December 10, 2018
December 10, 2018


An ARIZONA SPEC LOAN is the term used for a loan on a speculative property. It falls under the umbrella of construction loans.

Investors require funding when it comes to speculative property. It is speculative because the property has not been built yet. The builder and investor are speculating they will sell the property and make a profit.

Typically, banks do not lend for speculation properties. Unlike banks, Arizona Hard Money Lenders are eager to fund such deals. Hard money lender’s loan periods are shorter and they are able to adjust to market conditions therefore gradually developing their loans to match market trends. Today’s market is low inventory and high demand. If your speculative project fits the requirements it is a perfect time to work with a hard money lender.


Choosing a hard money loan has many benefits. The loan isn’t paid in full until the construction is complete. During construction you will only be required pay interest only. The balance of the loan is done at the end of construction or the loan term. Arizona Hard Money Lenders have more flexible terms. Although, it will be necessary to provide your lender with all the specifics of your project—they have much more flexibility in terms of loan terms and guidelines than a traditional bank loan does. The lender will work the loan terms around the needs of the project.

Not only will a hard money lender be more flexible with the lending terms on a ARIZONA SPEC LOAN; they are more flexible with approval than traditional loans. Because a hard money loan is backed by assets, a borrower’s credit is not as important. While traditional lenders base approval on a borrower’s credit score and monthly income— a hard money lender bases the approval on the borrower’s hard assets. If the borrower defaults on the loan the lender will foreclose on the property.

There are some things investors must know when choosing to be involved in spec home financing.

Building on speculation requires that the investor has strong understanding of the local housing market. The spec home must sell after construction and the lender must feel confident about this before proceeding with approval. Some factors the investor must have thorough knowledge are:

1. The local job market

2. Housing prices in the area

3. Home absorption rate

4. Surrounding infrastructures and amenities

Spec houses are never guaranteed to sell. However, to receive funding the lender must be confident that the house has a high probability of being sold. They will not risk building a home that doesn’t meet the needs of the local buyers. The key is to be sure to make the home generic enough that it appeals to as many buyers as possible.

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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