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Hard money in Arizona and soft money can be used to describe coins and paper money and money used in political campaigns. However, it can also have to do with loans.

A hard money loan is a specific asset-based loan through which the borrower receives funds that are secured by the value of real estate. Texas Hard Money Loans are typically issued by Arizona Hard Money Lenders or companies. Anything that refers. To “hard” refers to something tangible—in this case the tangible item is the property.

Many people have a negative connotation with the phrase “hard money.” They can’t seem to get past the higher interest rate. You have to realize that although Texas Hard Money Loans do have a higher interest rate, these are short-term loans. It is very possible that these loans may only be two to three months. So, it is very feasible that you may only pay a few hundred dollars in interest.


Arizona Hard Money Lenders are generally lending money on properties that require repairs. Other lenders, such as a bank, won’t lend money for these types of properties.

The money is much faster in regard to a hard money loan. A bank can easily take 60 to 90 days to close on a loan—whereas, a hard money loan typically closes in less than two weeks. All a lender really needs is an appraisal and a repair list—viola, it can close and you can claim the title.

Real estate investors who are working volume use hard money, because there is literally no other way to buy multiple properties to rehab. Generally lenders will lend 70% of ARV (after repair value). What that means is if a property costs $70,000, but will appraise for $125,000 after repairs are made—the hard money lender will lend 70% of $125,000—which equals $87,500 on a $70,000 property. This can fund the acquisition and repairs, as well.

Arizona Hard Money Lenders will also lend more the repairs if necessary. However, you won’t receive a check for $40,000 if you have figured out that is the amount of money you will need to rehab the property. Instead, Arizona Hard Money Lenders use “draws.” A draw is the money that will be loaned to the borrower for repairs once an estimate has been given.

Using a hard money lender can allow a borrower to not come out of pocket at all if the price is right on the property.

Although, an investor can find a project that they do not have to come out of pocket a penny—that does require finding that golden deal. There are lenders that will loan 90% of the ARV—and occasionally, you can find funding for even more. However, when looking at properties keep your expectations at 70% ARV. And, remember these are short-term loans that also typically have no early payment penalty. It is quite possible, when all is said and done, the only money you will use out of pocket is your payment on interest.

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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