ALL ABOUT PRIVATE MONEY LENDERS

Private money lenders issue short-term loans for investment properties. These lenders are non-institutional lenders that are sometimes referred to as “hard money lenders.”



Private money lenders typically work with real estate investors looking to purchase and renovate a property; this is also known as a fix and flip. However, private money lenders can help in other situations, as well—such as log-term buy-and-hold investors. Private money lenders can come from a variety of circles— they can be family members, colleagues and acquaintances and, the largest branch—investors and hard money lenders. Basically, a private money lender can be anyone, other than a traditional lender, that is willing to loan money on a property. Because friends and family members can arrange any type of term under the sky with a borrower—in this article we will focus on hard money lenders.

Investors work with private money lenders for two main reasons: short-terms and quick cash. Competing with an all cash buyer is difficult if you don’t have cash yourself. Typically, private lenders will have funds available to the borrower within 10 days. Sellers are aware of how hard money operates and so they are armed. With the knowledge that rarely are there any setbacks when entering into a deal with a private money lender. Bottom line—they know they will get their money and get it quickly.

Investors tend to work with private money versus banks and credit unions because of the short terms. An investor wants to buy a property and sell that property. They don’t want to keep it for years—typically, just a few months. These loans have terms between 6 months and 3 years and interest rates range between 7% to 15%. Generally, private loans don’t carry an early payment penalty, which is great for an investor that sells earlier than expected.

However, there are other reasons borrowers choose to work with a private money lender. Long-term investors that are unable to qualify for a conventional mortgage, but plan to work on their credit and will refinance once those qualifications are met will benefit from the less rigid qualifications of a private money lender. Buy-and-hold investors who are looking to rehab a property before refinancing with a conventional loan can benefit from the flexible terms these loans offer.

Interest on a private money loan is generally assessed as interest only payments. What that means is the borrower will only pay interest throughout the life of the loan and pay a balloon payment at the end of the loan. It is not uncommon to see that, although the interest rates on private money loans are higher than a conventional mortgage, the monthly payments will actually be less. This would be helpful in a situation such as a buyer that is waiting for their house to sell and can’t afford to pay two mortgages.

Family members, colleagues and acquaintances can all work as private money lenders.

It’s not always a good idea to mix money with friends and family—especially if this is a first time investment or you’re in a pinch financially. Many times it is best to work with someone where it is strictly business and in that case a hard money private lender is the best bet.

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:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

WHY USE HARD MONEY?

Why would anyone need a hard money loan and what is the difference between a hard money loan and a traditional loan?



Hard money lenders take a different approach than traditional lenders. While traditional lenders base approval upon a borrower’s credit score and income—a hard money lender basis their approval upon the value of the proposed property. The hard money lender’s collateral is in the property. In any case of non-repayment the hard money lender will simply repossess the property and sell it to gain their return. There is risk involved for these lenders. Not only will they work with bad credit; they are also working on deals that could easily flop. Take for example a fix and flip loan: an investor finds a property that he wants to rehab. He finds a great property that he believes he can make a 150% profit. He has a great business plan and the house is in a very sought after neighborhood. The hard money lender approves his loan. All is good until an unforeseen event occurs and the investor doesn’t complete the renovations. Now, the loan terms have run out and his balloon payment is due—he disappears.

Because of the larger risk that hard money lenders are taking and because of the shorter terms of the loans (we will get into that in a minute) they charge a higher interest rate than a conventional mortgage. Hard money loans tend to run anywhere from 7.5% to 16%, depending on the lender.

What is beneficial about hard money loans? A lot. We have already discussed bad credit. Flexibility. Hard money agreements are much more flexible than traditional loan agreements. Hard money lenders do not use a standard underwriting process. Not using this standard they are able to look at loans on an individual basis versus just looking at numbers as large corporation do. Depending on the situation, it may be easy to change repayment plans. Need money quick? Another benefit to hard money. Unlike conventional loans that can take up to 90 days—30 if you are lucky—borrowers can be approved within minutes and fully funded within ten days. This is helpful to investors that are competing with cash buyers. A seller will always take a cash deal over waiting up to 90 days for their money. In fact, sellers enjoy working with hard money because they know the deal is going to go through—there aren’t going to be any hang-ups that can delay closing.

Is a hard money loan right for you?

That’s simple. Are you looking for a home to live in for years to come? Do you have good credit and a solid income? If the answer is yes then a hard money loan isn’t right for you. Are you in need of rebuilding your credit, but want to purchase a home? Are you an investor in need of financing to fix and flip a property? Are you a business owner that has a few dings on your credit, but want to expand your business? If you answered yes to any of these—then, the answer is, a hard money loan is for you.

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:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

THE BASICS OF HARD MONEY LOANS

In simplest terms a hard money loan is a way to borrow money without using a traditional lender.

If you have ever gone through the approval process of a traditional lender then you are already aware it is a painfully slow process. This is even the case when it comes to borrowers with platinum credit scores and plenty of income. And, if you have any negative marks on your credit or not enough income to please your lender then you are in for an even worse ride.

Hard money loans  are loans that come from private investors. These investors lend their money based on the property you want to purchase as collateral. Hard money loans  happen quickly; typically only taking 24-48 hours for approval. Many borrowers turn toward hard money lenders when traditional lenders don’t approve them.

All lenders require proof that the loan can be repaid. Traditional lenders are interested in your credit score, your income and your job security.They look at your debt-to-income ratio; and if all that looks great then you’ll be approved for a loan. You’ll receive your money anywhere from 45 days up to 90 days. Although, you will get the best interest rate using a traditional lender, it will not happen instantly. Hard money lenders work differently than traditional lenders. They lend based on collateral securing the loan. If anything goes wrong and you are unable to pay they simply take the property. To a hard money lender your collateral is more important than your finances and credit. Hard money loans are typically more flexible than traditional loans. Hard money lenders do not use a traditional underwriting process. They look at each deal individually; this allows the terms to be much more flexible than a loan from a bank or credit union.

There are countless benefits to using a hard money lender versus a traditional lender.

Most people who have gone through bankruptcy or foreclosure, even have a low credit score, feel like they are stuck. A hard money lender can work with you regardless of your situation. Hard money lenders are real people; people you can speak to on the phone and stop by the office—unlike traditional lenders where you are dealing with different teams of people. A hard money lender wants to know your story and can work with you to make your dreams become reality; whether it’s to fix-and-flip a home or you need commercial real estate help. These are typically short-term loans that run from two to five years. If you have bad marks on your credit, have run into any financial problems or you just need money quickly a hard money loan could be the answer for you.


Dennis Dahlber Broker Ri CEO Level 4 Funding LLCDennis 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:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

Fix and Flip Vs Buy and Hold

When you come across a property to use as an investment you’ll have to decide whether to fix and flip or buy and hold. Here are some reasons why fixing and flipping using an Arizona hard money lender might be the way to go.

Investors have a decision to make once they’ve rehabbed a property. The main difference is whether you’re going to make income up front or whether you want an income stream to come in long term.

Below you’ll find an explanation of why one may work better for you than the other.

Buy and Hold

A buy and hold property is one that you’ll rehab and use as a rental. You’ll have property management costs if you choose to use a company to manage the property and maintenance costs. The goal of a buy and hold is to keep your costs to a minimum, so you have positive cash flow coming in each month. In this case you can stil use a Arizona hard money lender to finance the purchase and rehab until you can secure long term financing.

Fix and Flip

Unlike a buy and hold, a fix and flip will be sold as soon as the renovations are completed, giving you instant cash flow to put towards your next investment. This can provide less stress with upkeep and monthly costs associated with a buy and hold.

So how do you decide whether to work with a Arizona hard money lender for a fix and flip loan or to focus on a buy and hold property? Here’s where having market knowledge will be helpful because some properties due to their specifications or location won’t bring in a high rental income. That should be a huge determining factor.

Also, if you aren’t able to buy the company with cash or obtain a loan that will give you low monthly costs that can be covered, and then some, by the rental income.

If you’re interested in making income from real estate you’ll want to research your options, get to know your market, and work with a knowledgeable team who can help you complete your renovation and then either sell the property or rent it out for top dollar.

To get more information on Level 4 Funding, a Arizona hard money lender, give us a call to set up an appointment to discuss getting your investment funded today!

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:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

Fix and Flip Loans: Time is of the Essence!

If you’re funding a project with a Arizona fix and flip loan you want to be able to complete your renovation in a timely manner. Here are some tips to help you stay on track.

The longer it takes you to complete a fix and flip the more money it is going to cost you. Property taxes, HOA fees, utilities, and loan interest can eat away at your bottom line. There are some ways to help you complete your renovation on time and pay off your Arizona fix and flip loan quickly!

Put Together a Team

Investors will tell you that you’re only as good as your project team. Your project relies on the ability of your contractors to complete their portion of the renovation on time. Beyond your go-to renovation specialists you’ll want to have an attorney and a real estate agent on deck.

Don’t Bite Off More Than You Can Chew

It’s important to choose your fix and flips wisely, not jumping feet first into a renovation that’s going to require vast structural updates. Cosmetic rehabs are the way to go, especially when you’re starting out. Unexpected issues are sure to arise, but if you can avoid large anticipated construction costs you’ll be far better off.

List Prior to Completion

Another way to ensure you’re not sitting on a property too long, eating up your funds, is to list the home prior to your project completion. Focus on big areas like the kitchen and living room and complete other rooms or the landscaping as it’s on the market. Finishing touches can be completed prior to close.

Last, but certainly not least, the most important part of a renovation timeline is getting your project funded quickly. That’s where a hard money lender that provides Arizona fix and flip loans comes in. Level 4 Funding can fund a loan in as little as week if the investor provides the proper documentation up front.

We are more than happy to schedule a time to speak with you about your upcoming renovation and provide you with the Arizona fix and flip loan to make it happen!

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:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

Being just of college, degree in hand and experience working in your father’s real estate firm since you were a child didn’t mean anything to the big banks and the established mortgage firms. You need an investment property loan to simply get started in the business–do you want to deal with the firm across town that sets up through Arizona hard money?

A bit of research pointed out that these loans are good for investors who have some money, but are not comfortable putting up everything to purchase a piece of property. You fit that description—you do not want to ask your father for money since he just spent a bundle on your college work and tapping into your trust fund is not a good idea – it needs some growth anyway.

Further reading advised when considering loans in this area, pay attention to all the details, fine print and adjunct clauses in order to know exactly what you are taking on, both pro and con.

An investment property loan via Arizona hard money does have its positive side, the first one being timing. Conventional lenders can take as much as six months to close a regular loan—private lenders, on the other hand, generally can get approval and closure within a few weeks at most. You may be young, but you know the value of time, especially when it comes to an attractive property that’s on the market.

Collateral normally is attached to the property, but this isn’t always true. The borrower can use personal assets ranging from residential property to a retirement fund.

Terms can be designed just for you—you can have a custom-made loan, in other words. With a bit of diplomatic negotiation, you may be able to have the repayment period adjusted in order to lower payments or even have certain fees that are normally attached removed or at least end up paying a lesser amount.

This sounds pretty good, you thought to yourself, and being a bit of a cynic, looked for the downside, knowing there had to be some drawbacks.

Investment property loans made through private firms, it seemed, all came with higher-than normal fees and interest rates/points. This, according to one of your father’s salespeople, was protection money. “They are taking a big risk on some of their clients,” he pointed out. “With the higher rates, plus collateral, the lender is guaranteeing that they don’t lose everything they have dispersed in case a borrower can’t repay a loan, no matter the reason.”

Repayment periods are on the average about 12 months in length, with the borrower paying mostly interest every month and the principal due at the end of the term. Keep the timing in mind, one article said, because if you cannot pay the balance at the end of the repayment period, either your loan will be re-financed or your collateral will be seized. Both of these options are costly.

A private lender may be just the thing for your investment property loan, but be certain you have researched the area carefully before making the decision to take on one of these loans. Keep on top of the situation for the entire time and work with your lender—you may need them in the future for yet another project.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

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

111 Congress Ave | Austin | Texas | 78701

About:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

Business loans seem to be a Catch-22—you need a loan to start/grow a business, but you can’t get one via the banks because your business is small/not growing green as is. Maybe it’s time you went with a Arizona hard money set up.

These type loans are individual, custom-made, off the beaten track, but they aren’t entirely without restriction. Collateral is required. In this respect, Arizona hard money loans allow the use of your assets—namely the property value of commercial real estate–in order to back the loan. This protects the lender in the event that borrower defaults on repaying the money for whatever reason, up to and including death.

There are numerous alternatives to funding your business as you will discover when you start the search. Traditional mortgage companies and banks are the first place most business owners go to only to discover they don’t fit the tightly structured qualifying package that these lenders have to work with. Not to mention the load of documentation that has to be produced, the time it takes to get an application processed and the fact that you don’t really talk to the actual lender to explain your situation. Instead a committee or board that you never see decides if you get your money or not. And a considerable amount of the time, the answer is No, even for a series of small mistakes.

So if you fund your Arizona business loan through a Arizona hard money lending company, what are the advantages to this method?

Timing: if your business is in financial trouble, you don’t need to be told that the decision will be made in around six months. The Arizona hard money people reach their decisions much more quickly and you will know where you are sometimes as fast as two weeks.

Documentation: it takes hours and hours to fill out all the forms that comprise a conventional lenders‘s application. But in the event of non-traditional funding, when only your collateral is being given a close look, this is not case.

Credit scores/history: banks are set up to depend heavily on these items—most of them want a FICO score of above 700. If you don’t have that, it can slow things down considerably—other holes in your past credit history, for example, a foreclosure, can stop the process altogether. The lenders who work in Arizona hard money don’t view your credit score as nearly important as your ability to show collateral/pay the loan back.

To be certain, all these reasons make applying for this type funding fall into a positive light. But there are other factors in taking on a Arizona hard money business loan that are worth considering. Let’s look at them.

These loans are expensive—fees and interest rates are higher than conventional loans are. This, again, protects the lender, in case of loss.

Funding of this type is risk-filled since there is always the chance that something will go wrong and you will end up losing your collateral. A worse-case scenario is that if your collateral is now deemed as not being worth the value of the loan, more must be provided and that may fall into providing personal items of value.

These loans are a positive value to many business people and there are numerous stories of good results from taking one on, but before you do, research the situation with great care, talk to an attorney, an accountant, people who have been in real-estate for a sizeable number of years. Then determine if a Arizona hard money business loan is the right funding for your 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:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

All you have thought about since you saw that old closed hotel downtown is fixing it up, but with your credit, where would get the money? Someone said “Try a commercial Arizona hard money lender.”, but what is that?

As you found out after grabbing your laptop and a fresh pot of coffee that night, lenders in this field base any loan upon commercial assets instead of using the borrower’s financial backing, credit, or steady employment –the things that conventional lenders put at the top of their list.

By depending on property instead of just the borrower, a private lender is able to loan money that a bank or mortgage company could not. Funding with them is set up through a first mortgage and is termed a ‘no doc’ or non-bankable loan.

Further reading on various websites let you know that there were numerous reasons a borrower might go with this type of funding, such as:

*You need a loan quickly because the property may be sold to another buyer any day and traditional loan applications, if you can even get one approved, take three to six months.

*Your situation is unique and you need a creative individual solution in order to meet your needs and the conventional lenders just can’t do that with their strict rules and regulations.

*Needed collateral is not limited to one piece of property, but is spread over several different areas.

*You are a foreign national without any ‘credit depth’ (availability of credit information ) in this country.

*Your credit falls under the term ‘disabled’.

Those were just some of the reasons outlined that called for a commercial Arizona hard money lender.

Other advantage of this type of loan were the fact they required no credit score, only minimal documentation and decisions were made by the lending company—no ‘loan committee’ or board that never talked to you personally, but still held your business dream in their hand. The types of loans and real estate properties covered were wide ranging as well.

Best of all, you found, decisions could be made in 10 business days and there were no upfront fees.

This sounded really good to you, but there had to be some hitches some place –life had already taught you that while the balance of a situation might lean heavily toward positive, somewhere in the entire picture lays a few negatives. You kept reading.

Commercial Arizona hard money lenders sometimes, but not every time, required a higher down payment than you would have had to pay a traditional lender. Interest rates could be as much as 10 percent higher than a mortgage companies. The risk involved is directly tied into these requirements. These lenders also give short payback periods such as one to three years, unlike banks whose repayment terms can start at five years and stretch to 30.

In the morning, I am going to call some of these companies, you thought as you closed out your computer. You particularly liked the first one you looked at–tons of information on the webpage and a boxed disclaimer that said for a would-be-borrower to be careful and become as knowledgeable as possible before even talking to a commercial Arizona hard money lender. Perhaps this time next year you would be the owner of a hotel with considerable market value.

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:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

Are you looking to build a home for yourself or a string of one-family homes that you could sell quickly once construction is completed? Speculative home financing could be the answer for you. Read on and discover how to evaluate this area.

This type of funding is defined simply as financing attached to unsold property. It is not a large part of the construction financing world, but is still defined as part of the list of available options. Normally these types of loans are obtained through non-conventional businesses set up for this and other outside-the-box funding.

Most banks and mortgage brokers generally don’t have a great deal of interest in small areas such as this. Very often they have little knowledge of what avenues an investor should take as result. Considering the unforeseen consequences which can arise in a large number of situations, this is not what you want to deal with when you have questions which no one seems able to answer, deadlines looming on the horizon and the chance of losing your money before the prospective project is even completed due to a unforeseen glitch.

While it is certainly a wise move to get a potential lender who knows the business, it is equally valuable to both you and the lender to have everything available and ready that outlines what you have in mind. Having details on your credit background (credit report, tax returns, bankruptcies and liens (if any) and how/when they were cleared, a detailed budget, information on the builder and details concerning the project – costs, bidders, contractor’s license, locations of property, etc—is a big advantage when you go for an appointment with a lender. It will not guarantee your loan, but it will show that you are serious about the project and help define a completion date for it, something that will be important in determining the repayment time for funding received.

You may have a partner to go in with you on the project. This sometimes is a plus since the would-be-lender will feel more reassured of having the loan repaid if there is more one individual with a stake in the deal.

Speculative home financing in Arizona sounds like a good thing, you think after having done some in-depth research into the field, but what are some disadvantages a borrower needs to think about?

These loans require collateral—if you put up property you own, there is always a good chance of losing it since you are dealing with knowing what the public wants before they even see it. A house, apartment building, office complex has to be attractive enough to make a buyer want to put down a tidy sum of money in order to obtain it.

The bigger the funding, the bigger the gamble taken. This calls for detailed research, consults with people you know that done this and certainly not throwing everything you own on a venture like this the first or even the second time you take it on. When you have done all these things, only then will you know that speculative home financing is the way for you or not.

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:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions

You’ve made your choice to go with a Arizona hard money lender in order to fund what you see as a really good opportunity not only to help the housing situation in your community,

but as a comeback for yourself in your chosen field. Your appointments are set and you’ve gathered together the documents you think you’ll need. Will things go well or will they be similar to some traditional lenders you have talked to earlier? Simply put, the Arizona hard money people may be non-traditional, but it does not mean they are easy marks or sloppy performers.

Potential investors need to have the following things in hand before approaching a possible lender. Lenders have the same basic requirements in most instances, but asking each separate one for a list of the requirements when calling for the appointment is a wise move.

The following is a basic list of qualifying documents:

1) Title report on the property: certainly the lender can obtain this for themselves, but it shows that you are prepared and have thought things through if you have it with you.

2) Purchase contract: this document needs to be available in order for the buy on the property you have in mind to be made as quickly as possible.

3) List of bidders for all work to be performed: your would-be-lender will want to know what work there is to be done on the property and all possible costs involved.

4) Insurance policy: generally speaking, there’s always an accident waiting to happen, particularly with projects where there are more than a couple of people involved. Lenders want to feel that this situation has been covered from all angles if possible in case something does go wrong.

As already noted, a Arizona hard money lender wants to know exactly what you have in mind regarding your project. Make certain you are properly prepared mentally for the interview.

Present your business plan in clear detailed terms, but try not to overdo it—provide all needed information, but nothing more.

Be prepared to answer a number of questions—your lender is in this to make money the same as you are. He or she will want to know your outlook on the project, what you have in mind for it, possible problems, your background and experience, etc. Have a list of your own questions in hand also.

If there is something that is negative or messy in a past business venture you were involved in, be honest and forthcoming about it—these lenders know that things can go wrong in the best of circumstances. This is where the higher interest rates and fees you’ve heard about come in—the lender is taking a risk by virtue of their clientele and you will pay more for the privilege of loan approval.

Make certain that you and your Arizona hard money lender are a good fit for each other. Even if you are certain the first one you talk with is the one to go with, it is strongly advised to check out at least two, possibly three more, before you decide on anyone. A good relationship could be a real advantage in the future with that next project you might need funded.

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:  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.

© 2019 Level 4 Funding LLC. All Rights Reserved.

Copyright | Privacy Policy | *Terms & Conditions