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Monday, September 17, 2018

How to Know if a Hard Money Lender is the Real Deal

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If you’re like most people looking for finance options, no doubt you’ve heard horror stories about lenders who totally dropped the ball and derailed a project. You may have even experienced it yourself. While personal referrals and online reviews can make it easier to find a reputable hard money lender, it doesn’t necessarily mean you’ll have the same experience. Moreover, companies tend to specialize in a specific loan type or cover a geographic area, so many people are on their own even if they’ve been through the process before or know someone else who has been. However, there are a few things you can look for when you make contact with a company that indicate they’re a good company to work with.


For starters, they’ll recognize your time is valuable. One of the biggest benefits of working with this type of financing is that it enables you to have cash in hand fast. If they’re dragging their feet and not returning calls promptly now, there’s no telling if or when you’ll get your cash. However, if they return calls promptly and address your concerns, you’re on the right track. You should be able to count on having cash on hand in a matter of days or weeks, not months.


Secondly, your broker will be eager to listen to you and help you strategize. There are lots of different financing options, and your broker should be able to ensure you’re finding something that’s right for you based on your needs.


Lastly, they’ll have experience in the area you’re working in. Single-family homes, multi-family homes, commercial properties, and other project types each require a unique set of expertise. You’ll want to be sure you’re working with someone who understands what you’re planning to do in order to make the approval process smoother.

Will a Reputable Company Still Work with Me if I Have Rotten Credit?

One of the biggest things a hard money lender will look at is the value of the asset in question. Although there are other factors involved in making a final decision, they tend to matter to a much lesser degree. For this reason, bad credit and even bankruptcies are less of a concern when you go with this type of financing.

A good company is there for you when you need them.

When you’re in this type of industry, building positive relationships is everything. A good hard money lender knows this and will do their best to help you regardless of your circumstances. In times where they can’t, they’ll still treat you with the respect you deserve. If you’re looking for lending solutions but aren’t sure which company is best-suited, contact Level 4 Funding. With experience across a broad spectrum of private money loans, a myriad of positive customer testimonials, and a low-rate guarantee, it’s easy to apply with confidence.


Dennis Dahlberg Broker RI/Level 4 Funding LLC Privatae hard Money loansDennis 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  

     Linked In     Active Rain You TubeFace Book         

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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Why New Fix-and-Flippers Get Denied by Hard Money Lenders (And What You Can Do About It)

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People new to the home rehab business often make fatal mistakes that impact their ability to get funding. If you’re preparing to approach hard money lenders, you’ll need to have a few things in place to get approval.


It seems like today we have a fix-and-flip culture. There are TV shows designed around it and almost everyone knows someone who has done a flip before. Unfortunately, those just getting into the field can sometimes take this to mean that it’s easy or that it will generate millions for them overnight. While it can be quite lucrative, you’ll need to know the numbers and have a strategy in place before you can consider it a side-hustle or career.


One of the biggest issues is failure to consider additional cash needs. No matter how great of a deal you’re getting, you’ll need some kind of cash to get going. Although some will provide you with 80% or more of the value of the home, you’ll need to be able to pay the remainder on your own. Moreover, there will be expenses associated with the repairs and that’s not typically part of the initial loan. Those just getting into the business can really benefit from having a trusted inspector visit the home in advance of a purchase to help determine what repairs will be necessary.


The second major issue is failure to have a solid plan. If you have a little experience with home renovations, it’s easy to look a home over and make a mental assessment of the work and costs, but that doesn’t constitute a plan. They’re taking a risk on you, so hard money lenders will want to know everything from your timeline through costs and exit strategy. Don’t think this means you have to take everything on alone, though. You can build a network of professionals and bring them in to consult on your projects or see if a seasoned home rehabber will mentor you.

Are There Other Things That May Stand in the Way of Becoming Successful?

Even experienced home flippers run into a bump or two on each project. It’s their ability to anticipate issues and set aside the time and money to deal with them at the onset of a project which helps ensure they achieve what they set out to. If you’re told “no” by hard money lenders at first, don’t be dejected. Instead, ask questions to find out what you can do to improve the odds next time around.

Every HML has different guidelines, so the best way to know if you qualify is to get in contact.

The better your planning is and the more numbers you crunch, the greater your odds are of getting a green light on a project. Hard money lenders simply want to know they’re investing in you wisely, and although the value of the home is arguably the biggest factor for most, each uses a different set of criteria to judge. At Level 4 Funding, we’ve heard stories from our own clients about how other companies have dropped the ball and cost a client a property, and while we can sympathize, our ability to help where others don’t, and low-rate guarantee are things we’re proud to offer because it sets us apart from the pack. While we enjoy working with home rehabbers who have an established track record, we help newcomers too. If you’ve got a solid plan for a fix-and-flip, give us a call today.


Dennis Dahlberg Broker RI/Level 4 Funding LLC Privatae hard Money loansDennis 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  

     Linked In     Active Rain You TubeFace Book         

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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Wednesday, September 5, 2018

3 Ways Owner Occupied Hard Money Lenders Help with HUD Homes

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HUD Homes are sold “as-is” and hit the market at fair market value after an appraisal, meaning they can be very low-risk investments. It may be difficult to find owner occupied hard money lenders for funding, but doing so may open up a world of possibility.

The Federal Housing Administration (FHA) is part of the US Department of Housing and Urban Development (HUD). When a homeowner has an FHA loan and the home is foreclosed on, the lender can file a claim with the FHA for the balance of the loan. Once paid, ownership of the property is then transferred to HUD, which is then responsible for getting the home resold. The home is inspected and a fair market value is assigned, so residences which need work are priced accordingly. Those who wish to purchase a HUD home can choose from a number of financing options, including owner occupied hard money lenders. There are many benefits of going this route.

1. You can buy before other investors. HUD won’t sell to investors right away. When a home first becomes available, only people who want to reside in the home can purchase it. After a period of time, investors are allowed to purchase it, which can increase competition.

2. You can have cash on hand quicker. Going with an HML is essential if you need to move quick. Offers made by those with cash in hand or who have pre-approval are generally considered before all others, but with HUD homes, buyers are expected to have financing in place before bidding.

3. You can get financing when traditional lenders won’t provide it. HUD doesn’t fix homes before they’re resold; they’re sold “as-is.” While this can be a fix-and-flipper’s dream because of the low sales price and potential for great returns after the repairs are made, traditional lenders can be picky about the conditions of a home. It can also be difficult to get financing from a traditional lender if you have less-than-stellar credit or are self-employed, among other things. Owner occupied hard money lenders use different criteria to determine which projects they’ll finance, so they can often help when a mortgage company won’t.

Is it Always Best to Work with an HML for HUD Homes?

There are multiple types of financing available for HUD homes, and each one can be beneficial under different circumstances. It’s also worth noting that not all HMLs will provide owner occupied loans. Many focus solely on investment properties a buyer does not plan to live in. For this reason, you should know your exit plan long before you begin looking at homes or finding lenders.

Learn the benefits and potential pitfalls before getting started.

Owner occupied hard money lenders typically prefer to work with experienced investors, but even newcomers may be able to secure funding if it’s clear they’ve done the number-crunching and have a solid strategy. If you’ve been considering purchasing a HUD home, Level 4 Funding can help regardless of whether you plan to live in the house or not. Contact us to learn more about how our programs work.


Dennis Dahlber Broker Ri CEO Level 4 Funding LLCDennis 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  

     Linked In     Active Rain You TubeFace Book         

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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.



Tuesday, September 4, 2018

How to Build Wealth Using Owner Occupied Hard Money Loans

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Owner occupied hard money loans are the unsung heroes of the real estate biz. Knowing how to leverage them is key for those who have dreams of going big but are just starting out.

Many people dream of getting into real estate because it’s a solid way to build wealth, yet quickly back down when they realize it’s also an expensive “game” to get into. Although few realize it, owner occupied hard money loans are often a gateway to wealth, giving those with an entrepreneurial mindset a chance to build even if they come to the table with very little to start. Before getting into how to leverage them, let’s break down how they’re different.

Owner Occupied: As the name implies, the person making the purchase intends to live on the property. This is common with foreclosures and HUD homes, with the latter requiring that the owner reside in the home for a full year before converting into a rental. Some co-ops and homeowner’s associations have a similar stipulation, though it’s generally permanent, meaning the owner must always be the one occupying the residence. Whether the owner intends to reside on the property or not will impact loan terms too, with those intending to stay generally receiving more favorable terms. It’s also worth noting that guidelines will vary from one contract to the next, so it’s important to read all contracts carefully to determine what an entity considers “owner occupied” and what stipulations come along with the designation.

Non-Owner Occupied: Generally speaking, the term “non-owner occupied” won’t appear much outside the mortgage industry. In this case, it’s used to designate risk. Perhaps not surprisingly, an investor dealing with money troubles is likely to let a loan for a rental or investment property go into default before he’ll put his primary residence at risk. For this reason, banks tend to be a little cautious here. It can be more challenging to get a non-owner occupied loan and the terms won’t be quite as good as they would have otherwise been.

A Win-Win Solution for Those Starting Out

Naturally, those just starting out don’t generally have strong records and pockets lined with cash like the banks like. However, one thing those who do make it have is tenacity. They’re willing to put in the work to see good returns. They just need a clear path to follow. By opting for an owner occupied loan, you’ll naturally get more favorable terms. Many people prefer this anyway because the first home they invest in is something they work on in their spare time, so being on site is a no-brainer. Plus, they aren’t paying a separate mortgage or rental payment to have a place to live at the same time. Opting for owner occupied hard money loans versus a traditional bank loan also opens up more doors, like closing fast and not having to struggle with all the requirements traditional mortgage companies have. From there, you can fix up the property as you have time and then flip it a year or two down the line when you’re ready.

It’s important to have clear expectations before getting into fix-and-flips.

Before you get into fix-and-flips, particularly if you plan to live in the home while you work on it, it’s essential to have an exit strategy and timeline. While some savvy entrepreneurs sell after a year or two, picking up anywhere from $10k to more than $50k per sale depending on their level of expertise, others convert their homes into rentals and build up a portfolio. Knowing where you plan to go after and what your anticipated timeline is will ensure you maximize your earnings. If you think owner occupied hard money loans may be the first step on your path to wealth, call us today for details.

Dennis Dahlberg Broker RI/Level 4 Funding LLC Privatae hard Money loansDennis 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  

     Linked In     Active Rain You TubeFace Book         

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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Sunday, August 26, 2018

Why Investors Choose Hard Money Loans

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There are many advantages to using hard money loans that make the higher cost of the loan less of an issue for investors as well as homeowners.

When most people think about taking out a loan, the first concern is what it will cost to borrow the money that they need. But even as counterintuitive as it may sound, in the business world there are factors that end up being more critical than money. Which is why many investors gladly choose to use hard money loan over more traditional types of loans from a bank or mortgage company.

One huge benefit to using hard money is that the loan approval is based on the value of the property that is being used as collateral, which is almost always the property being purchased. This eliminates the worries about personal credit scores, debt to income ratios and the issues of other outstanding loans. The only factor that is considered in most hard money lending transactions is the current market value of the property. And as long as the loan amount is under 70% of the current value then the loan is almost assured of being approved. Investors have the ability to secure funding for multiple properties without the lenders being concerned about the debt load. This keeps the investors happy because more deals mean a greater profit.

Flexibility is another great feature of hard money loans that appeal to investors. A bank is always very riged about the terms of a loan and their policies regarding length of term and fee structure. But a lender who works with hard money is not required to operate under the same stringent guidelines that govern banks and other lending institutions. Hard money lender have the ability to work with a borrower to create terms which are mutually beneficial.

Time is Money

One factor that is often even more important than money in the business world is time. When an investor finds a great deal on a property, there are sure to be other investors making offers and trying to steal the deal. So for an investor to make an offer that is being funded via hard money, sells see that as a major advantage. The seller knows that the funding will occur quickly and that they will not be a lot of red tape or the potential for the deal to fall through. Sellers also know that a potential buyer who is willing to use hard money to make a purchase is serious about the property and will complete the transaction as quickly as possible.

Hard money loans are a wise option

Most real estate investors are well aware of the benefits of using hard money from the fast funding to the added flexibility in terms. And due to all of these benefits, investors are very willing to pay a higher interest rate and even a few added fees to use this nontraditional lending resource. Faster funding means more investments can be made in a short period of time and will create a greater return on investment.

Dennis Dahlberg Broker RI/Level 4 Funding LLC Privatae hard Money loansDennis 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  

     Linked In     Active Rain You TubeFace Book         

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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Friday, August 24, 2018

Why Borrowers Choose Hard Money Lender

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There are many options for borrowers who are seeking a loan. But choosing to work with hard money lenders is a great option for several reasons.

Hard money lender offer many benefits that are not available from the traditional banks and mortgage lenders of the world. Some borrowers discover that they have no choice but to work with hard money lender due to their low credit score or lack of credit history. But many other borrowers choose these nontraditional lenders because they are a better fit to meet their borrowing needs.

Traditional banks, credit unions and mortgage companies are very regimented and only offer a few types of loans. And the loans that they do offer have no real flexibility. So borrowers are forced to take the terms and rate that is offered or find another lender. But hard money lenders are able to work with a borrower to create a customized loan that meets the needs of the borrower. Loans come in all shapes and sizes so hard money is a great option of a person purchasing a home or the investor who is interested in buying a property to flip or even an entire rental complex.

Getting approved for a traditional loan can be difficult. Not only is it important that you meet the credit score and income criteria but you also need to be able to provide detailed documentation to prove your earnings and debt. So it is stressful and time-consuming. But these lenders are more interested in the current market value of the property than the personal financial history of the borrower. This is because the approval of the loan is based on a comparison of the loan amount being requested and the property value. The term is loan to value. In most cases a lender is only comfortable lending up to about 70% of the current market value of the property. They use this number so that there will always be some equity in the property and in the event of the borrower defaulting on the loan, the lender can sell the property to recover his or her investment.

Timing Can Be Critical For Hard Money Lender

In some cases, getting a fast loan is more important than getting the very cheapest loan. A buyer might be trying to purchase a home which is very competitively priced, meaning there will be a lot of bids on the house. So by submitting an offer noting that the funding is in the form of hard money is a big benefit. The sellers will know that if selected, that buyer will have funding quickly to close the deal. The same is true for an investor who finds a great deal but wants to make the purchase before other investors discover it. The fast funding of hard money can be all that makes a great deal work.

Making a Deal with a Person

Borrowing from a nontraditional lender is much more personal than borrowing from a huge corporation. You are actually working with a local person in most cases and can ask questions, make requests and even get a great deal of education on the art of hard money deals. Many borrowers are happy to have the option to work with an individual or small group rather than a huge company with impersonal service. All of this personal service and the potential to customize a loan makes hard money a great option for many borrowers.

Dennis Dahlberg Broker RI/Level 4 Funding LLC Privatae hard Money loansDennis 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  

     Linked In     Active Rain You TubeFace Book         

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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Who Can Benefit From Hard Money Loans

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Hard money loans are not or everyone or every situation. But there are several cases where hard money is the best solution.

Hard money loans are loans that are funded by individuals or small groups rather than from a bank or other lending institution. For this reason, these loans are often referred to as non-traditional loans. Because the finding is not coming from a bank, there is more opportunity for flexibility on the terms of the loan which makes them well suited for certain borrowers specific needs. And in most cases, hard money is loaned for a short period of time which can typically range from a year or less to about five years. But again, these terms are all flexible and can be negotiated with the lender. So other important items to note about hard money loan are that the rates for the loan are higher and there can be additional fees charged for funding.

In most cases, it makes sense to assume every borrower would seek the lowest interest rate possible for every loan. But in the case of flippers or real estate investors who are renovating and then selling a property, speed and less hassle can be worth paying a few extra percentage points on the loan. Flippers are working in a very competitive market and need to act fast when a property with great potential comes on the market. Waiting 30 days to hear back from a bank about a 15-year mortgage is not going to meet this investor’s needs. But a turnaround of less than a week is definitely going to be helpful. And many sellers who are familiar with hard money look at an offer including hard money funding as a definite advantage. They know that the funding will occur quickly and the property will close in just days.

Builders are another group who are not interested in investing months in the application and approval process required by banks. Builders have no intention to keep a property for 15 years. The plan is to purchase the property, build the house and sell as soon as possible. This makes the fast turn around and easy application process of hard money loan a perfect choice.

Credit Issues are No Issue for Hard Money Loan

Not everyone has perfect credit and sometimes the cause was beyond the person’s control. Mounting medical bills, the loss of a job, divorce or a death in the family can all result in an inability to pay bills and the deterioration of good credit. But working all the way back to good credit can take many years. In the meantime, many consumers turn to hard money as a way to get a loan, get back on their feet and begin their financial recovery.

Hard Money Loans - Not For Everyone But Perfect For Some

Hard money is not a universal solution to money problems and if used improperly it can be very harmful. But there are many times when using hard money is the best option. The easy application and approval process and the fast funding made this alternative resource a great choice for many borrowers.


Dennis Dahlberg Broker RI/Level 4 Funding LLC Privatae hard Money loansDennis 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  

     Linked In     Active Rain You TubeFace Book         

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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.