Category Archives: Arizona hard money lender

If You Want to Get Your Loan Approved, You Have to Become Desirable to Hard Money Lenders

When you are going to apply for loans with hard money lenders, you might feel like the “choice is theirs” or that they are in the driver’s seat of the scenario. However, Level 4 Funding shows you how to take control and become desirable to lenders!

For new business owners and those who are trying to grow or expand their businesses to the next level, the right loan can be just the thing to make this dream come true. However, instead of seeking lenders, why not turn the tables and make them want you? Level 4 Funding offers a few thing that hard money lenders look for when approving loans.

Credit score doesn’t rate. It’s good to know that credit score isn’t as important to short-term, alternative lenders as it is to conventional credit institutions and banks. Quite frankly, the biggest and best thing you can do to win over hard money lenders is to be prepared to pony up the collateral. The amount you will need all depends on the size of the loan, but if you have collateral to put up, lenders will want to help you.

In the case of short-term loans, having perfect credit scores and squeaky clean history is not super critical, as it would be in the case of a longer-term loan with a conventional lending institution, it’s still important to have your “ducks in a row.” For example, if you’ve repeatedly ducked out on payments with other creditors, your lender may get cold feet about taking a risk on you. So make sure your financial affairs are in order, and be prepared to explain any dings or mishaps along the way. Honesty is the best policy here in order to establish a mutual trust.

Show them why you want it.

In this world, passion goes a long way. People want to help people who have a dream and are inspiring to achieve success. This is no different with hard money lenders. Professional and reputable ones truly want to see your business succeed (and ultimately see their return on investment). So find not only a lender that you can trust, but one that believes in you, too.

Handle setbacks with a calm attitude.

It’s no secret that trying to secure a loan is a tough thing. Sometimes there are hoops to jump through and unexpected bumps and challenges along the way. How you handle these little challenges and surprises will show the lender how you will likely handle bumps and challenges that are sure to occur in your business down the road. So take a deep breath, relax and think through each problem with a clear head before reacting or responding. Just that simple shift can help you put things into perspective and approach the issue with clarity, and that is very desirable to many lenders who have been borrowers lose their cool — and that’s not cool.


Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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What You need to Know About Getting Business Loans Arizona


Obtaining business loans Arizona gives borrowers the chance to get money for their businesses for a variety of uses such as equipment, property, and improvements, to name a few. Level 4 Funding explains the process of applying for this type of loan in the state.

Whether a first time borrower or a multiple time borrower of business loans Arizona, it’s crucial to understand how these loans are different from a loan to purchase a residential home or property, for example. These loans can be very beneficial for business owners that need more cash flow to grow and build their businesses. It can really provide an opportunity for companies in a number of ways. However, preparation is essential.

When preparing to apply for business loans Arizona, you should get your most current credit score report and full credit history to submit to the lender. You should also put together a business plan that details the marketing strategies, analytics of the industry and other statistics that the lender might find helpful in making his decision to approve your loan.

It’s also a good idea to organize both personal and business financial statements and documentation and any other paperwork that the lender advises you to obtain for your business loans Arizona. If you give yourself a head start on preparation, the application process will go much more smoothly and quickly. It’s also important to read through the agreement very thoroughly. Sometimes there are hidden clauses, fees or other verbiage included that you might pass by on the first read. The lender will not take it lightly if you can’t make your payments, so you shouldn’t take this binding contract lightly either.

It’s critical that you know the repercussions of not being able to meet the terms of the agreement.

If you become in breech of that contract, the lender has the right to take ownership of the collateral you put up to secure the loan. This could be your car, your home or your business or you could face foreclosure on your property. Make sure before you agree to a repayment schedule that you really can make those payments, on time, every time.

You might be responsible for other fees when you obtain the loan too.

When you get approved for a loan, there may be charges or other fees that apply, even appraisal costs, etc. that you might not have taken into consideration. The down payment you’ll be required to make is somewhere between 20 to 30 percent (give or take as it relates to the current health of the economy). So above all, double check your finances and budget before signing to make sure you can handle these payments. When seeking a lender in Arizona, Level 4 Funding is your go-to expert for business loans to help you take your business to the next level. Our experts are always available to help you find the loan that will work for you. Call today.


Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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Why it’s Important to Find a Flexible Lender When Commercial Real Estate Loan Rates are High

When you need a loan, finding a flexible lender that is able to negotiate for your best interest, even when commercial real estate loan rates are up, can help you get the best value for your money. Level 4 Funding shares why this is important.

Obtaining a loan can be tricky business. In fact, over half of loans that are submitted are typically denied. While this can seem very daunting for someone who is trying to obtain a loan, it’s crucial to remember that there are many options out there when seeking a loan. Conventional loans are very difficult to receive approval for, but there is hope in knowing that non-traditional lenders are there to say “yes” when banks have already said “no.” Even if you have less-than-desirable credit, you are a first time investment purchaser or current times mean high commercial real estate loan rates, you can still get approved.

Traditional banks are very rigid when it comes to approving loans. There is a lot of bureaucracy and red tape that must be dealt with conventional lenders — and they are rarely very flexible. That’s why hard money lenders are a good option. They can be a lot more flexible because rather than focusing on credit score, your business plan or other criteria, they are more interested in the assets of your business or the property you are purchasing which can serve as collateral. You will need to ensure them you have the collateral to put up and perhaps provide a brief outline for the business or property you plan to purchase.

While these lenders deal in short-term loans which typically have high commercial real estate loan rates, if you find a reputable lender who truly believes in your business plan or is flexible enough to negotiate better rates for your loan. However, because short-term loans typically have a repayment schedule that ranges between three months and three years, naturally the commercial real estate loan rates are going to be higher than a traditional long-term loan that allows for many years for repayment. Sometimes the commercial real estate loan rates associated with a short-term loan are simply higher because the lender is making a high risk by approving a loan that would typically (or already has been) declined by a traditional lender like a bank.

There is one more thing your lender might want you to provide.

Many short-term lenders will want you to provide you “exit strategy” from the loan. For example, would you sell the property? Refinance with a more conventional lender once the business starts earning a profit? It’s important to prove how you will build cash flow so you can ensure the lender you’ll be able to make the repayments on schedule.

It’s also important to find a lender you can trust.

While getting the best rates are crucial, it’s also important to work with a lender that is reputable and you truly believe that they have your best interest in mind when creating the loan agreement. Level 4 Funding can help you get the loan you need (sometimes in as little as 24 hours) with people you can trust.


Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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How to Understand Hard Money Loans

If you learn about the process of hard money loans, you can figure out how to get the best loan to suit your business needs. Level 4 Funding shows you how.

When it comes to learning about hard money loans, it helps to start at the very beginning, with what they actually are. These are unconventional loans that are not reliant on banks or traditional lending institutions for funding. Private sources fund these types of loans, whether it be an individual or a group that helps assist with the funding. Most often, these loans have a short repayment term cycle and are typically used by the borrower to purchase investment properties.

The qualification process for hard money loans it totally different than applying and approval for a traditional loan. In the latter, a borrower needs to complete and submit an application process to the bank or other conventional lender. The process is often very detailed and lots of documentation is required of the borrower. The borrower must also share credit score and history, and provide details about their financial status in order to be considered for the loan.

For unconventional loans, the process is based upon collateral, and the current market value of whatever collateral the borrower is able to provide. Collateral is the value the borrow puts up as a way to offer the lender security of the loan. This could be a car, the person’s home, another building or event the building/property that is being purchased, for example. The lender requires this as security that if for some reason the borrower can’t make payments, than the lender takes over the collateral and can sell it to recover their funds. In this type of loan, the funding individual or group is less interested in the borrower’s credit score or even their currently financial situation. It’s all about collateral.

This is important for borrowers that have less than ideal credit scores or have a ding in the credit history somewhere along the line that makes it difficult for them to obtain a conventional loan. The value of the collateral or the property in mind to purchase needs to have value equal (or likely higher) than the amount that is being requested to borrow. This gives people breaking into the world of investment property purchases a good place to start.

Now that you know…

This is a huge benefit of hard money loans that people don’t often realize at first. While conventional lenders can often be intimidating and the loan applications very challenging, the process of this type of loan is very straightforward. Investment properties, fix-and-flip homes and other property purchases are all great for this type of loan. It offers the cash upfront (and fast!) to make the purchase happen. Then it’s up to the borrower to take their investment purchase to the next level in order to profit to the maximum.

Working with this type of loan has great potential

For those without stellar credit or even those that are just starting to establish their business credit scores, these loans are the way to go. A private lender such as Level 4 Funding can help beginner investors with a short-term loan to build their investor career.


Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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Tactics to negotiate a better hard money deal

You may be seeking a hard money loan and looking for the lowest possible interest rate, but there may be additional costs you could be unaware of beyond the interest rate. You will be at a disadvantage if you aren’t aware of these expenses and don’t try to negotiate with your lender.

Some private lenders may earn their profits by charging fees rather than collecting interest payments. In the worst case scenario, an unscrupulous lender could lure in borrowers by advertising a low-interest rate, all the while charging them exorbitant fees. Even if a lender is reputable, borrowers should be aware of any additional expenses when it comes to their loan.

Private asset based lenders are business savvy and approach each loan as a business deal. There is always room to negotiate the terms of any business deal, and the same holds true for your loan.

The most apparent expense on an asset based loan is the point fee, which is a percentage of the loan amount which is paid by the borrower up front. You should do your best to negotiate the point fee because depending on the size of your loan this cost can be considerable.

You as a borrower need to be aware of the cost of your loan in points and any other fees that may apply.

Which fees can you negotiate when it comes to hard money loans?

In the first place, there’s the underwriting fee, which is the cost of a lender’s due diligence. The cost of underwriting can range from 750 to 2,500 dollars depending on an individual deals complexity. In addition depending on your circumstances the cost of servicing your loan could also be a factor. Loan service fees cover the cost of recording payments and generating reports, and this price can be considerable. A lender may charge a fixed monthly payment or charge a given percentage of the loan amount annually.

In addition, be aware of any late fees, or any potential change in your interest rate if you miss a payment. You will want to keep these fees as low as possible because if you miss a payment due to financial difficulties, higher interest rates and late fees will make it harder to catch up.

The main advantage of asset based lenders over traditional banks is that they are flexible and that their is always room to negotiate the terms of your loan. If you don’t try to negotiate these additional fees you may be taking on an unnecessary expense.

Take advantage of the flexibility offered by hard money lenders

Some of the fees mentioned before may or may not apply in your case. But you should try to take advantage of the flexibility offered by private lenders. If you are a borrower with considerable experience and strong collateral on hand, in most cases your private lender will work with you to negotiate any fees.

In short don’t look at an attractive interest rate when shopping for a loan. If you want to get the best deal possible, know the fees that are being charged and to do your best to negotiate.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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Obtaining a Business Loan in Arizona

In Arizona, every year thousands of people seek out loans to help smooth the transition into entrepreneurship. These business loans in Arizona can be provided by banks, private lenders and even governmental grant programs provided by the state.

There are almost 400,000 small business in Arizona with almost 300,000 with no employees or staff. Each year, 8 out of 10 businesses that have been in business for a year or less will fail. Lenders tend to avoid lending to businesses because of this high-risk factor. You may, however, need a business loan in Arizona for heavy expansion. Do not be surprised if you are not able to secure a business loan for the first two years.

Taking out a business loan in Arizona differs from a personal loan because you will need to provide proof of consistent revenues. The institution that you are applying to wants to verify that you are bringing in consistent income. You may be disqualified from obtaining a conventional business loan if the banks see your organization as high-risk. The high-risk assessment is determined by the bank calculating the number of sales, clients and contracts you obtained within the past year. If your company is not viewed as a growth company, a stream of increasing sales, then you will be denied a loan. Additionally. if you have a poor credit score you will also be denied a business loan.

The term and interest rate are dependent on the term of the agreement you sign. A business loan in Arizona can be made for five to ten years with interest rates of 10% to 20%. The loan may be renewable if you are struggling to repay the loan. The loan from a conventional lending institution most likely will want you to provide a personal guarantee as well as collateral of 2:1 to 3:1 to approve the loan. Understand that if your business fails then you will need to continue paying the loan or lose your capital.

Getting the Help you Need to Succeed

You will need the advice of a good attorney for the establishment of the business as well as a good CPA for financial setup which includes pricing of your product and a proper accounting system. You may consider, if you have employees, utilizing an outside payroll service so you are assured that the taxes are paid properly and you minimize your exposure.

If you are still determined to open your business and the avenue of securing a conventional loan is not a viable option, then you may want to seek non-conventional financing.

If you are starting a new business, seek out an equipment lender that will do a lease back of the equipment to you. You will also want to consider angel investors, credit cards, and friends and family. If you are purchasing an existing business then you will want to seek out hard money/asset-based lenders, A/R financing, and invoice funding. These avenues all have high interest rates attached to them and you will need to know that the business can cash flow the debt obligations. If you are seeking to secure a loan, contact Level 4 Funding for guidance and structure of the right loan or loans to make your dreams come through.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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What is Hard Money?

Many people have heard the term hard money but they do not have a good understanding of what it is or how to use it. Having this understanding can open up many opportunities for borrowers.

Hard money is a type of loan which is offered to a borrower based on the value of the collateral and not the personal financial position and history of the borrower. This type of loan is sometimes referred to as asset-based loan financing. The collateral is normally real property as opposed to personal funds in a retirement account or other material goods.

Because of the unique nature of a hard money loan, the lender is not the traditional bank or credit union that most borrowers are familiar with. These types of loans are offered by private investors or private investment companies. Being that the loan is from a private entity, the terms, conditions and processing time of the loans is quite different from the traditional bank loan application and process. Lenders are free to tailor each loan as they see fit and to meet the needs of the borrower. This is because the lenders are not regulated by state or federal law as traditional banks and lenders are. But these private lenders are still in business to make money so there are best practices which most hard money lenders follow.

As mentioned before, the loans are secured with collateral which is real property. To assure that the investment is protected, lenders use what is called loan to value when evaluating a loan request. The amount of the loan is determined by the value of the collateral property. Most lenders are willing to loan 65% to 75% of the value of the collateral. This insures that the collateral will always be more valuable than any outstanding balance on the loan.

There are Pro’s and Con’s

Asset based lending offers a borrower opportunities based on criteria other than personal credit and financial standing which can be very helpful. In addition, the terms can be very flexible to meet the borrower’s needs. But the lender is also seeing some benefit from funding the loan. The interest rate on these private loans is normally higher than that of a traditional bank loan. In most cases these private loans offer interest rates above 8% and they can range up to as much as 25%. But borrowers are willing to pay the higher rate to secure the loan that they need.

Shop Around

Just as when applying for a traditional loan from a bank or mortgage lander, it is always a good idea to shop around for the best rate and terms available. There are more private lenders out there than most people are aware of. With the higher interest rates of private loans it is even more important than ever to secure the best rate possible. Investing a little time to find an appealing interest rate on a private loan can save you a great deal of money over the life of the loan.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Benefit From Hard Money

Many borrowers have heard the term hard money but are not familiar with this type of loan or how it can be used. But understanding these loans can open up many opportunities for financial success.

A hard money loan is normally a short term loan that is offered by an individual or private lending group. The loan offer is based on the value of the collateral and not the borrower’s credit score or credit history. This makes asset based lending a very useful tool for certain real estate deals and other conditions when a traditional bank loan is not possible.

Being funded by a person or a small group means that a loan application can be very quickly evaluated and granted. This makes a hard money loan very attractive to a borrower who need funding very quickly to secure a purchase. The drawback is that the loan will carry a larger interest rate and also higher fees in most cases. But the borrower is willing to pay a higher rate for faster funding. Some borrowers will then refinance once the property is purchased while others will keep the short term loan as they are planning to flip the property very quickly.

Another reason that these loans are popular is the fact that they are based on the collateral and not the borrower’s credit. Having bad credit or no credit is not a crime but sometimes it can feel like it is. Getting a traditional loan or mortgage with bad credit is nearly impossible. So people with less than good credit are happy to pay a higher interest rate to get the loan that they need to purchase a property. And the lenders are willing to take the increased risk of lending to a person with bad credit because they are earning better interest. It is a win for both parties involved in the loan.

Novice’s In Real Estate

Getting into the real estate business is not difficult but you need to have the funding to get through the first few deals. Once you have bought, renovated and flipped a few properties, you will have built up a nest egg to uses for future purchases. But getting the money for that first purchase can be very tough. Banks and mortgage lenders are not interested in taking a risk on an unknown entity. But hard money lenders are willing to assume the risk to reap the greater reward.

Many Reasons to Pay the Higher Rates

Being money conscious or even thrifty is good in any business. But there are times when you just need to pay a little bit more to get what you are looking for. Having bad credit, no credit or no credit history are all good reasons to pay the higher rate to secure an asset based loan. The increase in the fees is a much better option than not getting the loan and missing a great opportunity to make a deal and turn a great profit.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tips for Success When Using Hard Money Lenders

Borrowers can tend to be in a hurry when they are seeking hard money loans. Sadly that can lead to making a poor choice as a result of not checking out options for hard money lenders.

Finding the perfect property can be very exciting. The potential for making a great profit can make many new real estate investors rush through the process of selecting a lender. But using hard money lenders is no different than using a bank or a mortgage lender. And borrowers should always follow the same process when selecting their lender.

As with any business deal, you will want to complete some research on all potential lenders. This will tell you how long they have been in business, who they typically loan to and the types of loans that they normally offer. You might also be able to read customer reviews online or testimonials. All of this will let you know what other borrowers experiences have been with each of the hard money lenders that you are considering.

Talking to each lender will also give you a good feel for their level of interest in their clients. If the lender asks about your plans for the property, how you are financing the repair expenses and about comps in the area then he or she is interested in not only getting his or her money back but also in your success. Working with a lender who has a genuine interest in seeing you succeed will make the process much less stressful. Hard money lenders who are interested in creating long term relationships will express interest in each project. In addition, they will be more willing to work with you on creative or different terms than they normally offer.

What to Watch Out For

Bait and switch is a sure sign of an unethical lender. In these events, the lender offers great terms that the borrowers can’t refuse. Then as soon as the borrower verbally commits to the lender, the lender supplies a loan offer with drastically different terms. In most cases the interest rate is much higher and there are other hidden fees added to the final cost of the loan. A catch and release situation is where the lender charges several fees upfront that the borrower must pay before getting the actual loan offer. Once the borrower pays the fees then the lender ignores the borrower and never provides a loan offer. The lender gets to keep the fees and the borrower is faced to find a different lender. Both of these cases are certain signs of dishonest lenders.

Just Another Service Provider

When you are seeking any type of loan, don’t be intimidated by the lenders. Think of them as you would any other service provider and complete your due diligence to be sure that you are doing business with a reputable lender. An honest lender will not be offended by questions about their standard terms or loan practices.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

The Difference in Hard Money Loans

Many people, before they delve into the world of real estate investments, think of hard money loans as those you obtain only if you have poor credit and are desperate. Those that have been in the business for a while understand that they are an important lender to have in your lending portfolio and that many have different requirements and protocol.

Hard money loans are often obtained from private individuals that specialize in various types of real estate loans. The rates they offer vary dramatically and can range anywhere from 10 percent and 1- or 2-point origination fees, depending on your terms, to 18 percent interest on a short term loan with a 5- percent origination fee. An origination fee is designed to cover the cost of entering into and processing the loan agreement. Some lenders will roll your origination fee into the loan balance while others require payment upfront. Compare loan APRs along with fees in order to determine who is offering you the best loan.

You’ll find underwriting processes, or loan determinations, very different among lenders of hard money loans. For many, creditworthiness and credit scores are not even considered in the approval process. For others, it is an important consideration. When evaluating what you bring to the table, which includes your down payment as well as your collateral, some will only consider the LTV or loan-to-value ratio while others consider the ARV or after-repair-value. If you’re looking for a loan amount based on the after-value, you will need to come to the table with a solid background in your chosen real estate investment as well as budget and expenses that includes contractor fees.

Some hard money lenders specialize in specific types of properties. For instance, you will find hard money loans specifically for fix-and-flip models while others are solely investing in manufactured homes with land. Obviously, it’s important to find out what types of investments they are willing to loan on before wasting any time with a lender that does not specialize in the type of loan that you need. Generally speaking, most will not lend on an owner-occupied residential property thanks to Dodd-Frank regulations.

The Main Reason Real Estate Investors Choose Hard Money Loans

One of the main reasons real estate investors choose hard money loans is because they are often quick to fund. Many of these types of lenders will fund in as little as a week or less, in comparison to the month or two that traditional lenders take due to underwriting processes and extended time to funding. If an investor finds themselves in a bidding war, having cash on hand can often mean the difference between starting their next renovation or still searching for that ideal property.

At Level 4 funding, we provide funding for all types of real estate investments including multifamily, construction, business and office.

We offer loans with no prepayment penalties and with terms that can be extended. Our popular construction loans start at 9.5 percent APR with 24-month terms and convenient monthly draws. Call us for a no-obligation quote.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage