Recently I noticed some chatter going on our Facebook page about members conversing how hard money had helped them in some way, shape or form.  What two of the members chatting also mentioned which I thought was very interesting, was the fact that they both had found out about hard money via Facebook and social media.  One member had stated that he had a friend who had posted a status update regarding how he was looking for a hard money lender in Arizona.  The friend had responded to his post and directed him to HMAZ and the rest is history.  It is truly amazing the power social media and the influence of friends have on your decisions and how powerful social influence truly can be.  Product marketers are starting to realize now that when a friend or someone you are influenced by mentions a product or service to you, you are more inclined to obtain said product or service merely because someone of trust brought it to your attention.  I think we are in a new age of digitized marketing, with more and more of your decisions being targeted and influenced by social media surroundings!  Just think, it already brought together 2 people in need of hard money loans!

Black Friday weekend recently passed us by, and retail spending was through the roof!  Consumers spent 50.06B on goods, up 8.7% from a year earlier.  This definitely helps shore up concerns that the economy is completely in the gutter, as retail spending is a key metric used to determine current economic health.  While the numbers for retails pending are still good, we are unfortunately sitting steady at a 9.1% unemployment rate, with current numbers released today indicating the applications submitted for unemployment benefits actually went up in November.

So what can consumers do if they are strapped for money this holiday season?  Consumers here, would be smart to start checking into hard money lenders in Arizona.  By consulting with a hard money specialist, you can ensure that you have the necessary capital to make this holiday season a favorable one for you and your family!

This is a continuation of our first post Is Hard Money an Option and When?  Part 1/1.

Getting Approved: Getting approved for funding through Arizona Hard Money Lenders is not a difficult task. However, it is important to act like a professional. Selling oneself is equally important and is the key to winning loan right away. Remember, the loan comes with high interest rates and also, the duration is less. Only if you can afford and know what it takes, go with Hard Money Lenders, Arizona. If you don’t want a run around and don’t want to meet several lenders, here are few tips that you can follow

It is good to take a file with all the required details, such as:

• A short description of yourself, which must convey your abilities and potential. Not like an interview, though they need to know you have the capacity to repay the loan!
• Copy of Purchase Contract
• Appraisal Statement, which can be from a Broker, or a professional Appraiser.
• Insurance Approval
• Photos of the property in question
• Details on the inspection done
• Estimate for Repair, before the property becomes usable/saleable
• An outline and breakdown of costs involved
• Title Commitment
• In case of construction, plan for the same
• Any other relevant details, you feel make you seem more presentable, professional and reliable.

How to Determine Between the Many Arizona Hard Money Lenders? While there are many Hard Money Lenders out there, not all are reliable. Checking on the following aspects can ensure the money is lent by reliable lenders:

• Reputation
• Expertise vs. Experience
• Success Rate
• Reviews and Testimonials
• Interest Rate and other Terms
• Agreement Structure

Above all, you should be comfortable with Arizona Hard Money Lenders who are shortlisted for lending.

Welcome to our two part series of “Is Hard Money an Option and When”.  We will be discussing in some detail when hard money lending is an option, and when a person should capitalize on this opportunity.

Is Hard Money a Viable Option?

Not all individuals can complete the cumbersome process of traditional loans and fulfill the documentation required. More often, due to credit score, inconsistent loan history and even insufficient documentation, loan applications are often rejected. This will not only include those who don’t qualify, but even those who can afford the loan might get rejected. In such scenarios and when a person needs cold hard cash, they can opt for a Hard Money Loan. Hard Money Loans are given against collateral, such as a Real Estate Property. States laws vary for hard money lending, so it is ideal to go with lenders in the respective state. So, if you are in Arizona, Hard Money Lenders, Arizona are your best bet

Hard Money Lenders in Arizona don’t have exhaustive or stringent procedures. More often, the approval is within few minutes to an hour, or two. Since the property is based on the collateral, a real estate property, it is the property that is considered and valued. Most lenders will loan up to about 80%, or in some cases less than 65%.  Sometimes the lender will be comfortable with lending the full value. At the end of the day, it is not the person or their capacity, but rather, the value of the collateral that is more important to Arizona Hard Money Lenders. There are lenders who don’t even look at the documentation and other papers submitted and also don’t have a standard agreement drafted. Rather, they customize the agreement and terms for the individual in question, making this a win-win scenario for both parties involved. This is specifically for investment properties.

Hard money lending in Arizona is heating up for the 2012 year andhardmoneyarizona.net is here to help you every step of the way.  When searching for Arizona hard money lenders, look no further, we are the #1 site for private money in the Arizona and surrounding areas.  Withbullish signals for home buying apparent according to the Wall Street Journal, it is no surprise that hard money lenders will definitely be a key resource in providing lending opportunities for those who require it.

We suspect this trend to continue as the macro economy appears to improve, this will only result in more residential and business real estate acquisitions via auctions and other avenues.  As a result of said activity, you can be certain that private money lending will continue to thrive, especially in areas that were hit hard initially in the 2008 real estate bubble, namely Arizona, Nevada, California and Florida.

A hard money loan is normally view as a loan of “last resort”. This type of loan is first initiated when a borrower with bad or limited credit is unable to secure conventional financing and has no other alternatives but to turn to this type of lending. Another common scenario that also occurs is when the borrower needs turnaround financing in a shorter period of time than conventional financiers can provide, as with the case of foreclosures, loan restructures, bail outs or delinquencies.

Borrowers who require funding for property purchases that are non-conventional, as with land, property in extremely rural areas, land development, construction projects, and others, often find themselves in difficult situations when trying to obtain financing in the traditional manner. These individuals are often forced to look at hard money lenders. Furthermore, real estate investors are often in need of these types of loans because of the extremely short period of time before receiving funding.

The loan amount for the hard money and interest rate that is assessed in always based solely on the appraised value of the property in question. The borrower’s credit or other personal guarantees are never taken into account. The amount of the approved loan is always based upon the LTV (Loan to Value) ratio of the property in question. LTV’s in hard money loans are often significantly lower than that of conventional real estate loans. This is occasionally referred to as a “bridge loan”, a hard money loan that is necessary for short-term financing needs.

Companies or individuals who provide hard money loans are often private investors, or sometimes lenders themselves. As a result, the financial risk involved to them is often significantly higher than that of a traditional lender. To mitigate this risk, hard money lenders in Arizona charge higher interest rates for their services as well as other related fees (closing, appraisal, recording process, documentation preparation, etc…). Lenders will also offer loans amounts that are much lower LTV than conventional lenders. This LTV can be as low as 65% at times depending upon the appraised amount of the property in question. Furthermore, potential borrowers, are required to have substantial equity in the property being used as collateral. This is to ensure there is enough equity in the property should the loan default and the property go into foreclosure.

Hard money loans may seem like an unattractive solution to most with its low LTV’s, high interest rates and fees associated with them, but there are many situations where the benefit of having a quick turnaround time for funding and the elimination of credit worthiness that is required by traditional lending institutions.

As always with any financial situation you should always do your due diligence and research prior to committing to it. The same is true when searching for Arizona hard money lenders.

Being ASU graduates, many in the office here at HMAZ were extremely upset about the recent fall of the Sun Devils to the Wildcats in the classic annual fall football game that takes place every year.  The solo U of A graduate was basking in the glory of the win and thought we should have a a specific post on the blog relating to it.  So here it is, congratulations the Wildcats won…  don’t worry though, Sparky and the pitchfork are coming back with a vengeance next year to recapture that crown!

So as a result this U of A graduate is reaching out to the rest of the Tucson community and current and former U of A alumni to inform them about our hard money Tucson initiative.  Here at HMAZ we lender throughout the entire state of Arizona, and Tucson is no exception.  Call us today Tucson residents and fellow Wildcats, we will get you funded in hours!