Rotten credit score can be the bane of anyone, but especially those seeking out loans. A bad credit score and debt to income ratio can stop anyone from investing in new projects. Fortunately, there are other options available.
Untraditional lenders can be great options for people unapproved of by traditional lenders like banks and credit unions. They consist of private companies and investors who offer hard money. While they may seem like your saving grace, you should know a few things about them before you sign any loan agreement.
The first thing you should know is that they have high interest rates. Sometimes they can be as five percent more than other rates on the market. Additionally, they can come with some hefty and, sometimes hidden, fees. Determining the legitimacy of your Houston Texas private money lender is a must. The last thing you want is a “lender” who doesn’t follow through on the loan in the middle of your plans. When you begin searching for a loan, you may begin to think of yourself as an imperfect borrower if your credit score or some aspect of your financial history is not perfect. However, it’s important to challenge your lenders. There needs to be mutual confidence and respect on both ends of borrower and lender. Another thing you should consider is the short repayment period of hard money. In combination with the high fees, hard money may be a bit of a risk. Before jumping in head first just because you were able to be approved, you need to evaluate if all the terms to the loan fit you and your situation.
Depending on your situation, Houston Texas Private Money Lenders may be for you. For example, one universal need for them is when it comes to fixer uppers. The short term repayment period is ideal when it comes to renovating the home and putting it on the market for what is hopefully a quick sale. Additionally, Arizona Hard Money Lenders are generally transparent with you. They are focused on the property and the plans you have for it. If they don’t believe in an aspect of the plans, they will likely be very direct with you. This extends to other things, like extending the repayment period itself. Usually Texas Hard Money Loans are paid off within a year, but if a lender believes in your plans and understands a reasonable extension fee, they are likely to work with you and lengthen the repayment period. This can be anywhere between an additional 12 months or 60. If you have rotten credit and are seeking out a loan, Arizona Hard Money Lenders may be for you. The important thing is to feel confident in yourself, your plans and your lender. If you doubt persists, you can always hire a real estate attorney to look over your lender’s loan agreements and help advise you on whether or not your lender is right for you.
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.