(Arizona Hard Money Loans are not right for everyone. But for real estate investors and consumers with credit challenges, hard money is a great option.)
Arizona Hard Money Loans are a short termed, asset-based loan that holds some very special benefits for the right borrower and the right projects. For the most part, the loans are used for real estate purchases because it is the real estate that becomes the collateral for the loan. A borrower could request a hard money loan for another purpose, but he or she would need to own a property outright to use as collateral for the loan. This is not unheard of but it is unusual.
In most cases, the borrower on Arizona Hard Money Loans is involved in real estate investing. New real estate investors like hard money because the value of the property is enough to secure the loan. It is also not dependent on a long credit history which is good for a younger investor who might not have a lengthy credit background. More seasoned real estate investors will also use hard money, but more for the easy qualification as much as the fast funding time. A hard money lender will normally find a loan in a few days rather than the month or two that it can take to get a loan from a traditional bank or mortgage company.
Still, other real estate investors will elect to use a hard money loan because it is far less stressful than the long loan application process required by traditional lenders. There is little sense in investing all of that time in an application when you only need the money for a few months. And many sellers will look upon the hard money loan favorably when there are multiple offers in on a single property.
The Credit Challenged
There are many people who have been turned down for a loan at a traditional bank or mortgage company. The reasons can range from bad credit to no credit, but the end result is that they can’t get traditional financing. These borrowers then turn to a non-traditional lender for hard money. In most cases, they will use the hard money for a short time until they can find a way to secure a traditional loan to pay off the hard money loan. This allows the borrower to extend the payment term to the length of a normal mortgage and often lower the monthly payment.
Why Arizona Hard Money Loans?
There are many benefits to hard money such as fast funding and the easy application process. Different borrowers have different reasons or motivations for selecting hard money. But in the end, borrowers are willing to pay more to use hard money because of the convenience that it offers to them. And even in cases where the borrower is somewhat risky, the lenders are willing to extend the loans due to the potential to earn more interest on a high-risk loan. Both the borrower and the lender are providing something that the other needs, and the loan works out to be mutually beneficial to both parties involved.
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.