Documents Needed For Fix and Flip Loans in Arizona
January 4, 2019
Qualifying for Fix and Flip Loans in Arizona
January 4, 2019


Fix and flipping houses can provide great income—whether you are flipping part-time or full-time. Is what they say true—it takes money to make money?

How much money does an investor need to fix and flip a house using a hard money loan? Each lender has different terms and conditions. Some lenders will finance the purchase and renovation with no money down—others will approve up to 75% of LTV. Usually, it is experienced investors that are approved for 100% financing.

A Arizona Hard Money Lender wants to make sure the fix and flip will be profitable. Be prepared to have 20% of the purchase price for repairs and down payments—there are lenders that require less, but it’s better to be prepared.

Occasionally, a Arizona Hard Money Lender will finance 100% with a new investor if the borrower agrees to share 50% of the profit. This is a smart business move for someone new to fix and flips.


Banks are very reserved the it comes to fix and flip loans. It’s too risky for most lenders which leaves entrepreneurs lost on where to get financed. Most fix and flip loans are hard money loans. These are short-term, higher interest loans. They are asset-based loans that are backed by the property. One of the main challenges, when dealing with a bank, is the time it takes to close then loan. There are extensive loan applications to fill out, then you wait while they review your application—most likely you will need to give additional information and fill out additional forms and documentation. This process typically takes around 60 days—sometimes up to 90 days. Unlike banks, Arizona Hard Money Lenders can pre approve a fix and flip loan within 2 to 3 days.

Traditional lenders decisions are based off your ability to repay the loan—they figure this by calculating a debt to income ratio. A debt to income ratio is how much you make each month compared to monthly loan payments. Your credit score weighs heavily on the decision, as well. Banks look at your credit score to gain an understanding of your commitment to pay back debts. Arizona Hard Money Lenders look at your financial history, but because these are asset-based loans they are looking at the property as collateral. In the chance of a borrower defaulting on a loan, the lender can foreclose on the property and sell it for repayment.

Banks prefer to make loans on property that is in good condition. For example, traditional lenders require having mold inspections conducted. You will need to have any problems fixed before being approved because if not, the value of the property decreases tremendously. However, a Arizona Hard Money Lender expects that the fix and flip will not be up to par, which is why the renovations of the property will be included in the loan. Lenders often allow interest only payments for the life of the loan and rarely have a prepayment penalty.

House flipping can provide a generous income and potential to change your career.

Arizona Hard Money Lenders are the best source for fix and flip loans. They require less paperwork, will give you a decision within a few days and are flexible with their loan terms.

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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