Obtaining a hard money loan is different that working with a traditional lender. Here’s what to expect when obtaining a hard money loan for your real estate investment project.
Whether you’re looking to invest in a commercial property or a residential Arizona fix and flip, a hard money loan will allow you to purchase the property quickly and without the red tape that can be a road block to obtaining a traditional loan.
Because hard money loans are based on different factors and isn’t funded through a bank the process will be different than if you were applying for a home mortgage. Here are the steps to obtaining a hard money loan that you can expect!
Step 1: Interview and Presentation
The first step will be to interview the lender and present your plan for the Arizona hard money loan. This is your opportunity to vet the lender for your own peace of mind and for them to know that your investment is a good funding opportunity.
Step 2: Underwriting
This part of the process is where the lender will review your project plan and appraise the property for its After Repair Value, determining how much they can lend on the property. If the underwriter approves of the investment project they will move the loan to the funding step.
Step 3: Loan Funding
For the loan to close and be funded the borrower will need to sign documentation so that the property can be purchased, usually via a wire transfer of the Arizona hard money loan, and the loan can be settled.
Step 4: Loan Draw
A schedule will need to be determined by both the borrower and the contractor to fund the actual project, creating an allocation timeline of the Arizona hard money loan.
Step 5: Payoff
Last but not least, you’ll pay off your Arizona hard money loan following the sale of your property!
Once you’ve completed all 5 steps of your Arizona hard money loan it’ll be time to find your next investment! Give Level 4 Funding a call today to see if we can work together on your next project!
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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