Arizona Private Money Lenders and Arizona Hard Money Lenders are very similar but have some key differences. Read on to find out what they are and discover which type of lender would work best for you.
Remember that geometry saying, “All squares are rectangles, but not all rectangles are squares?” Well, all Arizona Hard Money Lenders are Arizona Private Money Lenders, but not all private lenders are Arizona Hard Money Lenders. Therefore, the two lending groups have differences despite being very alike. Sometimes, it can be hard to tell one from the other. However, small distinctions set them apart, making them separate entities.
Private lenders, also known as asset-based lenders, are any lenders that are not traditional loan institutions. This means a private lender could be a business or an individual. Loans from private lenders can be more difficult to find than Arizona Hard Money Lenders, as loans from private lenders tend to be more closely based on relationships. Plus, these individuals may not ask for any collateral to secure the loan, leaving them at your mercy. You’ll likely need their trust before they lend you money. Friends, family, and colleagues that lend you money would be considered Arizona Private Money Lenders. Arizona Hard Money Lenders are also private lenders but are very different from your Aunt Hilda.
Arizona Hard Money Lenders, a specific category of private lenders, exchange loans for collateral. A private money lender that exchanges money for collateral would be considered a hard money lender. If Aunt Hilda lends you money to buy a property and asks to keep the property as collateral until you pay her back, she would technically be a hard money lender.
Many Arizona Hard Money Lenders are their own companies, like Level 4 Funding. These companies profit from lending money and can be great options for loans. Their application and approval processes tend to be shorter than those of banks because they don’t comb through your information in extreme detail. Arizona Hard Money Lenders also aren’t as concerned with your credit score and loan history as banks might be. As long as you have collateral, you’re likely to get a loan. This may not be the case with all Arizona Private Money Lenders
Which Should You Choose?
Choose the lender that works for you and your financial situation. Arizona Hard Money Lenders are more likely to give you the loans you want, since they’ll have collateral to ensure you pay them back on time. Private lenders may be more convenient for smaller funds, whereas Arizona Hard Money Lenders are mainly for larger funds related to real estate.
Private and Arizona Hard Money Lenders can help you finance your real estate dreams.
If you’re hoping to purchase a property, consider getting a loan from a private or hard money lender. Many lenders give great rates and have major advantages over banks, including shorter approval time and the possibility for 100 LTV financing. Consider private money for your next real estate loan.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
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 the Author: 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.