Hard money loans are not as intimidating as many borrowers have come to believe. Understanding the benefits of hard money loans Arizona will clarify why they are a very useful financial tool.
Many borrowers view hard money loans Arizona as some type of shady deal that operates on the fringe of the legitimate lending world. But nothing could be further from the truth. Hard money loans are a completely legitimate and legal way to seek funding when a traditional lender or bank is not able to meet your needs. In addition, there are a number of benefits that are specific to a hard money loan.
Time can be an investor’s greatest enemy when a deal needs to move quickly to avoid a lost opportunity. Completing a tradition loan application can take days and then there can be weeks or even months of waiting to receive a final decision. All of this time is an open door for another investor or buyer to swoop in and steal a deal. But the process of applying for hard money loans Arizona is much faster. This is because the lender is really only interested in the current market value of the collateral being used for the loan. The lender is not going to do a deep dive into the borrowers business or personal finances to determine creditworthiness and debt load. So a simple property appraisal and evaluation can be completed very quickly in comparison.
In addition to the fast turnaround for funding, the other terms of hard money loans Arizona are also more favorable to many borrowers. Unlike the long terms of a traditional loan, hard money loans can offer terms as short as three months or as long as two to five years. This flexibility is perfect for the investor or flipper who is going to purchase, renovate and resell quickly. Builders are also fond of these terms as it allow time to build on a piece of property and then sell within the year and move on to the next project.
Credit is Not an Issue
The final benefit is to those borrowers who have no credit or less than perfect credit. Having no credit is almost as bad as having bad credit. But in the case of a hard money lender, neither of these issues is a deal breaker. The lender is only going to look at the value of the collateral to determine if he or she is willing to fund the loan. Credit is not going to be an issue, so hard money loans offer an opportunity to many borrowers who just don’t meet the high standards of the traditional lenders.
A Financial Tool
There is no one all-purpose tool for everything and finance is the same concept. Not everyone can meet the criteria for a traditional loan nor can they wait for a bank to approve the long form application. In some cases, a hard money loan is just simply a better option than a traditional loan.
Level 4 Funding LLC Private Hard Money Lender
Arizona Office: (623) 582-4444
firstname.lastname@example.org NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027