The term Hard money loans in Colorado is often misunderstood by many consumers. They picture a less than scrupulous lender who might be working out of a shady office or back alley rather than a professional individual who is simply in the business of loaning money to make money. In some cases, the lender is a single person or in other cases, it is a group of people who are working together as a group. But the main difference is that this loan is coming from a private source and not a traditional bank or other lending institution.
One of the biggest benefits of using Hard money loans in Colorado is that the loan is secured with collateral rather than the borrower’s creditworthiness. In many cases, a borrower will have a low credit score or no credit history and is unable to finance through traditional means. In addition, people who are recently divorced can have a difficult time reestablishing their credit and need another option when buying a home. And people who are self-employed, work freelance or have seasonal or fluctuating income can have a difficult time meeting the stringent requirements of a traditional lender when it comes to proving their income. But hard money offers this segment of the population a legitimate option for borrowing money to purchase a home or invest in the real estate market.
Another group of people who are fond of Hard money loans in Colorado are property flippers. These real estate investors know that finding a great property requires fast financing to secure the purchase. A bank is going to require a lot of documentation and time to process a loan even for an applicant with stellar credit. But a hard money lender is willing to process and fund the loan in a fraction of the time because the property becomes the collateral for the loan.
Homeowners who are at risk of losing their home due to a financial hardship are also going to benefit greatly from hard money. These loans allow the homeowners to use the equity that he or she has in the home to refinance in a sense and pay off their original mortgage. In some cases, the homeowner will then refinance into a new traditional mortgage at a later time or others will sell the home to pay off the hard money loan. But what this does for the homeowner is protect the equity that would have been lost had the mortgage company foreclosed and taken possession of the home.
There are state and federal laws which forbid Hard Money Lenders in Arizona from lending to people who obviously have no way to repay the loan. But if you can meet the payments of the hard money loan then this is a solid and legitimate option for you. Even with a credit score below 600, borrowers can qualify for hard money and begin to rebuild credit or establish a new career in real estate.
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.