How to Know if a Hard Money Lender is the Real Deal

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If you’re like most people looking for finance options, no doubt you’ve heard horror stories about lenders who totally dropped the ball and derailed a project. You may have even experienced it yourself. While personal referrals and online reviews can make it easier to find a reputable hard money lender, it doesn’t necessarily mean you’ll have the same experience. Moreover, companies tend to specialize in a specific loan type or cover a geographic area, so many people are on their own even if they’ve been through the process before or know someone else who has been. However, there are a few things you can look for when you make contact with a company that indicate they’re a good company to work with.

For starters, they’ll recognize your time is valuable. One of the biggest benefits of working with this type of financing is that it enables you to have cash in hand fast. If they’re dragging their feet and not returning calls promptly now, there’s no telling if or when you’ll get your cash. However, if they return calls promptly and address your concerns, you’re on the right track. You should be able to count on having cash on hand in a matter of days or weeks, not months.

Secondly, your broker will be eager to listen to you and help you strategize. There are lots of different financing options, and your broker should be able to ensure you’re finding something that’s right for you based on your needs.

Lastly, they’ll have experience in the area you’re working in. Single-family homes, multi-family homes, commercial properties, and other project types each require a unique set of expertise. You’ll want to be sure you’re working with someone who understands what you’re planning to do in order to make the approval process smoother.

Will a Reputable Company Still Work with Me if I Have Rotten Credit?

One of the biggest things a hard money lender will look at is the value of the asset in question. Although there are other factors involved in making a final decision, they tend to matter to a much lesser degree. For this reason, bad credit and even bankruptcies are less of a concern when you go with this type of financing.

A good company is there for you when you need them.

When you’re in this type of industry, building positive relationships is everything. A good hard money lender knows this and will do their best to help you regardless of your circumstances. In times where they can’t, they’ll still treat you with the respect you deserve. If you’re looking for lending solutions but aren’t sure which company is best-suited, contact Level 4 Funding. With experience across a broad spectrum of private money loans, a myriad of positive customer testimonials, and a low-rate guarantee, it’s easy to apply with confidence.

Dennis Dahlberg Broker RI/Level 4 Funding LLC Privatae hard Money loansDennis 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  

     Linked In     Active Rain You TubeFace Book         

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.

Why New Fix-and-Flippers Get Denied by Hard Money Lenders (And What You Can Do About It)

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People new to the home rehab business often make fatal mistakes that impact their ability to get funding. If you’re preparing to approach hard money lenders, you’ll need to have a few things in place to get approval.



It seems like today we have a fix-and-flip culture. There are TV shows designed around it and almost everyone knows someone who has done a flip before. Unfortunately, those just getting into the field can sometimes take this to mean that it’s easy or that it will generate millions for them overnight. While it can be quite lucrative, you’ll need to know the numbers and have a strategy in place before you can consider it a side-hustle or career.

One of the biggest issues is failure to consider additional cash needs. No matter how great of a deal you’re getting, you’ll need some kind of cash to get going. Although some will provide you with 80% or more of the value of the home, you’ll need to be able to pay the remainder on your own. Moreover, there will be expenses associated with the repairs and that’s not typically part of the initial loan. Those just getting into the business can really benefit from having a trusted inspector visit the home in advance of a purchase to help determine what repairs will be necessary.

The second major issue is failure to have a solid plan. If you have a little experience with home renovations, it’s easy to look a home over and make a mental assessment of the work and costs, but that doesn’t constitute a plan. They’re taking a risk on you, so hard money lenders will want to know everything from your timeline through costs and exit strategy. Don’t think this means you have to take everything on alone, though. You can build a network of professionals and bring them in to consult on your projects or see if a seasoned home rehabber will mentor you.

Are There Other Things That May Stand in the Way of Becoming Successful?

Even experienced home flippers run into a bump or two on each project. It’s their ability to anticipate issues and set aside the time and money to deal with them at the onset of a project which helps ensure they achieve what they set out to. If you’re told “no” by hard money lenders at first, don’t be dejected. Instead, ask questions to find out what you can do to improve the odds next time around.

Every HML has different guidelines, so the best way to know if you qualify is to get in contact.

The better your planning is and the more numbers you crunch, the greater your odds are of getting a green light on a project. Hard money lenders simply want to know they’re investing in you wisely, and although the value of the home is arguably the biggest factor for most, each uses a different set of criteria to judge. At Level 4 Funding, we’ve heard stories from our own clients about how other companies have dropped the ball and cost a client a property, and while we can sympathize, our ability to help where others don’t, and low-rate guarantee are things we’re proud to offer because it sets us apart from the pack. While we enjoy working with home rehabbers who have an established track record, we help newcomers too. If you’ve got a solid plan for a fix-and-flip, give us a call today.

Dennis Dahlberg Broker RI/Level 4 Funding LLC Privatae hard Money loansDennis 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  

     Linked In     Active Rain You TubeFace Book         

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.

3 Ways Owner Occupied Hard Money Lenders Help with HUD Homes

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HUD Homes are sold “as-is” and hit the market at fair market value after an appraisal, meaning they can be very low-risk investments. It may be difficult to find owner occupied hard money lenders for funding, but doing so may open up a world of possibility.

The Federal Housing Administration (FHA) is part of the US Department of Housing and Urban Development (HUD). When a homeowner has an FHA loan and the home is foreclosed on, the lender can file a claim with the FHA for the balance of the loan. Once paid, ownership of the property is then transferred to HUD, which is then responsible for getting the home resold. The home is inspected and a fair market value is assigned, so residences which need work are priced accordingly. Those who wish to purchase a HUD home can choose from a number of financing options, including owner occupied hard money lenders. There are many benefits of going this route.

1. You can buy before other investors. HUD won’t sell to investors right away. When a home first becomes available, only people who want to reside in the home can purchase it. After a period of time, investors are allowed to purchase it, which can increase competition.

2. You can have cash on hand quicker. Going with an HML is essential if you need to move quick. Offers made by those with cash in hand or who have pre-approval are generally considered before all others, but with HUD homes, buyers are expected to have financing in place before bidding.

3. You can get financing when traditional lenders won’t provide it. HUD doesn’t fix homes before they’re resold; they’re sold “as-is.” While this can be a fix-and-flipper’s dream because of the low sales price and potential for great returns after the repairs are made, traditional lenders can be picky about the conditions of a home. It can also be difficult to get financing from a traditional lender if you have less-than-stellar credit or are self-employed, among other things. Owner occupied hard money lenders use different criteria to determine which projects they’ll finance, so they can often help when a mortgage company won’t.

Is it Always Best to Work with an HML for HUD Homes?

There are multiple types of financing available for HUD homes, and each one can be beneficial under different circumstances. It’s also worth noting that not all HMLs will provide owner occupied loans. Many focus solely on investment properties a buyer does not plan to live in. For this reason, you should know your exit plan long before you begin looking at homes or finding lenders.

Learn the benefits and potential pitfalls before getting started.

Owner occupied hard money lenders typically prefer to work with experienced investors, but even newcomers may be able to secure funding if it’s clear they’ve done the number-crunching and have a solid strategy. If you’ve been considering purchasing a HUD home, Level 4 Funding can help regardless of whether you plan to live in the house or not. Contact us to learn more about how our programs work.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLCDennis 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  

     Linked In     Active Rain You TubeFace Book         

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.

How to Build Wealth Using Owner Occupied Hard Money Loans

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Owner occupied hard money loans are the unsung heroes of the real estate biz. Knowing how to leverage them is key for those who have dreams of going big but are just starting out.

Many people dream of getting into real estate because it’s a solid way to build wealth, yet quickly back down when they realize it’s also an expensive “game” to get into. Although few realize it, owner occupied hard money loans are often a gateway to wealth, giving those with an entrepreneurial mindset a chance to build even if they come to the table with very little to start. Before getting into how to leverage them, let’s break down how they’re different.

Owner Occupied: As the name implies, the person making the purchase intends to live on the property. This is common with foreclosures and HUD homes, with the latter requiring that the owner reside in the home for a full year before converting into a rental. Some co-ops and homeowner’s associations have a similar stipulation, though it’s generally permanent, meaning the owner must always be the one occupying the residence. Whether the owner intends to reside on the property or not will impact loan terms too, with those intending to stay generally receiving more favorable terms. It’s also worth noting that guidelines will vary from one contract to the next, so it’s important to read all contracts carefully to determine what an entity considers “owner occupied” and what stipulations come along with the designation.

Non-Owner Occupied: Generally speaking, the term “non-owner occupied” won’t appear much outside the mortgage industry. In this case, it’s used to designate risk. Perhaps not surprisingly, an investor dealing with money troubles is likely to let a loan for a rental or investment property go into default before he’ll put his primary residence at risk. For this reason, banks tend to be a little cautious here. It can be more challenging to get a non-owner occupied loan and the terms won’t be quite as good as they would have otherwise been.

A Win-Win Solution for Those Starting Out

Naturally, those just starting out don’t generally have strong records and pockets lined with cash like the banks like. However, one thing those who do make it have is tenacity. They’re willing to put in the work to see good returns. They just need a clear path to follow. By opting for an owner occupied loan, you’ll naturally get more favorable terms. Many people prefer this anyway because the first home they invest in is something they work on in their spare time, so being on site is a no-brainer. Plus, they aren’t paying a separate mortgage or rental payment to have a place to live at the same time. Opting for owner occupied hard money loans versus a traditional bank loan also opens up more doors, like closing fast and not having to struggle with all the requirements traditional mortgage companies have. From there, you can fix up the property as you have time and then flip it a year or two down the line when you’re ready.

It’s important to have clear expectations before getting into fix-and-flips.

Before you get into fix-and-flips, particularly if you plan to live in the home while you work on it, it’s essential to have an exit strategy and timeline. While some savvy entrepreneurs sell after a year or two, picking up anywhere from $10k to more than $50k per sale depending on their level of expertise, others convert their homes into rentals and build up a portfolio. Knowing where you plan to go after and what your anticipated timeline is will ensure you maximize your earnings. If you think owner occupied hard money loans may be the first step on your path to wealth, call us today for details.

Dennis Dahlberg Broker RI/Level 4 Funding LLC Privatae hard Money loansDennis 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  

     Linked In     Active Rain You TubeFace Book         

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.

Tips for Finding a Hard Money Lender Austin Texas

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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.

Verify Past Client Experiences

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.

Verify the Terms Being Offered

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.

Dennis Dahlberg Broker RI/Level 4 Funding LLC Privatae hard Money loansDennis 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  

     Linked In     Active Rain You TubeFace Book         

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.

Tips for Finding a Hard Money Lender Austin Texas

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The term hard money loans Austin is very often misunderstood by borrowers. Their thought that these are less than legitimate loans is a misunderstanding that could be costing them money.

Hard money loans Austin are loans that are not funded by a traditional bank or credit union. Instead, these loans are funded by an investor or a group of investors. But the loan is still a legal and legitimate loan with a legally binding loan agreement in place. But the main difference between hard money and a traditional loan in that hard money loans Austin are secured through the equity in the property and not the credit-worthiness of the borrower. This fact alone makes hard money a great option for many people who cannot secure a loan from a bank or credit union.

There are many people who choose to use hard money even though the interest rate is higher than that of a traditional loan. But even at a higher interest rate, hard money is great for a buyer with poor credit or no credit, an investor who is carrying multiple loans or property flippers who need to move quickly on purchases and cannot wait for a bank loan application to be approved. Having no other option is fairly self-explanatory and it is easy to understand why those folks are happy to use hard money. But the reasons that investors choose hard money is usually more related to the faster funding and the much easier application requirements.

Rather than a long process of completing application forms, proving debt and income numbers and then waiting for an approval, hard money loans Austin are almost always based solely on what is called the loan to value rate. In these loans, the lender uses an appraisal of the property to determine its current market value. Then the lender determines how much he or she is willing to loan the borrower against the property. Each lender can select his or her own actual percentage, but most will not exceed 70% of the current market value. This is to protect the lender in the event of the borrower defaulting on the loan. The lender can then sell the property to recover the original investment.

Understanding the Terms

Another important difference when borrowing from a private lender is that the terms are not as strictly regulated. This means that private lenders have the ability to negotiate the terms of the loan with the borrower to create a custom loan that works for both parties. This can mean that the length of the loan is customized or that there is a single balloon payment at the end of the loan or even that there is a flat penalty imposed if the borrower pays the loan off early.

Different Can Be Good

Using a hard money lender Austin Texas is not some shady back alley deal, it is simply a loan that is funded by someone other than a bank or credit union. And though the terms of the loan can be different, they can actually work to benefit both the lender and the borrower.

Dennis Dahlberg Broker RI/Level 4 Funding LLC Privatae hard Money loansDennis 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  

     Linked In     Active Rain You TubeFace Book         

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.

The Pros Of Hard money loans Austin Texas

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Even with higher interest rates than traditional loans, hard money loans austin offer some great benefits that are opening doors for many investors in the real estate industry.

Hard money is not some less than legit lending resource that is found in dark alleys and the dark web. In reality, hard money loans Austin are simple loans that are funded by individuals rather than traditional banks or credit unions and that is why they are referred to as non-traditional loans. And because borrowers are not dealing with huge companies and corporations, these non-traditional lenders can offer some great benefits and advantages.

The most commonly known benefit to hard money loans Austin is the unique criteria that the lenders use to determine whom they find and whom they deny. Unlike traditional lenders who require a great credit score and credit history, hard money lenders are mainly focused on the current market value of the property that is being purchased. So even if a borrower has less than perfect credit, he or she has an excellent chance of securing hard money.

Another great benefit of hard money is that the funding is coming from a person or a small group of people who operate under their own guidelines. They are not entrenched by rules and criteria set up by a large corporation which means that they can be much more flexible on all aspects of the loan. This means that borrowers can negotiate for terms such as the length of the loan, the fee structure and even an option to extend the term of the current loan. Having the ability to customize loans can be a huge benefit to many borrowers.

Speed Is Good

Being that hard money lenders are individuals or small groups; the processing of loans is extremely fast in comparison to a traditional loan. Hard money is often approved within just a few days and can be funded in just a few more. At its best, the process can be completed in about a week as compared to traditional lenders who sometimes take months to process an application only to turn down the borrower’s request. This fast approval and funding mean that borrowers can take possession of their new property much faster. In the case of an investment property, this fast action means that investors can process more properties and make greater profits.

Best Uses Of Hard Money

Hard money loans Austin are not the solution to every borrower’s needs but there are certain applications that they are perfect for. If a borrower needs the funding quickly for a great deal then hard money is likely to be the only option. And for a fix and flip where the loan only needs to extend for a short period of time, then hard money is perfect. And even for the consumer who is rebuilding his or her credit but is not quite able to secure traditional funding, hard money will work as a short-term solution until the loan can be refinanced. When used properly, the benefits of hard money are hard to beat.

Dennis Dahlberg Broker RI/Level 4 Funding LLC Privatae hard Money loansDennis 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  

     Linked In     Active Rain You TubeFace Book         

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.

Why Choose Owner Occupied Hard Money Loans

level 4 funding team

There are a lot of reasons why a consumer is unable to qualify for a residential mortgage. But owner occupied hard money loans offer them a great option.

There can be a great many reasons for a traditional lender such as a bank or credit union to deny a loan application. And after that happens many potential homeowners simply give up on their dream of homeownership. But what they don’t understand is that there is a non-traditional option available that might be a perfect fit for their lending needs. Owner occupied hard money loans are great for consumers who have certain financial issues which are precluding them from using a traditional loan.

Poor credit can be the result of many different issues. Sometimes it is simply due to poor financial choices but on other occasions, it is not due to a consumer’s mistakes. The loss of a major income is sometimes unforeseeable and can result in falling behind in household expenses. An accident or sudden illness can also be to blame as the consumer is buried under huge medical bills and is unable to make the required payments. Other times financial issues arise after a death in the family or divorce, but in all of these cases, the consumer’s credit becomes so bad that it is not possible to obtain a home loan even after years of work to correct credit issue. But hard money is an option for someone who is recovering from credit issues.

Another common issue for would be home buyers is erratic or short employment history. Banks want to see a long employment history and at least two years with the current employer. But not everyone works in an industry where that is possible. And who wouldn’t leave a job for better pay and benefits, just to maintain a longer work history to get a mortgage? That seems counterintuitive because the higher paying job would make it easier to pay a mortgage. But this can happen and a bank will deny a loan application. The solution for these borrowers is to seek owner occupied hard money loans.

The Self-Employment Drawback

Owning your own business is part of the American Dream. You work hard and achieve your goals as you create a business and even provide more jobs for hardworking people in your area. But banks are not fond of loan applications from the self-employed. Instead of just scrutinizing your personal financials now the bank wants to examine your business financials as well. And if you are not making a ton of money they are going to consider you a poor risk and deny your loan request. Again, the solution is simple, hard money.

Hard Money Offers Great Opportunities for Many

There are a lot of hardworking people out there who are reliable and can afford to pay a mortgage. But if they don’t fit into the bank’s idea of a perfect borrower, they are not going to get funding on a traditional loan. But owner occupied hard money loans are the perfect solution for those who are outside the box but still responsible and successful.

.

Happy senior business man making his notes at workDennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC  Private Hard Money Lender

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  

     Linked In     Active Rain You TubeFace Book         

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.

How to Select a Hard Money Lender

level 4 funding team

Because many borrowers are unfamiliar with the concept of a hard money lender, they are unsure how to select a good lender. But a few tips on the selection process can make the process much less stressful.

For most borrowers, hard money lending is not as well known a resource as a traditional lender. But there are a great many choices for a legitimate and honest hard money lender. All borrowers need to do is follow a few tips and guidelines when checking out potential lenders to ensure that they make a great choice and are satisfied with their hard money borrowing experience.

Especially for a first experience in hard money lending, it is always a good idea to select a firm who specializes in hard money. The terms and processes for a hard money loan vary a bit from a more traditional loan so having an experienced lender can make your first borrowing experience must less stressful. In addition, an experienced lender will be in a much better position to answer your questions and provide you with a detailed explanation of the process and fee structure of your loan.

Having an experienced hard money lender is important but will also want to focus your search in your local area. Being able to work through the loan process in person, ask questions face to face and talk about any questions or concerns that you might have about the loan agreement at the signing can be very reassuring. Taking out a large loan can be a bit unnerving and having a local contact is a great way to help eliminate some of the added stress and uncertainty.

Understand the Loan to Value Principal

Conventional loans are secured mostly on the borrower’s credit rating, credit history and their perceived ability to repay the loan that is being requested. But hard money loans are based on what is called the loan to value ratio. This is a comparison between the amount of the loan and the actual current sale value of the property. In most cases, a hard money loan will never exceed 70% of the current market value of the property that is being used as collateral. This protects the lender in the event that you default on the loan and he or she needs to sell the property to recover the loan amount.

Understand All of the Loan Terms

Traditional loans have very few terms and can include a down payment, interest rate, late fee penalty and length of the payment schedule. But there are additional terms that can be included in a hard money loan that you need to understand. These terms can include fees prior to the approval of the loan, finding fees once the loan is approved and terms regarding the lenders right to the property if you fail to make a payment. The terms will also outline the interest rate, which is always higher than a traditional loan and the length of time that you have to pay off the loan. Once catch that many borrowers do not expect or look for is the option to pay the loan off early. You will want to know if your hard money lender will not allow an early pay-off. This is because he or she is not willing to forfeit the added interest that you are paying. Be sure to carefully research any potential lenders and the terms that they are offering prior to signing documents for a hard money loan. This investment of time will ensure a good loan experience.

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Happy senior business man making his notes at workDennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC  Private Hard Money Lender

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   

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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.

Why Choose Owner Occupied Hard Money Loans

Handsome young man looking confidently

There are a lot of reasons why a consumer is unable to qualify for a residential mortgage. But owner occupied hard money loans offer them a great option.

There can be a great many reasons for a traditional lender such as a bank or credit union to deny a loan application. And after that happens many potential homeowners simply give up on their dream of homeownership. But what they don’t understand is that there is a non-traditional option available that might be a perfect fit for their lending needs. Owner occupied hard money loans are great for consumers who have certain financial issues which are precluding them from using a traditional loan.

Poor credit can be the result of many different issues. Sometimes it is simply due to poor financial choices but on other occasions, it is not due to a consumer’s mistakes. The loss of a major income is sometimes unforeseeable and can result in falling behind in household expenses. An accident or sudden illness can also be to blame as the consumer is buried under huge medical bills and is unable to make the required payments. Other times financial issues arise after a death in the family or divorce, but in all of these cases, the consumer’s credit becomes so bad that it is not possible to obtain a home loan even after years of work to correct credit issue. But hard money is an option for someone who is recovering from credit issues.

Another common issue for would be home buyers is erratic or short employment history. Banks want to see a long employment history and at least two years with the current employer. But not everyone works in an industry where that is possible. And who wouldn’t leave a job for better pay and benefits, just to maintain a longer work history to get a mortgage? That seems counterintuitive because the higher paying job would make it easier to pay a mortgage. But this can happen and a bank will deny a loan application. The solution for these borrowers is to seek owner occupied hard money loans.

The Self-Employment Drawback

Owning your own business is part of the American Dream. You work hard and achieve your goals as you create a business and even provide more jobs for hardworking people in your area. But banks are not fond of loan applications from the self-employed. Instead of just scrutinizing your personal financials now the bank wants to examine your business financials as well. And if you are not making a ton of money they are going to consider you a poor risk and deny your loan request. Again, the solution is simple, hard money.

Hard Money Offers Great Opportunities for Many

There are a lot of hardworking people out there who are reliable and can afford to pay a mortgage. But if they don’t fit into the bank’s idea of a perfect borrower, they are not going to get funding on a traditional loan. But owner occupied hard money loans are the perfect solution for those who are outside the box but still responsible and successful.

Happy senior business man making his notes at workDennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC  Private Hard Money Lender

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  

     Linked In     Active Rain You TubeFace Book         

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.