Working with commercial Arizona hard money lenders is a great way to get a project of the ground. However, it may be more advantageous to go local rather than choosing a national entity.
Commercial Arizona hard money lenders generally fund real estate deals, but there are other applications too. The value of the property backs the loan and allows people who might not otherwise qualify for a loan to get the cash they need. Loans are typically structured as short-term deals, lasting only a matter of months or a couple of years. During the duration of the loan, the borrower usually makes interest-only payments, then pays the full balance off at the end of the term.
As you search for the best financing options for your next venture, you’ll find individuals and organizations which fund deals all over the country as well as those which focus on a smaller area, be it a couple of states, a single state, or even just one major metropolitan area. On the one hand, the reason for this is fairly straightforward. Each region or state will have its own legislation regarding how the loans are processed and the terms involved. It makes sense that someone would want to minimize their potential liabilities, paperwork, and headaches by homing in on one set of regulations to follow. However, it actually goes a bit deeper than this, and the other aspects can be a serious boon for those applying for loans too.
Generally speaking, the investors financing the deals are already tapped into the real estate market they serve with loans. For example, someone who now funds fix-and-flips was probably a flipper before becoming an investor. Someone who funds deals on multi-family properties quite likely has experience managing them and working as a landlord.
When You Know the Area, You Risk Less
Not surprisingly, someone who has been on the other side of the table knows exactly what it takes to make a project successful. Obviously, if an investor amassed enough wealth to be able to lend it out, he or she was pretty good at earning before too. However, knowledge is region and niche specific, meaning commercial Arizona hard money lenders who understand rehabs in a specific city can size up someone’s plans with relative ease. If the deal is in another city or involves a different type of property than they’ve personally worked on before, it’s much harder to assess the risk of the loan. Ergo, they’ll stick to financing what they know best to minimize their risk.
When you risk less, you offer better terms to borrowers.
This in mind, choosing to work with local commercial Arizona hard money lenders means you’re likely working with someone who knows your region or city incredibly well and can therefore tell whether you’re making a pitch that will fly or if you plans could flop. When they choose to get behind you, it’s because they believe your plans are solid. This is an important distinction because a national lender may be able to look at stats, but doesn’t know the market like a local will. Because of this intrinsic knowledge, locals may fund deals national entities won’t and may offer better terms than a national outfit will as well. In other words, by choosing to go local, you’re setting yourself up for better deals and lower rates, while increasing your odds of success and potential ROI at the same time.
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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