(If you understand Arizona Hard Money Loans, then you will know how to best use them. Some deals are tailor-made for hard money.)
Arizona Hard Money Loans can be a great tool for many investors and investments, but these are not a one size fits all type of loan. It is important to know what types of deals work best with Arizona Hard Money Loans so that you have the greatest potential of a high return on your investment. The following real estate deals are perfect for hard money due to the time frame or other parameters that are best suited for these asset-based loans.
Fix and flip projects are often very time sensitive. And that time crunch usually begins the moment that you learn of a great property. Private lenders are known for fast turnaround times on loan requests which are a must to secure a property that has great potential for a high ROI. This means that you can request a loan, get approved and have the cash in hand before a traditional lender will even have approval or denial ready for you. Land loans are also hard to get a loan for, as they have questionable value. But a hard money lender will provide the money for the land and the construction on the land so that you can then secure a mortgage on the improved property.
Construction loans are difficult for the same reason that land loans are a challenge. Most traditional lenders don’t want to take the risk on something that is not tangible yet. But Texas Hard Money Lenders are in business to profit from that high risk. Hard money will provide you the funds to purchase materials and pay construction cost. Then when the project is completed, you can qualify for a traditional loan and pay off the hard money loan.
Arizona Hard Money Loans are great for borrowers who have bad credit as well. The loan approval is based on the value of the property being used as collateral for the loan, so the bad personal credit is not such a big issue. If the property holds value and the borrower has the ability to make the loan payments, then a hard money lender is going to make the loan. It is important to understand though, that really, really bad credit will mean that your interest rate is higher due to the added risk that you could default on the loan.
Many People Use Hard Money
Clearly, there are a great many people who benefit from hard money and from the services offered by hard money lenders. It could be a new real estate investor who needs a first loan or a seasoned professional real estate investor who needs fast funding to secure a great property. Or in other cases, it is just a consumer who has bad credit but is ready to purchase a home. What is important is that the lender understands the loan and the terms to make the payments and fulfill his or her responsibility.
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.