Three Factors Texas Hard Money Lenders Use to Determine Rates and Points

Points and rates in the hard money world aren’t regulated, so Texas Hard Money Loans set them themselves. Here we’ll look at how they determine rates and points, and what you can do to get the numbers on your side.

Most people understand interest rates, but points can be a little tougher to pin down, so before we get started, let’s look at what points are. It’s fairly simple — points are a percentage of the loan the lender charges to close on the loan. They typically range between 2% and 10% and they’re determined by the same thing that the interest rates are usually determined by — risk.

Let’s unpack that concept of risk and break it down into three factors — equity, borrower experience and exit strategy.

Some of the Ways in Which Colorado Hard Money Loans Determine Risk

  1. Equity. The property’s equity plays a big role in rates and points. If the property is being put up as collateral, the lender wants to know exactly how much it’s worth and, sometimes more importantly, how much it might be worth in the future. Being able to show solid evidence of a property’s equity may be able to help you secure a lower rate.
  2. Borrower experience. This is especially important when it comes to fix-and-flips. If this is your first time wading into those waters, a Texas Hard Money Lender may see higher risk and thus ask for a higher reward. Conversely, if you’ve flipped 10 homes successfully, there’s less risk for the lender and you may be able to negotiate lower rates.
  3. Exit strategy. In the end, this is what it’s all about. You want to pay off the loan with your profits and the lender wants to have the loan paid off. That’s why going into it, you should have a solid plan for getting out. A fix-and-flipper might have a rehab plan backed by contractor estimates that says they can do all the work in three months and then put the home on the market. With this, the lender knows that the money will probably be at risk for a shorter period of time and he or she may be able to offer lower rates.
Getting Great Rates from an Arizona Hard Money Lender

At Level 4 Funding, we have fixed-rate APRs as low as 5.99% and flexible terms from 3 to 60 months on a wide range of loans, including fix-and-flip, construction, cash out and rental property. Want to see what rates you can get? Give us a call today!



Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
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

Dennis@level4funding.com

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Can Builders Still Get Arizona spec home financing?

Getting Arizona spec home financing might not be as easy as it was in the past, but it’s still within reach, even if your financial situation isn’t stellar. Let’s look at how to get started and examine a few things to think about.

We harp on it a lot in this blog, but the housing crisis — and the subsequent Dodd-Frank Act — was a monumental turning point in the industry. New regulations designed to prevent another recession made big financial institutions really wary of taking risks. In spec home construction, that’s meant funding has become really difficult to come by, at least through traditional routes.

Does that mean that getting Arizona spec home financing is impossible these days? Nope. But you may have to get creative or think outside the box to make it happen. It’s not as daunting as it seems — Texas Hard Money Loans in Arizona may be able to help you through the process.

How to Get Hard Money Arizona spec home financing

One of the advantages of going with a Arizona Hard Money Lender is that, unlike the banks, you can sit down with an actual human being who has the power to make decisions. If you’re looking for a spec home loan, use this to your advantage by talking about some of these topics:

● Discuss your options. A Arizona Hard Money Lenders will listen to your plan and brainstorm ideas to help make it happen.

● Discuss the process. Talk about how the process will go, from the initial meeting and the application procedures to how fast you’ll have funding and when you’ll need to start paying it back.

● Discuss the terms of the loan. Texas Hard Money Loans aren’t bound by the same restrictions of the bank, so they have wiggle room to structure the loan in a way that makes sense for both of you.

● Discuss fees and interest rates. Good, honest lenders will tell you upfront how much everything is going to cost, including the interest rates, points and any requisite fees.

Getting Spec Home Financing in Arizona

The new housing market in Arizona is booming, so it’s a fantastic time for builders to cash in on the trend. If you’re thinking about building a spec home or you need Arizona spec home financing to help finish a spec home project, you’ve come to the right place. Give Level 4 Funding a call today to talk about your options!



Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
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

Dennis@level4funding.com

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Why Knowing Your Office Building’s Class Can Help with Arizona Commercial Private Loan

Got an office building in your sights and need a Arizona Commercial Private Loan to make the sale happen? Knowing its class can help you in more ways than one. Here’s how.

A huge part of due diligence in the real estate game — from applying for a Arizona Commercial Private Loan and putting in an offer to getting insurance and eventually listing it — is determining value. This can be even more true when it comes to commercial real estate. Things like buying in the wrong part of town or not catching a red flag can doom that commercial purchase and kill any potential profit it might have yielded.

One of the ways in which real estate professionals work to determine value is by putting commercial spaces into classes. It’s a subjective process, but it’s a tool to help you compare comparable buildings that will be competing for tenants. To help you get a better idea of the concept, let’s look at the classifications for commercial buildings.

How Are Commercial Properties Classified?

  1. Class A commercial properties are typically relatively large and relatively new and boast a wider range of amenities. They might have upgraded elevator systems, a concierge or security service, and technological enhancements that attract a more prestigious type of tenant. And, Class A buildings generally feature stunning architectural details and have that unnamable “wow” factor. Owners can charge a premium for the upgraded amenities and prime location.
  2. Class B buildings are typically a bit older — perhaps 10 to 20 years — and may be a touch outdated or not equipped with the highest-end amenities. Class B buildings may feature less covered parking or be located on a side street adjacent to a main thoroughfare. This class of commercial property usually fetches the market average for rents.
  3. Class C commercial buildings may be even older and more outdated, with previous tenants who have left their office or retail space a little rundown. Parking and security might be less present or even nonexistent, and maintenance may be lacking. This class might attract business looking for a more economical option and may get below-average rents.
Using Building Class to Get a Commercial Private Loan

There’s nothing inherently “wrong” with any of these building classes, but being armed with this information is an important step in applying for a Arizona commercial private loan. Build this info into the plan and budget you present to the lender and he or she will see that you’ve got your ducks in a row.



Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
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

Dennis@level4funding.com

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Can You Get Rich Using Arizona Private Money Loans?

Even if the banks have turned you down, you may still be able to get the funding you need to realize your real estate dreams and make money. How? By going with a Arizona Private Money Loan.

Everyone’s always looking for ways to get rich quick. Unfortunately, get rich quick ideas often end up making people lose money fast. So we’re not here to tell you how to get rich quick, but there are millions upon millions to be made in this game and there are ways to turn a profit relatively fast with some hard work and the right funding.

And, if you’re like a lot of real estate investors, you’re not afraid to roll up your sleeves, get your hands dirty and put in the hard work. So that just leaves the part about finding the right funding, right? Banks are the traditional route, and many people find success that way, but there is a wealth of reasons why they aren’t the best idea for everyone.

Banks are impersonal institutions that are bound by external regulations and strict internal guidelines. Anyone who’s ever gone to one to see about a loan can attest to this. When they say, “jump,” you say, “how high?” You’ll be asked to show every bit of income and every account in your name. Your credit score will be scrutinized ad nauseam, and your financial history will get a good going over. Your rep at the bank will generally have no wiggle room to offer you a loan. And, if you don’t meet their standards, they’ll give you a flat no with no other recourse.

Arizona Private Money Loans as an Alternative to Bank Loan

Here’s where Arizona Private Money Loans can be a great alternative to bank loans. As the name implies, this money comes from private individuals, so it’s not subject to the same strict standards as the bank. That means your history and credit score don’t have to decide whether you can get the funding you need. What’s more, private money lenders have the flexibility to sit down with you, listen to your dreams and help you make the money you deserve.

Arizona Private Money Loans in Arizona

With a private money lender, there’s a personal relationship — you can develop a rapport, hash out a plan and work together to turn a profit on that real estate investment. Not sure what a Arizona Private Money Loan can do for you? Call Level 4 Funding in Arizona today and find out!



Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
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

Dennis@level4funding.com

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Why Keep Jumping Through Hoops? Go the Arizona Hard Money Loan Route

Banks and traditional funding institutions are some of the fundamental pillars of our capitalist system, but they aren’t the only way to get money to pay for your next investment. In fact, they may not even be the best way. Here’s why Arizona Hard Money Loans might be a better option.

Our country’s big financial institutions help facilitate the movement of money that keeps our economy chugging along. They’re an important part of our economic system and, without them, our world would look a lot different. In fact, without a foundational system wherein people can borrow money to start businesses, buy homes and realize their dreams, this country wouldn’t be the great place it is. However, it’s important to understand that banks and financial behemoths aren’t the only way to borrow money.

We sometimes get trapped in this thinking that there is “the system” and the only way to get through life is to go through that system. If you can’t get a loan through this system, you’ll be out of luck as others around you move up in the world. Let’s dispel that myth right now. While banks are responsible for much of the lending that goes on in the United States, they aren’t the end-all and be-all.

Arizona Hard Money Loans as an Alternative to Banks

Arizona Hard Money Loans offer a viable alternative. For some people, they’re even better than going to a bank. Here’s why. Because banks are so big (and they’re regulated by government agencies), they can only do so much. They have very strict internal guidelines that tell them whether you are worth the risk or not. If you’ve had a past financial mistake; if you have a lower-than-their-threshold credit score or if you don’t have enough in the bank, you’re out.

Arizona Hard Money Loans work with private money, so they aren’t bound by these same government restrictions and hard-as-nails internal standards. They can sit down with you, take a look at your plan, see what you have as collateral and make a choice on a human-to-human level. To them, you aren’t a disembodied customer in a database; you’re a human being with a dream.

Talk with a Arizona Hard Money Lender Today

At Level 4 Funding, we’ve helped hundreds of people realize their dreams, whether it’s a commercial property, a fix-and-flip, a spec home, or anything else. If you want to see how a Arizona Hard Money Loan might work for you, give us a call or send us a message today!



Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
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

Dennis@level4funding.com

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Try These 3 Tactics to Get 100 LTV Arizona Hard Money Loans

In the lending industry, 100 LTV Arizona Hard Money Loans are a bit like UFOs; some people claim to have seen them, but most don’t think they exist. And those people are right. Sort of. Let’s look at some ways you may be able to get to 100 LTV.

For those of you who aren’t familiar with the term, LTV is loan-to-value ratio. Simply put, this is the value of the loan you’re getting versus the value of the property. So let’s say you’re buying a property worth $200,000 and you’re getting a loan for $160,000. That’s an 80 LTV because you’re borrowing 80% of the value of the property. This ratio is important because lenders use it as a metric to assess risk. 100 LTV may be rare, but there are ways to get there. Here are a few tactics you can employ to do it:

1. Do Your Research. Many Arizona Hard Money Loans will tell you flat out that they just won’t consider doing a 100 LTV Arizona Hard Money Loan. Some may post this information right on their website; others will tell you on the phone. So here’s what you do: research Arizona Hard Money Loans in your area (say, Phoenix, Arizona). Peruse their websites, send them an email or give them a call and ask. It’s quick; it’s painless and you won’t be barking up the wrong tree.

2. Build a Relationship with Your Lender. Here’s where Arizona Hard Money Loans differ from the behemoth banks — they work with private funds and they’re usually smaller operations. This works to your advantage and here’s why. You can sit down with a Arizona Hard Money Lender and make a case for your investment. You and your lender can establish a relationship of trust and mutual gain, so he or she might not just reject your case based solely on numbers.

3. Have a Strong Background. While Arizona Hard Money Loans are less concerned with credit scores and past mistakes than banks, they also want to see that you’ve handled yourself well in the past. For instance, if you want to do a fix and flip, they might want to know that you’ve done it successfully before. Also, if you’ve worked with the lender before, he or she may be more inclined to take a risk.

What About 100 Percent for Rehab Expenses?

Getting 100 LTV might be a tall order, but some Arizona Hard Money Loans are willing to go 90% on as-is values and up to 100% on rehab costs. Of course, not every investor gets these terms. Like we’ve detailed above, you may need to have solid collateral, a good budget and a workable plan.

Finding a Hard Money Lender in Arizona

Level 4 Funding has decades of experience with hard money lending. If you’re looking for a 100 LTV Arizona Hard Money Loan, give us a call today!



Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
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

Dennis@level4funding.com

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Why New Builders Struggle to Get Arizona Spec Home Financing (And What You Can Do About It)

Even if you have experience as a sub-contractor, making that first step into self-employment and running your own projects can be a challenge, particularly when it comes to getting funding. The good news is, you may still qualify for Arizona Spec Home Financing regardless of whether you’ve already been denied by the banks.

To start with the basics, speculative builds are those constructed without a specific buyer in mind. You may have chosen an area where houses are selling like hotcakes and have a high degree of certainty that someone will purchase it as soon as it’s ready, or even show interest during the build, but no buyer or homeowner is involved in the process. It’s you and your team handling construction. You make all the calls related to features the property has, from the flooring to the fixtures.

This makes speculative projects a dream for many builders, but when they hit the point where they’re looking for Arizona Spec Home Financing, they come up against serious roadblocks. That’s because they usually attempt to secure funding from the typical channels, and it simply doesn’t work.

Banks are the typical first go-to. Many no longer work in the speculative arena at all, but when they do, they usually require you to have quite a bit of equity in the project and only lend on small projects, plus have stringent requirements for experience and credit. Lines of credit tend to be the next line of defense. You can, in theory, finance a whole project using a line of credit. However, this typically requires impeccable credit. Lastly, equity is an option. This means leveraging properties you already own. If you aren’t a seasoned investor, however, this means putting your own home on the line, provided you own it outright.

Private Money Can Help You When Other Options Fail

Private money isn’t like the other options. It typically comes from individual investors, groups of investors who pool their money together, or organizations. It’s designed to fill the lending gap, but what it really does is create a win-win solution for everyone. The individual investors do earn money on the deal, as opposed to feeding the banks, and you get the Arizona Spec Home Financing you need as well. Because private money isn’t subject to the same regulations, you can qualify regardless of your credit score and you don’t need to put your family’s house on the line either.

You can increase your eligibility by taking a few small steps.

So, if private investors aren’t expecting the same things as the banks, what do you need to qualify for Arizona Spec Home Financing? In short, a good property, solid plans, strong numbers, and experience. Three of those things are totally within your control. However, if this is the first project you’re running on your own, you may want to bring on a partner who has a successful track record. No doubt, you’ll find you’re running projects and qualifying entirely on your own in no time.



Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
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

Dennis@level4funding.com

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Top 4 Things to Consider: Custom vs. Arizona Spec Home Financing & More

Custom and Arizona Spec Home Financing is one of the primary concerns for builders deciding which route to go, but there are many factors which weigh into the decision. Learn pros and cons of each to decide which is right for you.

1. Debt and loans. To start with the basics, a custom house is one built with a specific buyer in mind. The individual is requesting that you build the house on their behalf. As such, they’re responsible for securing the funding. However, your credit and financials are often required by their lending company. There are some exceptions to this. For example, large builders who own the land and/or are building out multiple houses at once will sometimes finance the build, though they’re the exception rather than the rule. When it comes to speculative properties, or specs, it’s all on you. You don’t have a buyer yet. Ergo, finding and qualifying for Arizona Spec Home Financing is totally on you.

2. Fiscal management. In either case, funds are usually disbursed as draws. As you reach specific stages of the build, money is released. However, if you’re working in speculative builds, it’s on you and your team to meet deadlines. With custom builds, you’re also reliant on the homeowner to make decisions throughout the process, which can delay milestones and payments. In these cases, you may have to secure your own financing to cover materials, sub-contractors, and other expenses while you wait for payment.

3. Decision-making. As a custom builder, you’re working with people who have likely never built a house before and this will be the biggest investment they ever make. Some may want to be involved in every decision, change their minds repeatedly, or reject work that’s been done. As such, you’ll need top-tier people and communication skills to keep things moving forward without issues. With speculative properties, the decisions start and end with you.

4. Exit. The nice thing about custom options is that you already have a buyer. The exit is natural. When you’re done building and collect your last payment, you’re done. When you work with speculative properties, you don’t have a buyer. There’s always some chance you’ll get stuck with a completed house and nobody to take it. In these cases, you may need to convert your Arizona Spec Home Financing into a loan with longer term, lower the price to attract buyers, hold it as a rental, or come up with alternate ideas to facilitate your exit.

With Custom Builds, Complaints Surround People Issues

Hands-down, the biggest complaints builders have surrounding custom builds relate to the people involved. There may be dueling spouses with different ideas on how to approach something or challenges which arise. As the builder, you may have the solution in mind within minutes, but you can get stuck waiting days or weeks while the homeowners and architect get on board and then wait even longer for clearance and/ or permits.

Speculative builders avoid people-related headaches but need specialized funding.

Given that you’re at the helm for a speculative build, people issues and delays caused by having many cooks in the kitchen are not an issue. However, you will be responsible for finding your own Arizona Spec Home Financing, and banks don’t usually like to fund these deals. The good news is, Arizona Hard Money Lenders do. Ergo, you can get started working your own projects, even if you don’t have a nest egg to draw from or great credit.



Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
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

Dennis@level4funding.com

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Why Regulations Make Arizona Private Money Lenders Better Than a 203K

Banks don’t usually like to lend when a property needs serious repairs, so the government created the FHA 203(k) loan to help. However, once you know all the regulations and red tape which come with this program, you might find yourself turning to Arizona Private Money Lenders instead.

Before getting into Arizona Private Money Lenders, let’s start by breaking down the FHA 203(k) loan. This is a program overseen by the Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD). Programs like the 203(k) exist to spur development. Each one works a little differently, but the general goal is to put home ownership within reach for more people and protect consumers.

When people talk about an FHA loan, the FHA isn’t actually supplying the mortgage. They’re providing insurance, which gives lenders an added layer of security. That way, if the homeowner stops paying his mortgage, the lender isn’t out the money; the loan is insured. However, the FHA is not covering the costs associated with it. Homeowners pay an upfront fee and then have monthly fees for as long as they have the insurance. On average, it works out to a little under $100 per month.

Properties with a lot of problems, especially those with structural issues or damage to major systems—think roofs, air conditioning, electrical, and so forth—don’t generally qualify for any kind of bank loan at all. Furthermore, most programs aren’t designed to handle even basic renovations as part of a mortgage. You can only qualify for a percentage of the current value of the property.

This is why the FHA 203(k) is actually beneficial. It’s not a bad program. It lets homeowners get up to 110% of the value to the property after repairs. There are other neat little perks associated with it too, like the ability to put down less money, the potential to borrow enough to cover mortgage payments for several months, and flexible terms.

Beware: The FHA 203K is not as great as it seems

Like any financial product, the 203(k) has some pitfalls and it doesn’t work in every situation. For example, there is an “owner-occupied” stipulation, which means you can’t use the program if you’re an investor or don’t plan to live in the home more than half the time. Closing on the loan can take six months or more as well, which makes it difficult to jump on a good deal. The standard 203(k) further requires you to hire a construction consultant and licensed contractors must carry out all work. You are not allowed to do any DIY. You’ll also need good credit to qualify. It’s stipulations like these which send people in the direction of Arizona Private Money Lenders.

When you know the pitfalls, it’s easy to see which loan is right for you.

Arizona Private Money Lenders don’t have the same rules. If you’ve got rotten credit, don’t plan to live in the home, want to close in days rather than months, and plan to use your own sweat equity, alternative lending may be your best. If you’re one of the many people 203(k) falls short for, speak with an experienced broker about hard money.



Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
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

Dennis@level4funding.com

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Why Texas Hard Money Lenders Help When an SBA 504 Doesn’t

Government programs can make getting funding easier for some business owners, but they don’t work in every situation. If you’ve been looking at an SBA 504 loan, but don’t qualify, Texas Hard Money Lenders can still help.

Before getting into how Texas Hard Money Lenders work, and how they can help, let’s explore the SBA 504 loan. This is one of many programs offered by the government, namely the Small Business Association (SBA), and it’s specifically designed to help business owners. The loans can only be used on fixed assets, such as buying land, construction, improving a property, purchasing equipment, and refinancing debt that was generated as the result of purchasing a fixed asset. They cannot be used toward things like rental or speculative properties, marketing expenses, materials, or held as working capital.

The way financing works under this program, the business owner typically provides 10% of the money needed, a bank provides 50%, and a community development company (CDC) provides the other 40%. CDCs are non-profit organizations certified by the SBA. There are hundreds of them throughout the country.

This loan program exists to spur economic growth and create new jobs. Ergo, your business cannot be worth more than $15 million, you cannot have earned more than an average of $5 million in either of the two years prior to your application, and the project size must be greater than your personal assets. There are further stipulations too. For example, you need to plan to occupy the space at least 51% of the time and you (as the business owner) must be a US citizen or permanent resident or the majority of your company must be held by Americans/ permanent residents. Having good credit is typically required as well.

The Regulations Associated with the SBA 504 Loan Disqualify Many Business Owners

Even though the SBA 504 loan helps many business owners, it doesn’t work for those who need cash for fix-and-flips, those who want to use their property as a rental, or those who work in specific industries, like cannabis. Furthermore, it doesn’t work for new immigrants or those hoping to invest in American land from overseas, and people with rotten credit are disqualified too. However, if an SBA 504 loan doesn’t work for you, you can still get help from Texas Hard Money Lenders.

Increase your eligibility for a loan by talking to an HML broker.

At the end of the day, Texas Hard Money Lenders don’t care if you’re an American or not. You can qualify even if you have rotten credit. It doesn’t matter if you earned $50,000 last year or $50 million. You can use the funds toward the purchase of properties you plan to rent out and toward speculative properties. Why is this? In short, they care more about the value of the property you’re purchasing and your ability to generate profit than anything else. If you’re one of the many who don’t fit in the SBA 504 box, speak with a broker about alternative lending options.



Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
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

Dennis@level4funding.com

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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions