May 18, 2019
May 18, 2019


Think about the various ways you can make money. Then, think about how long it will take you to actually make that money. The one way you can make money quickly is through real estate investing.

Hopefully, you are familiar with hard money. Basically, hard money is money that belongs to wealthy investors. They want to make money off of their money, as investors do. They lend their money to real estate investors that have projects, such as fix and flip and construction, that will generate a profit. The real estate investor then pays back the loan plus interest. These are very similar in structure to a conventional loan. However, there are many perks to hard money loans, as well.

Arizona Hard money loans are asset based loans that are secured by real estate. Borrowers are not required to have spotless credit; in fact, many lenders will qualify a borrower with a 550 FICO score. These hard money lenders will typically finance 100% of the repairs as well.


If you want to make quick money, the fastest way is through hard money and an Arizona hard money loans is what you need to aid you. Most lenders will finance up to 75% of the property. That can be broken down into loan to value (LTV) ratios or after repair value (ARV). For this example we will use ARV.

Bob finds a property for $100,000. He doesn’t have great credit. Bob has a job, but he has only been there for six months. Basically, Bob is living paycheck to paycheck. After he finds this property he finds an Arizona hard money lender. The lender sends an appraiser to the property to asses the ARV. The appraiser estimates that after all repairs are complete the property, because of the location, the market and so on, will sell for $175,000. After further review it is discovered that Bob will need to put in about $33,000 worth of repairs.

Let’s break this down. The property itself is $100,000 and at this point that is all Bob needs. The lender will base the loan off of the ARV which is $175,000. He will lend 90% ARV. That is 90% of 175,000; which equals $157,500. Bob has been approved for $57,500 more than the property. However, he will also have fees and points that he will have to pay. Many lenders will include that in the loan. For the example we will say Bob has $2,000 in fees and 2 points on the loan. A point is basically a percentage of the original loan amount. In this case it would be 2% of 157,500, which is 3,150. With fees and points Bob owes $5,150. Subtract that from 57,500 and he has $54,350 more than the purchase price. Let us subtract the repairs which are $33,000. Bob still has $21,350 that can go to labor and materials. However, he doesn’t have to use that money because most Arizona hard money lenders will finance 100% of repairs, as well.

This is only a very quick run down of an example of using an Arizona hard money loan. The point is, you can make money as a real estate investor working with a hard money lender.

It takes a lot of blood, tears and sweat to make money in real estate. It also requires help from a lender that you trust and will work with you to make your dreams come true. However, you will never know the life you can have if you don’t take that first step.

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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