What are Arizona Private Money Lenders?

Most borrowers are not aware that Arizona Private Money Lenders are an option when seeking financing. Learning more about these lenders will provide borrowers with great options.

Arizona Private Money Lenders are non-traditional lenders who provide short-term asset-based loans for the purchase of investment properties. Hard money lender is another term for these lenders as is the more loose term of a non-traditional lender. In essence, these terms are all used for a private individual or small group of people who work together lending money to borrowers. Understanding the benefits of Arizona Hard Money Lenders services can provide a lot of options to borrowers who are not able to secure traditional loans.

One of the biggest benefits of private lending is that the loan approval is based more on the value of the property being used as collateral than it is based on the creditworthiness of the borrower. This means that Arizona Private Money Lenders are willing to grant loans to borrowers who have poor credit, no credit or who have other issues that cause them to be denied a traditional loan. This is also helpful for borrowers as they can easily determine the amount that Arizona Hard Money Lenders will loan on a property if they know the lender’s loan to value ratio. This is the “magic” number that lenders use to determine how much they are comfortable lending. In most cases, Arizona Hard Money Lenders will provide borrowers with 75 – 80% of the current value of the property being purchased.

Knowing this, it is easy to understand why certain types of borrowers are a perfect fit for Arizona Hard Money Loans. Flippers who are only looking for a short term loan and short term investors are both a great fit for hard money. Longer-term investors also choose to use Arizona Hard Money Loans in some cases when time is a factor. They secure the hard money to close the deal and then they choose to refinance with a traditional loan to lower the cost of the loan and to extend the term of the loan.

Loan Terms

It is important to remember that as Arizona Private Money Lenders, these lenders do have the right and ability to set loan terms as they see fit. This can be a benefit if you are looking to customize your terms, but a drawback if you do not make yourself aware of the terms in your loan. The most common LTV is about 70-80% with an interest rate of 8-12%. The lender fees are likely to be between 1.5 points and 10 points. The typical loan is less than 5 years. The time to approve and fund can range from a day or two to just a few weeks.

Know Your Terms

The most critical aspect of any successful loan relationship is that you read and understand all of the terms of your loan. Knowing the terms will allow you to follow the agreement and avoid any penalties or late fees that could be written into the agreement by the lender.


Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
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 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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