If you are seeking out a renovation loan from a private money lender, you probably know that untraditional loan lenders are quick alternatives to rejections by your local bank or credit union. Why is this though? And what do you need to be aware of before signing the terms of a loan agreement with an alternative hard money lender?
The first question to tackle is the difference between private and public money lenders. The short answer is requirements and regulations. A public lender like a bank is going to have strict policies, making hard for the average Joe to meet the requirements of loan acceptance, especially if there are imperfections in his financial history. Additionally, there will be questions about mortgages and the percent you must put down on the loan. When you meet with your local private money lender, the process will be a little different—and definitely less intimidating.
Private money lenders do ask that you prove yourself to be a reliable lender—but they don’t stop at your financial history. They also heavily consider your plans, your team, and the potential of the property. They will work with you on an individualized versus a generalized basis. The plans for your property are going to be just as important to them as your financial ability, giving you a greater chance of gaining loan approval.
What You Need to Know About Private Fix and Flip Loans
Private fix and flip loans can be very beneficial to borrowers because of the speed and flexibility they offer. However, there are a few other financial aspects to consider—and that is the literal cost of the loans. While private Arizona Hard Money Lenders can usually get the ball rolling within the week—while banks usually take at least a month—there is a quick repayment period to these loans, and high interest rates. You need to be confident in your ability to repay the loan. If the typical repayment period of one year is too fast, investors have been known to extend the period longer—it just depends on who they are. Lastly, the interest rates on Arizona Hard Money Loans are steep—about five percent higher (or more) than others on the market. There are many attractive qualities of hard money, however, you have to determine if it’s what is best for you.
How to Make a Profit on the Real Estate Market
When it comes to making any major financial decision, you need to take your time. Work with and for the people who are going to work with you to meet all of your real estate goals. Don’t stop at just one hard money lender—meet multiple, and determine how you can work with each other. If you are seeking out Arizona Hard Money Loans in Arizona, visit your local hard money lender at Level 4 Funding. We are here for you to offer a personalized loan lending experience, and guide you through the ups and downs of the real estate market, ensuring you make the most of your renovation loan and property!
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: 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.
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