Let’s Be Real About Being Optimistic: 2015-2020 and the market ahead

Arizona hard money

Very recently, construction has increased six percent, which is already showing up as a strong 2013 trend. Of course, we aren’t doing as well as we did in the 1990s or the early 00s, it is still a nice surge and may see us back around 2005 levels in the year 2016. For people with capital under 50, the market will be a strong opportunity to capture market share and grow your business. If you are a little older, say are 56 or 57, maybe that means it is time to get in touch with your inner 40-year-old. It is time even for beginners to the market to think aggressively to take advantage of this opportunity.

That being said, new housing sales will take several years to reach peak levels to over one million units where it plunged in 2010 to a just 250,000 units. This drop in units was devastating to the economy and paralyzed families financially as well as leaving many builders to either go out of business or to consolidate. But now, new housing is seeing a rise of 5.7 percent from August and once again optimism is spreading across all housing market segments. We project that 2015 will be bright and that foreclosed property numbers will go down and result in a recovery market, creating a more, well, normal kind of normal.

What is the new normal? Let us break it down for you in a a production forecast report issued by Fannie Mae in January of 2013, that reflects the Mortgage Industry and the Housing Market.

The new normal means:

►Continued contraction in refinances—approximately 25 percent in 2013 and another 10 percent to 15 percent in 2014.

►Modest growth in new purchase production—expect this to fully rebound in 2017-2020 to 2006 levels. The main indicator here are new construction starts which is covered below as well.

►Competition for production will become fierce.

►Mortgage consolidation will continue–Another 30 percent of the existing approximately 3,000 mortgage banks will go out of business, be assimilated or be acquired by 2014. Mortgage brokers will suffer given the Qualified Residential Mortgage (QRM) and the three-point rule on compensation beginning in January of 2014. This is expected to further contract brokers by another 30 percent-plus. These two efforts will drive the consolidation further, while the larger and better capitalized firms will grow significantly.

►Non-depository mortgage banks, with a net worth of $15 million-plus will be the real winners in the forecast below.

Arizona Hard Money

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Recovery, Consolidation and Mortgage Production Forecasts for 2015

Arizona hard money

The housing market makes up approximately 15 percent of the U.S. GDP. As you might have seen, how well the housing market does directly reflects how well the economy is. We all know that the lack of growth in the housing market means that there is significant drag on the economy. A lagging house market means that economy will lag, too, and the unemployment rate will remain between 7.5 percent to 8 percent. So, while politicians play economic roulette we are trying to support consumers as they attempt to refinance their home or move.

The 2013 real estate housing forecast for next year, remains cautiously optimistic. We will find out in a year if we were overly optimistic. However, it should be noted that a rapid expansion of this market segment isn’t likely until after 2015. Credit qualifying requirements for consumers remain very challenging to say the least and with a slow economy, it will take several years– well into 2015 until we even experience meaningful growth according to experts such as economists–Kenneth Rosen of U.C. Berkeley and Bill Witte of Indiana University’s Kelley School of Business to name just two. These experts are optimistic but offer only “lukewarm” optimism for 2013. They throw around terms like ‘underachieve,’ ‘unambitious’ and ‘unfortunate’ while they talk about 2013, as if to say, don’t get too hopeful. One must admit, given what the housing market has gone through since 2009 however, this is still all good news. The market will continue to grow, albeit very slowly, but it will continue to grow out of the recessionary malaise the market has been under given the excess inventory, price of oil, instability in Europe (and now the Middle East) and not to mention the economy that continues to frustrate those looking for employment. And that’s something to be happy about.

Arizona Hard Money

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Housing Market Recovery: Let’s be Optimistic

Arizona hard money

Focusing on the growing economy, which has strong private sector growth, can show you that the housing market will most likely quickly grow right along side of it. Except more in the coming year, says expects. And be optimistic.

While the high unemployment rate and the challenges with qualifying credit standards will keep the housing market, a renting market for most Americans. In fact, in a survey from the Census Bureau Housing Vacancy Survey (2013), it was stated that renters dominate new household formation. Why, you might ask. This is actually in part due to the inability for borrowers to be approved for a mortgage or, a lack of confidence that if approved, given the lagging economy, their ability to keep paying their mortgage.  As you can see, the American consumer is in a bit of a fiscal crisis.

However, home prices are said to start a steady increases through 2016 starting this year, this according to a quarterly survey of more than 100 economists, real estate experts and investment strategists.

The survey, was conducted by research and consulting firm Pulsenomics LLC on behalf of real estate search, Zillow, between Aug. 30-Sept. 14, 2012 and involved asking 113 participants to project the path of the S&P/Case-Shiller U.S. National Home Price Index over the next five years.

The latest S&P/Case-Shiller Home Price Indices, that includes data through June, show national home prices up 1.2 percent from a year ago during the second quarter. In fact, all of the markets in the S&P/Case-Shiller 20-city composite posted annual gains for the second month in a row, and all but two—Charlotte and Dallas—posted better annual returns in June compared to May.

These results were optimistic. Economists now forecast home prices will rise 4.7 percent in 2013, eight percent in 2014, 11.4 percent in 2015, and 15.2 percent in 2016. Wouldn’t that be fantastic? That's an expected annual growth rate of 2.9 percent between 2012 and 2016. While it is slightly under the 3.6 percent annual growth rate experienced in the pre-bubble years between 1987 and 1999, it’s still very exciting.

Arizona Hard Money

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Are You Paying Too Much for My License Bonds?

Arizona hard money

You might be paying too much for your license bonds if you are paying a premium of more than $5 per thousand (or 0.50 percent) of the bond amount. However, the premium you pay is certainly dependent on various underwriting factors: 1. Do you have decent credit? Not great. Just decent. You probably do or you wouldn’t be licensed. 2. Do you have any skeletons in your past? Bankruptcies, felonies, prior bond claims, etc. You probably don’t or you wouldn’t be licensed.

But how much bonding do you really need? There is a level of bonding that is based primarily on underwriting the an owner personally. Above that level, business and personal financial statements are considered as the primary focus of the underwriting.

Meanwhile, some bond carriers are simply better than others at this particular line of business. Some carriers view mortgage bonds as more risky than other types of bonds so their pricing and underwriting process is very relative to that perception of risk. It may not be for you.

Similarly, the broker you use is your path to the surety market. Use their knowledge of and access to bond carriers because that has a direct relationship with what the price and process is for your bond.

However, it should be noted that the variable that obviously has the biggest impact on your bond pricing is your broker. That’s your access to the market.

Remember that the mortgage bond market has changed significantly over the past few years. Carriers began becoming increasingly nervous about what would happen when the industry bubble eventually popped. Some proactively began to increase prices, tighten underwriting, raise qualifications and limit exposures. Once the bubble burst, others reactively did the same and some even stopped writing mortgage bonds entirely.

A few years ago, the average surety pricing was at a widely-available rate of $7.50 per thousand. However, it quickly moved up to $10 per thousand after the big pop. A few carriers positioned themselves at even higher rates in order to absorb the flurry of claims and uncertainty brought on by the industry’s implosion and increased regulation. Those carriers that had been writing mortgage bonds for years and had large exposures were suddenly faced with game-changing events and conditions that forced them to endure financial losses and realign their perspective of risk. It is worth it to find the right one for you.

Arizona Hard Money

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

In April, Permanent Loan Mods Cross the 6.39 Million Mark

Arizona hard money

The April 2013 loan modification data released by HOPE NOW has determined that an estimated 70,000 homeowners received permanent, affordable loan modifications from mortgage servicers during the month. This total includes modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP). The April total of approximately 70,000 loan modifications brings the total overall number of permanent loan modifications to 6.39 million.

Meanwhile, for the month of April 2013, there were approximately 59,000 foreclosure sales completed. Compare that to 52,000 completed in March and that’s increase of 14 percent. Foreclosure starts were approximately 115,000 for the month of April. That’s relatively flat compared to the previous month’s total of approximately 116,000. Short sales for April were approximately 27,000. This is very similar, though a little lower, to March’s total of 28,000.

Delinquencies of 60 days or more were at 2.17 million for the month of April, compared to 2.38 million in March. This is a decline of approximately 9 percent in just a month. Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the first quarter of 2013.

Additionally, we are happy to report that loan modifications completed via proprietary programs once again showed characteristics of sustainability and affordability for homeowners. For the month of April, we saw proprietary loan modifications that included fixed interest rates of five years or more accounted for 93 percent (54,000) of the total. Moreover, proprietary loan modifications with reduced principal and interest monthly payments accounted for 83 percent (48,000) of the total and proprietary loan modifications with reduced principal and interest payments of more than 10% accounted for 76 percent (44,000) of the total.

HOPE NOW is a trusted source when it comes to numbers. They are proud of the efforts its members have made on behalf of the nation’s homeowners. While there is still work to be done in the housing market, significant progress has been made via loan modifications, short sales and other solutions.

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Distressed home: Foreclosures, and Short Sales: A Numbers Game

Arizona hard money

In May 2013, distressed homes, that’s to say, foreclosures and short sales accounted for 18 percent of May sales. This is unchanged from April. Fewer distressed homes, which generally sell at a discount, account for some of the price gain.

When you boil down the numbers, 11 percent of May sales were foreclosures, and 7 percent were short sales. The foreclosures sold for an average discount of 15 percent below market value in May, while short sales were discounted 12 percent.

Freddie Mac’s numbers show that the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.54 percent in May from 3.45 percent in April; it was 3.80 percent in May 2012.

Most homes were on the market for 41 days, that the median time, which is down from 46 days in April, and still this is 43 percent faster than the 72 days on market in May 2012. Meanwhile, short sales were on the market for a median of 79 days, while foreclosures typically sold in 43 days and non-distressed homes took 39 days.

In May, 45 percent of all homes sold were on the market for less than a month. This median time on the market is the shortest since monthly tracking began in May 2011. Of these homes, first-time buyers accounted for 28 percent of purchases in May, compared with a slightly higher 29 percent in April and 34 percent in May 2012.

All-cash sales were 33 percent of transactions completed in May. This is up from 32 percent in April and 28 percent in May 2012. Individual investors, who account for many cash sales, purchased 18 percent of homes in May; they were 19 percent in April and 17 percent in May 2012.

Additionally, single-family home sales rose five percent, making a seasonally adjusted annual rate of 4.60 million in May from 4.38 million in April, both of which are 12.7 percent higher than the 4.08 million-unit pace in May 2012. The median existing single-family home price was $208,700 in May, up 15.8 percent above a year ago, the strongest increase since October 2005 when it jumped 16.9 percent from a year earlier.

Existing condominium and co-op sales have slipped 1.7 percent to an annualized rate of 580,000 units in May from 590,000 just a month earlier in April, but are 13.7 percent above the 510,000-unit level just a year ago. The median existing condo price was $202,100 in May, which is 11.8 percent above a year ago.

Let’s talk regions. In the Northeast, existing-home sales rose 1.6 percent to an annual rate of 650,000 in May; that’s 8.3 percent above May 2012. The median price in the Northeast was $269,600, which is up 12.3 percent from a year ago. Existing-home sales in the Midwest also jumped: they’re up eight percent in May to a pace of 1.21 million, and are 16.3 percent higher than a year ago. The median price in the Midwest was $159,800, up 8.2 percent from May 2012.

Meanwhile, down in the South, existing-home sales rose four percent to an annual level of 2.09 million in May and are 16.1 percent above May 2012. The median price in the South was $183,300, which is 15.0 percent above a year ago.

Existing-home sales in the West increased 2.5 percent to a pace of 1.23 million in May and are seven percent above a year ago. With the tightest regional supply, the median price in the West was $276,400, up 19.9 percent from May 2012.

Big Daddy Dennis Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Improvement in May, Existing Home Sales Rise 4.2 percent

Arizona Hard Money

According to the National Association of Realtors, in May, there was happy celebration as existing-home sales improved and these numbers remain solidly above a year ago, while the median price continued to rise by double-digit rates from a year earlier. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, rose 4.2 percent to a seasonally adjusted annual rate of 5.18 million in May from 4.97 million in April, and is 12.9 percent above the 4.59 million-unit pace in May 2012. With housing numbers positive and expected to rise, you might, but that may not be the case. Despite this gain, don’t expect the number of homes available to gain unless new home construction also begins to grow. However, this could moderate the price of new homes in the future.

Right now, existing-home sales are at the highest level they’ve been since November 2009. That’s when we saw the market jumped to 5.44 million as buyers took advantage of tax stimulus. Sales have stayed above year-ago levels for 23 months, while the national median price shows 15 consecutive months of year-over-year increases. Fantastic, right?

Want some more numbers? The total housing inventory at the end of May rose 3.3 percent to 2.22 million existing homes available for sale. That represents a 5.1-month supply at the current sales pace, which is down from 5.2 months in April. The listed inventory is 10.1 percent below a year ago, when there was a 6.5-month supply. The national median existing-home price for all housing types was $208,000 in May, up 15.4 percent from May 2012. This is a brilliant six straight months of double-digit increases; the strongest price gain since October 2005, when numbers jumped a record 16.6 percent from a year earlier, 2004. The last time there were 15 consecutive months of year-over-year price increases was from March 2005 to May 2006.

Let’s hope this keeps up!

Big Daddy Dennis Arizona Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Up to Twenty Percent of Foreclosed Properties are Vacated

Arizona Hard Money

Recently, a report released by RealtyTrac stated that as of June, homeowners had vacated 167,680 foreclosure properties all across the US. This represents 20 percent of all U.S. properties that are currently in the foreclosure process. These are in addition to 544,274 bank-owned owner-vacated foreclosures homes nationwide that have been foreclosed on but not sold to a third party.

The report went on to say that of the total 167,680 vacant foreclosure properties nationwide, Florida had been documented by far the most of any state, with 55,503, accounting for 33 percent of the national total. Illinois posted the second highest total (17,672), followed by California (9,802), Ohio (9,723), and New York (9,173). Additionally, the states where the percentage of owner-vacated foreclosures was above the national average of 20 percent included Indiana (32 percent), Oregon (28 percent), Nevada (28 percent), Washington (27 percent), and Georgia (27 percent).

Meanwhile, Chicago documented the most owner-vacated foreclosures of any metro area nationwide, with 14,717, representing 17 percent of all properties in foreclosure, followed by Miami (13,901), New York (10,074), Tampa-St. Petersburg-Clearwater (9,998), and Orlando (5,569). Florida was mentioned again when the report stated that the state accounted for 85 of the top 100 zip codes in terms of total owner-vacated foreclosures, led by zip code 34668 in the Tampa-St. Petersburg-Clearwater metropolitan statistical area.

It also came as no surprise that lower-end foreclosures had vacancy rates that were higher. 29 percent on homes valued below $50,000 and 25 percent on homes valued between $50,000 and $100,000. Meanwhile 12 percent of homes valued $1 million or more were vacant.

Who played best in this game among the servicers? Bank of America and GMAC (Ally) had the highest percentage of owner-vacated foreclosures, with 23 percent. This was followed by Chase with 21 percent and Wells Fargo and Citi lastly tied with 20 percent.

Big Daddy Dennis Arizona Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Summer home improvement trends: Sixty Percent of Homeowners are Making Improvements this Summer

Arizona Hard Money

Here’s the thing: More than 25 percent of homeowners nationwide are upside down on their mortgages. Nowadays, more and more homeowners are choosing to stay in their homes and invest in home improvements and make the most of their situation. It makes sense, considering not only the economy but the market. In fact, 60 percent of homeowners plan to make a home improvement or addition this summer. These statistics come from Zillow Digs Summer Home Improvement Trend and Spending Survey.

The Zillow Digs trend expert, Cynthia Nowak, says, "Zillow Digs is a leading resource for discovering up-and-coming design trends as actual consumers and professionals are sharing and discussing what they like."

She goes on to say, "As we head into the long days of summer, we are seeing increased interest in outdoor spaces with very natural elements such as stone fireplaces, as well as bringing more light into bathrooms with clear glass on the walls and shower enclosures."

These home improvement projects depend on the age of the homeowner, however. The type of projects being done varies by age, life-style, and life stage:

For example, the younger homeowners with children will more than likely be planning on adding an addition this summer. The percentage of people making improvements to their homes vary as much as the ages.

► 18-to-34-year-olds: 71 percent

► 35-to-54-year-olds: 61 percent

► 55 and older: 51 percent

► Homes with children: 65 percent

► Homes without children: 57 percent

But how much are they willing to spend? That depends, too. Homeowners plan to spend a median of $1,200 on summer home improvement projects. Homeowners with children as well as homeowners 54 years of age and younger plan to spend one-third more ($1,500) compared to homes without children and those 55 and older ($1,000).

Big Daddy Dennis Arizona Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

 

The Facts: Sixty Percent of Homeowners want to Make Home Improvements

Fulfillment Service Center

Here’s the thing: More than 25 percent of homeowners nationwide are upside down on their mortgages. Nowadays, more and more homeowners are choosing to stay in their homes and invest in home improvements and make the most of their situation. It makes sense, considering not only the economy but the market. In fact, 60 percent of homeowners plan to make a home improvement or addition this summer. These statistics come from Zillow Digs Summer Home Improvement Trend and Spending Survey.

The Zillow Digs trend expert, Cynthia Nowak, says, "Zillow Digs is a leading resource for discovering up-and-coming design trends as actual consumers and professionals are sharing and discussing what they like."

She goes on to say, "As we head into the long days of summer, we are seeing increased interest in outdoor spaces with very natural elements such as stone fireplaces, as well as bringing more light into bathrooms with clear glass on the walls and shower enclosures."

These home improvement projects depend on the age of the homeowner, however. The type of projects being done varies by age, life-style, and life stage:

For example, the younger homeowners with children will more than likely be planning on adding an addition this summer. The percentage of people making improvements to their homes vary as much as the ages.

 ► 18-to-34-year-olds: 71 percent
 ► 35-to-54-year-olds: 61 percent
 ► 55 and older: 51 percent
 ► Homes with children: 65 percent
 ► Homes without children: 57 percent

Fulfillment Service Center

But how much are they willing to spend? That depends, too. Homeowners plan to spend a median of $1,200 on summer home improvement projects. Homeowners with children as well as homeowners 54 years of age and younger plan to spend one-third more ($1,500) compared to homes without children and those 55 and older ($1,000).

Best West Direct Fulfillment Service
23335 N 18th Dr Suite 120
Phoenix Az 85027

Do you want to make money with Arizona Hard Money in a fix and flip?

You may ignore anything that has to do with a loan nowadays because you might think you just don’t have the credit needed for that loan you really want. Moreover, you don’t want to be in any more debt.

However, do you know that you can actually make money with Arizona hard money loans? The profit is significant enough to capture your attention, we guarantee it. Don’t believe me? What if I told you that the average profit for one fix and flip project is right around $30,000? It can be done my friend, it can be done.

What are the five steps to Make Money with Arizona Hard Money in a fix and flip?

1. First off, find the property that you think will really charm you when it’s all said and done.  Make sure that you do your research. You are going to want to consult a realtor and become an expert yourself. Make sure to constantly gather knowledge on the real estate market and find out how it works so you are always prepared. One of the most important things to know is the ins and outs of real estate in the location you are thinking of investing in. Ideally, there will be a high demand for real estate in that area. Look for a home with room for improvement and potential.

2. Evaluate the property you want. Much like step one, this part can be tough. After you've found a potential property, you need to do a thorough evaluation of the condition and the price. Crunch some numbers and see how things add up.

3. Apply for an Arizona hard money loan. This sounds like the scary part but this is actually where things get a little easier. Applying for an Arizona hard money loan is simple, and strictly equity-based- your credit will not be checked. Try to get a loan that covers most, if not all, of the property’s listed price. You likely will not have a lot of extra money to throw around on the project, so ask for what you need on a loan.

4. Start your repairs. Congratulations! If you've made it to this step, the hard part is over. It means you have the loan and you have finished most of the paperwork and, if you have a passion for rehabbing properties and homes, this is your time to really show what you can do. Make sure to create a timeline for your contractors and stick to it. Try not to have all home repairs take longer than one month.

5. List the property. The last and final step is fairly easy. Consult an agent, and price it right. Don’t overprice the home because you know how much blood, sweat, and tears went into it—otherwise it will never sell.

Making money with fix and flip projects and Arizona hard money is truly an easy and rewarding experience!

Big Daddy Dennis Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Do you need a loan? Here are a few tips on how to receive a Hard Money Loan from Arizona lenders.

There are soft loans and hard loans. You may be unfamiliar with a hard money loan. The basic definition is this: Loan approval is weighted mostly on the value and borrowers "equity" of the "hard asset" used as collateral with a lesser concern given to the borrower's credit rating. That means that you are borrowing against the property and not based on your credit rating whatsoever. That means the loan is easily approved and quickly granted to you. Usually within twenty-four hours.

This should give you a little bit of a better understanding of just what Hard money lenders in Arizona can do for you. They will provide you the loan you need for your business or personal use so you can get the property that you really want.

Here are some things you should look into if you are serious about the hard money loan in Arizona that you want to take out. Upon receiving your application, they consider the following:

·         Condition of the property

·         Length of the loan

·         Location of the property

·         Ability of the borrower to complete the project

·         Amount of work to fix the property

·         Amount of assets the borrower has to finish the project

·         Current and projected value when finished

·         Borrower’s information.

If you feel comfortable with all of this and where you stand with the above, then you will do well with a hard money loan in Arizona. 

A few facts about hard money loan lenders in Arizona.

This is just to go back over what was said before; hard money lenders in Arizona do not go by your credit rating in order to qualify you for a loan, but rather it is equity-based only. We can all breathe a sigh of relief for that! It’s okay if you have bad credit. You can rebuild your life and a hard money loan can help you do that. Another term this concept is referred to is “Private Money” or “Equity Loans.” These type of loans are unlike your typical loan from the more traditional route of a bank, but they are from methods such as private sources such as investor's personal funds, pension plans and other non-traditional sources. Arizona hard money lenders in Arizona are spread all over Arizona and other places around the United States to help you qualify for a loan. You can do this! And you don’t need a fantastic credit score.

Big Daddy Dennis Hard Money Lender

Level 4 Funding LLC
23335 N 18th Drive Suite 120
Phoenix Arizona 85027
623-582-444

Simplifying Hard Money Loans in Arizona

Money lending is a difficult business to really understand. Have you been trying desperately to understand all the jargon being used around you when you try to figure out money lending? We are here to help. We understand that money talk is difficult and it can be hard to understand and that can leave you feeling not only confused but upset and overwrought. Here’s what hard money lenders in Arizona are all about.

Hard money lending is a unique process because it is real estate backed instead of being

Hard Money Loans Arizona

based on your income or financial past, so it doesn't matter what your credit looks like to a hard money lender in Arizona, that makes no difference. Usually, these loans are short term and tend to range anywhere from six to thirty-six months. A majority of the loans end up being even less time than that.

Usually, hard money lenders in Arizona is a loan only for property or real estate investments. That might sound a little limiting to you, but it actually is not. Hard money loans can be used for the purchase of your dream home, for an investment in a “fix and flip” project, or for a residential property investment. These are funded relatively easily and quickly as well. That means that you can get your money and get on with life in a timely manner.

How to snag that Hard Money Lenders in Arizona

The hard money lenders in Arizona want you to succeed. Just know that with any money lending institution, you need to be careful. You can’t trust anyone so you need to make sure you do all your research and have all your finances in order. You can’t trust just anyone. Know what you are getting yourself into by knowing the estimated value of the purchase you want to make and come up with a ball park figure of what amount of money you think will be lent to you. Do not ask for more money than you actually need. That would be a huge mistake.

Also remember that hard money lenders in Arizona are going to charge you a bit more interest than a regular loan, but keep in mind that a hard money loan is a significant risk on their part because they are lending to you without pay stubs, tax information, or any knowledge of your financial past.

If you feel that you may not be able to qualify for a traditional mortgage loan, maybe it is time to look into hard money loans.

Big Daddy Dennis Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Is Arizona Hard Money Really “Hard”?

You might be new to the term “hard money” and it might sound a little intimidating. Don’t let this scare you. It really isn’t, even though ‘hard money’ sounds a lot harsher than ‘soft money.’

In the world of loans, you may have figured out already that there is soft money and hard

hard money lenders Arizona

money. Without going into extensive detail, let’s just say the two are very different. One thing that is different is that Arizona hard money is based upon hard assets and not credit score or credit history. In all aspects, hard money is essentially the easiest loan for you to get approved for.

Remember that Arizona hard money loans are equity-based, not credit based, so it’s about the assets, not your credit, income, or financial history. It doesn’t matter how bad your credit is. Usually. However, some hard money lenders are going to want more information about you, just to make sure you can repay the loan, however, for the most part, they are more interested in the property you are looking to buy, not your history.

What Kind of Arizona Hard Money Loan is Right For Me?

There are a few different types of Arizona hard money loans. Of course, the first is a commercial hard money loans. This is for, as you might have guessed, commercial properties, not personal properties.

The second type of loan is a business hard money loan. This is where the loan is based upon the hard assets of a business such as accounts receivables or cash flows. Again, not about credit.

The other (and perhaps most common) is a residential hard money loan. These Arizona hard money loans are usually for individuals or families looking to fix up a property or purchase their dream home.

Please remember that an Arizona hard money loan is not a signature loan, or rather, it is not a loan without any assets whatsoever that’s based on credit score, work history, income, etc. If you’re looking for a signature loan, talk to your bank about that because that is not what hard money loans are. The whole purpose of a hard money loan is asking for a loan based on the property you are looking to invest in and getting that loan in a timely manner.

Talk to your nearest Arizona hard money representative to see if you qualify for this type of real estate loan today!

Big Daddy Dennis Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444

Do you want a reasonable rate from a hard money lender in Arizona?

Hard money loans are great, but if you are doing your research, you know that their interest rates are high. This could be a definite turn off for you, but don’t let this deter you if you struggling and need the money. Just remember that getting a loan from a hard money lenders in Arizona is entirely different than getting a loan from a conventional lending institution.

There are no low interest rates in an Arizona hard money loan unfortunately. You may as why, so let us tell you; while Hard money lenders in Arizona do want to lend to you, you do have to keep in mind that they are taking a significant risk in doing so because they do not base their decision on your credit or ability to pay. It’s true, you can have absolutely terrible credit and still get a hard money loan. However, you will never see yourself get a hard money loan with a 3% interest rate. Ever. That is said without hesitation. Hard money loans are mainly short term and contain higher interest rates. The typical loan is anywhere from three to nine months—never the 30 year traditional mortgage. 

Don’t Let This Discourage You! You can still get a loan from a Hard Money Lender in Arizona!

It is true that the entire loan process is entirely exhausting and frustrating process. However, if you do everything correctly and see it to the end, you can be rewarded with a loan so you can keep your house or your property and your peace of mind. You don’t have to let the higher interest rates deter you from pursuing a loan, but do keep in mind that you don’t pay all that much in interest because the length of the loan is so incredibly short. This doesn't make a hard money loan any better than a soft money loan or vice/versa. You just won’t be spending tens of thousands of dollars on interest with hard money. Comparing the two types of loans is like comparing apples and oranges—just plain different. For the most part, hard money lenders in Arizona will likely not be offering you single digit interest rates. That can be a harsh reality to face, but it’s good to know.

Hard money lenders in Arizona tend to lower the interest rates for experienced investors, so if you’re new to the game, you may just want to hang in there for a while and feel it out and do your research!

Big Daddy Dennis Hard Money Lender

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444