivated seller sell the
property more quickly. The investor can avoid jumping over traditional mortgage
lending hurdles, such as financial and credit score minimums.
Together, the buyer and seller can often enjoy a faster
transaction process and avoid many costs and fees associated with the closing
process. Furthermore, the owner can sell the promissory note if they no longer
want to manage their own owner financing.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Tel: 623-582-4444
Level4Funding.com
Private Hard Money
Lender
Dennis@Level4Funding.com
Who is this Dude? Dennis brings with him substantial
experience in residential real estate. Dennis has extensive experience
purchasing, renting, and selling numerous homes over the past 45 years. His
first purchase was a property in California when he was 18 years old.
Dennis graduated from California State University Pomona with majors in
Computer Science and Business Management. He is a Licensed Mortgage Broker,
Licensed Mortgage Originator, Licensed Real Estate Agent, Licensed Insurance
Agent Certified Sort Sales Specialist (CSS), Certified Negotiator (CNE), and
FAA Licensed Private Pilot.
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