Banks are the traditional way to seek out loans—right? Right. However, they are also a pretty common way to be rejected for a loan. Read more below about why people are seeking out Arizona private money lenders for all of their loan needs!
When it comes to banks, loan requirements are no joke. Banks have strict loan regulations that can make it difficult for the ordinary lender to obtain a loan if they’ve had imperfections in their financial history. A generalized view of borrowers is a common way for banks to determine quickly and easily what kind of borrowers are capable of the loan repayment process, as well as predict which loans will yield successful results in profits. Though, what happens if you need cash fast? Are there other options for you to consider?
The short answer: yes!
If you put in the research, it is likely you will be able to obtain a hard money loan from a local, private investor. So, what does that process look like?
How Hard Money Works
Hard money is offered by private companies and investors. Benefits of private investors include speed, flexibility, and an individualized loan experience. Though they can be the Plan B for people who are initially rejected by public lenders, they are also great options for people who need fix and flip loans. The fast approval process ensures a speedy process when it comes to obtaining a piece of property off a competitive market, and the quick repayment process is ideal for people who are gain quick profit off of their fixer upper. Additionally, flexibility within the process can be ideal for projects that may be hard to pass by banks. A private investor will be more likely to see the potential of your project through a lens that isn’t as generalized as bank. If you can prove yourself a reliable lender with a solid team of concrete plans, you may not need to worry as much as gaining their approval “financially.” This is how they are able to offer such an individualized loan borrowing process.
Pros and Cons of Private Hard Money
Immediately, it is easy to see how you can reap the benefits of hard money. While hard money is most suitable for those working on a fixer upper, people who are looking to prevent a foreclosure and gain a property of the market fast can benefit. However, hard money comes with a steep cost: fees, and high interest rates. Fees may vary across lenders, and may not prove to be a major financial burden. However, it is essential to consider how interest rates will fit into your loan repayment plan, especially since the loan repayment period is much quicker than that of a traditional loan. These rates can be as high as 5 percent more than other rates on the market. Since Arizona private money lenders can work on an individual basis, it is possible to extend the loan repayment period if they see your reliability and potential. Repayment periods can range from one to five years, depending on your project. If hard money still seems like the answer for you, call the lenders at Level 4 Funding today to discuss how we can best help all your loan needs!
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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