Is Hard Money an Option and When? Part 2/2

Money BagThis 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.

Is Hard Money an Option and When? Part 1/2

hard money signWelcome 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.

Arizona Hard Money Lenders

Hard money lending in Arizona is heating up for the 2012 year and hardmoneyarizona.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 provider for private money in the Arizona and surrounding areas.  With bullish 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.

Who Needs A Hard Money Loan?

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.

Hard Money Lending and Retail Shopping

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!

Hard Money Tuscon

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 Scott, 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 Scott, 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 Scott 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!

Hard Money Lenders Arizona

Thank you Arizona and loyal readers of our blog for making us one of the most successful hard money lender in the valley!  The recent explosion in consumers and businesses being turned down for lending has caused a surge in requests for hard money.  We specialize in, and are able to lend to residential and commercial individuals regardless of their current financial situation!  As a result, we have decided that we will soon be launching a “Recently Funded” section detailing the success we have had in the lending sector.  Curious if you could receive a hard money loan via HMAZ?  Check out the recently funded section and compare and contrast other recently funded deals to the deal you are inquiring about.  It is a sure fire way for you to have a little more piece of mind prior to or after calling us.  Yes another consumer conscious imitative at HMAZ that we are happy to offer.  We are only here to help out the consumers, and by being 100% transparent and honest, we are able to achieve that!

How Hard Money Helps Stimulate the Economy

There are many reasons why someone can become stressed out due to a financial burden.  Home repairs, unexpected medical bills and even the loss of a job are some of the more popular ones.  But with the current economy in the state it is in, and unemployment numbers hovering around 9.1%, it is no surprise that many individuals are struggling to make ends meet and are looking to alternatives measures to improve their quality of life.

Enter Hard Money

Because many of these individuals seeking to obtain loans and funds are having financial difficulties, the majority of conventional banking institutions won’t lend to them!  This has created a prime market for hard money lenders in Arizona.  Look no further!  These individuals who were in these dire situations before are now able to secure the money they need.  Not only does this help them tremendously for whatever financial burdens they may have encountered, it also helps the economy!  Hard money lenders stimulate the economy by lending money to these individuals whereas traditional lending institutions don’t.  But that doesn’t directly stimulate the economy.  What does is when these individuals spend this money on the goods and services they require, creating commerce  for all parties and manufactures involved!

Hard Money Arizona, Where Do You Guys Lend?

We often get calls from individuals wondering exactly where we provide  hard money lending services.  Some people seem to think we only service the valley, when in fact, that is far from the truth!  We currently service the entire state of Arizona.  That’s right, we are Arizona’s premiere hard money lender, with focus on the following cities:

  • Phoenix
  • Scottsdale
  • Mesa
  • Gilbert
  • Chandler
  • Glendale
  • Tucson
  • Buckeye
  • Peoria
  • Surprise
  • Tempe
Need hard money and live in one of those cities, or surround Arizona areas?  Call us today at 480.229.0121!  Want more?  Need funding, but live in another state?  Residence or commercial property in another state?  No worries!  We will get it done…  We can get deals done in states OTHER than Arizona as well!  For state specific lending, please contact us directly by clicking here, or calling us at (480) 744-6FUND (6386).

The Bank I Bailed Out Won’t Lend Me Money

It’s kind of funny isn’t it?  You went to the bank for that loan you really needed, and they turned you down right?  That is the same bank that you bailed out with TARP funds!  TARP funds made available to them via your hard earned paychecks tax dollars!  Funds you were required to pay to them with no say on your part whatsoever!! You bailed them out at a point in time when they needed it so badly, that they claimed that if you didn’t give them these funds, they would go under!  Now here you are at this bank, under water yourself, in the same dire situation they were in just a few years back… when you lent them that money they so badly needed, and they won’t even give you one penny!

It is an unfortunate reality in today’s lending age that banks can get away with this type of robbery.  Thankfully, however, an alternative does exist!  Hard money lending will help any individual in a dire situation.  At hard money Arizona .net, we are truly the ultimate hard money lenders who will bail you out!

  • LOAN TO VALUE UP TO 80%
  • PURCHASE, REFINANCE OR CASH OUT REFINANCE
  • NON OWNER OCCUPIED AND OWNER OCCUPIED
  • NO PAY STUBS
  • NO TAX RETURNS
  • FUND IN AS LITTLE AS HOURS!!

Call us today to get started!  (480) 744-6FUND (6386)

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