Monthly Archives: May 2019

Do Arizona 100 LTV Hard Money Lenders Really Exist in 2019?

Many people believe Arizona 100 LTV hard money lenders went the way of the dinosaurs after the economic collapse. It is harder to find the real deal now, but you can still buy real estate without having a massive chunk of cash if you’re connected with the right people.

When we look at the consumer market, there are tons of programs to help buyers get into homes without a down payment. Most commonly, they’re through government agencies like the Federal Housing Administration (FHA), United States Department of Agriculture (USDA), or Department of Veterans Affairs (VA). Although the agencies don’t directly administer the loan, they offer banks and other financial institutions a guarantee on some or all of it, so the lender can offer loans to people who wouldn’t ordinarily qualify or provide more favorable terms.

While that sounds like a fantastic deal, and in some cases, it really is a boon, most people don’t realize there are still costs. They’re paying for the privilege of getting a loan this way. For example, the loans don’t cover closing costs, which is usually 2-5% of the sales price. Ergo, most people have to come up with a little over $3,500 to seal the deal. In addition to this, there’s usually a stipulation that says the buyer has to have mortgage insurance, which tacks on close to $100 per month for a typical homebuyer.

So, even in the consumer market, there’s not really a way to get into a home without having some cash, but in the commercial sector, it becomes even more challenging. Those government programs don’t exist for investors, which is why people start looking for Arizona 100 LTV hard money lenders.

Set Realistic Expectations if You’re an Investor

While searching for Arizona 100 LTV hard money lenders, you’re sure to find that most aren’t really offering you 100% of the value of the property. Chances are, you’ll fall in the 60-70% range or perhaps even lower. They want you to have some skin in the game because it reduces the chance you’ll default and makes the deal less risky for them if you do. Would you lend someone $50-100k or more if that party wasn’t as invested as you are or if you could lose money on the deal? Probably not. As you explore your loan options, be realistic about what you’re bringing to the table and be mindful that you’re creating a win-win situation for you and your lending team.

A seasoned broker can lend a helping hand if you’re struggling to find the right financing.

There are ways Arizona 100 LTV hard money lenders legitimately get you the full amount of your real estate venture. For example, you could explore cross-collateralization or try to negotiate a lower price on the property. If it’s valued at $100k and you get the seller down to $70k, you’re right in the sweet spot. Some sellers are motivated to do this if they want to avoid a foreclosure or you’re willing to split some of the profits after you sell. If these solutions don’t work for you, speak with a broker who specializes in the area who can explore alternate options to get you what you need.



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 3 Differences: Stated Income vs. Arizona commercial private loans

When the banks say, “No,” business owners still have options; namely stated income and Arizona commercial private loans. Each serves people in a unique way, so it’s important to know the differences and how they work before getting on board with one.

1. Stated income options don’t require tax returns. Although most other forms of lending require at least a couple years of tax returns to prove income, stated income options do not. However, it is worth noting that lenders usually request other forms of income stream verification as well as proof of assets and liabilities. Because of this, they tend to be more popular with those who have a ton of business write-offs on taxes, which can sometimes make it look like they aren’t earning. Unfortunately, the consumer market was previously leveraging them, and they weren’t actually earning, which contributed to the economic collapse. Ergo, stated income options are only available to business owners now.

2. The length of the loans is usually different. Arizona commercial private loans, also referred to as hard money, usually have terms somewhere between 3-60 months. Most do not have pre-payment penalties, though there are exceptions to this. Stated income options generally range from 3-10 years and are often paired with hefty pre-payment penalties.

3. Your credit score matters for stated income. Although some with fair credit may be approved, good or better may be required for this option. With a hard money loan, you can have rotten credit and still be approved. Lenders care more about the value of your project, your plans, and your capabilities, than they do about your credit.

Beware of Hidden Costs and Additional Hassles with Stated Income

It’s important to remember that the terms are longer for stated income, so even if the interest rate on a loan is lower with this option than a hard money option, you’re probably going to wind up paying more to borrow overall. If you hope to pay off early, chances are you will be hit with a large penalty fee with a stated income option, which may eliminate any benefit to early payoff anyway. In addition to this, stated income lenders usually require additional documentation, and it generally takes six weeks or more to close. With Arizona commercial private loans, you can measure closing in days, not weeks.

Speak with a broker if you’re not sure which one is right for you.

Despite the benefits of Arizona commercial private loans over stated income options, they’re not right in every situation. For example, if you’re planning to do a fix-and-hold real estate project, stated income may be better. Again, though, that’s not always the case. You’ll need to crunch the numbers to see what you’ll pay over the lifetime of each loan to determine which the most economical choice in your situation is. If the decision isn’t obvious based on your situation, the qualifications for approval, and the overall cost, speak with a broker who can help find you the best deal for your needs.



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

3 Ways Luxury Investors Use Arizona commercial private loans Differently Today

If you’re considering a foray from the general real estate market to luxury, this is still a good time to make the shift. However, how you apply your Arizona commercial private loans and the strategies you employ will need to pivot too.

In November 2018, mortgage rates hit their highest peak since 2011, per data from Macrotrends. This, paired with the uncertainty of the economy and increasing values, resulted in a lull in the luxury market. Many forecasters predicted the luxury would outright stall in 2019, but that’s not necessarily what we’re seeing. So far this year, mortgage rates have dropped three-quarters of a percent and worries of the economy are diminishing. Although these factors don’t impact Arizona commercial private loans, they do impact your buyers, and thus, your ability to earn.

Coldwell Banker pieced together a report on the 2019 luxury real estate market which highlighted the hottest markets to sell in. LA Valley came out in first, with the median average sold price to list price at 97.6% for single-family homes and 100% for condos. Median sold prices were $2,073,122 and $747,500, respectively, with median days on the market sitting at 45 and 36. Maui came in first for buyers, a rank which was heavily influenced by the high median days on market, with homes at 206 days and condos at 162. Median SP/LP% was also a leading factor, with homes at 92.7% and condos at 97.2%.

Of course, not everyone will want to head to these markets. The good news is, there’s plenty of opportunity elsewhere. For example, those hoping to get a deal when buying in Arizona could have more bargaining power where homes stay on the market an average of 141 days in Scottsdale and 146 in Paradise Valley, and the median SP/LP% sits in the 94-95% range. Texas has similar trends. As a buyer, you’ll benefit from a SP/LP% of around 96%, though selling will be easier at 52 days on the market in Dallas and Houston.

Knowing How to Make Money in the Luxury Market Requires a Shift in Thinking

First and foremost, savvy investors devote more energy to valuations. In the general market, it’s easier to determine the value of a property. When doing a comparative analysis, you may be looking for properties with features like pools and granite countertops, but chances are, you’ll find homes that are nearly identical to the one you’re considering. With the luxury market, you probably won’t. The discerning homeowner expects his or her property to be unique and fit specific lifestyle requirements. Some investors go as far as to tour homes they have no intention of buying just to make notes of the features for their comps. Others phone agents who have recently sold to get specific information. Savvy investors give themselves more time to make an exit as well. Depending on the market, it could take four or five months to get a buyer right now. Because Arizona commercial private loans are short-term, it’s important to be able to exit when the term ends. However, some of this comes down to your marketing, and that’s the third thing many people making the shift overlook. Your elite clients don’t buy homes the same way others do. Networking and getting the word out is key.

If you can adapt your style, you can make money in the luxury market today.

Clearly, the luxury market is still hot for investors. Arizona commercial private loans can pave the way to a lucrative career, though you’ll need to nail the details to maximize profits.



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

Do Arizona bad credit commercial mortgage lenders Really Exist?

“Yes, Virginia, there is a Santa Claus…” And, there are also Arizona bad credit commercial mortgage lenders who will gladly help make your dreams come true too.

We probably all remember the story of Virginia, the young girl who wrote a letter to the editor of The Sun in the late 1800s. She pondered whether Santa was real, citing the testimonials of her friends as potential evidence. Virginia’s letter landed smack dab on the desk of Francis Pharcellus Church, a man who had previously been a civil war correspondent and established the Army and Navy Journal.

Not surprisingly, Church had seen many atrocities in his time and the era in which he lived was a difficult one. The experiences of Church’s life reportedly made him a hardened man. He was an atheist who abhorred superstition. He eyed everything with a large dose of skepticism and a heaping side of cynicism to boot. It’s also worth noting that Church was not a father either, so his experience in dealing with the endless questions children ask was quite limited. For Virginia’s letter to appear before him, it seems like it would be a catastrophe in the making. Only, it wasn’t.

“He exists as certainly as love and generosity exist and you know that they abound and give to your life its highest beauty and joy,” explained Church in his note back to Virginia. As adults, we comprehend the hidden meaning here, yet it only enhances the magic. Best of all, Church was right, though perhaps not in the sense children with twinkling eyes might understand.

It may seem a bit odd to compare this concept to Arizona bad credit commercial mortgage lenders because we’re talking about something real and tangible with the latter, but the myths and lore associated with this special lending niche is what connects them.

You Can Get a Loan Even if You Have Rotten Credit

See, Arizona bad credit commercial mortgage lenders really do exist, but not in the sense most people consider. Most people will turn to the banks and will promptly be turned away because they have a score that’s too low or aren’t established yet. Even those who are savvy and start exploring online lending platforms will likely get turned away for a low score. If this is the situation you’ve faced, you need to stop looking for Santa. He doesn’t exist at the bank. You’ll find your magic in places where you aren’t judged based upon a score, but where your project is evaluated based upon its merit.

Arizona Hard Money Loans can make your dreams come true.

Arizona bad credit commercial mortgage lenders typically work with hard money, meaning the loan is based upon the value of a hard asset. In this case, it’s the property you’re borrowing funds to purchase or another property in your portfolio. You’ll need to demonstrate you’re making a smart purchase and that you’ve got solid plans to turn a profit on the property, but things like your score are of relatively low concern. This in mind, the best place to start is by locating a broker who specializes in Arizona Hard Money Loans, so you can get matched with the right lenders and terms for your project.



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 3 Things That Make Arizona Commercial hard money lenders Eager

Want to make Arizona Commercial hard money lenders eager to work with you? Demonstrate your shared future success by addressing three key areas.

Arizona Commercial hard money lenders are helpful in all sorts of situations, though they tend to be most popular with those in real estate investing. Some of the projects they fund include fix-and-flips, fix-and-holds, and multi-family properties. Many also work with those starting things like Airbnb businesses or even those getting into the cannabis industry, perhaps by beginning a grow operation.

Unlike traditional loans, which comes from banks and other financial institutes, this form of financing is typically offered by individuals, small collectives, or organizations. It’s referred to as “hard money” because the loan is based upon the value of a hard asset. When it comes to the examples listed above, it’s the building and land used as collateral.

Once collateral is involved, your credit and other factors traditional financing companies harp on are pretty much non-issues. You’ll get a loan based upon the value of your property. Although many factors influence how much you’ll qualify for, 60% of the value is usually a safe figure to expect, though some qualify for up to 90%.

Despite the fact that it’s easier to qualify for financing this way, nobody’s going to walk up and hand you a stack of cash just because you own or are looking at a piece of property. You’re still going to have to address their chief concerns if you want to get approved.

Show Them You Know How to Make Money

Ultimately, it comes down to showing Arizona Commercial hard money lenders that you know how to make money. Your success is their success. The biggest way you can do this is either by having personal experience in the business you’re running or to have someone on your team who has a proven track record. In other words, if you’re doing fix-and-flips, you’ll either need to have experience doing profitable flips or you’ll need a partner who has had success with them. Secondly, you’ll need to know your numbers. It’s all about profitability. Have you had the property assessed? Have you done a comparative analysis? What’s the project going to cost? If you aren’t a numbers guru, work with experienced appraisers and contractors who can fill in the blanks. Lastly, you must have a comprehensive plan and timeline. Build in contingency plans and padding, so you’ve got a bit of wiggle room and won’t be pressured when it’s time to exit the deal.

Run a successful project with them once, and they’ll be eager to fund your next one too.

Arizona Commercial hard money lenders prefer to work with people who have a track record for success. If they’ve worked with you once and had a good experience, they’ll gain confidence in your abilities and want to work with you again. By opting to work with the same financing team for repeat projects, you’ll streamline the approval process and may even qualify for better terms on subsequent projects. Once you’ve built a relationship upon mutual success, your financing team will always be eager to hear about your next project.



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 Do I Need Arizona Commercial hard money lenders for My Flip?

People just starting out with fix-and-flips are often surprised to learn that many traditional funding sources are not available to real estate investors. Because more investors are successful with commercial hard money lenders, they tend to be the top pick.

Most people considering the fix-and-flip biz have gone through the process of purchasing a home for themselves or their families before. With the exception of the mortgage crisis a few years back, qualifying for a loan has historically been a straightforward process. You go into a bank or find a broker, they look into your credit and ability to pay, and then they either offer you a deal or they don’t. Choosing the right type of mortgage when you’re a homebuyer is often quite simple because banks want people living in the homes. It’s less risky for them when someone needs the home to live in. There are also government programs designed to help people on the path to homeownership, which can open opportunities for those who miss the cut.

It’s different when you’re investing. You aren’t living in the home, so the bank will consider the loan to be too risky. After all, you could theoretically just walk away from the property and your lifestyle may not be impacted… at least not until the garnishments start, but that’s a whole different ballgame, and one the banks do not want to play.

When you plan to live in the home, it’s considered an “owner-occupied” property. When you don’t, it’s referred to as a “non-owner-occupied” property. While lending institutions can add their own qualifiers onto this, you typically need to plan to live in a home more than 50% of the time and must plan to consider it your primary residence to qualify for an owner-occupied loan. This clause doesn’t apply to most flippers, so that’s where Arizona Commercial hard money lenders come in.

Learn the Benefits and Pitfalls of Many Forms of Lending

As a flipper, you may still be tempted to try to qualify for a traditional mortgage. If you plan to live in the home, this may be a less-expensive way to borrow. However, it’s also worth noting that owner-occupied loans have homeowner protections built in, which increases the length of time to get funded and can make it difficult for a flipper to close on a property. Arizona Commercial hard money lenders typically deal with non-owner-occupied loans, so funding can be measured in days. Banks are also wary of lending on properties that are in severe disrepair, which can throw a wrench in the typical flippers plans.

The type of funding that’s right for you will vary based upon the situation.

Arizona Commercial hard money lenders provide funding for an underserved market; typically, those who need funding fast and those who don’t qualify for bank loans, perhaps due to the condition of the property, non-owner-occupied status, or poor credit. As these roadblocks are eliminated, other forms of lending may be more cost-effective in the long run. It’s also important to note that offerings will vary from one lender to the next, so it’s worthwhile to explore the rates and terms before jumping into a deal. Familiarize yourself with multiple forms of lending and keep options in your back pocket, so you can find the right solution for any project that comes up.



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

DO YOU NEED ARIZONA SPEC HOME FINANCING?

You may have noticed the banks aren’t lending much when it comes to spec homes. So when you need a construction loan what do you do?

A spec loan means you are building on speculation. You are speculating that the property will sell once it is built. Banks are not typically comfortable with that unknown variable. There are not many alternatives when you are searching to get an Arizona construction loan. You are left with just a couple of options: individual investors and hard money loans.

A hard money lender will finance a spec home. These Arizona hard money lenders have money available and ready to loan. This is private money that belongs to a group of people that have put money in a fund to be lent toward real estate endeavors. Although, banks offer better terms and financing, when it comes to spec homes a borrower will rarely be approved.

Arizona hard money lenders are seeking projects. They will want the borrower to have the necessary permits and be close to shovel ready. Typically, they will still work with you if you are not at that point. However, to present yourself as professional it is advisable to have all permits and ready to break ground once you are approved for financing.

DO ALL HARD MONEY LENDERS FINANCE ARIZONA SPEC HOMES?

Generally speaking, most hard money lenders have a niche. Some deal mainly in fix and flips and some prefer construction loans. And there are lenders who have a niche, but will still finance outside their niche. It is advised to not only search for hard money lenders, but to research them and their past and current projects.

In a growing state such as Arizona, construction is on the rise. Arizona spec home financing is available through hard money lenders.

Arizona is a choice state to build spec homes; in particular, the Phoenix-Metro area. If you are a spec home builder and are in need of financing, please contact us at level4funding.com for more information about Arizona spec home financing



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

DO YOU WANT TO BE RICH?

Think about the various ways you can make money. Then, think about how long it will take you to actually make that money. The one way you can make money quickly is through real estate investing.

Hopefully, you are familiar with hard money. Basically, hard money is money that belongs to wealthy investors. They want to make money off of their money, as investors do. They lend their money to real estate investors that have projects, such as fix and flip and construction, that will generate a profit. The real estate investor then pays back the loan plus interest. These are very similar in structure to a conventional loan. However, there are many perks to hard money loans, as well.

Arizona Hard money loans are asset based loans that are secured by real estate. Borrowers are not required to have spotless credit; in fact, many lenders will qualify a borrower with a 550 FICO score. These hard money lenders will typically finance 100% of the repairs as well.

HOW CAN YOU GET RICH WITH AN ARIZONA HARD MONEY LOAN?

If you want to make quick money, the fastest way is through hard money and an Arizona hard money loans is what you need to aid you. Most lenders will finance up to 75% of the property. That can be broken down into loan to value (LTV) ratios or after repair value (ARV). For this example we will use ARV.

Bob finds a property for $100,000. He doesn’t have great credit. Bob has a job, but he has only been there for six months. Basically, Bob is living paycheck to paycheck. After he finds this property he finds an Arizona hard money lender. The lender sends an appraiser to the property to asses the ARV. The appraiser estimates that after all repairs are complete the property, because of the location, the market and so on, will sell for $175,000. After further review it is discovered that Bob will need to put in about $33,000 worth of repairs.

Let’s break this down. The property itself is $100,000 and at this point that is all Bob needs. The lender will base the loan off of the ARV which is $175,000. He will lend 90% ARV. That is 90% of 175,000; which equals $157,500. Bob has been approved for $57,500 more than the property. However, he will also have fees and points that he will have to pay. Many lenders will include that in the loan. For the example we will say Bob has $2,000 in fees and 2 points on the loan. A point is basically a percentage of the original loan amount. In this case it would be 2% of 157,500, which is 3,150. With fees and points Bob owes $5,150. Subtract that from 57,500 and he has $54,350 more than the purchase price. Let us subtract the repairs which are $33,000. Bob still has $21,350 that can go to labor and materials. However, he doesn’t have to use that money because most Arizona hard money lenders will finance 100% of repairs, as well.

This is only a very quick run down of an example of using an Arizona hard money loan. The point is, you can make money as a real estate investor working with a hard money lender.

It takes a lot of blood, tears and sweat to make money in real estate. It also requires help from a lender that you trust and will work with you to make your dreams come true. However, you will never know the life you can have if you don’t take that first step.



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

QUESTIONS ABOUT HARD MONEY LOANS ANSWERED

There are so many questions a first time real estate investor has when first stepping into the arena with a hard money lender. Below are some frequently asked questions.

WHAT EXACTLY IS A HARD MONEY LOAN: A hard money loan is an asset based loan. The lender will use the borrower’s real estate as collateral. These loans are offered by private lenders who can regulate their own loan terms and rates. These are fast closing loans, making it possible for investors to compete with all cash buyers.

ARE HARD MONEY LOANS SAFE: Unlike government and bank loans, hard money loans are not backed by the government. What this means is hard money lenders are not required to follow the same protocol as conventional lenders. However, there are many reputable lenders nationwide. It is important to research your lender before doing business with them.

WHAT IS A FLOATING RATE: A floating rate is an interest rate that is not fixed (a fixed interest rate never changes). A floating rate is adjustable and moves with the market; meaning sometimes it goes up and sometimes it goes down.

HOW DO POINTS WORK ON A HARD MONEY LOAN: The points on a hard money loan—or any loan—are the fees the lender will charge the borrower for providing the loan. Basically, each point is equal to a percentage of the loan. For example, 2 points on a $100,000 loan would be 2% of 100,000 which would equal $2,000.

WHAT ARE THE RATES AND TERMS ON HARD MONEY LOANS: Because each lender is different they will each have different rates and terms of the loan. However, generally hard money lending rates range between 7% and 15%. The terms are usually 6 months to 3 years. Points can be anywhere between 2-10. Typically, the borrower will receive funding in 2 weeks or less.

WHAT TYPES OF PROPERTIES ARE FUNDED BY HARD MONEY LENDERS:

Hard money can fund many different types of properties. However, these loans are usually for investors that fix and flip properties and investment properties that long-term investors fix and flip and then rent—long—term buy-and-hold investors.

Because of the freedom and flexibility hard money lenders have, they are able to help investors and regular people in all types of situations.

This article was a very brief overview of hard money lending. If you would like to learn more about hard money loans and real estate investing, find a local hard money lender and make a appointment.



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

ARIZONA HARD MONEY LOANS ARE BIGGER THAN EVER

What are the benefits of a hard money loan and when does it make sense to use one?

In the mortgage lending world there are different types of loans. There are conventional loans, government loans—such as FHA, portfolio loans and then there are hard money loans. Hard money loans are made by private lenders. Unlike bank loans that are created through institutional lenders such as Chase or Bank of America, these are made by private individuals or groups of individuals. These loans are pulled together and financed through private lenders—wealthy lenders. These individuals pull their money together to create a mortgage fund. From that they will lend to consumers or businesses for residential and commercial purposes. From there they will sell the mortgage trust deeds to investors.

The idea behind Arizona hard money loans is that people who can not get access to conventional loans will seek hard money loans to get financial help. These loans have a great purpose in society and have helped people from all professions and walks of life. Hard money loans can help save businesses and homes. These loans can also be used as short-term loans for real estate investors in fix and flip properties.

WHAT HAPPENS AFTER YOU GET A HARD MONEY LOAN

Arizona hard money loans are short-term loans. After a borrower receives a hard money loan a variety of things can happen. The property can be flipped, sold or the borrower can refinance into a permeant mortgage. Typically, the main purpose for a hard money loan is for an investor to purchase and rehab property and then sell it for a profit. These investors usually take out a Texas hard money loan with a term of 6 months to a year.

Credit scores really don’t matter when it comes to hard money loans. Most lenders don’t even verify your income. What these lenders care about is the equity in the property. Typically, lenders will finance about 60%-75% of the loan value. What that means is if the property is worth a million dollars, they will lend around $600,000 to $750,000 on a purchase or a refinance. This means that the borrower will need to find other financial means for the down payment. However, a refinance would not require money down because there is equity in your property. For example, you own a two million dollar strip mall and it was paid off free and clear, a hard money lender could get you cashed out for up to 75% of the two million dollars. This money can be used for anything the lender is in need of.

Hard money lenders will work with you. These loans can be interest only. Hard money loans fluctuate between about 7%-15% depending on the borrower, the lender and the situation—the collateral, the type of real estate and the location of the property.

Arizona Hard money loans are generally used for real estate investing. However, investing is not the only use of hard money.

Hard money lenders do not follow the same guidelines as conventional lending institutions. Therefore, they have more flexibility with their underwriting process. If you have bad credit, no credit, have found yourself in a tricky financial situation or just need cash quickly find a local 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