How to Get a Small Business Loan in 4 Easy Steps

Entrepreneurs usually need to finance a new business. However, clinching the funding can be quite the task. Here are 4 easy steps to get your business loan.

1. Ask yourself why you need the money? Is it for start up costs, managing daily expenses, bringing on new employees or to grow your current business? You will need to decipher the reason for your loan.

2. Find out what you qualify for. Finding out your credit score is a huge factor that will determine which loans you may be approved for—there is no sense applying for a loan that you will be denied. You can get your free credit report from Equifax, Experian and TransUnion once a year; and you can also downloads apps such as Credit Karma that will update you daily. Traditional banks want a borrowers credit above 680. In addition to your FICO score lenders will want to know how long you have been in business or if you are a start up business.

3. Gather your documents. Regardless of the lender you choose, you will need to have your documents gathered for the application process. Generally, the documents will be the same for all lenders: business and personal tax returns, business and personal bank statements, business financial statements and all legal documents (articles of incorporation, franchise agreement, etc.).

4. Determine the best lender. Once you decide the type of lender that is best for you—you will want to compare a few options based on annual percentage rate and terms. You have choices when it comes to the type of lenders; you can choose from banks, micro lenders and hard money lenders.

THINGS TO CONSIDER WHEN CHOOSING A HARD MONEY LENDER

BANKS: A traditional bank will provide a small business loan that ranges from about $5,000 to %5 million. The average loan size is right around $370,000. You will need to prove you have collateral, good credit and you will not need the cash quickly. Getting funded takes longer than other options— typically about 6 month. The positive in a bank loan is you will receive the lowest APR option.

MICRO LENDERS: Micro lending are nonprofits that lend short-term loans in smaller amounts—typically less than $50,000. Micro lenders are lenders have more of an interest in development versus earning a profit. Their main goal is to help entrepreneurs who do not have the qualifications for a traditional bank loan. They usually provide training to teach the lenders how to run a business. Because, traditional loans are not approved easily without stellar credit and a cash reserve. A micro lender may be an avenue to explore as long as you do not mind taking required trainings and having a lender “lead” you to success—also, this funding is a smaller amount than other options.

HARD MONEY LENDERS: Hard money lenders usually do not have a required minimum FICO score. Therefore, this can suit an entrepreneur with fair or poor credit. Hard money lenders lend off of hard assets (real estate) not credit. When it comes to hard money loans. You are using your business’s commercial real estate as collateral. The loan you receive will be heavily based by the collateral you have to offer. Typically, hard money lenders are smaller lending organizations that believe in the value of taking on risky deals.

There is a small business loan for every borrower. It is important you look at your credit, your business projections, your assets and what you can realistically pay back monthly.

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 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 and 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
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Red Flags To Avoid When Seeking Arizona Hard Money Lenders

(Selecting potential Arizona Hard Money Lenders can be a challenging process. It is very important to know and avoid certain lenders who raise the following red flags.)

Because Arizona Hard Money Lenders are private individuals or small groups, it can be hard to evaluate them and separate the honest lenders from the scam artists. But this is a critical process that must be carefully completed before requesting a hard money loan. Knowing a few of the most common red flags that could appear during your evaluation process could save you a lot of time and money in the future.

Arizona Hard Money Lenders are in business to make money. And the only way that a legitimate lender can make money is by providing loans. If you are having a hard time getting a private lender to return your calls or respond to your email, then chances are, you want to eliminate this lender from your list. Honest Arizona Hard Money Lenders are eager to respond to and work with new clients. And any lender who is not active in responding and providing information is not trying to run a legitimate business.

Another red flag has to do with communication, but not a complete lack of contact or communication. You might find a lender who is eager to take your call and talk for hours about all that he or she has to offer you. But when you request that information in writing or send a question via email, the only responses come verbally. This is a tactic to avoid putting any promises, fee structure or details in writing so that the lender can overcharge you or simply disappear with your processing fees and possibly your personal identity information. Any reputable lender will be completely transparent and will gladly provide all of the written documentation that you request.

Large Upfront Fees

It is not unusual for lenders to request an appraisal fee up front as that is needed to determine the value of the collateral. But lenders who are requesting large application fees or processing fees for the application could be a scam that will disappear once you pay the fees. As soon as you learn of substantial upfront fees, you should begin to explore references and seek information about previous projects and previous loans which the lender has funded to determine if they are really a legitimate lender or a fee scam artist.

Be Attentive And Realistic

Using a private lender is no different than selecting any other service provider. During the evaluation process, you need to pay attention to the level of service and the time it takes to get a response. Also take note if the lender avoids answering certain questions about the process, the fees or the business in general. These can be signs that at the very least the lender has something to hide. And in the worst cases, the person is not even a legitimate lender and is just trying to scam you out of fees and possibly personal information. Be realistic and only work with the lenders who freely offer information and are willing to provide it to you in writing.



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

Regulations of Vacation Home Loans

You have finally figured out how to get that lake house you have dreamt of for years. You can rent it out when you are not using it—genius idea! But, hold on because traditional lender rules may not allow that deal to come true.

The first thing you must know is there are different mortgages to finance a vacation home and each of these mortgages have their own set of rules. There are three main mortgages: primary residence loans, second-home loans and non-owner occupied loans.

A primary residence loan is where a borrower will find the lowest mortgage rates. After living in the house for at least one year you are legally free to rent out the home as an airbnb. A second-home loan has the same rates as primary residence loans; however, down payments will be larger. On the average lenders require 20-25%. Finally, non-owner occupied loans, which are also called rental property loans. These loans will run you about .35 percent higher than primary and secondary home rates and your down payment will typically be 30-35%. With a non-owner occupied loan you will be allowed to rent it out and also to use it when it’s not being rented.

When you take a loan for an airbnb, there is a document titled the note. The note will have all the information about the “cans” and “can’ts” of your loan. This will include everything from the loan rate to any additional requirements of the loan. This is where you will find, in a second-home mortgage, that says you can not rent out the home. If you do not follow these laid out rules you will be found in default of the loan.

MAKE SURE YOU TAKE OUT THE RIGHT LOAN FOR AN AIRBNB

Many people are choosing to invest in vacation properties. If the property is near a popular tourist destination it is very possible that the entirety of the mortgage can be paid solely from renting the property out. Airbnb is taking over hotels. Why would people pay the same amount for a hotel room when they can have an entire condo for close to the same price? It’s a brilliant idea to buy a vacation home and have the mortgage paid by tourists. Unfortunately, financing the purchase of vacation real estate can be quite the challenge. Typically, lenders don’t lend large loans on vacation rentals because they are considered investment properties. The problem lies in that banks have no reliable source of data for the vacancy rates on a vacation rental property. Add on that appraisers don’t use short-term rental rates when looking at rental or vacation properties. What that means to a potential buyer is that these properties are undervalued in their potential generation of income. Therefore, banks are not confident on a borrower’s ability to pay the mortgage on said property.

Help with getting a loan for an Airbnb in Arizona

This is where a hard money loan comes into play. These investors know the market is out there and believe a profit can be made. Hard money investors do not base your ability to pay back the loan on your debt-to-ratio or your credit. These loans are based on a borrower’s assets. They are asset based loans. You can find them as low as 7% interest and your investor will work with you closely on loan terms. Remember, where there is a dream, there is a way. See a hard money investor to explore the options that are available to 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 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 and 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
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What To Look For In Arizona Hard Money Lenders

(It can be difficult to evaluate Arizona Hard Money Lenders if you are not an experienced borrower. But having a few tips to evaluate potential lenders can make the process less daunting.)

Unfortunately, not all Arizona Hard Money Lenders are working to provide borrowers with a legitimate option to a traditional loan. There are some who will take advantage of a borrower with bad credit or no credit as well as an investor who is in need of fast funding. But using the following four tips can help you to better evaluate potential lenders and find the one who is best able to meet your needs.

One of the first questions that you will want to ask a private lender is about the turnaround time on funding a loan. The last thing that you want to do is be forced to wait for weeks while the lender accesses funds for you. It is sometimes difficult to be sure that private lenders are providing accurate information, so it is always best to request all of the answers to your questions in writing. Email questions so that you have documented responses in the event of any issues as the process moves forward.

After determining that the lender is able to fund in a reasonable amount of time, the cost of the loan is your next concern. Arizona Hard Money Lenders will generally charge an interest rate somewhere between 10% and 15% based on the perceived risk involved in the loan. This means that a good credit score and solid financial history can secure a better interest rate. The amount of your down payment can also have some impact on the interest rate as a larger down payment will create more instant equity in the property.

Be Sure The Lender is Legit

Although Arizona Hard Money Lenders are not governed by the same rules as banks and mortgage companies, they are required to follow numerous regulations. These include their business practices as well as the insurance that they must carry. Be certain that your lender or any potential lenders that you are considering are licensed, bonded and insured for your own protection.

Get References

You should always ask a potential lender for a list of references. If the lender is shy about providing this list then you should reconsider working with him or her. This is a sure sign that the lender has little or no experience or that he has no satisfied clients who are willing to speak to potential borrowers. Either way that is a serious red flag. Even when the lender does provide a list of references, understand that these are the clients who have had the perfect borrowing experience and are possibly real estate investors who bring a lot of repeat business to the lender. Take their information with a grain of salt. And take the time to check out the BBB and other Internet resources to see what borrowers are saying about the lender. This will give you an honest evaluation of the lender and his or her lending process. With all of this information, you can make a well-informed choice about who to use for your private lending needs.



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

5 Tips When Getting Hard Money Loans

(Applying for a loan always feels a little stressful. But following these five tips can help to ensure success when applying for Hard Money Loans in Texas.)

Arizona Hard Money Loans are a great financial tool for funding a fix and flip project, a new construction, a move to a new house prior to the sale of your current house or even a new business startup. But even with the streamlined application and approval process of hard money, having a few tips when preparing for your loan application can provide a great deal of peace of mind.

It might seem odd at first, but being liquid when you are asking for a loan is very helpful. Obviously, you do not have the money saved to make the purchase of the property, but it is important that you have money available for contingencies such as additional damage or repairs needed or a time overrun causing you to carry the loan for longer than expected. In addition, this cash will be needed to make the down payment and pay any upfront costs for the loan such as appraisal fees.

It is also important that you understand that private lenders are going to charge a higher interest rate than a traditional lender. Knowing this can help to avoid a surprise as you review the loan offer. In addition, as you prepare to seek hard money, you should know that even though a high credit score is not mandatory, it can help you get a better interest rate. Lenders view a higher credit score as a more financially responsible borrower and as such, they represent a lower risk and are rewarded with lower interest rates.

Loan To Value

The loan to value ratio is what will determine how much money you can receive when requesting Hard Money Loans in Texas. Basically, this means that the loan is only going to be for a specified percentage of the value of the collateral. Most lenders will offer a 70% LTV but others will go as high as 80%. Your credit score and cash reserve can be a factor in this determination as well. Most lenders are open to some negotiation in this area when the borrower demonstrated stale finances.

Plan For Success

Having an exit strategy is also an important step in the planning phase. This is basically how you plan to get the money to repay the loan. Your first choice would be to sell the property when the renovation is completed. But in the event that it does not sell quickly, it is wise to have a backup plan such as renting the property until it sells or offering a rent to own. And finally, don’t limit your options to a single lender. It is always smart to have a few choices when selecting any service provider. Arizona Hard Money Loans are simply a tool that is being provided by a service provider, a lender, and should be compared to ensure that you get the best 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 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

Who Are Hard Money Lenders?

(Most of the world is not familiar with the concept of hard money lending or who Arizona Hard Money Lenders are. But a basic understanding can help to clarify the process, the benefits and the lenders.)

Arizona Hard Money Loans are also known by many different names such as bridge loans, short-term loans, and asset-based loans. And all of these names describe the same loan. These short-term loans are also considered to be non-traditional loans simply because they are provided by a private lender and not a bank or mortgage company which is also called a traditional lender. The key point or factor in this loan is that it is funded by a private lender. These lenders are called Arizona Hard Money Lenders.

The term can refer to a single private lender or a group of private individuals who work together to provide private loans. But these loans are never funded by a lending institution. One of the greatest benefits to borrowers is the simplified process of working with the private lender as opposed to the complicated process of applying and qualifying for a traditional loan. The lender will evaluate the request for a loan based almost solely on the value of the collateral being offered to secure the loan. This makes the process much faster and less stressful for both the borrower and the lender.

In addition to being easier and faster to work with a private lender, it is not uncommon for Arizona Hard Money Lenders to be very willing to work with borrowers to create customized loan terms. These terms can include a specific length of term for the loan, a custom payment schedule or even a lower interest rate when a large down payment is made on the property. This creates greater instant equity in the property and provides added security to the lender making a lower interest rate a possibility.

Finding A Hard Money Lender

If you are new to the process of hard money lending, then it can be best to select a local lender. This will allow for face to face meetings and ample ability to discuss and understand the process and your responsibilities as the borrower. An Internet search for private lenders or Arizona Hard Money Lenders in my area will provide a starting point. Then, a few quick phone calls can help to narrow your search.

What To Ask Potential Lenders

As you narrow your search for a private lender, it can be helpful to pose the same questions to all potential lenders. Asking about a full list of fees for all loans and well as a range for interest rates is always important. Knowing the cost is a major factor in selecting a lender. Also, ask for specifics on the projects that the lenders specialize in and their willingness to meet in person to work on your loan. Having this information will help you to evaluate potential lenders and select one who can best meet your needs for your current project and possibly even as a long-term lending associate.



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

Why 100% LTV Financing in Arizona Is Hard to Get

100% LTV Financing in Arizona is not impossible to get, but it can be challenging.

Hard money lenders are typically disinclined to approve 100% financing on a deal. It is unsettling, to most lenders, when a borrower requires 100% financing. There are 3 main reasons that most lenders won’t approve 100% financing.

1. The borrower has no experience in real estate or hard money: Not having any experience in hard money loans or real estate increases the chances that the borrower will make a mistake and this will cause both the lender and the borrower to lose both time and money.

2. The borrower isn’t financially solid: When a borrower asks for 100% financing it casts doubt on their financial situation. This can cause the lender concern about the loan being repaid. Typically, lenders feel that a borrower who isn’t risking any of their own money has very little skin in the game; and that is not a risk most lenders want to take.

3. The borrower won’t assume risk on the deal: When a borrower requests 100% LTV Financing in Arizona and therefore has no equity into an investment, it makes sense that lenders feel it would be easy for the borrower to walk away from the property, leaving the lender fully responsible for any potential losses.

100% financing is rare in commercial real estate deals. You will see it more in residential investing; and even more commonly you will see it in fix-and-flip deals. A lender is more likely to finance 100% of the project if it is a short-term deal with a clear predetermined strategy. Most lenders that finance an entire purchase will only do so for experienced real estate investors. A borrower that is new to the game will have a much more difficult time finding complete financing.

INEXPERIENCED BORROWERS NEED SKIN IN THE GAME

When it comes to investments you will always take it more seriously if you have some skin in the game. It’s a little like being a kid; remember, wanting new shoes, or a video game, or a remote-control plane? You would ask your mom or dad and they would say, “yes.” More than likely once the excitement settled down you would toss it wherever the “toys of yesterday” lived. But, remember saving your money and buying that same toy? I’m willing to bet you took better care of it. It is human nature to take care of things better if you have invested in them. If you have no money invested, it will always be easier to walk away.

What is cross collateral and how can it help you get 100% financing?

Cross Collateral is where the borrower allows the loan to be secured by equity in an additional property. Hard money loans are always backed by real estate. In cross collateral there is more than one property and at least one of the properties are free and clear—meaning the owner owes nothing on the property.

Let’s say you find a property you want to purchase for $200,000. You want to purchase this price, but don’t want to put money down on it. You also have a property that is appraised at $175,000 and is paid off. You will find lenders that will give you the $200,000 because the property you own free and clear plus the new property are enough collateral to pay back the loan if you default on the terms of the loan. That is cross collateral—and that is what you will most likely need if you are an inexperienced investor looking for 100% financing.

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 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 and 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
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Understanding The Terms for Arizona Hard Money Loans

(Arizona Hard Money Loans might sound a little shady until you learn what they are designed to offer and the terms for these loans. With this information you can decide if hard money is the solution you have been looking for.)

For the most part, Arizona Hard Money Loans are short-term loans which require interest-only payments until the end of the loan term. This might sound too good to be true, but this is a very basic explanation of how these loans work. What is also important to know is that the interest rate on these privately funded loans is over 10% and can be as high as 15% or more in some cases. But if you are willing to pay that higher interest rate, then hard money will offer you some benefit that will never accompany a traditional loan.

Being funded by a private lender eliminates the process of your loan application going to an underwriting department for an evaluation and potential approval. The lender is the person who will decide the merits or your request and whether or not the loan will be approved and funded. In addition, you have the opportunity to work with the lender to agree to mutually beneficial terms in many cases. These negotiable points can include the payment schedule, how the fees are charged and what the fee structure will be and even to some extent the length of the loan.

A basic definition of a short-term loan is one year but there are cases where a lender will carry the note for up to three years. In other cases, the loan could be as short as six months. It is always important to request that the lender note in the loan documents that there is no penalty for early repayment of the loan.

Fees and Rates

Most lenders will evaluate each request based on the merits of the project and the potential for success. If the project appears to be riskier, then the interest rate will be higher as will the points on the loan. Higher interest rates can also be expected if the borrower has an unstable financial history. But all of these points can be negotiated with the lender unlike with a traditional bank. Borrowers could offer to increase their down payment amount to secure a slightly lower interest rate. This is appealing to the lender as it increases the instant equity in the project and adds security to Hard Money Loans in Texas.

Qualifying for Hard Money Loans in Texas

Each lender could have a slightly different list of documents that he or she requires for a loan application, but there are some items that are likely to be requested. These include a few personal bank statements, the purchase contract for the property, a contractor bid and scope of work for the project, and a list of the borrowers past projects. All of this information will help to determine the potential for success or failure of the project. The lender will also want to know that the borrower has the cash or other means to cover the down payment on the property and the costs and fees for the loan and the purchase transaction. With a basic understanding of the terms of hard money, you can decide if this could be a good option for your next real estate investment purchase.



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

5 Reasons To Use Hard Money Loans

(Arizona Hard Money Loans are a very useful financial tool for many borrowers. And there are several reasons that hard money can be a great option.)

As soon as a person begins to research Hard Money Loans in Texas, the first bit of information to jump out is that the interest rate is higher than that of a traditional loan. Current hard money interest rates are somewhere between 10 and 15% for most borrowers. But paying the higher interest rate is a much better choice than missing an opportunity in most cases. Arizona Hard Money Loans are not just for people with poor credit, though they are a viable option for them. Many other borrowers choose to use hard money for its other benefits.

Hard money is funded by a private lender so one of the biggest benefits to borrowers who are real estate investors is the speed for approval and funding. The process is much faster because the lender is primarily interested in the value of the collateral and not the credit history of the borrower or his or her current credit score. The property evaluation will be used to determine the amount that the lender is willing to loan the borrower. The loan to value rate is almost always around 70%, meaning that the borrower can request a loan for 70% of the property value and no more. This process is fast and simple making hard money a viable option for a fast deal.

Arizona Hard Money Lenders are also much more flexible than the large banks and mortgage companies. There is no underwriting department who sets the terms for the loan. The borrower and the lender can sit down and agree to terms that are mutually beneficial. This can include the length of the loan, the repayment schedule and even the fees and other costs associated with the loan. In some cases, the lender will even lower the interest rate if the loan to value ratio is lower than 70% as there is more instant equity in the property. All of this flexibility can make a private lender a very valuable resource.

Easy Approval

Many borrowers fail to qualify for a traditional loan due to bad credit or even a high debt to income ratio. And in some cases, this is a sign of financial instability. But for a real estate investor, it is not unusual to be carrying multiple loans for multiple projects. Traditional lenders have no way of accounting for the types of debt being carried to offer these investors and exception. However, Arizona Hard Money Lenders will overlook this in many cases.

Multiple Benefits

Arizona Hard Money Loans offer many benefits to meet a variety of borrower’s needs. The flexibility to customize loan terms, the fast approval and funding and the less stringent personal credit qualifications help many consumers and real estate investors who need to borrow money. Private lenders are very willing to work with most borrowers and will evaluate requests to determine what they feel is a fair interest rate and cost for the loan being requested.



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.
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Top 5 Criteria Needed To Secure Hard Money Loans

(Arizona Hard Money Loans have different qualifications than traditional loans. But these few tips can explain what you need to secure a hard money loan.)

Because Arizona Hard Money Loans are asset-based loans, the collateral for the loan is the primary concern of the lender. But he or she is also very interested in the borrower’s ability to make the loan payments and his or her ability to manage the project to a successful completion. This might sound like a lot to ask someone to include in a loan application packet, but it is really far less complicated than a traditional loan application.

The borrower’s ability to repay a substantial loan is obviously important to the lender. For this reason, many lenders will ask to see two years of tax returns as well as a personal financial statement. This demonstrates long-term income as well as the borrower’s current debt to income ratio. Both of these will help the lender determine the borrower’s ability to repay the loan as well as overall financial stability. The more stable the borrower’s finances, the better the interest rate is likely to be on Hard Money Loans in Texas.

The property resale value is the third critical piece of information that the lender will examine to determine if the request will be approved. In the case of a fix and flip, this will mean estimating the property value after the repairs and renovations are completed. In addition, the lender will want to know an estimated cost for the repairs to know that the property will still turn a profit and allow the borrower the ability to repay the loan.

The Borrower’s Experience

Having a borrower who has experience in fix and flip projects, rental property management or other real estate investments will provide the lender with greater confidence in the successful outcome of the project. Managing these types of projects requires skill and experience to avoid making costly mistakes. When the project is not managed correctly, time and money are lost making it far more difficult for the borrower to repay the loan. The lender wants to recover his or her investment in cash and not be forced to take possession of the collateral to recover his or her investment.

Have A Plan

Organization and professionalism are both very important when seeking hard money loans. The loan application packet will be the first tool to demonstrate a well-planned project. Not only should this packet include information about the borrower and his or her company, but it should also provide lengthy details about the project. Include the building plans and renovations, a cost estimate for renovations and the necessary timeline for the completion of the renovations. It is also helpful to demonstrate that there are contingencies in place in the event of a cost overrun for additional issues with the property or a slower than expected sale when that project is completed. All of this information is important when determining the profitability of a property and should be completed before making a purchase even if the lender does not ask to see the documents. But including this information can help to secure a more favorable interest rate or other loan terms.



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