Public lenders like banks and credit unions are traditional loan options. They generally have strict requirements when it comes to qualifying for a loan, and it can be overwhelming if you know your financial history is imperfect. Unlike public lenders, private lenders are untraditional options that are less regulated. Many people who don’t qualify with traditional lenders seek out the benefits of private money lenders.
Arizona Private Money Lenders offer hard money. The process is quick and handled with much more transparency than public lenders. If you are seeking out a loan for Arizona spec home financing, maybe borrowing from private Arizona Hard Money Lenders is right for you.
While the benefits to working with a private lender on your Arizona spec home financing project, there are a few things to consider first. The most important thing to know is that they offer short-term loans with interest rates that can be five percent higher than most on the market. Sometimes there can even be extra fees, though that depends on who your lender is. All Arizona Private Money Lenders are different, but it’s definitely possible to get an extension. It’s not uncommon to get an extension for two to five years. In this way, private Arizona Hard Money Lenders are very individualized. However, they focus on you as the individual in another way: during the loan approval process, they significantly weigh the property’s collateral and your ability over your financial history. Focus is drawn to the property’s potential, your plans, and what you can do. Finances will play a small factor, but it definitely won’t make or break you—especially if you’ve put in the time, energy and research.
If this is your first time funding a project with Arizona spec home financing, take small steps. Start by finding a local lender and an “improved” property. It doesn’t matter how great the property is, most lenders are only interested in projects within their geographical location. An improved property will already have key features including curbs, water and power lines, and sewers. Raw properties will not have these advantageous characteristics, and will require you to spend more money in the long run. Additionally, these characteristics look great to potential buyers. When you’re considering potential lots, you also want to consider its location in terms to nearby business districts. Homes close to restaurants and local businesses are more marketable than more remote locations. Whatever you do, don’t rush your decisions. Take your time in seeking out both your lot and your lender. Make decisions that support you, your finances and your plans. Investing in properties that have low-risk factors is always a great choice for the first-time spec home investor. Do your research and bring it when it’s time to meet your lender. Proving you are capable of the project will be a major part of the journey as a borrower with a private hard money lender.
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.