For those of you who aren’t familiar with the term, LTV is loan-to-value ratio. Simply put, this is the value of the loan you’re getting versus the value of the property. So let’s say you’re buying a property worth $200,000 and you’re getting a loan for $160,000. That’s an 80 LTV because you’re borrowing 80% of the value of the property. This ratio is important because lenders use it as a metric to assess risk. 100 LTV may be rare, but there are ways to get there. Here are a few tactics you can employ to do it:
1. Do Your Research. Many Arizona Hard Money Loans will tell you flat out that they just won’t consider doing a 100 LTV Arizona Hard Money Loan. Some may post this information right on their website; others will tell you on the phone. So here’s what you do: research Arizona Hard Money Loans in your area (say, Phoenix, Arizona). Peruse their websites, send them an email or give them a call and ask. It’s quick; it’s painless and you won’t be barking up the wrong tree.
2. Build a Relationship with Your Lender. Here’s where Arizona Hard Money Loans differ from the behemoth banks — they work with private funds and they’re usually smaller operations. This works to your advantage and here’s why. You can sit down with a Arizona Hard Money Lender and make a case for your investment. You and your lender can establish a relationship of trust and mutual gain, so he or she might not just reject your case based solely on numbers.
3. Have a Strong Background. While Arizona Hard Money Loans are less concerned with credit scores and past mistakes than banks, they also want to see that you’ve handled yourself well in the past. For instance, if you want to do a fix and flip, they might want to know that you’ve done it successfully before. Also, if you’ve worked with the lender before, he or she may be more inclined to take a risk.
Getting 100 LTV might be a tall order, but some Arizona Hard Money Loans are willing to go 90% on as-is values and up to 100% on rehab costs. Of course, not every investor gets these terms. Like we’ve detailed above, you may need to have solid collateral, a good budget and a workable plan.
Level 4 Funding has decades of experience with hard money lending. If you’re looking for a 100 LTV Arizona Hard Money Loan, give us a call today!
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.