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November 21, 2019


When you hear “hard money lenders,” you might think of loan sharks that will charge you high interest rates and then when you don’t pay them back, they will come steal your property—but that is just in the movies.

In real life, hard money lenders in Arizona are key in financing many different types of real estate. They are especially known for their integral role in financing fix-and-flip homes. Hard money lenders are non-traditional lenders—meaning they are not a bank or a credit union. Instead of securing a loan with a borrower’s credit, savings or CD’s that can be used as collateral, they secure loans with real estate. What that means is if a borrower defaults they can foreclose on their property. That can be a little scary. However, finding the right lender that will work with your personal situation can ease those fears. Hard money lenders do not want to seize your property. In fact, they want you to be successful because that will mean you will take out another loan—it’s a win-win for the lender and the borrower. They are not loan sharks. They are normal, everyday folks just like you and me.


There can be a wide range in both loan sizes and loan costs. Different lenders have different terms. However, beware of junk fees. When you are comparing your loan proposals make sure you look at all the costs. Don’t be fooled, there are lenders out there that will offer you a 8% rate and a 3%fee but you will have so many hidden costs or junk fees that the rate you are given is misleading.

Be sure that you know who is lending you the money and that they will do what they say. Anyone can be a hard money lender; they can be an individual with cash flow or they can be a real estate finance company. Make sure you ask questions. The lender that is right for you will answer your questions and give you confidence.

What questions should I ask hard money lenders?

There are several questions for a borrower to ask. Here are a few to get you started in the right direction when speaking with a potential lender:

1) How many loans have they done in the last 12 months?

2) What details and documentation will they need from you?

3) Are they the lender or are they a broker working for a lender?

4) After funding do they sell your loan or keep it in-house?

5) If the project takes longer than originally expected can the loan be extended?

6) How many loans have they foreclosed on?

7) Do they work with 3rd party appraisers and underwriters?

8) Have they ever changed the terms on a loan before closing?

Taking out a loan is always a risk. It is of utmost importance you work with a lender that makes you feel comfortable. It is your responsibility to know your lender’s past and present. Do your homework and minimize your risks that come along with the use of other people’s money.

                                                                                                                              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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