(Arizona Hard Money Loans are not for everyone. But they do offer many benefits to the right borrower.)
There can be a great deal to learn the first time that you are in search of a loan. And it is critical that you invest the time to doing some good research to ensure that you made a smart selection. If you rush into the first loan that is offered to you, there is a good chance that you could be losing a lot of money or getting yourself into a loan agreement that you don’t understand and cannot fulfill. Knowing the benefits of Arizona Hard Money Loans will help you to determine if this loan is a good match for your current needs.
Nothing in life is free, and that includes Arizona Hard Money Loans. Many potential borrowers look at the interest paid on a hard money loan as the greatest drawback, but the smart borrowers know that this is just the cost of such a convenient loan. Private lenders are not limited to the interest rate that they can charge so you will want to verify the interest rate with each lender that you speak to. But you need to understand that charging interest is how Texas Hard Money Lenders earn their living. Some rates will be a few points above the rate of a traditional lender, while other lenders who are willing to assume a great risk will charge in excess of 10%.
There is no way that a borrower will ever see the turnaround time of a hard money loan as anything but a fantastic benefit. Unlike banks that can take weeks or even months to process a loan request, most Texas Hard Money Lenders will process a request in just a few days. That short time period makes hard money a great choice for a very time sensitive loan.
A Loan With Fewer Requirements
When you apply for a loan from a bank, there is literally a huge pile of documents that you need to submit for review. They could request copies of your paycheck stubs, your tax returns, your bank statements and even documents regarding your business. But a hard money lender is going to be far more interested in the value of the property that will be used as the collateral for the loan. You will need to show proof of your income but there is no deep dive into your credit history and credit score to secure a hard money loan.
The Details are Critical
As with any loan, Arizona Hard Money Loans offer benefits and drawbacks. But if you have read the entire loan document, then you clearly know the total cost of the loan and all of the expectations that you must live up to during the repayment process of the loan. It is only when a borrower fails to read the terms and just signs the loan agreement that trouble begins. Investing some time in learning about hard money and then fully understanding all of the terms of your loan options will allow you to make the choice that best fits your current needs and is the most affordable.
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.