Found a wonderful old house that would make a great project to fix up and sell?

All you have thought about since you saw that old closed hotel downtown is fixing it up, but with your credit, where would get the money? Someone said “Try a commercial Arizona hard money lender.”, but what is that?
September 9, 2019
Fix and Flip Loans: Time is of the Essence!
September 11, 2019

Found a wonderful old house that would make a great project to fix up and sell?

That takes money and you need a loan, specifically a renovation loan. Who do you talk to when the established lenders have already said no?

Your brother-in-law and an investment counselor you know casually both said the same thing: “Go talk to the Arizona hard money people—they can help you.” A few conversations later, you found out that depending on who you were talking to, these loans were either a dream come true or a total nightmare to be avoided unless you were in desperate straits.

Deciding to be positive and knowing research was time well spent, you looked into this kind of funding further, both on the internet and by talking to the woman in the office next to yours who was an investment counselor. You found out that Arizona hard money funding no longer had the worst reputation in the business and was actually recommended for Arizona renovation loans.

Advantage of these types of loans included:

–Flexibility and a fast turnaround: there were instances in which application, processing and approval were narrowed down to three to five days.

–Credit doesn’t have to be perfect. These lenders didn’t slam the door in a would-be-borrower’s face if their credit score and/or background weren’t perfect. Collateral was the important thing here.

–Down payments could be obtained from anywhere—a relative, a sale you made, etc.

–‘Different’ properties. There was no backing away if the property you wanted to invest in was not a conventional one, i.e. an apartment house or single family home. A once-church that could be turned into a nightclub made no difference to these lenders as long as the value was good and turnover looked imminent.

–Total funding: most of the loans covered the entire cost—no getting funding from three or four people and having to hope it all added up. Working with your lender you set a schedule of agreed-upon draws and worked through it.

All to the good, you thought, and asked Jeanne Carson, the investment counselor, about the downside of renovation loans made through Arizona hard money lenders. She shook her head and smiled. “There are several,” and went on point out the following things.

Interest rates can be as high as 18 percent and there are numerous fees for every aspect of the process. The lender after all, is in business to make money and this is one area that protects them from losing everything in case a borrower defaults.

Repayment terms are short and generally you pay only interest with the principal due at the end of the term. Overages are your responsibility—if your contractor goes over budget, you pay those costs. Late payments are not acceptable—you can find a foreclosure notice in your mailbox if you miss a couple, sometimes even just one.

After that consultation, you were almost ready to look at other types of funding, but something kept telling you to go for it. So you did and all the hard work, lost sleep and a few added expenses paid off, making you one of those positive stories you read about Arizona hard money renovation loans.

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:  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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