Not all Arizona Hard Money Loans are the same. You need to be aware of a few red flags that can indicate that the loan or the lender is less legitimate.
Arizona Hard Money Loans are considered non-traditional loans only because they are funded by a private lender. There is no other reason for the term and it does not indicate anything about the legitimacy of the loan or the lender who is offering the loan. But many borrowers are unfamiliar with Arizona Hard Money Loans and because of their ignorance, they believe that these loans are in some way shady or less than desirable or legitimate. But it is also important to note that as with any industry, hard money has a few bad apples in the bunch. Knowing the red flags to look out for can save you the time and frustration of dealing with one of the few but bad lenders.
Not being forthcoming where documentation is concerned is never a good sign in any business. If a lender refuses to provide you with a complete set of loan documents to have them reviewed by a legal professional, then you should be concerned. Even though you are working with a private lender and not a traditional bank or mortgage company, the loan agreement is a legally binding document. And as such, you should have the right to have it reviewed prior to signing it. If the lender will not provide a set of documents then there is likely something less than legitimate in the documents and you should find a new lender.
A lesser red flag but one which should still get some attention is a less than helpful or responsive lender. If no one returns your calls or emails requesting information, then you should expect the same treatment after you sign the contract. This can mean that you could face slow funding or have no way to get a response on an issue or concern during the life of the loan. This poor customer service is all that you should expect if you continue to deal with an unresponsive lender.
The terms of Arizona Hard Money Loans can vary a great deal because the lender is a private entity and not a traditional lender. For this reason, it is critical that you request a complete list of all fees and charges that you will incur for using the lender’s money. If the lender is not willing to provide this information in writing then you need to seek a new lender. It is very likely that the lender will charge you hidden fees which will greatly increase your costs and his or her profit.
Most importantly, you need to follow your instinct as you begin to deal with any lender. If you feel unusually pressured to sign or to sign a contract very quickly, then there could be hidden fees that the lender is trying to slip past you. If you feel unappreciated, and that the lender in inattentive, then seek a better lender with a higher level of service. Finding the right lender is critical to every flipper and ever purchase.
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.
© 2019 Level 4 Funding LLC. All Rights Reserved.