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?

As you found out after grabbing your laptop and a fresh pot of coffee that night, lenders in this field base any loan upon commercial assets instead of using the borrower’s financial backing, credit, or steady employment –the things that conventional lenders put at the top of their list.

By depending on property instead of just the borrower, a private lender is able to loan money that a bank or mortgage company could not. Funding with them is set up through a first mortgage and is termed a ‘no doc’ or non-bankable loan.

Further reading on various websites let you know that there were numerous reasons a borrower might go with this type of funding, such as:

*You need a loan quickly because the property may be sold to another buyer any day and traditional loan applications, if you can even get one approved, take three to six months.

*Your situation is unique and you need a creative individual solution in order to meet your needs and the conventional lenders just can’t do that with their strict rules and regulations.

*Needed collateral is not limited to one piece of property, but is spread over several different areas.

*You are a foreign national without any ‘credit depth’ (availability of credit information ) in this country.

*Your credit falls under the term ‘disabled’.

Those were just some of the reasons outlined that called for a commercial Arizona hard money lender.

Other advantage of this type of loan were the fact they required no credit score, only minimal documentation and decisions were made by the lending company—no ‘loan committee’ or board that never talked to you personally, but still held your business dream in their hand. The types of loans and real estate properties covered were wide ranging as well.

Best of all, you found, decisions could be made in 10 business days and there were no upfront fees.

This sounded really good to you, but there had to be some hitches some place –life had already taught you that while the balance of a situation might lean heavily toward positive, somewhere in the entire picture lays a few negatives. You kept reading.

Commercial Arizona hard money lenders sometimes, but not every time, required a higher down payment than you would have had to pay a traditional lender. Interest rates could be as much as 10 percent higher than a mortgage companies. The risk involved is directly tied into these requirements. These lenders also give short payback periods such as one to three years, unlike banks whose repayment terms can start at five years and stretch to 30.

In the morning, I am going to call some of these companies, you thought as you closed out your computer. You particularly liked the first one you looked at–tons of information on the webpage and a boxed disclaimer that said for a would-be-borrower to be careful and become as knowledgeable as possible before even talking to a commercial Arizona hard money lender. Perhaps this time next year you would be the owner of a hotel with considerable market value.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
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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