A private money lender is the proverbial needle in the haystack

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August 13, 2020

A private money lender is the proverbial needle in the haystack

In the real estate field, it would seem. They are difficult to locate, but they are out there and might be the answer to your funding problems, making them worth the search particularly if you are having difficulty in conventional funding areas.

The real estate field has always interested you—in college you took electives from the business department and made high grades. Once out, you tried to get into buying and selling properties. However one really great land purchase turned sour when the buyer had to pull out at the last minute. You had just paid the hospital for what was termed a small surgical procedure, but the bill was anything but small. The end result was your not being able to make the payments when the deal fell through and the bank foreclosed.

That made it difficult to deal not only with banks, but conventional mortgage lenders as well. Being basically self-employed without what was defined as a steady income was another mark against you when it came to traditional funding. Despite your being on your feet again with no large debts to pay off, it seemed that the holes in your financial history were all the conventional lenders wanted to look at.

The answer was always no and after the latest appointment, you were thinking about just giving up the entire dream of owning your own business and handling the large projects that everyone else seemed to be making money off of. On the way out, you nodded politely to the secretary who had been friendly, bringing you a cold drink when you came in and chatting amiably while you waited.

She motioned you to her desk and said quietly, “You should try a private money lenderthey focus on other things besides a regular salary and a high credit rating. A lot of very respectable business people use hard funding.”

At that moment all you wanted to do was forget the whole thing, but you thanked her and went home to dinner and hopefully a good night’s sleep. The next morning, with no appointments scheduled, you checked into this funding area. It was a pleasant surprise finding out that hard money often covered a wide range of loans from business-only funding and commercial lending to rehab and bridge loans.

Further research showed that private money lenders arranged their funding using secured loans, concentrating on properties that could be bought, renovated and sold as quickly as possible following the needed work. Called by most a ‘fix and flip’ loan, the collateral involved kept the lender from losing the money invested if the borrower couldn’t pay back the loan due to illness, death or whatever other reason. When done correctly, this aided both borrower and lender. A fee, negotiable in most instances, was normally charged to the client by the financier.

Most of these type lenders, the general info section said, are called relationship-based investors since they can be a friend, relative or someone in the field that you know. Further reading pointed you to corporations whose business it was to set up these type loans. The average time seemed to be a year for repaying with small mostly interest payments and the principal remainder being due at the end of the time allowed.

Is a private money lender what you need?

Do the research and find out both the negative and positive aspects involved. That dream you had could be a reality very soon.

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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