Seeking out and obtaining a loan is a big step, and it can be hard to evaluate what options are best for you. Before signing the terms to a loan agreement, consider the major differences between traditional and untraditional lenders, and how alternative loan lending options can help you with spec home financing.
The difference between traditional and untraditional money lenders is whether they are public or private. Banks and credit unions are common examples of local public lenders, and probably who you first think about approaching for a loan. However, there are other options you can seek out. Private money lenders are untraditional options composed of individuals and investors. Their standards and regulations are not as high as those as banks, so they can be great options for those struggling to be approved for a loan by a traditional option.
Private lenders offer hard money—this is a fast option that generally features transparency and personalization within the workings of the loan agreements. A private hard money lender in Arizona may be just what you need for your Arizona spec home financing project.
How Hard Money Works
Being successful takes time and research. While hard money is a great option because of the speed and flexibility of the lenders, there are a few further financial aspects you need to consider before knowing if it’s the right option for you. High interest rates dominate Arizona Hard Money Loans. The rates can be as much as five percent higher than other averages on the market. Additionally, depending on who your lender is, there can be fees stacked within the loan. If you are having trouble understanding all the terms to your loan agreement, you can always hire a real estate attorney to help break everything down for you. Confidence in your loan decision is absolutely essential. Some lenders are able to extend the repayment period of the loan, anywhere from two to five years. This may be necessary if the typical repayment period of one year is too fast.
Tips on Making a Profit on the Real Estate Market
Time and research is going to be absolutely essential as you dive into the housing market. It can be extremely competitive, and lots of factors can make or break you—even the professionals on HGTV sometimes make mistakes, or invest in a property with some surprising and undesirable issues. When seeking out a property, consider an improved one that already has major key characteristics like sewers, curbs, and power and water lines. This will save you the trouble and money later. You should also consider the location of the property. There may be a great property in a remote location, but it will be less desirable to buyers who may have more interest in a property near entertainment districts, restaurants, and the working community. It’s not impossible to make a profit in the housing market. Whatever you do, take your time and meet with multiple money lenders until you find the lender that is right for you. Give the lenders at Level 4 Funding a call today to learn how we can help you!
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: 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.
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