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Arizona hard money lenders have more freedom than conventional lending institutions. They are not regulated in the same capacity as banks and credit unions are. When determining if you would benefit from a hard money loan you need be aware of all the pros and cons.

Arizona hard money lenders take a practical approach to lending. They base their approval decisions on the property and the proposed deal. The borrower’s financial history is much less relevant to their decision. Assessing the property consists of looking at the value of comparable properties in the same area. These are called comps. After estimating the after repair value (ARV) they will typically finance 60 -75% of the ARV.

Most hard money loans are given to real estate investors working on a fix and flip property. The general loan structure makes it ideal for an investor that has 25-30% of the loan as a down payment. However, working with the right hard money lender in the right situation may determine that the borrower needs less of a down payment; and possibly no money down at all.


Many investors prefer to work with a hard money lender over a conventional lender due to the relatively simple process. Working with a conventional lender is a much longer process and can very possibly stop an investor from ever getting started on their project. Banks that go through Fannie Mae or Freddie Mac approve loans based on completely different criteria. They will run through a borrower’s financial history with a fine-tooth comb. Banks look at everything from credit score to debt-to-income ratio to the borrower’s collateral.

A hard money loan typically takes 24 to 48 hours for approval and financing with two weeks. This is a lifesaver to investors who are competing with all-cash buyers. Traditional banks take anywhere from 30-90 days to close on a loan. Waiting thirty days for your money can easily result in a lost deal. Both real estate developers and investors choose hard money because the market does not wait on anyone. If an opportunity presents itself, an investor or developer needs money as soon as possible.

Hard money loans have higher interest rates than conventional financing. These rates typically run anywhere from 7.5% to 15%. Hard money loans do impose a higher interest rate than a conventional loan. However, these are short-term loans; generally 12 month to 3 years terms. These loans are interest only loans with a balloon payment due at the end of the loan term. Hard money loans typically do not impose an early payment penalty.

Hard money loans are the best choice for real estate investors and developers.

Hard money loans can work in any situation. However, for investors and developers who need fast cash and an easy application there is no quicker or simpler way to fund your project. Hard money loans can benefit many different situations. Please contact us to see if a hard money loan can work for you at level4funding.com

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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