Arizona Rehab Loans
Over $40,000,000 Funded
Residental Hard Money Rates from 7.99% APR*
Commercial Loans Rates from LIBOR+350*
Loan Value UP to 90%*
1st and 2nd Position Cash Out Financing
Purchase Your Next Rental or Investment Home
If You Are Not Using Level 4 Funding
You Are Paying Way Too Much
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No More Begging, No Jumping Through Hoops
No Tax Returns, No Pay Stubs or No Credit Required
No UP Front Fees - No Junk Fees
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We Specialize in Arizona Hard Money Lenders
• No More Begging
• No Jumping Through Hoops
• No Tax Returns
• No Pay Stubs*
• No Credit Required
• No Up Front Fees or Junk Fees
• Flexible Terms From 3 to 60 Months
• Fixed Rate From 7.99% APR*
• Up to 85% As-Is Value, 100% of Rehab Costs
• Commercial/Construction Loans
• Business Loans/Fix&Fip Loans
Arizona Hard Money Lenders - Just Funded
Do What Everyone Else Is Doing Start Making Money
If Your’re Not Using Level 4 Funding
You Are Paying Way To Much
“Top notch loan broker. who was awesome, quick, prompt, and most importantly, delivered. I would say don't even waste your time with another broker - these folks get the deal done, period. As a lawyer, they have helped me and many of my clients with a can-do attitude, and professionalism that is unmatched. A definite recommendation.”
“I was working with a hard money lender (OF) for the past ten days. 24 hours before my loan was supposed to close they called me and told me they were lowering my loan amount by 15%. I called Mark G at Level 4 Funding and told him the situation. If you want work with someone honest and professional call Level 4 Funding today.”
“After hearing, the good things about this company, I think they are on top of their game. I will keep recommending people I know in Arizona to level 4 Funding.”
Top 3 Ways NOT to Spend Your Arizona Rehab Loan
In today’s market, fix-and-flip ROI really comes down to smart fiscal management of the overall project and the types of repairs you spend your Arizona Rehab Loan on. Learn which repairs are losers to avoid pouring money into them.
1. Sunrooms, Four Seasons Rooms & Patios: Particularly in warmer climates seen across the sun belt, it would seem like ways to increase outdoor living space would be a great investment. While it’s true that people generally love outdoor living spaces, they’re not willing to pay more for them. Research presented by Moneywise shows you’re only going to get 48-49% of the money you spend on one back when you sell the property. While curb appeal is still essential, creating it doesn’t need to involve costly renovations.
2. High-End Bathrooms: Generally speaking, bathrooms are a great way to invest a Arizona Rehab Loan. Buyers prioritize bathrooms and kitchens. They’re looking for things like newer fixtures and updated designs. The problem is, many rehabbers overdo it and create spaces that are too lavish for the home and area, and in doing so, only get about 56% of of their money back at sale. Chances are, you can forego things like whirlpool tubs now too. Although these were once the mark of quality on a home, buyers have come to realize they just don’t use them and it’s an extra space for them to clean. If you’ve got a choice between going with a large upgraded tub or a shower, it may be better to focus on the shower, but again, don’t overdo it so much that the upgrades are too “rich” for the property and neighborhood.
3. Lavish Entries: Again, curb appeal is important, and so many rehabbers will spend a fair amount of the budget on creating an entryway that makes people pause and want to check out the house. There are a couple of problems with this though. First, it sets the expectations for the rest of the house. If the entry is the high point, viewing the rest of the home is anticlimactic and sends people away disappointed. Secondly, although the additional curb appeal can create excitement, it doesn’t usually translate into higher bids. You might get about 68% of what you spent back. It’s generally better to focus on quality materials and a proper install, but not high-end upgrades.
Learn How to Make Money by Touring Other Homes in the Area
One trick of the trade is to visit lots of other homes in the area that are up for sale. You may be able to get a feel for them by using real estate websites, but it’s not quite the same as viewing properties in person. Make note of the materials and types of upgrades you see, so you can keep your renovations on par with neighborhood expectations and costs, thus maximizing your rehab loan and not spending money where it won’t help.
Get the advice of a home inspector or appraiser, especially on your first few projects.
You may be adept at assessing the ROI of individual projects, but can you spot signs of water damage, mold, or shoddy prior work? These things are routinely caught in inspections, and buyers will want them repaired prior to closing. If you haven’t addressed them as part of the renovations, they’ll eat away at what’s left of your Arizona Rehab Loan and may tank your overall returns. Always work with an expert until you have enough experience to spot these issues early in the game.
What Are Arizona Hard Money Lenders?
Arizona Hard Money Lenders are private lenders who fund loans without the use of a bank or mortgage company. Unlike traditional loans hard money is secured by an asset rather than the borrower’s personal credit.
Arizona Hard Money Lenders are either private individuals or private business groups who loan borrowers funds for short-term loans. The biggest benefit of these private lenders is that the loan approval is based on the value of the property being used as collateral for the loan rather than the creditworthiness of the borrower. This opens up a great opportunity for borrowers who cannot meet the stringent loan qualifications of traditional banks and mortgage companies.
The term of most Texas Hard Money Loans is less than five years, making these loans perfect for real estate investors. The recent craze with property flipping has primarily been funded by Arizona Hard Money Lenders as they offer a simple application process and a fast turnaround on the approval and finding. Many banks can take up to several months to approve a loan application but Arizona Hard Money Lenders can approve and fund many loans in just about a week.
In addition to the fast funding, borrowers who have less than perfect credit look to hard money as a viable option for their funding needs. Being asset-based rather than credit based, many more borrowers can qualify for hard money. And because of their limited options for borrowing, they are willing to pay the higher rates charged for the hard money. In the end, it works out well for both parties involved as the lenders are being paid a higher interest rate for the increased risk of a borrower with a low credit score and the borrower has a resource that is less demanding than a bank.
Uses Of Arizona Hard Money
The first real estate deal that most consumers think of when hard money is mentioned is a fix and flip. These are very popular but there are other used for hard money as well. Homeowners who are facing a foreclosure but have strong equity in their home can use hard money to pay off the original mortgage and avoid losing their home. This allows the homeowner the choice of remaining in the home and finding a traditional mortgage to pay off the hard money loan or selling the home at a fair price and paying off the loan. The second option is far better than the foreclosure as the homeowner will keep any profit rather than turning it over to the mortgage company in the foreclosure.
Pros and Cons of Arizona Hard Money Lenders
There are pros and cons to every type of loan and even to every lender. Before selecting a hard money loan, it is important to do your research and find the lender who offers the terms and services that you need at the best rate. Easy applications, fast funding and lower credit requirements are all great but realize that these benefits come at a price that you must be willing to pay to use a lenders money.
Do Arizona Hard Money Loans Work for Cash-Only/ As-Is Deals?
As you begin searching for your initial fix-and-flip deals, you’ll see quite a few ads that implicitly say the seller only accepts cash or that the property is being sold as-is. Generally speaking, Arizona hard money loans (HMLs) work well in these situations, though it’s important to consider the methodology behind the verbiage.
There are many reasons why sellers will list a property as-is or denote it’s a cash-only sale. Usually, it’s one of the following:
- The property is in such ill repair that a bank won’t finance it. Oftentimes, the seller will mention that the home is “damaged.”
- The seller needs to be free of the property quickly and can’t wait for someone to get approval. If this is the case, the listing may mention it is a “distressed” property.
- The price or the value is too low for the property to qualify for a traditional mortgage.
In short, none of these situations really means that the seller requires you to have cash sitting around, but rather, the seller knows you aren’t going to get traditional financing and they don’t want to be bothered with offers that are contingent upon it. They don’t care whether your cash comes from your savings, if you borrowed it from family and friends, or if you’ve obtained an Arizona hard money loans; only that the sale won’t get held up by a bank.
Cash vs. HMLs: Which is Right for You?
There are benefits to going with cash when you can and there are benefits to leveraging Arizona hard money loans as well. If you’re using your own cash, then you’ll obviously have it tied up in the project for the duration, which can be problematic if you run into issues or come across another great investment opportunity while your money is already in use. However, if you have enough to cover it and feel confident you won’t need it, going with your own cash can be the cheapest way to fund a project. Borrowing from friends and family works along the same lines, but you’ll naturally have to be mindful of the repayment terms to avoid causing any issues. With an Arizona hard money loans, you do have to pay to borrow, but the fees can easily be paid for with profit when you manage a successful project.
Getting approval for cash-only properties is easy when you work with the right lenders.
If you’ve got a property in mind that’s listed as a cash-only or as-is sale, do your homework to ensure the purchase and rehab will be profitable. Spend time getting to know the property, what it has been appraised at, what challenges you’ll face when doing upgrades and repairs, and what similar homes in the area are selling for. Then, check with a broker to find out what terms you qualify for before approaching the seller. Armed with information and an approval in your back pocket, most sellers will jump at a fair offer, and perhaps even a low offer, regardless of whether your cash is coming from an HML or your personal bank account.
Meet The Broker
Dennis Dahlberg Dennis brings with him substantial experience in residential real estate. Dennis has extensive experience about purchasing, renting and selling numerous homes over the past 40 years. His first purchase was a property in California when he was 18 years old.
Dennis holds a Bachelor of Science in Business Administration from California State University with majors in Computer Science and Business Management.
He is an Licensed Mortgage Broker, Licensed Mortgage Originator, Licensed Real Estate Agent, Licensed Insurance Agent in Life /Health/ Property /Casualty Agent, Certified Sort Sales Specialists (CSS), Certified Negotiator (CNE), Certified Land Specialists, Certified Web/SEO Specialists, ATF Licensed Firearms/Explosives Specialists and FAA Licensed Private Pilot.
Married for 42 years with two girls and 5 grandchildren and an Arizona resident for the past 40 years. Licensed AZ MB 0923961, Licensed AZ MLO NMLS 1057378.