What you Need to Know About Arizona Hard Money Loans

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February 16, 2020

What you Need to Know About Arizona Hard Money Loans

Real estate investors turn to Arizona Hard Money Loans for a variety of projects. For your best chance of approval, understand what these types of lenders are looking for before seeking your real estate loan.

Real Estate investors are always on the hunt for the best investments in real estate. Once you have located the property, financing the property is the next challenge faced by both professional and beginners. Rarely does the buyer have the money set aside to purchase the property. To cover the costs associated with the rental property, the buyer looks at loans to cover the costs. When making the decision to use a hard money lender, due diligence and investigation into lending options would be prudent.

So, just what are hard money loans? Arizona Hard Money Loans are secured by the real estate and are short term in nature. Rather than the creditworthiness of the borrower, the loan is backed by the value of the real estate. Expect higher interest rates than conventional loans with terms that are one to five years. Private investors fund hard money loans.

Just when do real estate investors turn to hard money loans? There are a few situations that you, as an investor, will look to use these types of loans, such as a turnaround situation, short term financing, and if you have poor credit and, at the same time, enough equity in your property that will make up for your credit challenges.

Arizona Hard Money Lenders

Arizona Hard Money Lenders differ from each other in several aspects. For instance, there are specific concepts as well as real estate segments that they focus on. First, the borrower is looked at in such areas as the underlying asset and risk of loss, the strength of the borrower, the business plan the borrower presents, and repayment of the loan by the borrower. The lenders will examine the property, looking at aspects such as the current value of the property, does the property need to be improved, and the value of the property after the improvement occurs. In case the borrower defaults, just how easy will foreclosing on the property be? This includes the liquidity of the market that the property is located in as well as the demographics and potential growth opportunities.

Arizona Hard Money Lenders turn you down for a variety of reasons. It’s good to stack the cards in your favor by understanding just what your particular lender specializes in and what they consider a good investment.

Going to a hard money lender is not a guarantee of approval. Some of the reasons a hard money lender would not be interested in the loan include the property falling outside of the lender’s parameters, the borrower falling outside the qualifications for the loan, or a lender that does not have sufficient capital to meet the loan amount the borrower needs. Tenaciousness is what is needed when searching for the financing for an investment property. If you get turned down, pick yourself up and keep searching. Real Estate investing is considered a tough game. If you choose the hard money loan avenue, they are considered riskier than conventional loans. You will need to a risk taker; if you are not a risk taker, then you may want to consider another investment avenue. You also will need to consider different ways to finance a rental property.



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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