Types of Arizona Hard Money
There are lots of ways to make Arizona hard money
work for you. While most people think of hard money Mortgages as those high-interest, last-resort, type of money options, they can actually be used creatively and efficiently so that the lender and the borrower both end up profiting in the end. How can this be done, you ask? Read on to find ways to make Arizona hard money
fit your circumstance!
Arizona Hard Money can be used in diverse situations.
The first and most common example of Arizona hard money Mortgages is a residential investment Mortgage. This is for a personalized and individual situation (not commercial) and the property is used as collateral. This type of Mortgage, or any hard money Mortgage for that matter, is not based on personal finances or income, but rather on the value of the property.
The second type of Arizona hard money is for commercial investments. This is for companies looking to invest in property or in a “fix-and-flip” project. In this case, your company might not have ownership of other property to use as collateral, so instead, they may accept interest in your company. Basically, the Arizona hard money lender would be a part-owner of the business.
Once again referring to the “fix-and-flip” type projects, Arizona hard money
can be used for this type of situation. Basically, the hard money lender would give you a short Mortgage (6-36 months) that you could use while you are revamping the property. Then, you can turn around and sell the property you renovated for more than you bought it for, pay your Mortgage off, and make a profit. This is a new and creative way borrowers are utilizing the services of Arizona hard money.
In fact, in this instance, 3 people are benefitting: the lender, the borrower/project person, and the buyer of the home who just purchased a completely revamped and fabulous home or property.
These are only three ways you can make Arizona hard money work for you. The possibilities are endless! And, since each situation is completely unique, hard money consultants and companies can walk you through the process and help you explore your options.