How to Use a Bridge Loan to Invest in Real Estate

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How to Use a Bridge Loan to Invest in Real Estate

Just like their namesake, Arizona Bridge Loans are designed to safely get you where you’re going, often over troubled waters. But how exactly do they work and how can you get one? Here’s what you need to know.

First, what are they? They’re a temporary infusion of funds to get you where you need to go until you can secure more permanent funding. For instance, let’s say you’ve purchased a flip and you’re waiting for funds to make repairs and do improvements. An Arizona Bridge Loan can help you get started while you wait for other funding. After all, the real estate game is all about timing; the faster you start on renovations, the faster you can get the home or commercial property sold and turn a profit.

There are two types: ones done by conventional banks and credit unions and ones done by private, accredited lenders. Which style works best for you?

Choosing the Right Arizona Bridge Loan for Your Situation

If you go with a traditional loan from a bank, you’ll probably get fairly low rates. However, there are a number of qualifications that many real estate investors can’t possibly meet. Banks will analyze your financial history, your current situation, and your future prospects ad nauseam. They’ll make sure your credit score falls within their acceptable range; they’ll dig deep into your past, and they’ll check out your bank account and other assets to determine if you’re too much of a risk.

If you do fit into their box and you’re approved, funding may take a while to come through and your loan fees can add up to thousands of dollars, even on small loans.

Conversely, you can go with a hard money lender. Their rates will typically be higher than a bank. However, there are a variety of reasons many investors prefer to go this route. The biggest one is this: Arizona Hard Money Loans are secured by collateral. This means that, for the hard money lender, things like lower credit scores, previous short sales, and less healthy bank account balances don’t carry as much weight.

Securing a Hard Money Arizona Bridge Loan

The funds for a hard money Arizona Bridge Loan comes from private sources, so there’s no complicated underwriting, no debilitating red tape, and no guidelines that are set in stone. In other words, you and your broker can sit down, talk about your unique situation, and work out terms and rates that make sense for both of you.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
Dennis Dahlberg


Level 4 Funding LLC 
Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

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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