Phoenix Arizona Hard Money Lender
Sadly, not every hard money lender Austin Texas is legitimate. But following a few simple tips can ensure that you are making the right selection for your hard money needs.
There are many reasons to consider using a hard money lender Austin Texas even though this is not as conventional an approach as using a bank or lending institution. But a borrower should follow a very similar process when selecting a lender to work with on a hard money loan. Borrowers need to complete their due diligence to make sure that the lender is legitimate and is truly offering a service and not just trying to take advantage of borrowers who need to seek alternative lending sources.
One of the first important pieces of information to verify is that the hard money lender Austin Texas is licensed, bonded and insured. In other words, make sure that your potential lender is really a business person who provides hard money loans austin or represents a group who provides loans. In some cases, a less than homes person will represent himself or herself as a lender simply to take advantage of honest borrowers. In these cases, the lender will ask for upfront fees for processing or to consider a loan application, only to disappear with your money. They have no intention of making any loans, they are just running a scam to collect fees.
Other fraudulent lenders are just placing ads to attract potential borrowers who all too eagerly supply the fake lender with financial information, personal information and even sometimes processing fees. Then the borrower’s information is sold to create fake identities or to commit other types of fraud or identity theft. And again, they are no closer to getting the loan that they need.
In addition to researching the legitimacy of the lender, it is a good idea to ask for references to speak to. Clearly, the lender will only provide you with contact information to satisfied clients, but it is a clear sign of trouble if a hard money lender Austin Texas will not provide references. This is a sign that they have a bad reputation, do not follow through with promises or might not even be legitimate. Proceed with caution is no references are available, or even better, find a different lender to work with.
As with any loan, when seeking a hard money loan, you need to be sure to verify all of the terms of the loan. In most cases, hard money is offered at a rate of about 10% – 15% as the total cost of the loan. Some lenders might break the fees into different categories or have a different name for some fees but the total cost should not be more than that. In addition, reputable lenders are not going to ask for huge upfront fees. There could be a very small administrative fee or fee for an appraisal but large processing fees are a sign of a potentially dishonest lender. Following these few guidelines will ensure that you are able to work with a reputable and reliable lender for your hard money needs.
Level 4 Funding LLC
Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.