The Three Loan-to-Values of Arizona Hard Money Loans

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The Three Loan-to-Values of Arizona Hard Money Loans

Arizona Hard Money Loans are one of the more flexible options to consider when financing a real estate investment. There are three loan-to-values to consider when reaching out to a private lender.

Real estate financing looks at the Loan to Value (LTV). In other words, it is the value of the property that the loan will finance. If you have a property that is a $100,000 property and you plan on putting down $25,000 and you will be borrowing $75,000, then your LTV would be 75%. This provides the lender the knowledge that you have skin in the game. The amount of the loan is the amount the lender has financed and the lender’s LTV. While a conventional bank looks at the loan to value as-is, Arizona Hard Money Lenders look at property three different ways. The three ways to look at the LTV can either help or hurt you if you’re looking to close quickly or for the best rates.

The LTV as-is is the easiest LTV to understand and is practically identical to both Arizona Hard Money Lenders and private banks. This is based on the property’s current as-is condition without any improvements or repairs, fair market value. This valuation has no differentiation if the property needs repairs or if it is in tip top condition. The value is what the property is worth as-is right now. The value is usually determined by an appraisal. The total collateral is determined by the as-is value.

Arizona Hard Money Lenders start to excel and show their flexibility with the purchased LTV which is the first specialized Loan-to-Value. Remember the obvious when you are buying property for investment purposes: buy low and sell high. Frequently your purchase price will be lower, in most cases, than the purchase as-is value. Due to bulk sales and motivated sellers, investors can acquire properties as much as 90% as-is value. Some Arizona Hard Money Lenders may grant you a discount on Arizona Hard Money Loan rates basing them on the purchase price LTV.


The After-Repair Value (ARV) specific to Arizona Hard Money Loans and fix and flippers is one of the most useful tools. This type of loan will allow you to borrow from the hard money lender the after-repair value of the property even if the amount is greater than your purchase price or current as-is property value. For example, you buy a property for $100,000, you anticipate $20,000 in rehab and renovations on the property, so you are looking to finance the $120,000. You are putting down $20,000, and the After-Repair Value is $180,000—a pretty good deal all-in-all.

At Level 4 Funding, we work with Arizona Hard Money Lenders that utilize this lending strategy. If the process sounds confusing, call us—well be happy to steer you in the right direction with the type of Arizona Hard Money Loan that best fits your needs.

You may be looking to put in as little money of your own as possible. So, you are looking for a fix and flip loan which calculates and uses the ARV LTV. At 75% of the $180,000, the ARV would be $135,000 more than the total cost to acquire the property and repairs and rehabs. So, the deal looks great. Remember that Arizona Hard Money Lenders do require that the borrowers have some skin in the game. Hard money ARV LTV can loan up to 90% of purchase price and 100% of the rehab costs.

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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