Who are Arizona Private Money Lenders, and why should they matter to you?
Arizona Private Money Lenders are individual investors who are separate from federal institutions. Aside from conventional lenders who receive institutional money, rates, and regulations in order to lend money, private lenders loan out their own money to the individuals they see fit to loan to. They are small entities with their own interests and their own agendas, not an extension of the bureaucratic arm of federal lending.
There are several benefits to using private lenders. First off, generally speaking, Arizona Private Money Lenders tend to finance real estate that needs to be repaired. They are okay with borrowers purchasing property that has been run down, that has extensive damage, or that can be fixed within a short period of time. This is because these types of property, if the numbers are crunched correctly, can bring in a healthy return, benefiting both lender and buyer. Because of this, fix and flip investors frequently tend to deal with private lenders for a variety of lending scenarios: acquiring a profitable piece or real estate that may be distressed; financing only a portion of the renovation process such as cement, paint, etc.; or financing equipment that can be used for renovations.
Second, reduced lending requirements. Arizona Private Money Lenders do not require lengthy verification requirements and can be funded within a matter of a few days at the quickest. The speed and the reduced application and funding requirements make private money popular for individuals purchasing wholesale, foreclosed, or short-sold properties, many of such purchases needing to be funded within a short amount of time opposed to the lengthy, 40-day-plus period that a conventional loan would take.
What Do Private Lenders Require?
Third, Arizona Private Money Lenders tend to look at equity positions and business success over past bankruptcies, foreclosures, and delinquencies. Many recipients of Arizona Private Money Lenders are contractors, leasers, and flippers who purchase property to get a return on money. A primary concern for Arizona Private Money Lenders is what the loan-to-value (LTV) and the after-repair-value (ARV) will figure out to be. By calculating both of these factors, a private money is able to calculate risk in the advent of foreclosure. Other factors included when financing real estate investors are: how many jobs has the investor completed, and how well has his or her investing business held up.
Arizona Private Money Lenders are local lenders who tend to have a personal relationship with borrowers.
Fourth, Arizona Private Money Lenders are generally local lenders. Aside from equity and work history, Arizona Private Money Lenders tend to lend to people in a close-knit community. Instead of calling an obscure entity from a “1-800” number that is directed through a myriad of phone lines and codes just to hopefully get a bank representative, Arizona Private Money Lenders are accessible, personable, and available. By building local investment ventures, they indirectly build communities, small businesses, local infrastructures, and community jobs. Though finding Arizona Private Money Lenders is not as easy as other lending outlets, it is a comfortable and a less regulated lending form that continues to help many small business and individuals get their start.
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 and 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.