Do you want to get involved with funding high interest, private money and hard money loans in Arizona backed by real estate? There is already a big need for immediate funding from professional investors, lenders and companies for real estate investments. Hard Money Lenders Arizona is already partnered with numerous investors and high net-worth families, but we want to open up our investment pool to other qualified parties interested in this incredible opportunity and business venture.
You can trust our loan programs because they are safe, stable and provide real estate professionals with a respected, focused and predictable investment plan with top rate returns. If you want more information on our investor programs, please fill out our online form, or contact us directly.
Hard Money Versus Soft Money: What’s the Difference?
It’s important to understand the difference between a soft money and hard money loan. A soft money loan in the real estate world would refer to a “traditional” mortgage, where borrowers need to prove that they have enough income, a decent credit score, and the right debt-to-income ratio in order to be approved for a loan. There is no collateral taken out to “secure” these loans, and so interest rates tend to be a bit lower. These loans are most often provided by larger banks and other financial institutions, and the repayment terms are usually much longer (sometimes up to 30 years, depending on the specific type of loan being taken out).
With a hard money loan, the focus is on the collateral being collected and less on the borrower’s credit or financial situation. Interest rates do tend to be higher, and repayment terms are shorter. On the other hand, financing through a hard money loan can often be completed in as little as a week or two. This is because most of these hard money loans are provided by private investors who have the funds ready to be transferred as soon as underwriting is complete. Furthermore, rather than even monthly payments, a hard money loan often requires a large balloon payment at the end of the term in addition to monthly interest payments instead.
Most often, hard money loans are issued to investors looking to complete a “fix and flip” on a real estate property. These projects involve making improvements on a property and re-selling for a profit. These flips are completed quickly so as to maximize profits and ensure money is paid back in a timely manner.