The difference between traditional and untraditional lenders is the difference between public and private. Banks and credit unions are examples of public lenders, and individual companies and investors are examples of private lenders. Arizona Private Money Lenders have less requirements and regulations when it comes to approving borrowers for loans, making them a great option for those who may need it.
Arizona Private Money Lenders offer hard money. They can offer it fast and with more transparency than banks. If you are seeking out a loan for Arizona spec home financing, perhaps a private hard money lender in Arizona is right for you!
Before jumping into a Arizona spec home financing agreement with your local private hard money lender in Arizona, you need to understand how a few things work first. You need to know if a short-term high interest loan is right for you. Compared to other loans on the market, the interest rate can be as high as five percent more than average. The expected timeline of these loans is six to twelve months, but it is not uncommon to get an extension for up to five years. Working with your lender will be super individualized, especially compared to the bank. Legitimate private lenders are known for being generally transparent and personable. The goal is to invest in the potential of you and your project—and if they aren’t feeling it, they will tell you. When you meet with your lender you will want to provide a business plan, tax returns, bank statements and a marketing plan for your spec home. The ultimate goal of the spec home is to turn a profit—and you need to be able to prove to your lender you will be able to do so.
Funding plans for Arizona spec home financing usually begins with finding a local lender. Most lenders only want to work on projects in their location. The lot should also be considered an “improved” lot. This simply means it is more than just an empty lot. It should have curbs, power and water lines, and sewers which will help increase its chances of getting a buyer. Your lot should also be near a populated area. Being close to local businesses and restaurants increases the appeal for potential clients who want the social opportunities. If it’s your first spec home, you also want to make sure you choose a project with low risk factors. Being feasible and realistic throughout the process will help ensure you’re successful, and have the opportunity again to profit off another project in the future. In general, private lenders can be great options because they emphasize collateral and your ability to complete the project, instead of a possibly imperfect financial history. If you are interested in utilizing a private lender for your spec home, research local lenders near you. Bring to them your documents showcasing your financial history, property information, and detailed plans so that you can start your dream project!
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.