Tag Archives: arizona hard money lenders

Using Arizona Hard Money Loans for Long-Term Purchases



confirm_registrationMost information points to using Arizona Hard Money Loans only for short-term investments. But there is a reason to take advantage of hard money when making a long-term purchase.

Every article that you read about Arizona Hard Money Loans points to using this financial tool only for a short-term project such as a fix and flip. And these loans are perfect for a short-term project. But all of the benefits that make Arizona Hard Money Loans appealing for the short term investor can also make them appealing for a longer investment.

The easy application processes and the fast approval make hard money a solid choice for any purchase that is time sensitive. Most investors think of fix and flip properties for tight time frames. But there can be other properties which have a great many potential buyers which would also require fast funding to secure the purchase. After the purchase is secured, the borrower has the time needed to complete a traditional loan application with a bank or mortgage company to extend the loan terms as to also decrease the interest rate.

Hard money can also be used to purchase a property that is going to require a lot of repairs or renovations and does not meet the lending requirements of a traditional institution. Once the property improvements are completed, the borrower can then apply for a traditional loan and again take advantage of the longer repayment schedule and the lower interest rate.

Tailoring Arizona Hard Money Loans

Because hard money is offered by private lenders, the terms of these loans are able to be customized at the discretion of the lender. In many cases, a borrower will request that the first payment not be due on the loan for two or even three months. This allows more time to secure a traditional loan. In return, the borrower is paying closing costs, points and sometimes other fees to the hard money lender for this added consideration. But it saves the borrower the higher interest on the monthly loan payments.

Hard Money is Useful

In the past, many borrowers were under the misguided opinion that hard money was a less than legitimate resource and that the high cost made hard money a bad choice for an investment opportunity. But as the real estate business has evolved, investors have become far more savvy about how and when to use hard more for a real estate deal. Short-term purchases, as well as long-term purchases of a very desirable property, are especially well suited to using a hard money loan. In addition, hard money is a good option for an investor who is carrying several traditional loans and does not have the credit to request another bank loan. The hard money is used essentially as a bridge to make the purchase until another project has been completed and the loan is paid off. Learning to skillfully use hard money is certain to offer any real estate investor many new options for growing his or her business.  

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

Open Your Eyes To Arizona Hard Money Loans


Not every aspect of Arizona Hard Money Loans is perfect for a borrower. But the advantages can often outweigh the drawbacks.

Nothing in this world is perfect and there is no perfect loan for every type of purchase or for every borrower. In the perfect world, money would be offered with no interest and the terms would be up to the borrower to determine. But in the real world, everyone must understand that lenders are also in business to make money so fees and interest are just the cost of borrowing money.

Arizona Hard Money Loans do have more fees and a higher interest rate than some traditional banks and mortgage lenders. But the justification for these added fees can be understood when you compare a hard money loan and the process of obtaining hard money to a traditional loan and working with a traditional lender. Everyone knows that time is money, but hard money puts that saying to the test. The application process for a hard money loan is only a fraction of the paperwork and time that you would need to invest in secreting a traditional bank loan. And the approval for hard money is also much faster. It can take up to 90 days for a bank to respond with an approval of your loan application but a hard money lender can often respond in just a few days and have your loan funded in just about a week.

And while the interest rate on Arizona Hard Money Loans is higher than the interest rate on a mortgage loan, the time savings can make it a good investment. In addition, hard money is going to be an opportunity for someone with no credit or less than perfect credit to secure a loan. This lower creditworthiness means that the lender is willing to assume a higher risk when making the loan and in return, he or she should be able to expect to make a little bit more money in the form of interest.

Know The Uses

Being funded by a private lender, hard money is also a good option for a borrower who is looking for some custom loan terms. No bank or mortgage company is going to change the standard terms of their loans. But working with a private lender allows for much more negotiation when drafting the terms of your loan. This convenience is certainly worth paying a little more for.

Be Smart

Knowing how to best use Arizona Hard Money Loans is critical to the success of your real estate investment business. Short term loans are almost always perfect for hard money, but there are also times when making an initial purchase on a long-term deal is also best done with hard money. Only after researching all of your options and requesting multiple quotes, will you be able to determine which loan is going to be the most profitable for a specific purchase. Sometimes hard money is the only choice and other times it is just one of many options.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

3 Rookie Mistakes Hard Money Lenders Want You to Avoid


2page_img3If you’re working with Arizona Hard money lenders to complete a fix-and-flip, your success is their success. Avoiding the common mistakes ensures it’s a win-win situation for all.

You’ve probably heard the old saying, “It’s easier to keep a customer than it is to find a new one.” This rings true in the fix-and-flip business too. Relationships are everything. If you treat your crews well, they’ll do good quality work and come back for repeat projects. If your broker gets you a great deal, you’ll return to him when you need funding for your next project. The same thing goes for your Arizona Hard money lenders as well. They want you to be successful because it ensures an ongoing mutually-beneficial relationship. But, if you’re new to the business, it’s all too easy to strike out on the first round, and it typically comes from one of three common errors.

1. No Cushion: Call it an emergency fund, a cushion, or any other name, you’ve got to have some sort of back-up funds ready for when things don’t go as planned. Even seasoned pros will find flood damage, bad wiring, and other expensive issues with their projects when things get going. They get through it because they plan ahead for issues. If you find a great deal on a property, sometimes the cushion can come from the Arizona Hard money lenders and your initial loan, but more often than not, you’ll need to have some of your own cash available.

2. Making Emotional Decisions: You knew the second you saw the property that it would be the one. Maybe it was a quaint little historic bungalow or foreclosure in a quiet community, just waiting for some TLC and a family. The location was great, the repair needs were minimal, and the pricing was amazing. Then, the bidding war started. It’s hard to walk away when you’ve already made plans and know exactly what you’ll do with a place, but at some point, the deal stopped making financial sense and you began bidding because your heart was set. It happens to the best of us, but if you find yourself making any kind of decisions based on emotions, walk away.

3. Failure to Create an Accurate Timeline: Like the financial cushion, all your projects should have a time cushion as well. Not only can unforeseen repairs make a job take longer, but sometimes crews fail to show or coordinating teams doesn’t work out. Give yourself some breathing room. At the very least, it will make the project less stressful, but there’s a good chance that cushion will save the project at some point too.

Realistic Expectations Come with Experience

The more fix-and-flip projects you take on, the easier it will become to gauge what needs to be done, as well as how much time and money it will take to do it. When you’re getting your start, you’ll need to pad your expense list and timeline to compensate for that.

Work with Arizona Hard money lenders and other professionals who have experience and know the business inside and out to ensure success.

When you align yourself with industry experts, they can be valuable sources of information and help point you in the right direction when you hit a snag. The more often you work with your dream team, the smoother your projects will go and the more lucrative your work will become.

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 commercial loans 101: Benefits and Pitfalls of 3 Common Options


1page_img2-bigThere are many different types of commercial loans in Arizona, each with their own pros and cons. Become familiar with the most common ones to determine which is right for you.

1. Bank Term Loans: The most commonly-sought form of Arizona commercial loans is bank term funding. With these, the bank lends a large sum and the borrower pays it back over a period of years with interest. Most business owners start off going for this choice, but about 75% of applicants are rejected because banks have tough criteria and expect excellent credit.

2. Lines of Credit: Similar to a credit card, lines of credit are sometimes offered by banks. With these, the business owner can take money out as they need it and pay it back over time, typically with a higher interest rate than a term loan. It’s not ideal for those who need large amounts of cash, but can work for someone who wants a cushion to help things run smoothly when cash inflows dwindle. Like the term, options, however, these are reserved for people with excellent credit.

3. Asset-Based Loans: When businesses cannot tap into cash due to bad credit, they can still sometimes get asset-based Arizona commercial loans. That means the lender looks at the value of what’s being purchased or what the borrower has and determines if it can be liquidated if the borrower doesn’t pay. When there’s less risk for a lender because an asset is available, even riskier borrowers can qualify. Equipment loans fall into this category, and work well if machinery or vehicles are needed, but sometimes borrowers can leverage other things as collateral, such as their home.

Startups and People with Rotten Credit Have Better Luck with Asset-Based Commercial Loans

Banks say “no” a lot to people who don’t have strong credit or who are just starting out, which is why alternative funding is so popular. That said, it doesn’t have to be an all-or-nothing sort of deal. Some begin with an asset-based option and later convert it to a term loan through a bank after they’ve built up credit, while others use it to bridge gaps between the time a large order is placed and the customer pays. Some also use a variety of lending forms to cover their needs. For example, a term loan to purchase real estate for the company and an equipment loan to cover the cost of company vehicles. The right mix is different for each company based on its needs, but suffice it to say, asset-based choices fill the gaps well and make it possible for more businesses to get funding when banks turn up their noses.

If you know how to evaluate various forms of lending, it’s easy to choose what’s best for your needs.

With this basic information in mind, choosing the right form of lending for your business needs is simple. That said, it’s also beneficial to work with a broker who is well-versed in all forms of lending who can confirm your decision and help you get the best terms once you’ve made a decision.


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

The Definitive Guide to Fund your Investment Property with Arizona Hard Money Loans


iStock_000067965589_XXXLarge v2Why are more and more investors obtaining Arizona hard money loans?  There are certain investment strategies that make this type of loan appealing and lucrative.

This is a type of loan that is not obtained from a conventional financial institution.  The expense, almost always, is slightly higher than a conventional loan. The points involved can be about 2% to 6% and are the initial compensation to the broker.  The interest rates can be between 8% to 12% or more. There are a number of factors affecting the points and interest rates, such as loan duration, borrower credit, real estate type and the market fluctuations.

In the aftermath of the housing crisis in 2007-08, conventional loans came under stricter regulations. If you have good credit, proof of income, and are seeking a 30-year fixed rate loan, a conventional loan may be your best option. These types of loans are, however, under tighter underwriting restrictions and, if the loan officer cannot check all the boxes when you are applying for the loan, you may just be out of luck.

Conventional loans can be denied if you have bad credit, no income, lots of assets, or numerous liabilities.  Under various circumstances, you may benefit from Arizona hard money loan. These include:

  • Unimproved land purchase

  • Your purchasing an unusual property such as a church or marina

  • A quick closure is required. You can often close in as little as a week

  • Personal assets are limited

A hard money loan, in the instances above, may be your best bet.  An Arizona hard money lender will step in when a conventional loan will not work.  The ability to quickly purchase the property you have located can mean the difference between a successful investment and one that goes nowhere.

Arizona Hard Money Loans that are Flexible

Arizona hard money loans are often more flexible than conventional loans. And once you locate that unique property, timing is of the essence.  Typical Arizona Hard Money Lenders close within a week. At Level 4 Funding, we present you with an approval in as little as 24 hours, and with funding in as little as two days. This gives you the flexibility to go after those properties that traditional banks may view as too risky.  You may see a higher rate of return with a hard money lender. The hard money lender values the properties themselves and may be willing to loan at a higher loan-to-value ratio as long as you can demonstrate the potential for repair value improvements. When you get into a competitive bidding situation, the hard money lender can offer repair funding which may lead to acceptance of your offer.

Many contractors, real estate brokers, investors and developers have experienced financial distress such as bankruptcy, asset for foreclosures, and delinquent accounts.

Because of the failure to meet the credit score requirement with conventional loans, Arizona Hard Money Lenders are there to fill the gap.  To repair your credit rating and convert your hard money loan to a conventional loan, utilizing a hard money lender will assist you to archiving this with positive performance. With few employees and licensed as a real estate broker, a Hard Money Lender is an advantage since you are dealing with the decision maker directly.

Call Level 4 Funding and talk to us directly. We are happy to answer any questions you may have about your potential investment.


Dennis-Dahlberg-Mortgage-Broker_thum[1]_thumb_thumbDennis 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 About Arizona Hard Money Lenders


iStock_000004067318XSmallThere are several reasons that investors turn to Arizona Hard Money Lenders. Learn when a hard money loan is a borrower’s best bet.

Asset-based loans and Arizona Hard Money Lenders are one and the same.  An Arizona hard money lender looks at the collateral as opposed to the borrower’s credit profile; this is opposite to what the conventional lender looks at.  From the lenders prospective, these loans carry more risk than a conventional loan. Most Arizona hard money loans lend funds from private investors or companies.  The private investors and companies will realize an above average rate of return. These types of lenders may charge additional points or an origination fee. This will vary by lender and is much higher than a conventional lender.  You can expect 2% to 5% of the purchase price at closing. While the points are high, most Arizona Hard Money Lender offer terms that range from a few months to 15 months.  This assures the lender that they achieve their ROI on the loan.  Since the financial crisis of 2009, Arizona Hard Money Lenders have blossomed and grown. 

If you are a real estate investor and are seeking a short-term loan to purchase property that is in need of repairs, otherwise known as the “Handy Man Special,” it may be difficult to qualify the property to be refinanced with a conventional lender.  In today’s environment of tightening of credit, traditional lenders have pulled back and conventional financing has been harder to obtain.

There are several reasons that investors are turning to Arizona Hard Money Lenders for their financing needs:

  • They have poor credit

  • They cannot provide verification of their income

  • They have had a short sale or foreclosure

  • The property is a “handy man’s special”

  • They are in need of a short escrow period

Skin in the Game

Knowing the local market is a sign of a good hard money lender.  The hard money lender also requires the borrower to have “skin in the game,” in other words, the borrower must have some of their own money in the transaction.  When the borrower has skin in the game, it proves to the lender that they have a financial incentive to finish what they have started. The lender looks at the borrower‘s track record to see their experience in the type of project that they are seeking financing for. The borrower also needs to demonstrate to the lender that they have a viable exit strategy.

Each hard money lender will have their own lending criteria and borrower requirements.  Each borrower’s project also has unique requirements.

Do your research, call several Arizona Hard Money Lenders, and ask questions about their loan programs.  Talk with a lender and make sure that you are getting straightforward answers about fees, points, duration of the loan, and all the information you need to make an intelligent decision.  Additionally, it helps if the lender is from the local market, or at least understands its intricacies. The lender can assist you in market direction, economic direction of the community, resale value of similar properties, and comps of properties that have sold. At Level 4 Funding, we are happy to ask any questions you may have and guide you in the direction of your dreams. Call for a no-obligation quote.


Dennis-Dahlberg-Mortgage-Broker_thum[1]_thumbDennis 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

Owner Occupied Hard Money Lenders


536349311You may be surprised to find out that owner-occupied hard money lenders offer loans for primary residences. Find out the specific situations where you can benefit from these types of loans.

Are you in a circumstance where you are being denied a residential mortgage?  There are many circumstances when a borrower is denied this type of mortgage from both credit unions and banks.  When the person seeking a loan has little or no alternatives, they will often turn to a residential hard money lender to obtain a mortgage on the borrower’s primary residence.  Some of the reasons a borrower may turn to this type of lender are:

  • The borrower has bad or poor credit

  • If the borrower has had a recent loan modification, foreclosure, short sale or bankruptcy

  • If the borrower has two years or less of current employment

  • If the borrower is self-employed

  • A bridge loan is needed by the borrower for a primary residence

In some instances, a borrower goes through the approval process with a conventional residential mortgage lender, and the lender is not able to perform while in escrow. The borrower then searches for a private owner-occupied hard money lender to secure financing through. The lender is able to provide fast approval and funding which will help prevent the borrower from losing the property they have a contract on. Once the escrow closes, the property is secured, and the borrower can refinance with a conventional mortgage company.

Why Arizona Owner-Occupied Hard Money Lenders are Few and Far Between

Most owner-occupied hard money lenders will not consider lending for your primary residences because:

  • Additional documentation is required

  • The lender is required to obtain additional licensing

  • Regulators will exert firmer regulations

  • The time to fund the loan increases since there are mandatory recession periods

  • Investment loans have far greater lender risks than owner occupied mortgages

Arizona Owner-occupied hard money lenders are subject to Federal regulations.  Some of these regulations consider Dodd-Frank.  The Dodd-Frank act requires the lender to verify the borrower’s income and expenses.  Paystubs, tax returns and W2’s are ways the borrower can verify their income. Debt to income (DTI) must be kept under certain levels by the borrowers.  Car payments, other mortgages, credit card payments and other debts will be considered. Also included in this ratio will be the new mortgage obligations, (taxes, mortgage payment and insurance).

The owner-occupied Arizona hard money loans are intended for short term use, generally three to five years.  Most lenders will require the borrower to have a plan in place to obtain long term financing.

A hard money loan can offer borrowers with credit issues time to repair their credit report—and not lose their chosen property. Others may be postponing obtaining a conventional loan until the mandatory waiting period for negative credit events has passed. These events may include short sale, bankruptcy, loan modification or foreclosure. If the borrower’s property has enough equity and there currently is a first (1st) mortgage and the borrower does not qualify for a conventional second (2nd) mortgage, then the borrower can consider a hard money lender.  This may be a prudent decision if the proceeds of the second mortgage is used to pay off high interest rate credit cards or pay down other high interest debt.

 

Dennis-Dahlberg-Mortgage-Broker_thum[1]_thumb_thumb_thumbDennis 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

Things to Consider When Obtaining Hard Money Loans


Arizona-Home-Loan-Team-Matt-and-Judy-Callahan-150x150 Are you wondering what Arizona hard money loans are and where they fit into your investment strategy? Here are the basics of these types of loans and what they can do for you as an investor.

This type of loan is an asset-based loan.  The borrower wishes to secure a loan backed by real property.  Private investors and companies are typical issuers of these loans.  Unlike banks, Arizona hard money loans can carry higher interest rates.  These interest rates are higher than a convention real estate loan because of the higher risk and the duration of the loan which is shorter than conventional real estate loans.

People using Arizona hard money loans are usually looking for funding for projects lasting from a few months to a few years.  The criteria for lending and borrower costs are similar to bridge loans. In fact, many hard money lenders specialize in bridge loans. Bridge loans are used for properties that are in transition and may not be able to qualify for traditional financing.  An example of a bridge loan is when a home buyer finds a new home they’d like to buy before their old home, which is on the market, sells.

Many hard money lenders will lend 65% to 75% of the current property value. The amount of the loan is determined by the loan to value or LTV. It is figured by the ratio of the loan amount divided by the value of the property. Arizona hard money loans are mainly used for commercial property.  These types of loans first started in the 1950s and have been growing in popularity.

Although mostly unregulated by state and federal laws, some restrictions on interest rates by states, commonly known as usury laws, prohibit hard money loans. Two of these states are Tennessee and Arkansas.

Federal Guidelines

Since the 2009 mortgage crisis and the passing of the Dodd-Frank Act, these loan programs have greatly expanded.  This is in part due to the strict regulations that were put on banks and lenders after the passing of this act. Truth in Lending and Dodd-Frank set out Federal guidelines for lenders, mortgage originators, and mortgage brokers requiring them to evaluate the borrower’s ability to repay the loan.  The ability to repay the loan is on the borrower’s primary residences. If the lender does not conduct the proper due diligence, they are faced with high fines for non-compliance. Hard money lenders mostly lend on commercial loans or business purposes so that they can avoid non-compliance with TILA, HOEPA and Dodd-Frank guidelines.

Before any offer of financing, the lender will want to determine the LTV (loan to value).  The basis for the loan is the liquidation value of the collateral.

A BPO (Broker Price Opinion) or an independent appraisal by a licensed appraiser in the state that the property is located in, will value the property. Typical hard money loan interest rates range from 10% to 18%.  Despite these rates, investors often turn to them due to quick loan approvals, high flexibility, less documentation than conventional lenders, and offering the ability to put a bid on a property that may go quickly after hitting the market.


Dennis-Dahlberg-Mortgage-Broker_thum[1]_thumb_thumb_thumbDennis 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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Try These 5 Tactics to Find the Best Arizona hard money lenders


Handsome business man Unlike receiving a loan through a traditional bank, obtaining your loan through Arizona hard money lenders allows you to develop personal relationships and network for further business opportunities. Learn how to find the perfect lenders for your needs and how to establish personal bonds that may help grow your financial future.

If you are looking to obtain a loan quickly so that you can get a jump on an upcoming business venture, hard money may be the perfect solution for you and your company. Now that you have deciding to pursue a hard money loan, it is crucial that you find the perfect private lender for the needs of you and your company. These five strategies can be used to find an ideal hard money lender to help you achieve your business goals:

  1. Consider the interest rates or points. A hard money lender is taking more of a risk than any bank would by granting you a loan opportunity. This means that Arizona hard money lenders often must charge a higher interest rate on their loan. Compare the rates of various lenders and secure a loan that has rates that accommodate the limitations of your budget.

  1. Determine the value of your loan. Due to increase interest rates, consider the actual value of the loan. Consider of the interest rate still makes the hard money loan a worthwhile business opportunity. This will most likely vary from lender to lender.

  1. Find a lender you feel comfortable with. Dealing with private lenders is much different than operating with a bank. Due to the unique nature of hard money loans, it is important to choose a lender you feel comfortable communicating with. Remember that this is a professional relationship.

  1. Check the past history of your lender. Choose a lender that is reputable and trustworthy throughout the community to avoid any challenges with your potential lender.

  1. Contact lenders near you or attend opportunities to network. Do everything you can to get the name of your business out there and always carry yourself with a professional rapport. You never know when a lending opportunity may arise and it is important to look for these opportunities even in unlikely places.

Secure Your Financial Future By Developing Strong Relationships With Private Investors

A hard money loan can open many doors for you and your business. When you are hoping to quickly obtain a loan, hard money is often an ideal solution. It is important to develop positive relationships with lenders so that you can potentially be led to more investment opportunities in the future.

Networking skills and getting the name of your business out to a variety of different investors will allow you to connect with more private lenders that may want to invest in your business or company.

Since you never know when a lending opportunity may arise, it is important to carry yourself with professionalism. Network and don’t be afraid to reach out to various members of the business community in your respective area to find the perfect lending opportunities near you.

Dennis Dahlberg Mortgage Broker_thumb_thumb_thumbDennis 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 Can Give Your Business a Helping Hand


1page_img2-bigIf you are looking for a loan solution quickly and efficiently for your business, Arizona hard money loans may be the perfect option for you and your company. Have the freedom to achieve your business goals and grow your business with a unique loan opportunity.

What exactly are Arizona hard money loans and how can they help your business or company thrive? A hard money loan is also sometimes referred to as a private money loan. In simple terms, a hard money loan is a short-term loan solution that is obtained through real estate ventures. These types of loans are funded through private investors which makes them unique from other loans. With hard money, you don’t have to worry about the tedious process of applying for a loan through a bank environment. If you are trying to obtain money quickly for your business or do not have the best credit score, hard money can be the perfect solution for you and your business!

Since these types of loans are short-term, you can have the spare funds you need to quickly achieve your business goals and then pay off the loan quickly. Typically, Arizona hard money loans occur over a one year period, but in certain case can be extended to longer terms if necessary.

Arizona hard money loans can be used for a variety of different situations and to help business owners get out of a financial bind. Situations that would be perfect for this type of loans would be:

  • Flipping real estate properties

  • Land or property investing

  • For buyers that do not have a good credit score or credit history

  • Real estate investors looking to avoid the long application process of a commercial loan

  • Loans for construction projects

These types of investments can grow your business or company by giving you greater financial opportunities and allowing you to act quickly on your projects. When you can’t wait for a commercial loan or struggle with a poor credit report, hard money is the perfect solution for you and your company.

What Types of Businesses Typically Use Hard Money?

There are a variety of different companies and business that can benefit through the acquisition of hard money. When you are hoping to secure funds quickly and obtain a loan in a more convenient way, hard money is a great option. Rather than go through the bank route, hard money gives businesses the opportunity to build personal relationships with private lenders. These types of loan can even allow for networking opportunities that open doors to more business ventures or projects.

If you are low on funds or need an added boost to jump on an investment opportunity, hard money can give you and your business the key to your success.

Banks and Arizona hard money lenders are not always the perfect solution for a business. It is important to always consider lending opportunities diligently and carefully. However, if your business or company is quickly looking to obtain funds, hard money can be the best choice to quickly receive funds.

Dennis Dahlberg Mortgage Broker_thumb_thumbDennis 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