Ever wonder how Arizona hard money lenders make money? It’s not as complex as you might think.
Although Arizona hard money lenders offer more consumer advantages than banks, they have similar inner workings. These two financial entities work to serve consumers, can lend money, and turn a profit in comparable ways.
Banks make money through interest and fees on their accounts and loans. Fees can add up, allowing banks to make great profits and stay afloat.
Arizona hard money lenders also make money through interest, but specifically loan interest. These lenders don’t have accounts, so their profits are mostly made through interest on loans. When a borrower takes out a loan, lenders charge interest on it the same as a bank. The difference is that a hard money loans are backed by collateral, making them equity-based loans.
Equity-based or not, hard money loans and bank loans have the same basis. Money is lent to a borrower and he is charged interest until the money is paid back.
Therefore, money lenders always hope for clients to help them increase their profits. More clients mean more interest and more income.
Despite their hopes for profit, money lenders tend to work well with their clients and develop positive relationships with them. Depending on your situation, they could offer you a good rate on your loan, comparable or even lower than bank rates.
Because money lenders can tend to your personal needs, they are often easier to work with than banks. Banks have complicated loan processes and won’t always give you the rates you want. Money lenders can work with you to develop payment plans that meet your needs and make sure you’re on the right track. That’s personalized service that banks just can’t match.
Where Do They Get the Money?
Arizona hard money lenders are usually financially savvy and know their way around the real estate industry. The money lender Level 4 Funding is run by individuals with years of success in real estate. Those with experience in investment properties, home flipping, and home sales can accumulate a great deal of change, giving them a lot to lend out.
Money lending can be a profitable field for those who have the passion.
Dennis Dahlberg of Level 4 Funding had an idea and he ran with it. His money lending company has lent over $40,000,000 as of 2018 and is still going strong. After buying a home when he was just 18, Dennis earned years of experience in the real estate industry buying, selling, and renting homes. If you’re in the market for a hard money lender, check out Dennis at Level 4 Funding.
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.