Setabay Private Hard Money Lender

Thursday, May 2, 2019

3 Questions To Ask Potential Hard Money Lenders

There are a huge number of Arizona Hard Money Lenders out there to choose from. The best way to select the lender that is right for you is to have a list of interview questions prepared to as each lender that you are considering.

With the growing popularity of hard money, there are a vast number of options for borrowers who are ready to select a lender. And the only way to know that you have made the right selection is to conduct an interview process with all of the Texas Hard Money Lenders that you are considering. And to make the process as simple and fast as possible, having a list of questions prepared will be a huge help and will also show each lender that you are well prepared, professional and ready to make a deal.

Your first concern should be that all of the Texas Hard Money Lenders are licensed, bonded and insured. You should also verify that each one holds a valid Real Estate Brokers License in the state that you are in. These documents and licenses will tell you a great deal about the professionalism, level of knowledge and level of professionalism that you can expect from the lender. In addition, it is almost certain that any lender who is licensed is not working simply to scam potential borrowers and make some easy cash.

The next concern should be the total cost to borrow money from each lender. The level of transparency of each lender is critical. A lender who is willing to provide you with a written list of all fees and finance charges is confident in his or her business and business practices. This person offers complete visibility into the loan process and loan costs and is likely to be very easy to work with and honest. A lender who is not willing to disclose information about the total cost of the loan is often doing something that might be considered underhanded or shady. And you should expect some hidden costs to appear at some point during the life of the loan.

Timing Can Be Critical

Most borrowers seek hard money because they need to get the loan quickly to close a deal. But not all lenders process the loan request at the same speed nor do they all fund as quickly as you might expect. When you are interviewing is the time to learn about each lenders application and approval process and timeline. And if that is satisfactory, then inquire about the length of time it will take to get the loan funded. Sometimes fast is good enough, but other times it is worth paying extra for a super-fast funding loan.

Find Your Perfect Balance

When you are evaluating Arizona hard money lenders, the purpose of the process is to weed out the undesirable candidates and then learn as much as possible about all of the lenders that appear to be on the up and up. With that information, you can determine which lender offers the best balance of cost and customer service to meet your needs.

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.

How To Select Arizona Hard Money Lenders

Just as not all loans are alike, not all Arizona Hard Money Lenders are alike either. These tips will help you to select the best lender to meet your needs.

When you are shopping for a car or a new home, you would never just grab the first thing you find and not comparison shop. And when you are seeking Texas hard money lenders, you should follow the same thought process. There will be definite drawbacks and benefits to each of the different lenders and a smart borrower will always evaluate these pros and cons to determine which lender will best meet his or her unique needs.

One of the biggest benefits of hard money over a traditional loan from a bank is the fact that they often fund much more quickly. But there are no guarantees in this world, so you need to verify with each lender the time needed to process your loan request and the amount of time it will take to fund the loan once you are approved. When timing is critical, paying a little more for a faster funding loan can be a very wise choice, rather than losing out on a great opportunity due to slow finding.

The cost of the loan is always a factor for borrowers. No one wants to pay a penny more than necessary for anything, including a loan. So borrowers need to request a complete list of all of the lender’s fees and finance charges prior to signing any loan documents. This list should be given to you in writing and should show the total cost of the loan so that there are no surprises later. Reputable Arizona Hard Money Lenders are willing to provide this information up front and will not be upset when you ask for it.

Do Your Homework

No lender will admit to being hard to work with, overly demanding or very slow to return calls or correspondence. But all of this information is critical when you are selecting the best lender to meet your needs. Gather this type of information from references, testimonials, evaluation websites such as Yelp or do a Google search to see what past clients have to say about each lender. This information will tell you what you are really getting for your money in terms of professionalism and customer service.

Only Work With A Professional

Even though Arizona Hard Money Lenders are private lenders, there are rules and regulations that apply to the business processes and the actual lender. Be sure to check and make sure that each lender is licensed, bonded and insured to be working in the business. Each lender should also hold a current Real Estate Brokers License in the state that he or she is working in. verifying this information will not only help you to avoid scammers who are preying on borrowers, but it will also tell you that you are working with a reliable and knowledgeable professional who can provide you with the loan that you need as well as valuable information throughout the process.

Five Tips for Finding Arizona Hard Money Lenders

When you are looking for a hard money loan it is not as simple as walking into a bank. But these tips will help you to locate reliable Arizona hard money lenders.

When fast turnaround time is critical, hard money can be a great option. But to make use of this financial tool, borrowers need to know how and where to find Texas hard money lenders. And unlike traditional loans, hard money is provided by a private lender. This means that a borrower does not just walk into a hard money bank and get the loan in one quick stop. But the good news is that there are a lot of Texas Hard Money Lenders out there once borrowers know where to look for them.

Not all lenders work in hard money. And because these loans are different from traditional loans, it is always best to seek and lender who focuses on hard money. This will ensure that you are working with a lender who is very familiar with the legalities of hard money and is also very accustomed to dealing with the terms and conditions and terms of hard money.

Looking for a local lender is also a good idea. This allows you to meet face to face and discuss the potential terms of the loan as well as providing added ease throughout the lift of the loan if you need to meet with the lender for any reason. This can be especially critical for a borrower who is new to the world of hard money and would like to learn the process from a local professional who can answer questions and be a resource for learning as well as lending.

Get To Know Your Lender

Texas Hard Money Lenders should be licensed within their state by the Department of Real Estate and should have a current Real Estate Brokers License. This is the first step in determining that you are working with a professional and not someone who is out to scam you and never provide you with the money that you need. In addition, verify that the lender offers full transparency into the loan process and the terms of the loan prior to signing any documentation. A legitimate lender will provide you with a written breakdown of all fees and charges associated with the loan that you are requesting prior to asking you to sign the loan docs.

Know What You Need

Not all Arizona Hard Money Loans are the same and not all deals are a good match for any type of hard money loan. It is important that you know what your needs are before you begin to search for a lender. Many lenders specialize in a certain type of Arizona Hard Money Loans such as land purchase, commercial property or only single-family residential loans. Knowing this will save you a great deal of time when you are looking for the perfect lender to meet your needs. Also, never rush the process of selecting a lender when you are uncomfortable about any of the loan terms or the process of securing the loan. A reliable lender will patiently work through all of your questions and concerns.

Wednesday, May 1, 2019

5 Reasons You Need Hard Money Loans

If you are unfamiliar with Arizona Hard Money Loans then you probably don’t know the six signs that you need a hard money loan. But this could answer some serious questions for you.

Arizona Hard Money Loans are loans that are offered by private lenders and are actually based on the value of the collateral that you are using for the loan more than they are based on your credit score. This means that people who are having issues with their credit or have had issues in the past can still qualify for a loan. But because these loans often represent a greater risk for the lender, the cost for hard money and the interest rate on the loan are going to be higher than a traditional bank loan. However, if you are seeing the following signs, hard money could be the answer to your issues.

If you need money fast for a real estate investment, or you will risk losing a great deal, then hard money is perfect for you. Because the loan is coming from a private lender, the process is much faster and less stressful than going to a bank. In some cases, banks will take months to approve and fund a loan but a hard money lender can often complete the entire process in less than two weeks.

If you need flexibility in your loan terms, then again, hard money could be your perfect solution. Private lenders are free to customize the terms of your loan including the repayment schedule, the length of the loan, the interest rate and some will even defer your interest payments until the end of the loan term. No bank will offer those features. And with terms for as little as just a few months, you are certain to be able to get all that you need working with a private lender.

You Don’t Want to Be Cash Poor

You might have a good amount of cash on hand, but you never know when added expenses will pop up. That is another great reason to use hard money loans. Unlike a traditional bank loan, you can take out the short term loan and know that even if there are unexpected expenses, you will still be able to complete the project.

You Are Funding A Fix and Flip

Arizona Hard Money Loans are the perfect financial tool for almost every fix and flip project. The term can be customized to match the timeline for your renovation and without the worries of a long term traditional mortgage or all of the hassles that are involved in the paperwork. In many cases, you can request a loan from a hard money lender and have the loan approved, funded and the project half done before a traditional bank will even provide a response to your request. And even with the higher interest rate, the lower stress level and the fast funding make hard money the best option for a borrower who is doing quick projects and lots of them.

Why Use Arizona Hard Money Lenders

Not all deals are right for hard money. But knowing when to use Arizona Hard Money Lenders will help you to increase your profit on your next deal.

Arizona Hard Money Lenders normally loan money to real estate investors as hard money cannot be used for an owner-occupied property purchase. There are many reasons that investors choose to use hard money over traditional bank loans, even though the Arizona Hard Money Loans have a higher cost.

Being new to the real estate investing business presents a huge number of challenges. Everything from learning about the local real estate market to the contractors and the current trends can be a challenge But by far the greatest challenge facing many new real estate investors is finding funding. Traditional banks often require a great deal of personal financial information as well as a great credit score and virtually no personal debt. In addition, they normally want to see w2 verified income to prove that the investor can make the loan payments. All of this is impossible for a new investor who is struggling to start and grow a new business. But Texas Hard Money Lenders are going to base the approval of a loan request on the value of the property being used as collateral with only a minor glance at the borrower's personal finances.

Because hard money is asset-based, the process to evaluate a loan request is much less complex than the process that a bank goes through when vetting a new borrower. This means that Texas Hard Money Lenders can evaluate and approve Arizona Hard Money Loans in just a fraction of the time needed to evaluate a traditional bank loan. Borrowers know that when they find a great property and need to move quickly, hard money is the way to go. Then they always have the option to refinance to a more traditional, lower cost loan once they own the property.

The Terms Are A Perfect Fit

Flipping houses has become a huge segment of the real estate industry, and hard money terms are the perfect fit for a fast flip project. In most cases, hard money terms are less than one year. That allows a flipper to make a fast purchase and then complete the needed work on the property and sell it before the term of the loan is over. Flipping and hard money have both benefited greatly from one another and are very popular among real estate investors.

It’s Easy and Less Stressful

Getting a loan from a bank can be a long and stressful process. There are mountains of forms and paperwork that must be completed and then you must sit and wait for a response. In many cases, it can take more than a month from the time the request is submitted to even hear that the loan is approved. But using hard money, real estate investors can forget about all of the paperwork and stress. They complete the request and then have an answer in just a few days and cash in hand in just a few more days. Investors know that time is just as important as money in some cases and hard money is a great way to save time.

10 Questions To Ask Hard Money Lenders

It is important to have a list of questions to ask all of the Arizona Hard Money Lenders that you are considering. The answers will help you to make the best selection for your needs.

When interviewing hard money lenders, it is critical that you have a list of questions for each to answer so that you have a means of comparing all of your options. With the following list of questions, you will gather all of the information that you will need to make a good selection for your next hard money loan.

One of the first questions to ask is how long it will take to process the request and fund a loan. This will give you an idea of the when to expect the funding so that you can inform the property owner. Most lenders will offer to fund in under two weeks. Knowing that information, you should then determine what the interest rate will be to borrow the money. This is a very important factor, especially if your budget is tight on the project. And finally, you will need to know the maximum loan to value that each lender will offer. Knowing this tells you how your down payment will be.

Loan terms can also make or break a deal. You will need to know how long the term of the loan will be and also what are all of the costs and fees that you will need to pay. It is a good idea to have these items listed in writing and also when you request the loan, ask for the total cost of the loan so that you are assured of no hidden fees. This is also a good time to ask Arizona Hard Money Lenders to verify the down payment that is required.

Other Terms

Most Arizona Hard Money Lenders will not prohibit the use of the loan fund for repairs but you should ask each lender just to be certain. This is also a good time to ask each lender if they are willing to defer the interest payments until the end of the loan. Some lenders require monthly interest payments while others could defer some or all of the interest until the end of the loan term. You should also ask if there are any ways that you could get a lower interest rate. In some cases, a lender will lower your interest rate if you make a larger down payment or if you can increase your credit score before the actual time of the loan request.

Compare Apples to Apples

Having a list of questions prepared to ask all of your potential lenders will help you to get all of the information that you need to make a well-informed decision. In some cases, it could be worth paying a little more for a loan that offers a longer term or other benefits such as deferred interest or a faster funding time. But you will only learn about this information if you ask the right questions.

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