If you are a first-time borrower, you may be determining if you should work with public or Private Money lenders, and the differences between Arizona Commercial Hard money lenders. Before immediately accepting any loan agreement, you need to understand who you are working with and how each loan lender can help you make the most of your investment.
When people seek out loans for the first time, they may first think of public money lenders. Public money lenders consist of banks and credit unions who offer generalized requirements for loans. While public lenders may be a good option for some, they are not a good option for all. Depending on how soon you need the money, and what your credit is, your desperation for a loan may need you to seek out alternative sources.
Alternative Loan Lenders
If you do not qualify for a loan from a traditional source, this doesn’t mean you won’t ever qualify for a loan ever–you just need a new source! This is why many people choose to invest with Private Money lenders. Private Money lenders are, of course, private lenders that usually consist of individuals, companies, or independent mortgage brokers.
Private Money lenders also offer something public lenders don’t: hard money. Hard money is a type of loan that is fast with a flexible approval process. Unlike public lenders who have stiff conditions to their loan qualifications and agreements, private lenders can offer an individualized approach. Even if you do not have a perfect credit history, you may qualify for a loan. It will still be necessary to prove yourself to a lender, however, a private hard money lender will highly consider the potential of your property investment first.
Arizona Commercial Hard money lenders are great options for borrowers who need money fast, have an imperfect credit history, and are looking to invest in their business. It’s not impossible to get a loan from Arizona Commercial Hard money lenders, but it will take a little bit of work. You will need to prove to them your investment is worthy and that your plans are solid enough to back it up. Their individualized approach will make them a great collaborator as you seek a successful commercial investment.
The benefits of Arizona Commercial Hard money lendersmake them seem like the easy choice as your loan lender. However, you need to know that these benefits come with a literal cost. Because hard money lender can offer you flexibility, speed, and individualism, they charge steeper rates than other loan lenders on the market. The term of the loan is also much shorter. You can be expected to pay off the loan as soon as a year.
If you are considering an alternative loan lender, consider the private hard money lender at Level 4 Funding. We are here for your entire loan needs in Arizona and Nevada and can offer you a personalized loan lending experience. Give us a call today!
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.