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Why Colorado Private Money Lenders Can Get You Money Fast
Who are private money lenders—and should you borrow from one? Read more below to find out the advantages of their speed and if they are the best choice for you.
are untraditional and alternative options to public lenders. They usually consist of private companies and investors. Traditional public lenders usually consist of banks and credit unions. The process of borrowing from private and public lenders is a little different, based on the requirements each type have. Typically, people who cannot qualify for a loan with a private money lender will be referred to a private lender who offers hard money. evaluate the value of the property first. Then, they evaluate the prospective borrower. Because of this, they are able to approve more people for loans than traditional public lenders. While they are able to provide a rapid approval that is unmatched by banks, there are a few things to know before committing to a private lender.
Expectations of Colorado Hard Money Lenders
Private money lenders are a great alternative option, but it is important to know that their speed is accompanied by high costs. The ability to approve borrowers with credit that doesn’t meet typical standards is paralleled by the assurance they provide themselves by requiring their own high rates. These rates can be 5 percent higher than those on the average loan market. Additionally, the short repayment period is something that should be considered heavily. In combination with the high rates, repayment may not be as feasible as you think. Hard money lends itself to short-term scenarios. So, even if you can get approved by a private lender while you are struggling to be approved by a bank, it doesn’t mean it’s the best option for you.
Evaluating Your Loan Eligibility Successfully
Even though private lenders offer many benefits, like speed and flexibility, it is important to understand how other factors may affect the balance of the lending process. For example, it’s important to know other situations people turn to hard money. They turn to hard money when they need it fast, but they also turn to it for short-term projects. These short-term projects should also have solid plans, with little wiggle room for wavering, so that if you are hit with the unexpected, you can afford it. If you are unsure if you’re a great candidate for a hard money loan from a private investor, you can always turn to a real estate attorney. Real estate attorneys can help you analyze the terms of the loan agreement so you’re understanding of all expectations, and any possible hidden fees or stipulations. This would be one great way of moving forward with a private lender confidently. If you are wary of the situation, it is likely that is not the best option for you. are there to help make your dreams come true—you just have to put in the evaluation and research to know if they are the ones who will help provide you a happy ending, or another alternative option with similar benefits.
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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