Having a relationship with a bank that you trust is important, but there are no friends in the banking world. Every deal must go through the same arduous process of applications, verification and a loan board for approval. You can be submitting your first application or your hundred and first and it will still need to go through the same motions. But commercial hard money lenders are a great option to avoid the long traditional process which is muddled by numerous qualifications and criteria. It is clear that the benefits far outweigh the added costs charged by commercial hard money lenders.
Hard money lenders are most often individuals or a small group of people who are in the business of loaning their own money to borrowers. This means that they are in control of the process and are not required to follow the long application and approval process that traditional lenders are mired down with. Hard money lenders are less interested in your credit history and credit score and more interested in the value and merit of the deal that you are working on. They understand that if you default on the loan then they are going to need to foreclose on the property being used as collateral and sell it to recover their money. So the value of the collateral is their primary concern.
In addition, commercial hard money lenders offer a much more expedient process when processing a request for a loan. It makes sense that with fewer people and departments involved the process can move more smoothly and quickly. This is very helpful to a real estate investor who has found a great deal and needs to act quickly before someone else closes on the property.
Another benefit of working with a hard money lender is their knowledge of the commercial real estate industry. Although most are not in the business themselves, they are very familiar with the market and have educated themselves to allow for good decisions when considering loan requests that they receive. They are also knowledgeable about the state laws surrounding commercial real estate as that can have an impact on their part of the loan. In short, a hard money lender has the knowledge of the industry but is in no way a competitor of yours and should be considered a good resource and reliable ally.
Forging a strong relationship with a hard money lender will ensure that you have a reliable resource whenever you need a loan for a property. With less stringent requirements the lender is more likely to appreciate your request to carry multiple loans and know that more loans equals more money for both of you.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com 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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.