Types of Hard Money Lenders for Commercial Lending

In the world of hard money commercial lending, there are various types of lenders. Let’s take a look at what each brings to the table and how you can make the right decision for yourself, as a borrower.

There are several types of lenders available for those that are looking at a hard money, or private lender, for their unique needs. As a real estate investor, it’s important to understand how to raise the needed capital so that when you find “the deal” you have the funds to secure it. One such entity is the direct lender. This person is putting up their own money. It is often difficult to find these individuals and it involves filling out multiple application forms for each independent investor.

Hard money mortgage loan brokers work with numerous investors and pick and choose according to your specific property or project. Those that have been in the business for years will often work with hundreds of individual private investors. They know which of the investors they work with are interested in bridge loans, which ones are drawn to the fix and flip projects, and which prefer large commercial projects such as office or retail. Their search is for the right investor and for the best deal possible for their client. When working with a mortgage broker, it’s best to choose one that has been in the hard money lending business for years because it takes a long time to develop these types of commercial lending connections.

Private single and multi-family offices are wealth management firms for the extremely high-net-worth individuals or families. This is a difficult group to break into and often requires “knowing someone that knows someone.” Mortgage loan brokers with years of experience under their belt have often tapped into this very secretive world of private money lenders.

Funded Hard Money Commercial Projects

Hard money lenders will often provide commercial lending for a variety of projects, depending on their interests and established investors. A few of these include ground-up construction, fix and flip, home purchases, business needs, partner buyouts, improved land loans, multi-family, office buildings, warehouses, shopping centers, retail outlets and mobile home parks. Not every lender is the same. Some have very limited projects and properties that they will make loans on. Others carry a more versatile portfolio of investments. For instance, some will lend on improved land and lots while others will not.

Find a hard money mortgage home broker that you’re comfortable with and that you can trust.

It’s probably evident that the best and easiest way to secure hard money commercial lending is through a hard money loan mortgage broker. You’ll want someone that you’re comfortable with and that you can build a relationship with that will last through your many real estate transactions. Trust your gut and ask the appropriate questions such as time in the business and what their background is in the real estate industry. Check on borrowing requirements and ask if there is any prepayment penalty. While you are delving, or have already dived, into a business that naturally carries risk, it also offers tremendous rewards. Call us at Level 4 Funding. We may just be the mortgage brokers that can help you with the funding you seek for all of your real estate investments now and in the future.

Dennis Dahlberg
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
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.

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