While not all investors understand hard money loans, those who do know that when used correctly there is a great potential for return on investment. Below are four of the biggest benefits of these loans.
Not every loan is right for every type of property, and in some cases, a property can be in a condition that makes it difficult to secure any loan at all. But smart real estate investors know that Texas Hard Money Loans can be a great resource because of all the great benefits that they offer over a traditional bank loan. These asset-based loans open up a lot of doors for credit challenged investors as well as investors who have a great many projects running in succession.
By far, one of the biggest benefits of Arizona Hard Money Loans is the fact that the entire process is far less stressful and much faster than a traditional bank loan application. The bank will require a myriad of documents to prove your financial status, but Arizona Hard Money Lenders are only interested in a few tax returns to make sure that you can keep up on the loan payments. And once the bank has all of your documentation, they pour over it for weeks before making a decision. A hard money lender is likely to review your documents and the property information and respond within a day or two.
An additional benefit of Arizona Hard Money Loans is that the terms are all negotiable. This included the interest rate, the length of the loan and even the loan amount. Banks have set terms for all of this and are never willing to negotiate. But working with a private lender means that you can get the customized loan that you need, not the loan that some banker wants to give you.
Long Term Working Relationship
As a real estate investor, you are going to need loans for each project that you undertake. The benefit of working with a hard money lender is that you can cultivate and grow the relationship to benefit you both. A bank could have a dozen loan officers but you will not see a new face with each loan when using a long time hard money lender. And as your history and relationship grow, so will the benefits and the comfort level of requesting a loan. That is a huge stress reduction for any business person.
Great For New Investors
As a new real estate investor, you will find it very difficult to meet the loan criteria of a traditional bank. They will require a stellar credit score, a minimal debt to income ratio and years’ worth of tax and banking statements to even consider lending you the money you need. But a hard money lender will just ask for tax docs and the particulars on the property that you are looking to buy. If you have made a wise selection and the deal looks profitable, then the hard money lender is going to be willing to take a chance on you. So, it is clear to see why many investors favor using hard money for their projects.
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.