3 Traits of Successful Investors Getting an Arizona Hard Money Loans
Receiving your Arizona Hard Money Loans is only half the battle. You have to be a savvy investor to make the right decisions to maximize your return on investment. Here are 3 traits successful investors share.
Arizona Hard money loans can be the first step to becoming a successful investor because, of course, you need cash! But if you don’t know what to do with that cash, you can run into some roadblocks that will keep you from reaching your investment potential. Here are 3 traits of successful investors that I’ve noticed in my years of working in Arizona hard money loans.
A Competitive Nature
If you’re taking a Arizona Hard Money Loan to purchase a fix and flip property, you’re going to need to go for it quickly and with gusto! If you aren’t ready to bid against other investors, do what it takes to get the right property, and market that flipped property to sell, then your investment won’t bring in as much money as the next guy. A competitive nature will push you to do more, and more importantly, make more!
You’re going to need to build up quite the portfolio of investment information and if you aren’t well organized, you can kiss that information goodbye! Your investment network will include some realtors, other investors, hard money lenders, and contractors, and I will tell you now that they will not want to work with someone who is unorganized. It will save you money and ensure your network knows you’re someone they can rely on.
They Have a Level Head, Even in Crisis
The fact is that not all investments go according to plan, but the best way to make sure it fails is to lose your cool in tense situations. If you panic chances are you’re going to make mistakes and the investment may lose its potential for return. Knowing how to deal with issues when they arise, and doing so with a calm and collected attitude, will keep your investments from hitting the point of no return. Prepare for issues and handle them accordingly if, or when, they arise.
I will share more traits of successful people in the future, but these three are the ones I’ve seen the most in my clients of Arizona hard money loans. Phoenix is chalk full of investors, but success is determined by your ability to make the most of opportunity and not allow problems to throw you off track.
Give us a call at Setabay LLC if you want to discover how you can make quicker, bigger investments by having fast capital.
THE REAL DEAL ON ARIZONA HARD MONEY LOANS
Simply put, a hard money loan is a loan back by the value of the property versus the credit and income of the borrower. The property itself is used as protection against default by the borrower.
Hard money lenders are private individuals that see value in potentially risky ventures that traditional lenders are not willing to risk. These loans are a financing tool that every real estate investor should keep in mind.
Arizona Hard Money Loans have fast loan approvals and funding. Perfect credit scores and income history are not necessary to gain funding on Arizona Hard Money Loans. While conventional bank lenders are known to for their rigid rules and regulations, hard money lenders are allowed to be more flexible in their loan terms because they don’t have to follow federal guidelines as banks are required to do.
HOW TO GET AN ARIZONA HARD MONEY LOAN
- Research hard money lenders in your area. Make sure the lender has a legitimate web site—be sure they will not just collect your information and pass it on to a third-party. Check that the lender doesn’t have any pending or former law suits from investors. Find out what types of projects the lender has financed previously. You want to make sure this lender will be interested in the type of project you are proposing.
- Evaluate your time frame—Hard money lenders are able to generate funds within two weeks or less. Do you need funding immediately? A hard money lender will make that happen; while a traditional lender can take months to grant the loan.
- Apply for the loan— Unlike a conventional loan—in a hard money loan you are financed on the collateral value of the property instead of your FICO score. That will require you to present certain documents—such as a detailed budget for construction, repairs and renovations. You will also need to prove the value of the neighborhood and the property—comps are sale prices of the neighboring homes and the lender will need to see those, as well.
- Check for additional fees—Review the loan terms. Hard money lenders are not subjected to the regulations that banks are, so be sure you are protected legally. Be clear on all fees—if your lender does not disclose any fees that will be included in the loan that is a red flag. Make sure you are given a detailed repayment schedule—this will include how much interest will be accrued and how much of your payment will go towards the interest.
After you choose a Hard Money Lender and are approved it is imperative you move swiftly on your investment.
During the project you will only be required to pay interest. The balance of the loan is due at the end of the loan term. Hard money lenders do not typically impose prepayment penalties. The faster you complete your project—the quicker you can pay off your loan. There are so many benefits to a hard money loan—quick financing, flexible loan terms and asset based backing instead of personal credit history.
© 2016 Setabay LLC. All Rights Reserved.