June 2019 - Page 2 of 2 - Level 4 Funding Private Hard Money

A hard money Lender needs certain things from you, as an investor, to approve your loan. Here are some things to avoid when providing your business plan.

Any Arizona Hard Money Lender that you approach to fund your loan is going to have things they needs to see and discuss before approving your proposal. They will require documentation that shows your plan, you’ve prepared for potential problems, and have selected a property that will enable you to return on your investment and therefore pay your Lender back.

BUT there are things you should avoid so that you don’t scare off your potential Lender .

Prepare Your Plan

It is encouraged for you to reach our to your potential Arizona Hard Money Lender to get the list of documents and information you’ll need to provide in order to be approved. This list can vary by Lender so you’ll present exactly the information they need by obtaining that list of requirements before hand.

Provide Necessary Information and NO MORE

You want to provide to your Arizona Hard Money Lender a complete business plan that really explains your strategy for turning your loan into a thriving venture, whether that is with a fix and flip property or a Arizona Commercial investment property.

Be Ready for Questions

If you’re not ready to field questions from your Lender you are going to present yourself as unprepared and unknowledgeable. Arizona Hard Money Lender interviews are a back and forth conversation between Lender and borrower so you’ll need to be able to explain your business plan well, and also know the potential risks while being able to describe how you’ll navigate them if or when they happen.

Now it’s time to present your business plan. You may have to present to more than one Lender before you get an approval and it also gives you the opportunity to shop around to make sure you’re getting the best loan for your investment. This needs to be a good match financially so both sides are benefiting from the transaction.

Call Level 4 Funding today to learn more!

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

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.

Borrowers seeking out loans will have the opportunity to work with either public or private lenders? But what’s the difference? And how can you make the most of those differences in your personal situation?

Public lenders are traditional loan lenders composed of banks and credit unions. They are regulated strictly, and approval does not always come easy. Great credit score, debt to income ratio, and financial history are all key things that will play a role in whether or not you qualify. Paystubs, job history, taxes, debt, and properties are all things you will discuss when meeting with your local public lender. If you find, however, you have an imperfect financial history, you may be referred to a private money lender.

Arizona Private Money Lenders are untraditional lenders composed of individual companies and investors who aren’t as regulated as banks. When you meet with your local private money lender, you will find you won’t have to provide as much documentation. Their focus will be on the collateral of the property they are investing in. They do want to know you are a reliable candidate with potential, but they won’t disqualify you for imperfect credit scores.

What You Need to Know About Private Lenders

Private lenders offer hard money. These commercial Arizona Hard Money Lenders aren’t strictly regulated, however, they do have a few strict specifications to their loan agreement. For example, they offer hard money, a short-term loan with high interest rates and fees. The expense is high—and with a quick turnaround, too! Commercial hard money lenders, though, are very personable. They get to know you, your property, and your situation. If you need a loan extension, they are likely to offer you one. Usually, hard money is expected to be paid off within a year or less, though it is not uncommon for private lenders to extend the loan as long as five years. Because of the timeline, many borrowers of hard money use it for fixer uppers. The goal of a fixer upper is to fix, flip and sell—quickly. A successful flip literally lends itself to the timeline of hard money. Preventing foreclosures is another common use of hard money because commercial Arizona Hard Money Lenders can offer speed. A public lender may need as long as a month to get the process going, but a private lender may only need a week. Speed is never a bad thing—especially when budgets and timelines play such strong factors in your success.

How to Know What’s Right for You

If you are interested in hard money, research local private lenders in your area. Find out what kinds of projects your lender has done and what kind of success their clients have had. Remember to take your time! Speed is a good thing when the process gets going, but there is never any need to rush your decisions. Take time finding the right private lender for you, and take your time discovering the right property. A first-timer into the housing market will want to make decisions that are low-risk, and you will only know what that means to you and your plans by putting in the time, energy and research to find success.

Level 4 Funding Private Hard Money

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Monthly Archives: June 2019

DANGER: How to Scare Off a Hard Money Lender