What are Private Money Lenders in Arizona?

If traditional lenders are not an option for your next real estate purchase, then you should consider Private Money Lenders in Arizona. But you need to have an understanding of who these lenders are and the loan process.

Private Money Lenders in Arizona are simply individuals who are using their own money to fund loans for other people or businesses. They loan money for real estate purchases and the terms of the loan require that the property be used as collateral for the loan. This provides a certain amount of security for the lender, in the event of the borrower defaulting on the loan. These lenders offer many services and benefits that borrowers will not be able to get from a traditional lender.

Real estate investors will be quick to admit that timing is everything. In the world of fix and flip or rehabs, buying a great property quickly before there is a bidding war is critical to turning a profit. But getting a traditional lender to expedite a loan application is pretty much impossible. So the alternative is to use Private Money Lenders in Arizona who are much faster at turning around a loan request as well as funding.

The fact that Private Money Lenders in Arizona are basing their decision on the value of the property and not the credit-worthiness of the borrower has a great impact on the time needed to approve a request. Asset-based lending or hard money lending is the type of loan offered by private lenders in most cases. And these loans do not require the huge amount of paperwork and documentation to determine if the borrower is a good risk. Instead, the lenders look at the value of the property and base the loan on the value that it represents.

Working With a Person

Another reason that many real estate investors prefer a private lender is the fact that they will be working with a person and not some faceless committee that works for a bank or mortgage company. The private lender has the ability to discuss the terms of a loan and even to customize the terms to meet the borrower’s needs. No loan officer at a bank can change the payment schedule on a loan or create a payment scale that increases or decreases to offer the borrower more options for payments.

A Legitimate Option

Many borrowers think of private lenders as something very similar to a loan shark or other shady entrepreneur, but that is not the case. These lenders are in business to make money just like a real estate investor is, but only from a different phase of the industry. The private lender is earning interest and is also being paid for additional services such as loan processing and the appraisal of the property in the transaction. And in most cases, when a real estate investor finds a private lender who is easy to work with, he or she will continue to bring business to that same lender. This creates a long revenue chain for the lender and helps to reduce his or her cost over time. Private lending is a good way to get fast payment from a person and not a large corporation.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel: (623) 582-4444

Texas Tel: (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

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.