Why Real Estate Investors Use Commercial Hard Money Loans

2page_img4-bigSuccessful real estate investors understand that leveraging other people’s money is the way to build your own wealth. Commercial hard money loans are a popular tool to accomplish this process.

Savvy real estate investors know that using other people’s money to fund great deals is the fastest way to grow your personal wealth. This method allows investors to purchase much more expensive properties which increases their profit on each transaction. And in return it also provides the lender with a nice return on investment.

Commercial hard money loans are not like traditional loans in that they are not a one size fits all loan. In most cases the dollar amount of the loan and the terms are customized to meet the needs of each transaction. This means that a first time flipper can get a loan that offers the dollar amount and the time frame that is needed just as a commercial investor can for a much larger deal. This flexibility makes commercial hard money loans very appealing to all real estate investors.

Another benefit of commercial hard money loans is that approval is based less on the borrowers credit score and more on the merits or the property or deal being made. This opens up the commercial real estate industry to investors who might not have perfect credit or who already are carrying a few mortgages on other properties. The final decision on getting a loan rests on the merits of the property that is being purchased and used as collateral.

Personal Attention Has It’s Benefits

Borrowers also like to use hard money lenders because they are working with a person and not a huge lending institution or bank. Not only does this make the process much faster but it also can offer a much more personal and tailored transaction. You are not calling a number only to get passed from one department to the next to get a question answered or check on the status of your loan. You work with the person whose money you are borrowing and you can make direct contact to resolve an issue or answer a question.

Nontraditional Can Be Better

Hard money loans are not the best solution for every commercial real estate transaction but they are a unique solution for many of them. The terms of the loan can meet each borrowers needs and can be processed in a fraction of the time that is required for a traditional loan. The cost for this custom service is more than the fees for a traditional loan but are worth it if you were struggling to get financed at a bank. And in the case of a real estate investor who might be in process on several deals, there is not the high risk issue on a hard money loan as there would be on a traditional loan. The merit of the individual deal is what carries the weight with a hard money lender. Hard money loans are favored by real estate investors because it is a means to increase their business and their profits.


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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