Posted almost 5 years ago

Steps to Getting a Hard Money Loan

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 , a 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 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 that you can expect!

Step 1: Interview and Presentation

The first step will be to interview the lender and present your plan for the . 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 , 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 .

Step 5: Payoff

Last but not least, you’ll pay off your following the sale of your property!

Once you’ve completed all 5 steps of your 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 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
[email protected]
Dennis Dahlberg Broker/RI/CEO

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.