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There are so many questions a first time real estate investor has when first stepping into the arena with a hard money lender. Below are some frequently asked questions.

WHAT EXACTLY IS A HARD MONEY LOAN: A hard money loan is an asset based loan. The lender will use the borrower’s real estate as collateral. These loans are offered by private lenders who can regulate their own loan terms and rates. These are fast closing loans, making it possible for investors to compete with all cash buyers.

ARE HARD MONEY LOANS SAFE: Unlike government and bank loans, hard money loans are not backed by the government. What this means is hard money lenders are not required to follow the same protocol as conventional lenders. However, there are many reputable lenders nationwide. It is important to research your lender before doing business with them.

WHAT IS A FLOATING RATE: A floating rate is an interest rate that is not fixed (a fixed interest rate never changes). A floating rate is adjustable and moves with the market; meaning sometimes it goes up and sometimes it goes down.

HOW DO POINTS WORK ON A HARD MONEY LOAN: The points on a hard money loan—or any loan—are the fees the lender will charge the borrower for providing the loan. Basically, each point is equal to a percentage of the loan. For example, 2 points on a $100,000 loan would be 2% of 100,000 which would equal $2,000.

WHAT ARE THE RATES AND TERMS ON HARD MONEY LOANS: Because each lender is different they will each have different rates and terms of the loan. However, generally hard money lending rates range between 7% and 15%. The terms are usually 6 months to 3 years. Points can be anywhere between 2-10. Typically, the borrower will receive funding in 2 weeks or less.


Hard money can fund many different types of properties. However, these loans are usually for investors that fix and flip properties and investment properties that long-term investors fix and flip and then rent—long—term buy-and-hold investors.

Because of the freedom and flexibility hard money lenders have, they are able to help investors and regular people in all types of situations.

This article was a very brief overview of hard money lending. If you would like to learn more about hard money loans and real estate investing, find a local hard money lender and make a appointment.

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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