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Red Flags To Beware Of With Arizona Commercial Hard Money Lenders
Finding the right lender is the first major task in any commercial real estate investment. But there are some red flags to be aware of when you are interviewing Arizona Commercial Hard Money Lenders.
All borrowers have heard the horror stories of Arizona Commercial Hard Money Lenders who are nothing more than scam artists who are out to make a quick buck at the expense of new real estate investors or even seasoned pros who are not on their toes. But all of that can be easily avoided if you keep on the lookout for a few red flags during your loan and lender search.
One of the first indications that a lender might not be legit is a lack of responsiveness or inconsistent responsiveness. Real Arizona Commercial Hard Money Lenders know that they need to be at the top of their game all the time to keep new clients rolling in and profits coming in from all of the new loans that they are funding. If a lender is not returning calls or emails, then there could be a good reason. In many cases, the less than legit lenders are only going to answer a few select calls knowing that they can rip off those potential borrowers in a short period of time and then get back to the life of leisure. Unless the lender can provide a good explanation for not responding, consider that a major red flag.
If a potential lender refuses to provide you with all the terms of the loan in writing and is evasive when you are asking questions, this is generally a sign of some hidden costs in the very best case and a total scam in the worst case. An honest lender is in business to cultivate relationships with borrowers and continue to provide a loan service for many years to come. These lenders will gladly provide all of the terms and costs in writing so that the borrower is confident and knows what to expect from the first day of the application process until the day that the loan is paid in full. If you can’t get the information that you feel you need to evaluate the loan and the lenders, then move on and find someone else to borrow from.
A Resource For More Than Money
Experienced and professional Arizona Commercial Hard Money Lenders are always willing to answer questions and help new real estate investors. The only way that a lender will get repeat business from a borrower is if the borrower is successful in his or her first few transactions. Any smart and honest lender will be willing to offer information and advice about the process of borrowing hard money as well as any other aspects of real estate investing that he or she is knowledgeable about. If that is not the case, then you should consider a new lender for your next project.
Watch For Red Flags
It is understandable that any lender could have a busy day or other commitments and not be able to return a call or email right away. But if the issue continues or the lender is not forthcoming with information or help when you ask, then heed the red flags and find a lender who will help you to be as successful as possible.
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
[email protected]
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.
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