The Basics of Arizona Hard Money Loans

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The Basics of Arizona Hard Money Loans

(Understanding hard money loans and asset-based lending is important for all consumers. It might not work for everyone, but it is a good option to know about.)

As a consumer, you might only know about the more traditional types of lending such as a bank or mortgage company. But there are many other options available if you know where to look and understand how the loans work. Arizona Hard Money Loans are granted more on the merits or value of the collateral property than they are based on the borrower’s personal credit score. For this reason, Arizona Hard Money Loans are also sometimes referred to as asset-based loans. This might sound like a very unorthodox type of loan, but once you understand the purpose of these loans and how to use them most efficiently, you will discover that hard money has its place in the world of finance.

It is also important to know that hard money is not something that you can go to a bank and request. Hard money is funded by a private lender, rather than a traditional lending institution. The lender could be an individual or even a small group of people who work together to provide hard money to borrowers. The other important bit of information is that these loans are not long-term like a traditional 15 year or 30-year mortgage. Hard money is normally borrowed for a year or two at the most, but the terms of a loan can be as short as a few months depending on the needs of the borrower.

As you might have guessed, coming from a private lender and with a much shorter loan term than a traditional mortgage, these loans carry a higher cost. In most cases, the interest is several points higher than a bank loan and the fees for the loan can be more as well. But there are many benefits to using a private lender to secure an asset-based loan.

Benefits of Hard Money

There are three main benefits to hard money that make it worth the higher cost of the loan. Because you are working with a private lender and not a bank, the loan is processed in a fraction of the time of a traditional loan. Speed is a huge benefit to many borrowers. In addition, private lenders can be far more flexible than a bank when it comes to the terms of the loan. This is also a great benefit to many borrowers. And finally, having the loan approval based on the value of the collateral and not your personal credit score means that Arizona Hard Money Loans are easier for many people to secure.

Understand What You Are Signing

The most important part of any loan process is that you have a clear understanding of what you are signing and what is expected of you. Because asset-based loans can be customized, you need to verify all of the terms with your lender and be sure that you understand the total cost of the loan before you sign the loan agreement. Even though the loan is not from a bank, the loan agreement is a legally binding document.



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.

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