Why, When & How to Work with Residential Hard Money Lenders in Arizona

Residential Hard Money Lenders in Arizona offer financing for homes when banks won’t. They’re geared toward helping real estate investors when they want to purchase a single-family home, multi-family property, or are managing a portfolio with multiple residences.

Starting with the basics, Residential Hard Money Lenders in Arizona focus on financing homes, versus businesses, warehouses, and similar. The loan is backed by the borrower’s hard assets, which is where the term “hard money” comes from. Hard assets can be virtually any type of property, but in this case, it’s typically the house that’s being purchased or other properties in the borrower’s investment portfolio that are used as collateral. The lenders, themselves, are typically individual people who have built enough wealth that they can support the ventures of others. They provide the funds, often because they really enjoy helping others become successful, and also because the fees you pay to borrow help them grow too. In other words, it’s a win-win solution that doesn’t pad the pockets of banks, but of people just like you. Perhaps with a few savvy investments of your own, you’ll also be in a position to support others and lend funds too.

Because the money is coming from private individuals, the loans are not subject to the same regulations as banks. This, paired with the fact that most work with real estate investors, gives the financers a whole lot more room to create custom solutions that banks can’t.

Loans are typically short in duration, with some lasting just a few months and others having several-year terms. The payments made are typically interest-only for the duration of the loan. At the end of the term, the full principal balance is due.

How to Evaluate Which Loan Type is Right for You

Residential Hard Money Lenders in Arizona operate differently than banks do on a number of levels. Banks work under a multitude of situations, but they’re geared more toward owner-occupied options. That means the borrower has to live in the home more than 50% of the time. They will also usually limit the total number of properties they’ll finance. Conversely, private money is usually for non-owner-occupied homes and is geared toward investors. It can be used for full portfolios. The requirements are totally different too. Banks will look at your FICO score, income, tax returns, and more to decide if you’re worthy. Going the private route, it’s more about the value of the asset and whether you’ve got a solid plan or not. You can also usually get your funds in a matter of days, whereas banks take months. In knowing these differences, the right choice for your needs is likely very clear.

A broker can lend a helping and get you set up.

Residential Hard Money Lenders in Arizona rarely advertise their services directly and, because of the diversity of the field, it can be difficult to find one who lends for your specific project type, works in your area, and is offering good terms. This is where brokers come in. A good broker will connect you with the right financing team for your needs and will find you the best deal too. Brokers are also geared toward cultivating long-term relationships—it’s not just about getting you funded for this one project and being done, but rather, about making sure you’re successful this time and come back to him or her for your next one too. If bank funding isn’t going to fit your needs, start by finding a broker to build a relationship with.

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.