Want to make Arizona Commercial hard money lenders eager to work with you? Demonstrate your shared future success by addressing three key areas.
Arizona Commercial hard money lenders are helpful in all sorts of situations, though they tend to be most popular with those in real estate investing. Some of the projects they fund include fix-and-flips, fix-and-holds, and multi-family properties. Many also work with those starting things like Airbnb businesses or even those getting into the cannabis industry, perhaps by beginning a grow operation.
Unlike traditional loans, which comes from banks and other financial institutes, this form of financing is typically offered by individuals, small collectives, or organizations. It’s referred to as “hard money” because the loan is based upon the value of a hard asset. When it comes to the examples listed above, it’s the building and land used as collateral.
Once collateral is involved, your credit and other factors traditional financing companies harp on are pretty much non-issues. You’ll get a loan based upon the value of your property. Although many factors influence how much you’ll qualify for, 60% of the value is usually a safe figure to expect, though some qualify for up to 90%.
Despite the fact that it’s easier to qualify for financing this way, nobody’s going to walk up and hand you a stack of cash just because you own or are looking at a piece of property. You’re still going to have to address their chief concerns if you want to get approved.
Show Them You Know How to Make Money
Ultimately, it comes down to showing Arizona Commercial hard money lenders that you know how to make money. Your success is their success. The biggest way you can do this is either by having personal experience in the business you’re running or to have someone on your team who has a proven track record. In other words, if you’re doing fix-and-flips, you’ll either need to have experience doing profitable flips or you’ll need a partner who has had success with them. Secondly, you’ll need to know your numbers. It’s all about profitability. Have you had the property assessed? Have you done a comparative analysis? What’s the project going to cost? If you aren’t a numbers guru, work with experienced appraisers and contractors who can fill in the blanks. Lastly, you must have a comprehensive plan and timeline. Build in contingency plans and padding, so you’ve got a bit of wiggle room and won’t be pressured when it’s time to exit the deal.
Run a successful project with them once, and they’ll be eager to fund your next one too.
Arizona Commercial hard money lenders prefer to work with people who have a track record for success. If they’ve worked with you once and had a good experience, they’ll gain confidence in your abilities and want to work with you again. By opting to work with the same financing team for repeat projects, you’ll streamline the approval process and may even qualify for better terms on subsequent projects. Once you’ve built a relationship upon mutual success, your financing team will always be eager to hear about your next project.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
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 the Author: 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.