Best West Direct: Can You Trust Hard Money Loans?

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Friday, September 6, 2019

Can You Trust Hard Money Loans?

Most consumers think of Arizona Hard Money Loans as something just above the level of a loan shark. But the trust is that legitimate lenders are out there and are a very good option for some borrowers.

Many borrowers are afraid of Arizona Hard Money Loans because they are provided by private lenders, and that scares off many people. They see this form of lending as something that operates on the fringe of legality and holds more potential for danger than it does for good. But that is not the case at all. Hard money lending, or asset-based lending as it is also called, is a legitimate and honest business. But as with any industry, there are a few bad apples to watch out for. Borrowers just need to educate themselves on the system and the lenders through reasonable due diligence.

Private lending is just like any other loan or business deal. You need to research and carefully select the people that you choose to do business with. There are many great lenders out there, but also a few who are only posing as lenders. Research each potential lender, check references, and speak to past clients to learn more about the strong points of each lender and the areas that might be lacking in their customer service or professionalism. You will also want to get the terms that each lender offers in writing so that you can compare and contrast your offers. Lenders are pretty much free to set their own terms, so this factor can vary a great deal from one lender to the next.

This brings us to an important piece of information. Arizona Hard Money Loans are not federally regulated, BUT they are regulated by each states Department of Real Estate. So in most cases, every hard money lender must have someone on staff who holds a Real Estate Brokers License. This is one very easy way to determine if a lender is legitimate or if you are about to stumble into a scam.

Red Flags To Beware Of

Most legitimate hard money lenders will offer fairly competitive rates and fees. But if you come across a lender who is charging a very high fee upfront for an application or who is charging no fees at all, proceed with caution. The high fees are just a scam to get a few grand from a desperate borrower. The no-fee plan is simply a way to gather personal information for identity theft purposes. Though the majority of all lenders are honest professionals, any deal that sounds too good to be true most likely is a scam.

Face To Face Is Best

If you have never done business with a lender, it is always best to meet face to face to get to know each other. This will provide you with the chance to ask questions and get a feel for the lender. You can also request a list of past clients that you can speak to as references. Do your research, set up a few interviews, and follow up with calls to past borrowers. These steps will help to ensure that you are selecting the best lender to work with and that you begin your experience in Arizona Hard Money Loans with a professional who will help you to learn about the loan process.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

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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