Tag Archives: Arizona private money lender

Private vs. Hard money lenders: The Differences

page3-img2You may wish to finance your next investment property, but find yourself a bit confused about the differences between private and Phoenix hard money lenders. This article will attempt to clear up some of this confusion and some common misconceptions, so you can get a clear perspective and find the help thats right for you.

Some consider private money and hard money lenders essentially the same thing.  But there are a few fundamental differences you of which you should be aware. It all comes down to the criteria these lenders use to evaluate borrowers, and these considerations can impact the type of deal you can secure.

The main difference between these two types of lenders is how they evaluate individual borrowers. Private lenders might consider all three C’s of lending (credit, capacity, and collateral).  Hard money providers generally only consider the value of the collateral on offer.

Therefore, private lenders may put scrutiny on aspects of your financial history such as your credit score. A private lender may also want to get a sense of your capacity or your ability to repay your loan. They might look into your financial history to ensure your income is sufficient to carry your current debts, usually  this measurement is expressed as a debt to income ratio (DTI). If your credit score or DTI doesn’t meet the private lender’s criteria, you may not qualify.

In contrast, hard money providers mainly look at the value of the collateral on offer, i.e., the value or potential value of the property you aim to finance. However because collateral is the primary consideration in the case of hard money there are some misconceptions when it comes to this type of lending.

The main complaint about Phoenix hard money lenders is that they are less willing to work with borrowers

Because hard money providers mainly look at the collateral offered by the borrower, they assume a higher risk. Because of this assumed risk hard money is often more expensive than private money. 

However, some assume that hard money providers are less flexible than their private counterparts. Because this type of lender only looks at collateral, they might have less confidence in a borrowers ability to repay. Therefore, if a  borrower meets turbulent fiscal headwinds, many assume it’s in a hard money providers best interest to foreclose on the property and resell it at a profit.

But this is a flawed assumption; because any reputable lender wants their borrower to succeed.

Foreclosure is a hassle, and no one wants to deal with it. So don’t assume your hard money provider won’t work with you if you run into financial difficulties.

Arizona Private Money Lenders may offer a better deal, but fewer borrowers may be eligible.

Going the private money route can result in a better deal.  Because most private money providers look into your credit and your capacity to repay,  and therefore they have more confidence in you as a borrower.

This confidence on the part of the private lender could give you the leverage to negotiate a better deal.

While private money may potentially be cheaper,  it may also be less convenient. You may not qualify according to the standards of an individual lender. In addition, underwriting your loan could take a long time, and this application process could cause you to miss out on your investment opportunity.

But there are no hard and fast rules in the case of either private money or hard money, as every individual lender is different.

Just know that the primary difference is that private lenders may consider( may being the operative word here), all three C’s of lending before approving an application, while hard money providers only consider the collateral on offer.

Private lenders might be able to offer cheaper loans, but the application process might also be less convenient when compared with their hard money counterparts. It is a catch 22. Private money might be less expensive but also less convenient. Hard money might be more convenient but it also might be more expensive. 

However, don’t make assumptions, every private or hard money lender is different. Ask any lender you approach about how they evaluate individual borrowers to see what type of deal you might be able to negotiate.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
Level 4 Funding LLC 
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
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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3 Ways to Risk Less with Hard Money Lenders Arizona Financial Experts Trust

Arizona hard money loans are private money loans funded by hard money lenders Arizona merchants benefit from for varied financing selections. The loans are given primarily to precise property merchants to purchase properties they intend to utilize as a technique to make money. The lender makes curiosity and earns their principal once more and the borrower makes a income on a wise funding. There are a lot much less guidelines and fairly a bit a lot much less paperwork than typical loans and in addition you private funds don’t matter virtually as quite a bit as they could on the monetary establishment. Sounds good, correct? Properly, hard money loans are a great way to make money and are a relatively protected funding. Nevertheless, any funding has some hazard. Listed under are three strategies to hazard a lot much less in your Arizona hard money loan.

  1. Choose hard money lenders Arizona correctly. Not all funding firms or mortgage brokers are created equal. There are people available on the market who merely must rip-off you out of curiosity. Seek for a licensed supplier or equity company to fund your funding. Guarantee your loan officer is educated about varied funding and significantly hard money loans Arizona.
  2. Ask quite a lot of questions. Ask about charges of curiosity, loan to price ratios, time frames, and another points that you should have. Your hard money lenders Arizona must have the power to answer all of your questions intimately and supply the peace of ideas you may need to go forward with the funding. Must you actually really feel unsure, preserve asking or buying spherical for a model new lender until you are assured.
  3. Do your homework. Sooner than shopping for any property simply ensure you might have a plan. Get the home inspected and appraised. Needless to say location points and try to not overspend on repairs. Have a funds and timeline labored out sooner than you begin your enterprise. Not solely will this simply ensure you make a wise funding, nonetheless it should moreover impress your hard money lenders Arizona that you have a robust sport plan in place. It would make it additional likely that you’re going to get the hard money loans Arizona that you just need.
Upon getting your loan in place, there could also be nonetheless one principal hazard with Arizona hard money loans. They’re addicting! Upon getting a mode of fixing and flipping a property, there is a huge hazard you’ll not have the power to get adequate and might preserve doing it. Nevertheless leisure assured whether or not or not your precise property funding is a one time issue, or a technique to make common earnings, hard money lenders Arizona shall be there when you need them!


Dennis Dahlberg Vendor/RI/CEO/MLO

Stage 4 Funding LLC
Arizona Tel:  (623) 582-4444 

Arizona Tel:      (512) 516-1177 

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave |Austin | Arizona | 78701

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Regarding the author: Dennis has been working within the true property enterprise in some functionality for the ultimate 40 years. He purchased his first property when he was merely 18 years earlier. He quickly realized regarding the great funding options provided by trust deed investing and hard money loans. His want to help others make money in precise property investing led him to focus on varied funding for precise property merchants who may have trouble getting a regular monetary establishment loan. Dennis is eager about varied funding sources and sharing his data with others to help make their wishes come true.

Dennis has been married to his nice partner for 38 years. They’ve 2 beautiful daughters 4 great grandchildren. Dennis has been an Arizona resident for the earlier 32 years.


Make Full-Time Money Flipping Houses With Private Money Lenders Arizona!

Precise property flipping isn’t solely a job – it’s a passion by Private money lenders Arizona

Equivalent to with any enterprise, monetary establishment or mortgage agency, private money lenders Arizona want to see that you simply simply’re all for a specific enterprise. Always return calls promptly and get the info they need in a nicely timed methodology. Private lenders preserve a lot much less capital accessible than banks. In case you occur to delay in getting once more to a hard money lender, they may lend their property to a special borrower.

Private money lenders Arizona specialize in hard money, asset based totally loans. These are temporary time interval loans designed to get money into your fingers quickly for a quick time interval restore and flip enterprise.

The first step to being the first in line to get accepted for one among these loans is to so a deep, penetrating curiosity throughout the enterprise. Enable them to know you’re not merely in it for the money. You don’t want to merely renovate an outdated nursing home, you want to give it a up to date actually really feel and make sure the group at huge is prepared for such a tremendous revenue to the realm.


And if it appears to be some kind of charitable act which will make the world at huge a higher place, they’ll be the entire additional ready to affix your workforce and fund your enterprise. After all, all people likes to essentially really feel like they’re doing slightly good on the earth.
Moreover, don’t overlook to do some homework. Make certain the potential property inside and out of doors, along with nevertheless not restricted to chatting with contractors and getting estimates on costs and repairs. You’ll truly current them what it’s all about in case you’re passionate and educated. 


Dennis Dahlberg


Diploma 4 Funding LLC
Arizona Tel:  (623) 582-4444 

Arizona Tel:     (512) 516-1177 



NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112

Phoenix AZ 85027

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