Monthly Archives: November 2018

Loans for Flipping Houses: The Dangers of Hidden Costs

Hard money lenders are the go-to source of financing when it comes to flipping houses. These lenders overlook the distressed condition of a property while giving loans as a percentage of properties potential value. But it is essential to carefully consider the cost structure of any hard money deal.

Some hard money deals are structured in two parts. The first portion of the loan secures the purchase of distressed property and the second portion of the loan covers the cost of renovations. The rehab portion of the loan is often distributed bit by bit as work proceeds, and this has important implications when it comes to the cost of hard money financing. The following examples will show why it is crucial to analyze the terms of any hard money deal.

In the first is instance our prospective house flipper goes to a hard money provider and proposes a two-month rehab project. The cost of closing on the ramshackle home will be eighty thousand, and the cost of renovations will amount to 30,000. Our first borrower takes out a loan, for a total $110,000 with the rehab budget given out in two successive draws totaling $15,000 apiece. The lender offers a standard hard money interest rate of 14 percent. Work proceeds on the house things go smoothly, and our flipper resells their home earning a handsome profit of 55,320.

It seems like things worked out pretty well in this case, or did they?

You can save money by carefully considering the cost structure of hard money loans

Another flipper sees a similar property sale block away from our first. They must have been spying on the first borrower because their proposed project is the exactly the same. The purchase price of the house is 80,000, and the rehab budget is thirty thousand. But they approach a different hard money provider. They agree to a loan of 110,000 with a 30 thousand rehab budget distributed over two draws at a 14 percent interest rate.

Suspicions glances are exchanged between the two investors as they pass each on the way to their respective work sites. Let us assume they finish work at the same time, and they resell their properties at the same sales price.

But, for some reason, our second flipper earned a profit of 56,020 while the first earned 55,320. Why? Because the second flipper carefully considered the terms of their deal. What was the critical detail in the term sheet the first flipper missed?

The first lender charged full interest on the total loan amount up front through the whole two month period, the second lender only charged interest on the money as it was given out in draws. This tiny detail saved the second flipper 700 dollars.

Don’t make unnecessary interest payments on hard money loans

This hidden cost of hard money is something that is often overlooked, and it could cost you thousands in unnecessary interest payments. In the context of a house flip, 700 dollars might be a piddly amount of money. But let’s change the situation, what if our first house flipper’s project went on for 6 months and they had to pay that 14 percent interest rate on the full loan amount? They’d pay roughly five thousand additional dollars in unnecessary interest payments. In the context of a flip 5,000 dollars is a lot of money.

Don’t make interest payments on money you don’t have. Carefully analyze the cost structure of your hard money deal. If you don’t receive the full loan amount up front ask your lender will they charge you interest on the entire loan amount or just on the funds you’ve received from them. Analyze the terms of your hard money deal, so you can avoid making unnecessary interest payments.



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

What You Need to Know to Make Money with Loans to Flip Houses in Arizona

Learn how to start making money with Loans to Flip Houses in Arizona even if you don’t have the credit score needed to get a loan at a traditional bank. Flipping houses isn’t just for TV stars anymore!

Flipping houses isn’t just for the stars on popular channels like HGTV or the DIY Network anymore. With the right lending opportunity, you can start cashing out on the huge earnings that can come with flipping properties. Loans to Flip Houses in Arizona can cover the majority of expenses that come with flipping a property. For example, if you don’t have any experience with construction or the manual labor that comes with flipping a house, your loan can go towards hiring contractors to help. That means that you can start earning money by flipping houses without ever having to have proper experience with shiplap or hammers and nails yourself. Flipping homes is truly the investment opportunity you have been waiting for to make your dreams come true and there is no better time than now to start.
One factor that sometimes prevents people from flipping homes is lack of investment experience or a lack of the required credit score and credit history necessary to get a loan from a broker at a bank. However, there are plenty of opportunities to get Loans to Flip Houses in Arizona outside of the traditional lending options you might encounter at a bank. Through private investing or Arizona Hard Money Lenders, you can get started with flipping houses and getting the loans you need to flip houses much faster than you ever would be able to at the bank.

If you’ve been letting your credit score get in the way of your dreams to start flipping houses with Loans to Flip Houses in Arizona, the time is now to get in touch with a hard money lender or private investor about lending opportunities near you. With flipping houses, you can begin to build an income remotely and have more chances to get back to the activities you enjoy. If you know how to send and receive emails or make phone calls, there’s a good chance that you can succeed with flipping houses if you have the right financial tools. With Loans to Flip Houses in Arizona, the investment opportunities are endless, and you can finally get started with flipping properties for resell.

Loans to Flip Houses in Arizona are the New Way to Make Money in Real Estate

Regardless of your current financial status or good credit score, you can still potentially be eligible for receiving Loans to Flip Houses in Arizona. With Arizona Hard Money Lenders or private investors, the property you are flipping is often used as collateral rather than an initial down payment. This means that you will have the finances available to purchase investment properties and get started with flipping them as soon as possible.

With the right lending opportunity, your loan can even cover manual labor costs which means you can begin flipping properties without being a general contractor yourself.

Stop making excuses for yourself and get started with investing in properties today with Loans to Flip Houses in Arizona. With the right money at your disposable and the right game plan, you can start making real money on the real estate market.



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

Business Loans: Does God Want Your Company to Survive?


Brandon Abney Arizona Home Loan FHA SpecialistsSurviving as a start-up is difficult. Considering Arizona Business Loans could keep you in the game.

The short-term survival rate for a business is 50%. Confirming this, the US Bureau of Labor states, “About half of all new establishments survive 5 years or more.” This means: start a business and flip a coin—you’ll find heads or tails to be your odds of survival.

While this statistic is daunting, how do you break the chain? Many experts claim that a healthy cash flow is one of the main indicators of a business’s survival. Regarding this, a recent article from Forbes states that “cash is king, and cash-flow management is the deciding factor whether or not your business succeeds or fails.” While this is good to know, how do you obtain cash flow when you have been down on luck, your market has made an unpredictable shift, or you have not yet qualified for a loan?

Struggles in obtaining lending may be due to:

  1. Low credit score

  2. Limited credit experience

  3. Bankruptcy

  4. Foreclosure

Don’t let the challenges of your past impede your future potential. You’ve put skin in the game to be in business. You want to survive and thrive. Level 4 Funding’s Arizona Business Loans may be able to help you obtain the necessary cash flow to outlast the first five 5 years.

Other Reasons for Seeking Business Loans

Perhaps your business is up and running the way you want it. However, you may need more cash to improve upon what you’ve created.

Other reasons for obtaining Arizona Business Loans may include:
  1. Expansion real estate, inventory, space

  2. Debt consolidation

Expansion may be crucial to getting an edge up your competition. Many times, for businesses that have been established for many years, acquiring property without diminishing cash flow is a dilemma. To add to this, traditional loans may be hard to acquire for some. Hard money Arizona Business Loans may be the answer to buying more property for office space, inventory management, or additional manufacturing. These investments increase the potential output and profit your company is capable of achieving.

Why Not Consolidate Many Loans into One?

Debt consolidation may be another concern. Multiple credit card payments, property loans, and interest rates may be a burden. E Plurbus Unum—Hard money Arizona Business Loans may allow you to consolidate many debts into one payment and one interest rate. 


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 Work with Hard money lenders in Arizona as a First-Time Investor?









iStock_000067965589_XXXLarge v1One of the biggest questions first-time investors ask is whether they can get approval from hard money lenders in Arizona or not. The truth is, you can get funding, but you’ll have to demonstrate knowledge.

Real estate investors turn to hard money lenders in Arizona for a myriad of reasons. Sometimes their projects simply won’t qualify for a traditional loan at the onset, while other times having cash ready to go helps ensure they can grab the property before someone else does. First-time investors face additional challenges, as banks usually need to see a track record for success before they’ll put their money on the line as well.

Ergo, most seasoned investors work with hard money lenders in Arizona on a regular basis and keep this option in their toolkits for various situations and property types. As a newcomer, you’ll want to become established with professionals you can trust as well, so that you can turn to them as needed and streamline the process for subsequent projects. Getting that first approval can seem daunting, though.

On the bright side, alternative funding options aren’t set up like banks, which means that you don’t necessarily have to have a portfolio of successful projects in order to get approved. With HMLs, the biggest concern is the value of the property, meaning if you can grab real estate for less than it’s worth, the odds of getting approval are relatively high. You’ll often hear the term “loan to value” or “LTV,” which refers to the amount of your loan in relation to the value of the property. For example, if the property is worth $100,000 and you’re requesting a $70,000 loan, your loan to value is 70%. Sometimes, HMLs will go as high as 90% LTV.

If You Have Some Experience, You Can Get Funding More Easily

Naturally, the LTV is only one part of the equation. If you have some kind of experience which relates to the project you’re undertaking and have a strategy to overcome difficulties along the way, that will impact your ability to get funding too. Many first-time investors have backgrounds in the mortgage industry, real estate, appraisals, home repair, or similar, so it’s easier for them to understand the value of a project, what must be done to increase value, and what the property will likely sell for upon completion. This type of experience really shines when an investor is pitching his or her idea and can often help overcome a lack of formal investment experience.

Don’t let lack of funding stand in the way of your success.

Ultimately, the best way to know if hard money lenders in Arizona will work with you is to talk with a broker before applying. A great broker will walk you through the process, let you know what HMLs are looking for, and make suggestions specific to your situation that will improve the chances of getting an approval on the first go. If you’re still denied, ask lots of questions to find out why and learn what you can do to improve the odds next time around. First-time investors absolutely can get funding; having a solid strategy and finding the right HML for your needs are the vehicles that will get you there.

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 Arizona hard money loans Give a Helping Hand when Facing Foreclosure?









male-frustrated-with-exclamation-pointsPeople who are facing foreclosure often look for creative ways to save their homes. Arizona hard money loans can help in these situations, but you must know how to evaluate which options are best.

If you’ve found yourself in hot water with your mortgage company, the first decision to make is whether you genuinely believe you can catch up your payments or if the best solution is to give up your home. If your plan is to save your home, you will need to work out a budget and plan for repayment of the past due balances. If you believe you cannot get caught back up, then the best course of action is generally to identify which options will help you move on without sinking your credit.

Ideally, your first point of contact should be to your existing mortgage company. If you already know how much you can afford to pay back each month, they may be able to give you an alternate payment plan that will help you avoid foreclosure to begin with. Sometimes, banks will also agree to a “deed in lieu of foreclosure,” meaning you’ll sign the home over to the bank, or they may agree to a “short sale,” which refers to selling the home for a price that’s short of what is owed. This option is generally only viable if the bank is considering auction and you’ve got a reasonable offer. It can help minimize the impact on your credit, but it can still drop your score 100-150 points. Considering that bankruptcy can reduce a score by 150-240 points and still may not help you save your home, a short sale may be the preferable option. Conversely, speaking to your mortgage company about having someone assume the mortgage, or take it over, could also work, though most contracts specifically exclude this option.

Lastly, Arizona hard money loans can be a viable option to help you bridge the gap, regardless of whether you plan to keep your home or not. Depending on the terms offered, you may be able to qualify for as much as 90% of your home’s value. The funds can then be used to pay off your existing mortgage, buying you some time to sell the home for maximum value, in which case your credit score won’t take the same hit as it would with a short sale or bankruptcy. Or, you may take advantage of reduced/ interest-only payments for some time until you’re able to qualify for a traditional mortgage again.

If You Can Work Out a Strategy, You Can Save Your Home

Whether you’re going with Arizona hard money loans or any of the other options mentioned, having a strategy is paramount. You will need to know what your end goal is and have worked out your financials in advance; do not move forward unless you know you will have the funds to meet obligations. Granted, this is common sense, but the possibility of losing one’s home can cause some to make emotional decisions, such as moving forward with the hope they’ll be able to pay, rather than the knowledge they will.

Set realistic expectations before settling on a plan of action.

When you’re facing difficulties, such as a potential foreclosure, there are no magic bullets. Explore your options carefully and learn the benefits as well as drawbacks of each. If Arizona hard money loans seem like the best possible option for your needs, talk to a seasoned broker to get the best terms possible.



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

BECOME SUCCESSFUL WITH ARIZONA SPEC HOME INVESTING








536349311You’ve heard the term, but what is an Arizona spec home? Is it a smart move to invest in one?

Speculation building is a significant part of the new home construction market. Since 2016, close to three quarters of new single-family houses have been built on “speculation”- meaning, the home was built with an intention to make a profit. When the market is healthy Arizona spec homes are abundant because builders can build them quickly, sell them even faster and use the profits to build even more Arizona spec homes. This is a potentially large profit-making probability; financing these types of projects can be arduous.

There are many factors, for an investor, to consider when making a decision to be involved in the building of an Arizona spec home. It is imperative that the investor has a complete and thorough understanding of the local housing market. The challenge lies in balancing costs of the home’s features with what will ultimately make the home sell. Crucial factors, for the investor, to consider are: the local job market, design and architect and local housing prices. It is also necessary to keep the house nonspecific enough that it will appeal to the masses of buyers versus just a select population. These are key components that investors will take into account when making a determination on an investment.

What do I need to know about finding a spec home investor?

The investor will always have full control of the project’s expenses. Spec houses are just that, a speculation of sale. If the local buyers needs aren’t met, it can result in a loss versus a gain for the investor.

There are banks that lend for spec builders. However, banks tend to offer most of their lending toward custom homebuilding and large developments. That leaves room for private investing. In Phoenix there are a multitude of large new housing developments. It is becoming more common to invest in Arizona spec homes because it is becoming harder to find distressed homes to invest for fix and flips.

Hard money investors are the way to go when it comes to funding a Arizona spec home. The loan will be a shorter duration than a traditional bank. There is a high demand for new homes in many metropolitan areas. In a market with high demand and low inventory it is always a good time to build a Arizona spec home; and a Arizona hard money lender is your best bet when it comes to funding that project. It is of essence that you chose a location that your lender is comfortable with. Phoenix and Las Vegas, for example, are both booming cities with room for growth and a fast growing population. Arizona hard money lenders can provide fast funds for Arizona spec homes that would be near impossible with a traditional bank. The borrowers responsibility can run from no money down to upwards of 50% down.

What do I bring when I meet with a hard money lender?

Before you meet with a potential lender; gather all documents concerning your financial position and collect as much information, as possible, about the property. You will need your previous two years’ tax statements, all bank statements, your business’ profit and loss statements and a listing of all your assets and liabilities. When it comes to the property, you will need: a budget, a list of all materials that will be needed and income and expense statements. Some lenders will require more than others. However, it is always best to be over-prepared when meeting with your investor.


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

WHERE TO FIND FINANCING FOR AN ARIZONA SPEC HOME








userHave you been turned down by banks because you don’t have perfect credit? Do you have collateral? Do you need a loan to invest in property?

Many people are not familiar with the term, “spec loan.” A Spec loan is a term used for a loan on a speculative property; meaning it the end game is unpredictable. A speculative property is one that the developer has not sold. And, because the sale has not been finalized, the loan itself is only speculative. Financing a spec home is a process, and it’s a little different than a conventional home loan.

Traditional banks are not quick to approve financing for an Arizona spec home. It is a risk for a lender because it is essentially a loan for a construction project without a committed buyer; and that flags risk to the banks. You’ll work with a mortgage lender when building an Arizona spec home. However, the builder will need the financing from mortgage lenders to purchase the needed materials and pay the construction crews. To prove to the lenders that your income is sufficient to pay back the construction loan. The borrower is expected to have enough funds to pay for the monthly payments on the loan, holding costs, insurance and taxes.

You will also need to write a marketing plan because this loan is to build something that will make a profit in the future. The point of this plan will describe how high you will price your completed home. Remember, a Arizona spec home is a home that hasn’t been built yet.This marketing plan will show who your target buyers will be and how you will inform potential buyers of this home being on the market. One idea would be to hire a realtor to promote your investment.

Where to find financing for an Arizona spec home?

Traditional lenders usually are not willing to provide a borrower with a loan on an Arizona spec home hard money loan due to unreliable lending practices from the past. Arizona hard money lenders are much more eager to lend on an Arizona spec home than a bank. Arizona hard money lenders can adjust the market conditions and advance their products to match trends in the market. Arizona hard money lenders offer loans that are shorter than bank loans. For example, a loan may be six-months, have 4 points and a 13% interest rate. This is quite different than a traditional bank loan.

Arizona hard money lenders can create a unique loan structure. If you’ve been turned down by a traditional lender because of credit a Arizona hard money lender should be your next step.

Arizona hard money lenders can provide funds for builder’s projects that would be next to impossible to acquire from a bank. In most cases applying for a hard money loan is a simple process. Usually, a borrower only needs to fill out a loan application, have a short conversation with a lender and receive a conditional approval right away. If you have a project and traditional banks are turning you down; Arizona hard money loans may be beneficial to you. 


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 YOU SHOULD WORK WITH AN ARIZONA PRIVATE MONEY LENDER








What is a private money lender? How can I benefit from one?

The definition of a Arizona private money lender is a non-institutional lender that issues short-term loans for the purchase and renovation of an investment property. These loans are secured by the borrower’s assets. An Arizona private money lender can be anyone from a family member to a private lending institution.

Private money lenders are commonly known as Arizona hard money lenders. These are considered the best types of lenders due to their reliability, costs, fees and loan terms.

The interest on a private money loan is an interest-only monthly payment. What that means is that throughout the repayment period the borrower pays only the interest accrued on the loan as their monthly payment. Then, at the end of the loan it is paid in full. Even though the interest rate will be higher than a conventional bank loan, the monthly payment may easily be less. Because of this many house flippers take out loans from private money lenders. In fact, short-term Fix-and-Flippers that want to buy, renovate and sell within 6 months to a year are great candidates for private money loans. Buy-and-Hold Investors looking to purchase and renovate a rental property, prior to refinancing with a conventional loan, also benefit from these loans. However, private money loans will fund a variety of properties such as apartments, condos, commercial real estate, and single family homes.

How do Arizona private money lenders work?

Traditional bank loan approval is based largely off a borrower’s FICO score, revenue stream and employment. Private money lenders are less concerned with your FICO score and more interested in your hard assets. This gives the lender security knowing if the borrower defaults they will be repaid.

After-rehab-value (ARV) and loan-to-value (LTV) are terms borrowers should familiarize themselves with. ARV is what the property will be worth once the renovations are complete. LTV describes the size of the loan you take out compared to the value of the property that is securing the loan. Private lenders will usually loan out an amount that is equal to a percent of a property’s LTV or ARV. Most commonly they will lend 90% of a property’s LTV and 80% of a property’s ARV. That being said, it is pretty common for private lenders to give loans based on ARV for a property in poor condition and a loan based on LTV in fair to good condition.

What to look for in an Arizona private lender.
  1. Interest rates and fees— Private money loan interest rates will vary. Typically, interest rates are somewhere around 8%-15%; lending fees around 1.5%-11%. Make sure you research and find the rates and fees that will work best in your situation.

  2. Experience— Lenders are proud of the years they have been in business and the amount of loans they have approved. Often this type of information is found on their websites. The more deals they have done equals more experience. Having experience on your side will make this process run more smoothly.

3.   Specialization: Private lenders frequently have a specific area of real estate

     they specialize in; this can be residential or commercial. You want to work

     with a lender that has experience in the property type you are financing.

Do your homework; find a lender that will work for you. It can be a scary step. But, once you familiarize yourself with the process it can make your dreams come true!



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.
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THE DIFFERENCES IN ARIZONA FIX AND FLIP LOANS







825082878An Arizona fix and flip loan is a loan that investors use to purchase and renovate a property. A fix and flip is a distressed house that needs to be “fixed” and then after is quickly “flipped” making the investor a profit. Usually, the loans used for these projects are of relatively short-duration.

There are numerous types of loans available for fix and flips. Finding the loan that will work best for you depends on your experience and financial situation. Arizona hard money loans are the most popular.

How to determine which Arizona fix and flip loan is best for you?

Arizona hard money loans are best for an investor who has been successful in fix and flips. Arizona hard money loans are also known as rehab loans— due to the rehabilitation of the distressed house. These loans have lower qualifications for approval. Loan terms are short— usually between 6 months to 2 years. Approval usually takes less than 2 days. A borrower will only have to wait 10-15 days for funding. However, interest rates will be higher— typically between 9%-15%. Although, a borrowers credit does not have to be impeccable they will still need at least a 550.

Another way to finance a fix and flip is through a Home Equity Line of Credit (HELOC). A HELOC works like a credit card versus a traditional loan. Investors are granted a line of credit, from their bank, based on the value of their current property. With a line of credit, interest rates are only charged on the amount borrowed. A HELOC term is typically 25-30 years and approval time can take upwards of a month and a half. Interest rates are lower than a hard money loan—around 5%.

A bridge loan is a loan that is used temporarily during the time between real estate transactions. It gives the investor funds to purchase a fix and flip without a contingency to sell their other property first. Investors use these types of loans to purchase property before flipping the property to pay the loan off. These loans are extremely short term — typically between 3 weeks and one year. Interest rates on bridge loans are usually between 6% and 9%. A lender will look more at financial ability than credit and financial history.

Which Arizona fix and flip loan is best?

There are many factors that must be addressed to determine which Arizona fix and flip loan is right for you.

  1. Hard Money Loan: If you are a novice, but willing to work with a contractor or you are an experienced investor that has a good track record of flipping homes a hard money loan could work for you. You will be approved and receive funds quickly. There are high interest rates and shorter loan terms.

  2. HELOC: A HELOC may be a good choice if you are an investor with an owner-occupied residence and a large amount in existing home equity. The repayment is only interest for the first 5-10 years; interest and principal for the remaining years.

  3. Bridge Loan: This loan works if you know you will close quickly. You will need to be able to pay two mortgages simultaneously. The loan terms are a couple of weeks to a year.

Whichever loan you choose be sure to do your homework. Speak to a lender; they will gladly help you through the process.


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

HELPING YOU UNDERSTAND ARIZONA HARD MONEY LENDING







iStock_000002512608_LargeWhat exactly is an Arizona hard money lender? How are they different from a traditional bank loan? How can they help you?

You have heard the term, “Arizona hard money lender.” But, do you actually know what one is? Arizona hard money loans are asset-based loans. With this type of loan a borrower must have property that will secure the loan. A traditional bank loan can be a grueling, time consuming project; and you may have to wait a long period of time for approval. Also, with traditional bank loans, your credit is of utmost importance. There is no elaborate underwriting when it comes to these loans so developers find them useful for time-sensitive projects.

Arizona hard money loans are primarily used for short duration projects. These types of loans are typically used for purchasing real estate, improvements, renovations and construction. There are a variety of other reasons for these loans. Most reasons involve some type of improvement that will add value to a property.

Hard Money Lenders Approach

Arizona hard money lenders are more concerned with collateral; unlike traditional banks who routinely dig deep into a borrowers credit. The value of your collateral gives the lender security; it is more important than your financial situation. If you are unable to repay the lender they can take your collateral, sell it and get their money back. Lenders will lend the borrower as much as their property is worth based on the loan-to-value (LTV). The lender determines this by the ratio of the loan amount divided by the value of the property. These lenders are able to make much quicker decisions because they don’t have to investigate your entire financial life. The loan will be a much shorter duration than a traditional loan, usually lasting between 6 months and three years. Arizona hard money loans typically charge a higher interest rate than a traditional loan, ranging from 10% to 18%. Arizona hard money lenders are able to help many borrowers who don’t have perfect credit; they can also help borrowers who are having financial issues such as bankruptcy. As long as you have collateral that can be used as security, these lenders can work with you. Also, due to the absence of a complex underwriting, lenders can work with a borrower on repayment schedules. The flexibility of these asset-based loans can save many hungry borrowers.

Things to consider when deciding if a traditional bank loan or finding an Arizona hard money lender will work best for you.

Working with Arizona hard money lenders will benefit borrowers that are working on a short duration project, may not have perfect credit (or have some marks on their credit) or need quick financing and own assets that will cover their obligation in case they are unable to repay on time. These lenders can be found in organizations that specifically offer these loans. If a non-conforming loan will not work for your situation you may find the funding, you require through a Arizona hard money lender.

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