Arizona Hard Money Lenders are the go-to source of financing in the flipping business, for plenty of reasons. While the days of pay-day loans and NINJA mortgages are long past, alternative financing, including hard money, remains largely unregulated. Are the waters of fix and flip funding teeming with loan sharks? No, but it is in your best interest to learn some classic signs of bad actors.

In the end, your lender will make money from your down payment, interest payments, and loan closing costs. An unscrupulous lender will give you money, as your loss, in the end, is their gain.

Before signing on the dotted line, try to get a read on your lender. Look out for a few things, how open are they when it comes to discussing your deal regarding fees, pre-payment penalties, your own projections and the amount of money they’re willing to give you?

A lenders willingness to discuss these issues tells you how interested they are in your success.

Unscrupulous Arizona Hard Money Lenders shy away from discussing fees and pre-payment penalties.

Is your lender vague about closing costs or third-party fees? You might be ready to make an offer on a house, and then all at once, the lender might demand thousands in undisclosed fees before they give you the money you need.

Ideally, your hard money provider will spell out fees in black and white before the process even gets started telling you the specifically how much money you’ll need to close your deal. Along the lines of transparency, they should be up front when it comes to pre-payment penalties. Don’t just look at the interest rate offered, just because a lender might offer 8 percent, you may end up paying 8 percent interest on a 12-month loan even after you’ve paid it off in 4.

Risk less when it comes to Arizona Hard Money Lenders by finding a lender who has a stake in your success

You want a lender who seems interested in your deal, do they smile and nod as you discuss your projected resale value or do they offer real insight into your projections?

How much flexibility do they have in the amount of financing they are willing to give you, and how much of a down payment you might need? If you find a lender who is asking you for a lot of money up front and isn’t willing to offer you the funding you need what are they offering you?

A high-interest loan that doesn’t help you, with a steep down payment while, your lender gets legal title to your property if things go south. Does that seem like a fair deal?

The depth of the conversation your lender has with you about your own projections indicates they are actually interested in your project. In addition, a lenders willingness to enter into fair negotiations with you when it comes to loan amount, fees and down payment is one indication they actually want to help you.

You want your lender to be an actual partner in your project, not just a source of capital. Having a lender who is interested in your success, increases your chances of success.

In short, a Hard money provider should be:

• Transparent: Disclose third-party costs, closing costs and pre-payment penalties up front, long before you have any papers to sign.

• Interested in you: should offer insight about your numbers, and not just agree with you when it comes to your profit projections.

• Flexible: Willing to negotiate with you and give you a loan that will cover most of the costs of your project.

All of these attributes are signs that your lender has a genuine interest in your success.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC 
Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

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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