It can be tempting to jump right into an Arizona hard money loan if you’re in a desperate situation to get some money for your home. However, as with any other investment dealing with a large amount of money, there are a few things you need to know before pursuing the loan. Arizona hard money loans are indeed a great way to get quick money for a short term, and they can even be quite profitable for those borrowing the money. Usually, hard money loans are for residential or commercial properties, but can also be used for fix and flip projects and other real estate investments. Here are a few things to keep in mind before you pursue hard money:
1. Be ready to negotiate. Understand every dollar, every penny, of the loan before you sign the agreement. There is a reason hard money lenders don’t post flat interest rates on their site—these loans are negotiable and no two loans are alike! Negotiate in a reasonable manner so that you can get the best deal for you and they can get the best deal for them.
2. Before you borrow, shop around. You definitely need to do your research before borrowing Arizona hard money, and I wouldn’t suggest just going forward with the first lending institution you run on to. Explain your financial situation to a few lenders and see what they are willing to do for you. Find a lender with a good reputation!
3. Consult with professionals. While you can often feel at ease in the hands of an Arizona hard money lender alone, I would suggest consulting with more experts than that. Remember, lenders are in this business to make a profit, so seek out someone who is objective and eager to help you plead your case. An attorney or real estate agent can help you find lower interest rates.
4. Only borrow what you need! It can be tempting to ask for more than what you need to help you with some of your other bills, but don’t do it. You will always regret it in the long fun. More money results in more spending and more debt. Calculate the numbers, know what you need, and stick with it.
5. Be honest with the loan officer. But, also remember that they are making a profit from you, so protect yourself. However, if you lie your way into a loan, you could find yourself in a whole world of hurt. Most Arizona hard money lenders are willing to work with you, so share your financial information with them and try to get the lowest rates.
Hard money is a great way to get money for property and real estate quickly, easily, and efficiently.