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Why New Borrowers Strike Out with 100 LTV Hard Money Lenders

On the hunt for 100 LTV Arizona hard money lenders and not having luck? There are a few fundamental reasons why this happens.

Oftentimes people just getting into fix-and-flips or real estate in general are all fired up and ready to go. They’ve learned a bit about the industry and either have some expertise in home repair or believe they can manage a crew effectively. All they need is just a little bit of cash to get started. And, they’ve heard that 100 LTV Arizona hard money lenders are the place to get it.

Then, reality sets in. After connecting with a bunch of people who work in lending and scouring forum boards, it starts to look like 100% funding doesn’t exist. People do talk about it, so it must, yet it’s quite elusive for newcomers to the field. What gives?

Generally speaking, it doesn’t really happen. Some companies may use it as a draw to pull people in, while others may provide 100%, but only to borrowers they know incredibly well who have already completed several successful deals with them. The reason is straightforward. If the lender gives you 100% of the value and you don’t come through with your end of the deal, he or she is going to lose bigtime.

Set Realistic Expectations When You Start in Real Estate

Chances are, you will never find true 100 LTV hard money lenders in Arizona. Something more like 80-90 LTV is attainable when you know the investor and they’ve seen what you can do. However, newcomers usually qualify for closer to 50-70 LTV. Investors want you to have some skin in the game and need to see that you’ve got what it takes before they’re willing to bet on your projects.

If you’re savvy, you can increase your eligibility in other ways.

While you may not see true 100 LTV hard money lenders in Arizona, you can put less of your own money on the line by adapting your strategy. For example, you can bring on a partner with more experience, which could get you closer to 90%. You might also be able to leverage multiple properties, which will get you 100% of the funds you need by tapping into your portfolio. Lastly, you can try to negotiate a better deal with the seller. Naturally, the less you pay for the property, the lower your loan-to-value will be. If you’ve tried all these options or none of them work, there are two other avenues to try. First, spend a bit more time learning about the process and offer to work as an apprentice or assist another person doing what you want to do. The information you take away from the experience will prove invaluable and you’ll make new connections. Secondly, have a conversation with a broker. A really great broker will provide you with the information you need to be more successful in the future. It may be hard to hear that you’re not ready to jump in just yet, but the advice you’re given will be pure gold.

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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