Secrets From Hard Money Loans In Arizona To Find Properties
Welcome to Real Estate Investing Today brought to you by hard money loans arizona.My
name is Ryan Wright and thank you for joining me.Today I want to talk about what hard money loans provider in Arizona are looking for because if you understand what the hard money lenders want you can be successful in finding money for all of your transactions.
So I want to talk to you about the mindset of hard money loans provider in Arizona is looking when they evaluate a deal.And basically hard money loans provider in Arizona want to make sure that their money is secured.They want to make sure that they are not losing money and want to make sure that their money is not in jeopardy.And to do that they are going to evaluate based upon few different ways.
One is called the After Repaired Value.This is what is the value of the property once it has been repaired.Now this is called the subject to value because there is subject to something happening and got to make sure that it actually happens.The other value is considered an As Is value, what"s the property worth to where it currently sits.And what you are going to find is hard money loans provider in Arizona are going to look at the property, there is an As Is value or After Repaired Value and they are going to give a percentage of that.
Typical percentages are going to range from 50-70% meaning they will loan 50-70% of the As Is or After Repaired Value.Now if you are using the After Repaired Value most hard money loans provider in Arizona are going to want to take off the cost of the repairs.So if the property is worth $100,000 in and After Repaired Value and repairs are $10,000 that will make an Adjusted After Repaired Value of $90,000 and then a lender would lend between 50 and 70% of that number.
If they are lending based upon an As Is Value and let say the As Is Value is $90,000 you are going to get loan somewhere between 50 and $70,000.Now hard money loans provider in Arizona are going to vary based upon how much they are willing to lend you and based upon how much credibility they are going to put the weight on you as an individual versus the property.
The majority of arizona hard money loans are going to look towards the value of the property rather than looking towards you as the individual.If they are looking for you as the individual they are steering more towards being a traditional lender rather than being a hard money lender.The definition of a hard money lender is an asset based lender meaning that they are lending based upon the value of the real estate and that is really the criteria that they are using to determine if they should give the loan or not.
If you have a comparable for 100,000 another comparable for 105,000 another comparable for 107,000 and one comparable for 130,000 you should not use that 130,000. You never know if there was a mother, brother sister buying it from another family member.You never know if there are major concessions that may have been made.I mean there are so many different variables in financing but so many borrowers hang their hat on one comparable.You know the house could have gold plated walls and can be worth 20 or 30,000 dollars extra but you cannot use it as comparable.You got to use the ones that are in good condition or fixed up condition, the lowest three comparables and that is what you need to do to get hard money loans provider in Arizona to fund your deal every single time.
by: Jeff Risk4
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