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So, you want to become a real estate investor, but there is one problem. You have bad credit. Most people have made bad choices when it comes to finances. Those choices can haunt you for a very long time. What can you do about this issue?

To ever be financially free you have to raise your FICO score. Maybe you have had a foreclose or gone through bankruptcy. Maybe you accepted a ton of credit cards while in college and maxed them out, while never paying them back. Regardless of why you have bad credit you can still be a part of the real estate investing world.

An Arizona Hard Money Lender can look past your negative financial past and approve a loan to get started. But, why would an Arizona Hard Money Lender loan you money with bad credit when a bank won’t? The answer is because an Arizona Hard Money Lender is an asset-based lender. This means they are lending on the real estate as collateral. When making a decision a traditional lender looks at the 4 C’s: credit, collateral, character and cash. An Arizona Hard Money Lender focuses more on collateral and character.

When you are looking at hard money lenders and the options you have, make sure you know what the minimum credit score is of that particular hard money lender. There are some hard money lenders that do require a minimum credit score requirement. Make sure you find out the minimum score before investing too much time on the application and process. Because hard money lenders do not have to follow the strict federal guidelines they can establish their own credit requirements.


The step you should take is find a lender that you are comfortable with and that has pre approved you. Then, look at property. Lots of properties. Hard money lenders generally prefer to loan in the geographic area in where they work or reside. Find a property that you can afford to make the interest-only payments.

An Arizona Hard Money Lender will need a Letter of Intent (LOI) signed by you, the borrower. The purpose of a LOI for a hard money loan is to provide a quick means to be sure that both the borrower and lender are on the same page. It is not a legally binding document, but it does help avoid any miscommunications or misunderstandings.

An Arizona Hard Money Lender will require some documentation from the borrower. Typical loan documents required for a hard money loan include: past tax returns, proof of income and a Note and Deed of trust. Some lenders want to see a business plan. Each lender is unique and will require different documentation.

Bad credit can make life difficult. If you have ever considered becoming a real estate investor look into hard money lending.

Once you begin working with a lender and you trust one another you may see a decrease in interest rates. When you have established a working and personal relationship with your lender investing becomes easier. The biggest difference between banks and hard money lenders is the personal relationship you form

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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