Whether it’s a buy and hold, a fix and flip or an AirBnB business, commercial hard money lenders in Arizona may be the best way to see your dream come to fruition. Use these three keys to find one that’ll be a partner in your success.
When it comes to investing in real estate for business purposes in Arizona, private money lenders are key. They help fund all sorts of endeavors, from storefront rehabs and cannabis company growing operation launches to rental properties and fix and holds.
Conventional lenders like banks don’t use collateral to secure a loan, so they’re ultra-concerned with how much you make, what your credit score looks like and if you’ve had a problem in the past. So-called hard money is thusly called because the money is secured by a “hard” (real) piece of property. This is a huge difference. Instead of caring about your past or an arbitrary number, commercial hard money lenders want to know one thing: can you make money?
Sounds super easy, right? Well, yes and no. No lender is going to hand you a bag full of cash without knowing it’s worthwhile for them, too.
For these lenders, who get their funds from private investors, the success of your project will ultimately mean success for them. They need to believe in you and your project for that to happen. How do you do this? There are several ways.
● Show them you’ve got experience with the business you hope to run. For instance, if you plan to do a fix and flip, having a portfolio of properties you’ve successfully flipped is important.
● Know your numbers backward and forward. Do your research and make sure the number show you’re getting a good deal; your property will appreciate, and you’ll be able to finish on budget. Make sure you have a property assessment, a comparative analysis and a good idea of what everything will cost.
● Have a clear, comprehensive plan. Build a realistic timeline for the project and add a little padding to allow for any issues that might pop up.
This isn’t to say that if you have no experience, you’ll be turned down flat, but you will need to cover these three areas as thoroughly as possible.
At Level 4 Funding, we’ve got decades of experience helping people invest in commercial real estate. We’re an Arizona commercial hard money lender with competitive rates, flexible terms and a personal touch. Let’s talk today and work on ways to be successful together.
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.