Someone has suggested real estate as a good area to invest in and you agree with them. However, when you were younger, you bought a piece of property in the hopes of selling it at a profit, but the deal didn’t work out and a personal matter ate up the savings which would have kept you solvent with payments. The bank who had loaned you the entire amount for buying foreclosed. As a self-employed contractor who is paid by the job, your income is described as not steady even with all your debts being paid off now and money coming at a relatively good rate. Traditional lenders, as you have discovered, will look at these things and either deny your application altogether or hold it so long that the property you had in mind will be sold to another buyer who has funding available.
Your tennis partner suggested that you look into hard funding, pointing out that Private Money Lenders have another focus for lending money and better still, numerous types of loans, ranging from bridge and rehab loans to commercial and business only funding. First on the list—research private lenders and investigate the ones who are experienced in the kind of loan you need.
Private Money Lenders In Arizona set up their lending via a secured loan, mainly concerning property that will be purchased, renovated and sold as soon as possible, sometimes commonly termed a ‘fix and flip loan’. The security or collateral reduces the lender’s losing their money in case the borrower becomes ill or cannot pay back the money for whatever reason. This also is a benefit to both lender and borrower’s taxes when everything is properly structured. Fees, normally negotiable, are generally charged to the customer by the financier.
The common term for these lenders is ‘relationship-based investor’ due to the fact you may borrow from a close friend or a work colleague, as well as going through corporations that are designed for the business of short-term investment funding.
You must look carefully into the aspects of private funding since each loan is designed individually and conditions stretch from the kind of loan and time for repayment to what the down payment percentage will be and what interest rate will be charged. A down payment usually has the borrower making only interest payments over the length of the repayment period and then making a single large payoff (termed a balloon payment sometimes) at the end of the term. Normally the time is around twelve months.
Be a detailed hunter—note every broken branch and side trail and find out what Arizona Private Money Lenders have to offer, how much you have to gain and what position you hold. Go after that better life you have been wanting!
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.