Tag Archives: arizona hard money lender

Who are Hard Money Lenders?


iStock_000003964390XSmallWhen you are looking for hard money, it is not as easy as going to your local bank. It is important that you understand who Arizona hard money lenders are and where to find them.

When you need a traditional loan, all you need to do is go to your local bank and see a loan officer. Or if you work with a national bank, you can often go online and begin the application process there. But finding hard money lenders is not as easy as going to the bank. You will likely want to begin your search on the Internet and then schedule interviews to meet potential lenders.

Hard money lenders in Arizona are private lenders who might not even operate a full office. In other cases, the private lender could be a part of a group of lenders who work out of an office. But the best place to begin your search is the Internet. This will let you find lenders in your area. Having the ability to meet face to face with the lender is a good idea if you are new to the hard money lending process. It allows you to ask questions and will add to your comfort level as you learn the business. Meeting the lender or lenders in person is also a good way to dispel some of the myth about hard money being a less than ethical lending resource and that the lenders are shady.

Another important bit of information to keep in mind is that private lenders have the ability to structure their loans as they see fit, unlike the tight structure that most banks must follow. This can work in your favor if you want to request certain special terms but it can make the process more confusing if you do not take detailed notes regarding each lenders terms.

What to Expect from a Hard Money Lenders

Even with the ability to create tailored terms, most lenders will only extend Arizona Hard Money Loans out to a year and the interest rates can range from around 7% to as much as 15% or more. The level of risk involved in the loan will often dictate the interest rate offered. Some lenders also work with unique repayment schedules where the payment rate changes each month. This can be helpful as the early payments are normally small but the later payments can be much larger.

Know You Project

Before you begin to speak with lenders, it is important that you prepare yourself.  Arizona Hard money lenders are not adverse to taking a risk when making a loan, but they do expect to see the money returned as well as the fees and interest. So knowing the details of your property and your project will allow you to answer the lender’s questions and also appear knowledgeable and prepared to complete the project on time and on budget. This confidence might end up being the deciding factor for you getting the loan or it might be what gets you a slightly better interest rate. But being professional is always going to offer the best potential.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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 Cost of Loans to flip houses Arizona



Handsome young man looking confidentlyNo one is going to loan money without charging something for it. But understanding all of the costs for loans to flip houses is critical before selecting a lender.

Borrowing money is often the only way to be able to make a large purchase. And the ability to borrow money is something that most consumers are willing and happy to pay when it comes to buying a home. But when you are in the real estate, you need to understand that the loans to flip houses often cost more than a traditional house loan or mortgage. This is because the most popular loans to flip houses Arizona are Arizona Hard Money Loans which are offered by private lenders rather than banks or mortgage companies.

Arizona Hard Money Loans, or asset-based loans, are not funded based on the borrower’s creditworthiness. Instead, they are offered based on the current value of the property being purchased. The property is used as collateral for the loan and the lender wants to be certain that the loan balance is always less than the current market value of the property. To ensure this, the lenders only offer between 70% and 80% of the property value.

But the benefits to these loans are many. First, the loan application process is very simple and fast. Second, the approval process is also very fast. And finally, the private lender can be much more flexible on the terms of the loan as opposed to the rather inflexible terms of a bank loan. But all of these benefits do come at a cost. The most noticeable difference is the increased interest rate on a hard money loan. Hard money interest rates can range from 7% clear up to 25% or more if the project appears to represent a very high risk of failure.

Breaking Down Costs

In addition to the higher interest rates, some lenders will charge a flat fee for an appraisal of the property as well as another fee for processing the loan documentation. There can also be fees such as a funding fee, administrative fee or closing fee. Because the lender is a private person, he or she is free to charge the fees that they choose to and to call them whatever they want. For this reason, it is important to ask for a total cost of the loan in writing and itemized to understand all of the costs involved in loans to flip houses.

Making a Choice

Having all of the feels in writing will allow you to compare the total cost of each loan and decide which is the best option for you. In some cases, you will not choose the cheapest loan but instead the loan which offers the best overall terms to meet your needs. This can include a longer or shorter payment term, a variable payment or even the ability to extend the loan if you need more time to complete the project. But knowing the total loan cost is the critical first step in any house flip project.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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

Important Tips When Looking At Arizona Hard Money Loans



Not every loan or lender is going to be equally good. So it is very important that you follow these tips when comparing Arizona Hard Money Loans.

One key fact to remember is that hard money is provided by private lenders so the terms and the loan are not dictated or regulated in the same manner as they are for banks and traditional lenders. So you will want to be very diligent as you review the terms of any Arizona Hard Money Loans. Be cautious of any lender who is demanding large upfront fees. An appraisal fee is normal but large fees for exploration or due diligence is a strong sign of a less than legitimate lender. Large fees can also be a sign of a broker who is trying to lead you to believe that he or she is a lender and not just a broker. This is just a way of adding a middleman who will charge you fees but really add nothing of value to the deal. In both cases, it is very likely that the Arizona Hard Money Loans are never funded but the applicants are out whatever fees they paid.

It is also not uncommon for lenders to “fail” to provide you with a complete breakdown of the cost of a loan. There could be additional fees that you do not learn about until you are ready to sign the loan documents unless you request a full breakdown of all costs associated with the loan. Fees which could be listed on the breakdown include document processing, site inspections, title documentation and verification, funding fees and administrative fees. Lenders can either break the fees out or some will simply charge points to cover all of these administrative tasks that must be completed. Regardless of the way the lender explains the fees, be sure to get a grand total cost so that you can compare all of the loan options that you might have so that you can select the best one.

Beware of Unreasonable Terms

Some lenders will prey on borrowers who have no credit or particularly bad credit. In these cases, the lender could make unbelievable claims such as funding a loan that no other lender will fund or 100% funding with no down payment. If the deal sounds too good to be true then it most likely is. Also, if the lender says that he might be able to fund the loan but due to very bad credit, you will need to pay extra fees or an extremely high-interest rate, then seek another lender.

Do Your Homework

It is always important to be as educated about any business deal as possible. Be sure that you have a few loan options and a few rates to compare. Even if you have bad credit, you should still be able to get Arizona Hard Money Loans at a fair rate. Also, be as knowledgeable as possible about the property that you wish to purchase so that you know what to expect on appraisal documents as well as other inspections of the property. This preparation will help to make the loan process less stressful and faster.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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

Info to Know Before Securing Arizona Hard Money Loans



Trouble-with-an-Arizona-Home-Mortgage-150x150When using Arizona Hard Money Loans, there are a few pieces of important information that every borrower should know. This will increase your potential for success and earnings.

Arizona Hard Money Loans can sound very intimidating if you are not familiar with the process and this financial tool. But these are very useful and legitimate loans for many real estate investors. The first important piece of information that you need to understand is that hard money is a short-term loan as opposed to the 15 to 30-year term on a traditional mortgage. In addition, you need to understand that Arizona Hard Money Loans are funded by individuals or possibly a small group of lenders who work together rather than a bank or mortgage company. But this offers many great benefits to the borrowers of hard money.

Because the lender is independent, he or she is able to work with borrowers to customize the terms of loans much more than a bank or mortgage company. This could mean a unique payment schedule or even a payment amount that fluctuates. And borrowers will also be glad to learn that private lenders require much less paperwork during the application process. This makes applying and getting approved for a loan much less stressful.

One aspect of Arizona Hard Money Loans that some borrowers are uncomfortable with is the higher interest rate. Private lenders are not regulated in the same manner as a financial institution and they are free to set the interest rate as they see fit. In addition, hard money is normally an option for someone with less than perfect credit so the risk is more substantial for the lender. But for a fast application and approval process, many borrowers are happy and willing to pay the higher interest rates associated with hard money.

Asset Based Lending

This is the most important aspect that separates a hard money loan from a traditional loan. A traditional loan is based on the borrower’s creditworthiness and ability to repay the loan. But a hard money loan is based on the current market value of the property being purchased. The borrower must use the property as the collateral on the loan to provide added security for the lender. In the event that the borrower defaults on the loan, the lender has the right to seize the property and sell it to recover his or her investment.

Use It Wisely

Hard money is a very legitimate resource for any real estate investor who is looking for fast funding, a simple application process, and a short loan term. All of these benefits make many borrowers a huge fan of the hard money option. When used on a fix and flip project it is perfect. And other investors use hard money to make a fast purchase for a property with high potential. Once the purchase is secured, then the borrower will refinance on a long-term mortgage at a lower interest rate. Used correctly, hard money can help to make a real estate investor a great deal of money.

Dennis DahlbeDennis Dahlber Broker Ri CEO Level 4 Funding LLCrg
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

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

How to Get Arizona investment property Loans without 20-40% Down


Arizona-Home-Loan-Team-Matt-and-Judy-Callahan-150x150Banks usually expect you to make a massive down payment when you apply for Arizona investment property loans, which puts them out of reach a whole lot of investors. The good news is, there’s a way to get around the standard 20-40% most expect.

Checking out Arizona investment property loans can be a rude awakening for someone getting into the business. Most people at this stage have purchased a home to live in before and expect the process to be somewhat similar. You apply for a mortgage and your broker works some magic, then comes back with numbers and tells you what you qualify for. But, when the property you’re buying is not going to be your primary residence, a lot of that magic disappears and the yesses are replaced with nos. What gives? You haven’t changed at all, your credit is the same, and you’re diversifying. Shouldn’t the banks be happy? Not exactly.

When it comes to traditional mortgages, the bank knows you plan to live there and that you’ll do everything you can to keep your home, even when times get tough. So, they’ll sometimes give a bit of wiggle room with their options. On top of this, if you don’t have the full 20% to put down, you can often get mortgage insurance. Although you pay for it, it actually protects your lender in the event you default. When you’re making a purchase with the plan to rent it out, fix-and-flip, or fix-and-hold, mortgage insurance is not an option. Ergo, the bank is going to expect you to bring at least 20% to the table.

From there, they may expect a greater down payment if your credit isn’t excellent as well, among other things. Depending on the circumstances, that down payment can skyrocket as high as 40%. And, that’s if they approve you at all. Without a couple years of property management experience under your belt, many of the big banks won’t even consider helping you out.

Alternative Funding Can Help You Out When Banks Can’t

The good news is, there are other places you can turn to for Arizona investment property loans that are easier to qualify for and don’t require the same massive down payments. Hard money is one of those choices. While lenders still look at things like your credit and your plans or ability to manage your Arizona investment property successfully, the biggest thing they consider is its value. What’s more, it’s possible to get up to 90% of the value, meaning you could wind up only needing 10% or less, if you grab a sweet deal for less than it’s worth.

Find out if alternative investment property loans are right for you.

When people go for hard money, having an exit plan is essential. If you’ll be fixing and flipping, the natural exit is selling the home after you’ve finished the work. However, if you plan to rent it out right away or fix and hold it, you’ll either need a plan to refinance at the end of your term or have another way of paying off the balance, as lenders usually expect the balance paid off within a matter of months or just a few years. If you’ve got a property in mind, a comprehensive plan, and the banks aren’t able to help, talk to a broker to learn more about hard money and the terms you qualify for.

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