Differences Between Arizona Private Money Lenders and Traditional Money Lenders

Choosing between traditional versus alternative lenders can make all the difference in your financial success. Read more to learn the benefits and risks of borrowing from alternative sources.

1. Arizona Private Hard Money Lenders assess the value of the property, and consider that one of the most significant factors when considering lending money. This is determined by the LTV (loan to value) factor or the ARV (after repair value) factors. Sometimes as much as 75% can be lent. Starting the assessment with value factors and collateral places personal financial history second on the list.

2. Financial considerations are heftier in conversations with traditional money lenders. In these cases, a loan will only be given with a credit score and debt-to-income ratio that is met and in line with the bank’s many standards. However, Arizona Private Hard Money Lenders can offer similar loans based on the value of your property, even if your credit score is not perfect. Because private lenders know they may possibly be taking a risk by lending the loan, their interest rates tend to be as high as 18 percent.

3. Flexibility and acceptance are two ways that the private lender relationship can be very individualized compared to a public lender. Standards are considered, but imperfect scores are not sure-fire rejections. A rejection from a bank is not the end-all-be-all, and should not be treated as such, because there are still other individuals who may be able to provide offers. The relationship between a private lender is much more transparent than one with a bank.

4. Private investors can act much faster than public investors. They tend to be able to get the process going within about a week, while private lenders can sometimes take over a month or more. Being on a time crunch is a major influence for fixer uppers, real estate investors, and individuals working to prevent a foreclosure.

Where to Find Arizona Private and Public Lenders

Traditional loan lenders tend to be public institutions like banks and credit unions, while alternative lenders are private investors. Sometimes a referral from the bank or other institution may even lead you to other lenders, as can many lists found on the internet based off of local or general searches for alternative lenders. It is important to be careful when considering Arizona Private Hard Money Lenders. Further research into the group will let you know whether or not you want to be conducting business with them, as will a thorough read of their interest rates, fees and terms. Having a real estate attorney involved in the initial is one way of validating the legitimacy of the lender, as well as gain any additional advice about your lending situation.

Closing Costs of Your Decision

The differences between private and public lenders are enough to provide options for people in various types of financial situations. Identifying your immediate needs, and the ways to best profit off of the loan, will help dictate which type of lender reaps the most benefits and leads to a successful borrow.



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