Real estate flippers – you’ve got some ‘splaining to do Arizona hard money!

Real estate flippers – you’ve got some ‘splaining to do about Arizona hard money!

Hey, I Love Lucy fans, did you catch that pun? Well, in the more serious, tedious and doldrums of work life, you really, seriously need to be able to explain your position to a multitude of people. Your little pet project, where you want to turn a former prison into a preschool (same difference, no?) won’t be approved by the major banks or mortgage companies. At least, it’s not likely.

SO YES, YOU’LL HAVE TO CONSIDER ARIZONA HARD MONEY, BUT WHILE IT SEEMS A LITTLE MORE STRAIGHT FORWARD, YOU NEED TO BE AS CLEAR AS GLASS.

Always be clear with your information as most lenders will require an executive summary of some sort before you even begin. What’s included in this summary depends on you and the situation, but usually it’ll be cost estimates, due dates, time frames and what you expect to pay for monthly payments.

All of which means that you’re going to have to do some amount of explaining as to why you or your client deserves such and such a loan and how the loan structure will provide a win-win scenario for borrower and hard money lender Arizona. Not providing information that’s clear and concise can be an absolute deal breaker, especially when the deal is more complicated, as many commercial scenarios are.

If you feel your project is really worth going through with, simply make your plans as clear as possible. This will make any ship sail that much more smoothly.

arizona hard money

Crunching numbers on hard money lender Arizona

Crunching numbers on hard money lender Arizona

So what are some of the many benefits to a hard money loan? Well, here’s some numbers for your calculator to use. But first, remember that a hard money loan is a form of asset-based borrowing instead that deals with real estate financing. Some borrowers also pursue Arizona hard money loans when their financing needs are super urgent and more traditional and conventional financing sources cannot respond in time.

IN MANY CASES A HARD MONEY LENDER ARIZONA WILL OFFER A SMALLER LOAN SIZE BASED UPON A LOWER “LOAN TO VALUE RATIO”. THIS ONLY MEANS THEY MAY OPT TO LOAN NO MORE THAN 65% OF THE PROPERTY VALUE. THEREFORE IT IS MORE COMMON FOR REAL ESTATE INVESTORS TO OFFER ADDITIONAL REAL ESTATE AS COLLATERAL IN ORDER TO OBTAIN A LARGER LOAN AMOUNT. THIS IS KNOWN AS CROSS-COLLATERALIZATION.

Then, it’s simply a matter of contacting them with your idea or offer of investment. They’ll invite you into their office where they’ll give you free coffee (score!) and you can discuss all the grimy details of this exciting new loan available to everyone, even people like you.

Don’t think too much when dealing with these types of loans. Remember, you are a valuable person so fight for your right…. To vary!!! That means, don’t let yourself be jerked around by people who use a bunch of mumbo jumbo to confuse the drizzle out of you. You want your hard money lender to be your friend, because you’re already in a tight spot and could use a shoulder to lean on. That’s the whole idea behind hard money lending in the first place.

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Hard money lenders Arizona – the easy way to financing your project

Hard money lenders Arizona – the easy way to financing your project

YOU WOULDN’T KNOW IT UNLESS SOMEONE TOLD YOU OR YOU WERE A SUPER SMART ACCOUNTANT OR KNEW A LOT ABOUT INVESTING, BUT HARD MONEY LENDERS ARIZONA IS ACTUALLY EASY. IT’S SO EASY, ALMOST ANYONE COULD DO IT – AND WHAT’S THAT GEICO SLOGAN? A CAVEMAN COULD DO IT? IT’S SO TRUE IT HURTS, BUT THE SENTIMENT REMAINS – IT’S SIMPLE, IT’S A BREEZE, IT’S EASY.

Let’s look at it this way: Phoenix, Arizona has a population over 1.44 million and that number is only expected to rise in the coming years, like a helium balloon inside of another helium balloon. Yet, it’s not a very condensed place, spread out to the far reaches of the horizon. So many houses were built in the real estate bubble a few years ago, but many of these properties now stand empty, neglected and decaying.

You could easily start a few projects where you rehabilitate these homes, or “flip” them as the industry big shots say and all you’ll need is an approval from private money lenders Arizona. Why do you want to go the hard money route? Because it’s much more easy than heading to a bank or mortgage company. They want buyers and loaners that will stick around a lot longer than someone just wanting to fix a property up. You go through the middle man and soon, everyone is happy.

That’s why there’s no need to break a sweat – just learn the in’s and out’s of hard money, which would take only a few weeks, and then you could start doing business your way.

hard money lenders arizona

Arizona Hard money – the truth and the fiction

Arizona Hard money – the truth and the fiction

Hard money is one of the leading forms of alternative financing, other than the black market, which is illegal, so don’t go there.

WHEN LOANS NEED TO HAPPEN QUICKLY, OR WHEN TRADITIONAL LENDERS WILL NOT APPROVE A LOAN, ARIZONA HARD MONEY MAY BE THE ONLY OPTION.

Let’s review how these loans work, just in case you need a refresher. What Is Hard Money? Most loans require proof that you can repay them. I know, right? They don’t want some cracked out kids coming in, getting approved and then walking out the door. I mean, they were certainly doing this before the bubble crashed, but now they want to get all moral on your case.

Usually, lenders are most interested in your credit and income. If you have a solid history of borrowing responsibly and the ability to repay loans, you’ll probably have no problem borrowing money.

If you can’t qualify for traditional loans, hard money may be an option. Hard money lenders Arizona give out a type of loan that uses an asset (or collateral) to secure the loan. Instead of evaluating a loan’s risk based on your financial position, the lender makes sure that they can get their money back by selling your asset if you don’t repay as agreed. This could be a nice car, a boat or even your own house. Don’t put your family at risk when considering one of these projects – it just isn’t worth it. Put up the summer home instead.

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Another good reason to use Arizona hard money – it’s quick

Another good reason to use Arizona hard money – it’s quick

So, a lot of people will ask, if hard money is so expensive, why would you or anyone use it? Hard money has its place for certain borrowers who cannot get traditional funding, like from a bank or mortgage company, when they need it. Because the Arizona Hard Money are mostly focused on collateral (and less concerned with your financial position), hard money loans can be closed more quickly than traditional loans. They would rather not take possession of your property, as that’s an uncomfortable situation for everyone involved, but they don’t need to spend as much time going through a loan application with a fine toothed comb.

DID YOU KNOW ARIZONA HARD MONEY AGREEMENTS CAN ALSO BE MORE FLEXIBLE THAN TRADITIONAL LOAN AGREEMENTS, TOO? MOST LENDERS DON’T USE A STANDARDIZED UNDERWRITING PROCESS. INSTEAD, THEY EVALUATE EACH DEAL INDIVIDUALLY. DEPENDING ON YOUR SITUATION, YOU MAY BE ABLE TO TWEAK THINGS LIKE THE REPAYMENT SCHEDULES.

You also do not need great credit to get hard money, and your income is not as important as it might be with other “loans.” It may even be possible to get hard money without verifying your poor credit or income information, but it’s rare. Lenders will be interested in your finances, but your collateral is the most important thing. Most hard money lenders keep loan-to-value ratios (LTV ratios) relatively low. Their maximum LTV ratio might be 50% to 70%, so you’ll need assets to qualify for hard money. With ratios this low, lenders know they can sell your property quickly and have a reasonable shot at getting their money back. Talk to Arizona Hard Money Lender Level 4 Funding.

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Arizona Hard Money Drawbacks and how to avoid them

arizona hard money Drawbacks and how to avoid them

LIKE EVEN THE MOST BEAUTIFUL WOMAN IN THE WORLD, HARD MONEY IS NOT PERFECT. WHILE IT SEEMS SIMPLE – AN ASSET SECURES THE LOAN SO EVERYBODY’S SAFE – ARIZONA HARD MONEY IS ONLY ONE OPTION. IT IS EXPENSIVE, SO THINGS HAVE TO WORK ACCORDING TO PLAN FOR PROFITS TO MATERIALIZE. SO MAKE SURE THAT YOUR PLANS ARE CLEAR AND GOOD! HARD MONEY WORKS DIFFERENTLY FROM LOANS YOU MAY HAVE USED IN THE PAST. LENDERS USE MORE CONSERVATIVE METHODS TO VALUE PROPERTY THAN YOU MAY EXPECT.

Here’s a few ways to keep things going to plan:

Everyone likes someone knowledgeable about their job, so do a little extra research and then make offers. Talk to contractors to get a few estimates on what it will cost to refinish and otherwise repair the property. If you head into the private money lenders Arizona office with information on repairs needed, a little history and an estimate of the costs involved, you’ll be that much more likely to get approved.

Also, have an exit strategy. Hard money loans are typically short term and usually are 1-2 years in length. The lender always wants to know that the borrower has a solid plan for either selling or refinancing the property long before the term is up. Knowing how you plan to repay the loan is a key factor in a hard money lender’s decision. If you are doing this all wily nily, you’re going to look bad in the eyes of everyone and no one wants that.

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Speed dating with an Arizona hard money loan

Speed dating with a Arizona hard money loan

IN THE WORLD OF FINANCES AND REAL ESTATE LOANS, HARD MONEY LENDING IS A LOT LIKE SPEED DATING — THEY ARE DESIGNED TO BE TEMPORARY, AND THE INTEREST RATE ON ANARIZONA HARD MONEY LOAN GIVES YOU AN INCENTIVE TO MOVE ON AS QUICKLY AS HUMANLY POSSIBLE.

First, interest rates are generally higher on a hard money loan. You should not be surprised to pay more than 10% APR or anything in the high teens percentage wise, and you can easily pay several times that. A hard money loan should be used to help with a temporary need, like flipping a property, not as something you’ll keep around forever like your student loans. You may not even have the choice to keep a hard money loan going for long. Most loans require you to repay in full within one to five years, so you have to plan ahead. In addition to higher interest rates, you’ll often pay more points to get a hard money lenders Arizona. Five points or more would be reasonable, but you’d need a good reason to pay that much on other loans. Again, a hard money loan is a shorter-term loan, so you’ll amortize those points over a shorter period of time. They drive up your borrowing costs and like your cholesterol that’s not a healthy thing to raise.

Keep all this in mind when you walk into the office of a hard money lender. You want to diligently understand your own position as well as the position of the person sitting across from you.

arizona hard money loan

Arizona Hard money: not the first resort, still a great option

Arizona Hard money: not the first resort, still a great option

With financial assistance for the country’s small businesses locked in a congressional imbroglio and bank loans still tough to get, many smaller firms are turning gleefully to hard money lenders Arizona of last resort. Across the nation, small businesses are paying private lenders annual rates of up to 36 percent plus fees to get the cash they need to buy inventory, pay their mortgages and meet payroll. Those private money lenders Arizona say they’re supporting small businesses at a time when credit is scarce. But the extra cash can come at great cost. The struggle for credit has led business owners who had never ventured outside the highly regulated world of banks and credit cards to seek often-expensive relationships with all kinds of other lenders. Among them, so-called “hard-money lenders” take personal property or the business itself as collateral. Others function like payday lenders, offering cash advances against a business’ anticipated revenue. There are also independent brokers, who put together applications for customers and seek loans from a variety of sources.

When you’re out of options, it may seem scary to go for a hard money loan, but don’t fret. Many people do this or this type of business wouldn’t be successful. It’s more a matter of knowing what you’re getting into before hand, so if you were to say, try and flip a property, you’d want to have estimates of repairs, a timeline for things to fall into place and clear goals so that when you presented everything to your chosen loan person, it doesn’t seem half come together. It’s a complete thing.

What would you do without hard money loans Arizona?

What would you do without hard money loans Arizona?

Here are a few testimonials from actual clients that benefitted from a hard money lender Arizona:

Robbie claims:  “My company experienced a disastrous fire that nearly destroyed us. No conventional lender would help us. A hard money lender did. Because of them, we were able to borrow what we needed and continue in business. We were then able to settle our insurance claim, repay their loan and prosper…I will always be grateful for the help hard money lending gave to me, when no else would.”

THAT’S THE TRUTH ABOUT HARD MONEY LOANS ARIZONA!

Katie said: “I am very thankful to have found Arizona hard money because without it I would not have a home of my own. They made all of my and my children’s dreams come true. They are very understanding and willing to work with you. Not everyone in the world has perfect credit or the perfect life but they can help. Thank you for everything. I am so grateful.”

Last but not least, a cook in Indiana said: “I believe I represent the view of many when I say that hard money lenders have been a godsend to our community for giving people credit when no one else will take the chance. After banks, loan companies and mortgage companies refuse to extend credit, people turn to them for help. These people often represent a high credit risk and takes on that risk when they make loans to them. No one is forced to borrow money from anyone under any terms the company offers. Each person is responsible for his or her own actions. They tell customers up-front about the interest rates and terms offered in each loan, just as any other lender would. I’m sure there are many who need his type of loan services but have not known about this door of opportunity offered.

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Hard money lenders Arizona help you flip a property

Hard money lenders Arizona help you flip a property

THE SOLE PURPOSE AS A LENDER IS TO PROVIDE CUSTOMERS THE FASTEST AND EASIEST ACCESS TO PRIVATE MONEY AND HARD MONEY LENDERS ARIZONA LOAN OPTIONS SECURED BY REAL ESTATE.

In fact, you can get funding in as little as five business days through one of many available loan programs. Most are an equity based lender who will give you a loan based on the merits of the property you want to buy instead of your own personal merits. What exactly does that mean to you? It means they will provide you Arizona hard moneyregardless of your poor credit, spotty job history or low income, as long as they can see upon evaluation of the property that you will make a profit doing a fix and flip. Does your credit score matter? Yes, it can help you to get a better interest rate, but most don’t use it to determine if you can qualify for a loan. Do you need 100% financing so you can get started with no money out of pocket? Most have developed a program that gives you access to additional financing options on top of hard money, that can make it possible for you to break into real estate investing with no money of your own. Most lenders have been fortunate enough to help their clients make well over $1,000,000 of pure profit and counting from investing in real estate through their specially designed hard money loans. You could easily be the next success story, and everyone hopes you are!

hard money lenders arizona

Why Do You Think You Need Hard Money Loans Arizona?

Why Do You Think You Need Hard Money Loans Arizona?

As a real estate investor, you may need Arizona hard money loans that will provide flexibility and autonomy so that you can be in control of your finances and future. You also need to make a nice profit, so private money lenders Arizona have tailored many of their loan products to meet these particular needs for you. You have goals and dreams you want to accomplish. For some of you, it’s gaining financial freedom that allows you to do what you want, when you want and with whom you want. For others, it’s interdependence. Maybe you want security and peace of mind during troubled times. Or perhaps you just want to spend more time with your loving family.

THAT’S WHY YOU NEED HARD MONEY LOANS ARIZONA!

No matter what your reasons, you see investing in real estate as a vehicle to achieve your goals and dreams. But there’s something blocking your path to the better future you want: money. Hard money loans are the solution to this problem and lenders are there to help make it easy for you to get that solution so you can realize your lofty goals. The reason these loans work so well is that some companies were founded by an actual real estate investor who has personally been involved in many successful real estate transactions, not some Wall Street hot shot who’s never been down on Main Street doing what you do every day. Investing in real estate may not be the only reason you could need a hard money loan. You’ve been asking for additional loan options for refinances and commercial properties for quite some time. To get started on the process to the loan that best suits you, we put together these four simple steps to go through. You can click on each arrow for more information and to get going.

hard money loans arizona

What makes hard money lenders Arizona so different from you and I?

What makes hard money lenders Arizona so different from you and I?

MOST HARD MONEY LENDERS ARIZONA COME FROM BANKS AND “TRADITIONAL” LENDING INSTITUTIONS WHERE THEY EVALUATE A PROPERTY BY WHAT IT CURRENTLY IS… NOT WHAT IT WILL BE AFTER A LITTLE TENDER LOVING CARE. THESE PEOPLE DON’T HAVE A CLUE ABOUT WHAT IT MEANS TO FIND A PROPERTY AND IMPROVE IT FOR A PROFIT. PRIVATE MONEY LENDERS ARIZONA ACTUALLY DO!

Plus, these places will usually sell their loans to people on Wall Street or banks or mortgage companies. That means their hard money loan has to conform to guidelines that make it extremely difficult for you to be successful. Not to mention that once the loan is sold, you are stuck with the servicing of your loan by whoever bought it. You should find an investor that is a hard money lender that will provide you with loans designed for you to make a profit and are always backed by private money investors who want you to succeed. All of our loans are serviced directly by people who have an intimate knowledge of investing in real estate as a profession. This process below will make it easy for you to get the financing you need for your deals. Just click each arrow for additional information and access to the resources we have for you.

So in conclusion, there really isn’t all the much different between hard money lenders and you and I. Everyone has the same goal – make money and each party knows that if you can be profitable, so can the other.

hard money lenders arizona

A Few Pitfalls To Avoid With Hard Money Lenders Arizona Institutions

A Few Pitfalls To Avoid With Hard Money Lenders Arizona Institutions

THERE ARE REALLY TWO DIFFERENT KINDS OF HARD MONEY LENDING COMPANIES. THE FIRST ARE DIRECT HARD MONEY LENDERS ARIZONA WHO WILL DO ALL THE WORK.

They will underwrite, fund and service your loan. The second are brokers who just shop your loan out to a direct lender. You have to be careful when dealing with companies that only broker hard money loans. Many of them are simply fee collectors that will require you to put up anywhere from a few hundred dollars to a few thousand dollars before they will give you a hard money lending decision. These types of places may or may not have the intention of funding your application, but if they don’t, they will keep your money! There is a direct hard money lender that can fund in 13 states. However, they have nosey partnerships with other direct hard money lender Arizona so that they can fund deals in states that are not our primary lending states. That way you get the best of both worlds because if you have a good deal, they will get you funding!

The hard money for funding your real estate investment deals has to come from somewhere. Hard money investors are people who believe in real estate and understand how important it is to driving our economy and building long term sustainable wealth. These people put up their own capital to fund real estate investment deals. Now they don’t do this simply out of the kindness of their heart, they are looking to make a profit off the interest they charge on the loan. However, it’s a win/win scenario because you make money on buying and selling a property, they make money on the interest from your hard money loan.

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So What’s The Big Difference Between Private And Hard Money Lenders Arizona?

So What’s The Big Difference Between Private And Hard Money Lenders Arizona?

These two terms are often interchanged and it’s really done incorrectly. So you should know what separates these two terms is the source through which you are obtaining financing. If you are using private money lenders Arizona, it means you have direct access to a special kind of investor who will put up the capital to fund your deals. Usually it’s someone that you know such as a relative or friend. But even if it’s not, you have to find this person and convince them you and the property you want to buy are worth investing in! Otherwise, why would they be interested?

THAT’S NOT THE EASIEST THING TO DO FOR MOST PEOPLE, BUT LEARN TO BE COMFORTABLE WITH REJECTION AND THINGS WILL TURN AROUND. HARD MONEY LENDERS ARIZONA ARE ESSENTIALLY A CONDUIT BETWEEN PRIVATE INVESTORS WHO WANT TO FUND REAL ESTATE INVESTMENT DEALS AND PEOPLE WHO NEED FINANCING, BUT DON’T HAVE DIRECT ACCESS TO A PRIVATE INVESTOR.

Knowing these two essential differences is key to how you’re going to get your loan approved. You can walk into the office of an investor and feel proud knowing damn certain that you can explain what you want and how you will get it. It’s part of the job and part of the risk – knowing what you’re getting into, having a plan and overcoming obstacles, just like Lance Armstrong. Maybe you’ll even feel like a hero. Maybe you’ll be setting a good example for future generations. Most of all, maybe you’ll make a profit.

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Even if you have no good, rotten credit, you can flip homes by talking to hard money lenders Arizona!

Even if you have no good, rotten credit, you can flip homes by talking to hard money lenders Arizona!

Most properties that an investor buys with the intention of flipping for profit do not meet FHA guidelines. Well, why does that matter? You see, in order to qualify for “traditional” financing to buy a property, a home must meet these guidelines. Otherwise a lender can’t write a loan through Fannie Mae or Freddy Mac. Which means that you can’t walk down to your local bank or call up Wells Fargo to have them fund your deals.

THAT EXPLAINS WHY THE MAJORITY OF FIX AND FLIP LOANS ARE FINANCED BY PRIVATE MONEY OR HARD MONEY LENDERS ARIZONA. WHAT THE HELL ARE THOSE, YOU ASK? LISTEN UP AND YOU MIGHT LEARN SOMETHING.

These lenders will loan money based on an asset. In this case, the asset is a piece of real estate. The good ones are people who are (or have been) real estate investors themselves, so they really understand what it takes to fix a property and sell it for a profit. What hard and private money lenders Arizona will do is look at the property you want to invest in. They’ll ask you for your purchase price and what repairs you want to do as well. If they can see by the data that an investor can buy a house, do the repair work and quickly sell the home for a profit, they will fund the deal. It’s that freaking simple! The lending decision is based entirely off of the aspects of the property – NOT the borrower. This means that you can get financed if you have bad credit or no credit. You don’t have to show job history or prove you have any income or assets.

hard money lenders arizona

Finding the right hard money lender Arizona for you

Finding the right hard money lender Arizona for you

Now you are probably wondering how to locate fix and flip lenders that can help you get going as an investor. So here I’m going to give you a few resources that you can use.

THE FIRST WAY TO FIND A PRIVATE OR HARD MONEY LENDER ARIZONA IS TO USE AN AGGREGATION WEBSITE.

These are two that I recommend: http://moolahlist.com and http://www.hardmoneylendersonline.com. They are both good and reputable sources to find a fix and flip lender. One thing I would caution you against are some of the programs you’ll find out there that want to sell you a course on finding private money lenders Arizona. In short, don’t buy them! They are just a rip off because you can get all the information they provide for free. Trust me, I bought most of them just to find out. Another way that you can find people to fund your real estate investments is by networking. Go to your local REI club meeting and get to know other investors. Many of them will move on to funding loans after they’ve had their fill with doing flips themselves.

Just be warned that this can be a long and arduous process. You have to build relationships and get people to trust that you’re worthy of investing in. That is no easy task! Plus, if you mess up and can’t pay off your loan, you’ll totally ruin the relationship that you spent all that time and energy cultivating. Don’t be a knucklehead, bonehead!

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What does it mean to fix or flip a property? Find out with Arizona hard money!

Arizona hard money – what is it? What does it mean to fix or flip a property? 

Fix and flip is really a slang term to describe a type of real estate investment deal. The fix part is where a real estate investor purchases an undesirable family home below market value and does some repairs to the property in order to make it more appealing. The idea is to significantly increase the market value of the property with the minimal expense possible so that the home can be resold for a tasty profit. Typical repairs done are: adding bedrooms as needed, putting in a new kitchen, finishing a basement, replacing a roof or doing anything required to make a home have more curb appeal to buyers and of course, more valuable then when they started.

IT IS PART SCIENCE AND PART ART TO KNOW WHAT REPAIRS TO DO AND HOW MUCH TO SPEND DOING THEM. IT ALSO INVOLVES GETTING A LOAN APPROVAL, USUALLY SOMETHING LIKEARIZONA HARD MONEY.

The flip part refers to getting the property listed for sale in a short period of time and then locating a new person that will buy the home to live in it or rent it. This new buyer gets a loan and pays for the property. When the closing happens with the new buyer then the real estate investor, assuming they did the deal right, makes a profit. Fix and flip investing has been around for quite some time, but it has become much more popular with the advent of TV shows such as Flip This House and Flip That House among others on cable stations. If you are interested in becoming an investor who does fix and flips, then you have come to the right place. Just contact your local hard money lender Arizona today!

arizona hard money

Real Estate Investment Opportunities Using Arizona Hard Money

Real Estate Investment Opportunities Using Arizona Hard Money

The sole purpose of an Arizona hard money lender is to provide people with the fastest and easiest access to private money and hard money loan options secured by real estate.

IN FACT, YOU MAY EVEN BE ABLE TO GET FUNDING IN AS LITTLE AS 5 BUSINESS DAYS THROUGH ONE OF THEIR ARIZONA HARD MONEY LOAN PROGRAMS. HARD MONEY LENDERS ARIZONA ARE EQUITY BASED LENDERS WHO WILL GIVE YOU A LOAN BASED ON THE MERITS OF THE PROPERTY YOU WANT TO BUY, NOT YOUR OWN PERSONAL MERITS.

What exactly does that mean to you? It means these hard money lenders Arizona provide you hard money regardless of your credit, job history or income, as long as they can see upon evaluation of the property that you will make a profit doing a fix and flip. So does your credit score matter? Yes, it can help you to get a better interest rate, but it won’t be used to determine whether you qualify for a loan. If you need 100% financing so you can get started with no money out of pocket, you may even be able to find a hard money lender in Arizona who can help. Some have developed programs that gives you access to additional financing options on top of hard money, that can make it possible for you to break into real estate investing with no money of your own.

What Do You Need to Know About Private Money Lenders Arizona?

What Do You Need to Know About Private Money Lenders Arizona?

Many first time investors are curious about hard money lenders in Arizona. Here I have laid out some of the basic principles about hard money lenders Arizona. First of all, you must know what the term “hard money” means. When money is discussed between investors, it is considered to either be “soft” or “hard.” Typically, soft money is easier to qualify for and the terms are flexible. Arizona hard money, on the other hand, is just the opposite. It is much more restrictive. Not in that it’s more difficult to obtain, but the terms are very specific and much stricter. They have to be, because most hard money comes from private individuals with a great deal of money on hand. This is why hard money is also referred to as “private money”. The money used for investment purposes comes from people, just like you and I, not a typical lending institution. So their first priority is to protect their investment capital. This is why the terms have to be so strict. If it were your money, you would want the same.

SO WHAT ARE SOME OF THE TERMS OF PRIVATE MONEY LENDERS ARIZONA?

Obviously it varies from lender to lender. It used to be that private money lenders Arizona would lend solely based upon the deal or property at hand. They would only lend up to a certain percentage of the fair market value of the property, that way in the event of default, the hard money lender Arizona would profit handsomely if they had to foreclose or sell to an end buyer. Now, you will find that many hard money lenders, if they want to stay in business, require more than just equity to qualify. This is because the laws now are favorable for consumers. Consumer protection laws, time consuming and expensive court procedures, and so on have forced some hard money lenders to become even harsher when applying for a loan.

private money lenders arizona

Be Sure to Know the Terms of Your Arizona Hard Money Lenders

Be Sure to Know the Terms of Your Arizona Hard Money Lenders

It is good to know what the terms are when dealing with an Arizona hard money lender so you can find the one that will fit your needs. Here are some of the terms you can expect to see from many Arizona hard money lenders. Typically they will only loan you up to 70% ARV (after repaired value). This means that a hard money lender can loan you up to 70% of what the home is worth in repaired condition. So if you find a home worth $45,000 in the condition it’s in, and needs $20,000 in repair work, and after it is repaired the current fair market value is worth $100,000, then typically they can lend you up to $70,000, which would cover the cost of the house and the repairs.

OTHER TERMS YOU CAN EXPECT FROM ARIZONA HARD MONEY LENDERS ARIZONA ARE HIGH INTEREST RATES. INTEREST RATES VARY FROM 12% – 20% ANNUALLY AND TERMS CAN LAST FOR 6 MONTHS TO A FEW YEARS. MANY TIMES THESE RATES VARY DEPENDING ON YOUR CREDIT SCORE AND EXPERIENCE. IN MOST CASES, THERE WILL BE CLOSING COSTS OR FEES TO USE HARD MONEY ARIZONA. TYPICALLY HARD MONEY LENDERS WILL CHARGE ANYWHERE FROM 2-10 POINTS JUST TO USE THEIR MONEY. ONE POINT EQUALS ONE PERCENT OF THE MORTGAGE AMOUNT. SO CHARGING 1 POINT ON A $100,000 LOAN WOULD BE $1000. THESE ARE ALL IMPORTANT THINGS TO CONSIDER WHEN CHOOSING A HARD MONEY LENDER ARIZONA.

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How Fast Can You Get Your Arizona Hard Money?

How Fast Can You Get Your Arizona Hard Money?

Something you need to consider is how quickly the funds will be available from your hard money lender Arizona. Many times, when you find investment properties, you need to move quickly. Your ability to get access to Arizona hard money quickly can make all the difference. It’s important to begin relationships with potential private money lenders Arizona as quickly as possible. You also need to be aware of pre-payment penalties. Pre-payment penalties can really hurt your deal and cut into your profits substantially. Try to avoid pre-payment penalties when you look for private money lenders Arizona.

Many private money lenders Arizona today will also require you to fill out a credit application that may ask you for W-2′s and or tax returns, your most recent pay stubs, and bank statements. Again, it’s all about protecting their assets. Yet, some like the old fashion way where they only care about the deal so they do a drive by or physically look at the property. Again it all depends on whom you deal with. It’s very important to pinpoint that hard money lender Arizona that you want to work with and make sure that you can get the terms that you need in order to successfully make the type of profit that you need.

THAT’S WHY MILLIONS CONSIDER ARIZONA HARD MONEY. THE MORE YOU KNOW…!

arizona hard money

How You Know When to Use an Arizona Hard Money Lender

Arizona Hard Money Lender, when to use them

WHEN SHOULD YOU USE AN ARIZONA HARD MONEY LENDER?

Hard money is great for beginning investors who may not have money or for those who have bad credit and cannot qualify. Investors also use Arizona hard money when they need to purchase quickly. Typical soft money or conventional loans take 30 days or more. Sometimes that is too long. Using an Arizona hard money lender is also a creative way to finance a property. Most like to call it “Nothing Down.” If you can borrow enough money to buy the property, fix it up and then sell it under market value for a profit, then you’ve just made money without any of your own money. Sure it will cost you money to borrow that money, but the rewards outweigh the expense.

How can you find a hard money lender Arizona? There are hundreds of hard money lenders waiting to lend you money. It could be your next door neighbor. The best way to a find hard money lender Arizona is to talk to a mortgage company and ask for referrals. You can also call a title company or a real estate agency. They deal with buyers and sellers of houses every day. Shop around until you find the best one that will fit your needs. Another way is search online to find a hard money lender Arizona. Some will lend nationwide, but these typically want a credit check. A hard money lender Arizona will typically do a drive-by of the property if it is in-state.

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