What Are Arizona Private Money Loans, Arizona Private Lender

 

Most real estate investors depend on private money to help fund their deals,

usually through private money loans. But where can you find this steady source of funding? Institutional loans often take a long time and can slow down a residential redeveloper’s progress.

The main questions investors ask are how to find a private money lender in Arizona, how to convince them to lend you the money you need, and how private lender financing works.

Having access to real estate investment capital helps investors grow their businesses over time.

Below are the main points about private lender loans. Knowing this will help you get ready for the private money process and make you more credible to potential lenders.

How to Acquire a Private Lender Loan

Private lender loans are different from traditional bank loans, and the steps to get one are not the same.

Speed of Purchase: Private lenders can usually underwrite and fund a loan in just 7 to 21 days. In comparison, banks might take up to 90 days. (Knoell, 2025) This faster timeline from an Arizona private money lender is often a better fit for the deals most investors want to finance.

Asset-based Lending: Arizona Private lenders focus mainly on the value of the property itself. This means borrowers do not have to depend on their credit to get a loan. (Hard Money Loans Arizona | Hard Money & Private Money Lender, n.d.)

Control & Profitability: Borrowers who use private money have more control over their loans and do not need to bring in equity partners. (Geraci, 2025)

Shorter-Term Loans: Private money loans in Arizona usually have shorter terms than conventional loans, which lowers the risk of late penalties. (Private Money Terms — REI Prime Glossary, 2025)

Guarantee of Capital: Private capital provides borrowers, especially independent investors, with a reliable way to grow their businesses. Having a steady source of funds is important for this.

Understanding Private Loans

Money and experience are the most important qualities for a private money investor. The best private lenders in Arizona usually have a strong background in real estate and a history of finding good lending opportunities. They also tend to focus on local markets, since knowing the area well is key to success. (A&A Funding Corp - About Us, n.d.) Understanding where a market is headed is a valuable skill.

Your Private Lending Business: Determining Deal Viability. Private lenders aim to make a profit, so reducing risk is very important to them. When deciding if a loan opportunity is worth it, they look at eight main factors:

• Market Value
• Borrower Credit
• Borrower Equity
• Additional Collateral
• Lien Priority
• Pricing Strategy
• Exit Strategy
• Due Diligence

You should examine these factors before deciding to pursue a loan opportunity. If you skip due diligence or ignore any of these points, you could face serious problems. Take care to move through the process carefully.

Proper Documentation

Having the right paperwork for a private money loan is very important. Many people do not realize that the documents for an Arizona private money loan are similar to those for a regular loan. (Geraci, 2025) The borrower needs to sign a promissory note, a written promise to repay the loan under certain terms, and a mortgage, which serves as collateral for the lender. Residential loans may also require an appraisal, a property inspection report, a geotechnical inspection, and the borrower’s financial records. Most private money lenders also want to see the property in person, which is why they usually focus on local deals.

While a hard money lender’s requirements may vary, standard documents are associated with every transaction. Typical loan documents include, but are not limited to:

Letter of Intent (LOI): A formal document that acknowledges that all parties are on the same page. It outlines an agreement between two or more parties before the deal is finalized. While it is not legally binding, it is a preventative measure for miscommunication.

Purchase & Sale Agreement: The purchase and sale agreement, or P&S agreement, is the document issued after mutually accepting an offer that sets the final sale price and all purchase terms. Some items covered in the P&S agreement include the final sale price, earnest money details, closing date, title condition, contingencies, and more. Inclusions on the P&S contract will differ from state to state.

Preliminary Title Report: A title is a legal document listing the history of ownership of a home. After the buyer and seller have reached mutual acceptance, an attorney or title company will review the home’s title to look for any problems that might prevent the home from being legally sold. The results are written for the buyer in a preliminary title report. A description of this nature will reveal if anyone other than the seller has a legal claim to the property.

Title Insurance: Title insurance, as its name suggests, is a preventative measure that protects a buyer from anyone who challenges a property's ownership.

Proof of Funds: It represents a buyer's intent. It is a way for borrowers to demonstrate they have sufficient funds to complete a transaction. Typically, a bank statement, retirement account statement, or other legal form is acceptable.

Proof of Insurance: Proof of insurance is required for either purchase or refinance to avoid a devastating loss.

Personal Guarantee: A personal guarantee requires the borrower to put some skin in the game. In other words, the borrower puts their assets (real estate, savings, etc.) on the line. Of course, this applies only when the borrower can’t repay the loan.

Mortgage Note: A mortgage note is a promissory note secured by a mortgage loan. The loan structure is agreed upon, and the borrower signs the document.

Legal Documentation

A traditional one-page form note and a two-page form deed of trust no longer address the myriad of issues in today’s legal environment. Environmental problems, lending issues, and the enforceability of securities and protections must be addressed. (Arizona Supreme Court Limits Enforcement Of Deeds Of Trust, 2025)

Legal documentation should be consistent with institutional lenders' employment practices, eliminating only provisions that may not be relevant or unnecessary. Additionally, special consideration must be given to a well-drafted broker’s affidavit, especially in states where a licensed real estate broker must broker an otherwise unethical loan.

Summary

Private money is a good option for investors who cannot fully fund a deal with traditional loans or their own cash. Private lenders are open to lending if you can show that your investment will be profitable. However, you need to have the right paperwork to prove your deal is solid. If you do your research and pay attention to due diligence, you will be close to getting your next private money loan in Arizona.

 

DBA Setabay/SetabayLoan/Level 4 Funding

26731 N 90th Drive

Peoria AZ 85383

Matt@Level4Funding.com

Telephone: 623-582-4444

NMLS 2062278 NMLS 1118493

Equal Housing Opportunity. This is not a Good Faith Estimate, and it is not a Guarantee to lend; it should not be considered as such. Costs, rates, estimates, and terms can only be determined after a full application is completed. To the extent this message includes any tax or legal advice, this message is not intended or written by the sender to be used, and cannot be used, for legal or tax purposes or advice. This is an advertisement. Copyright © 2026. All rights reserved.

 

References

References

Knoell, E. (2025). Top 7 Reasons Arizona Home Buyers Choose Private Money Lenders. Arizona Mortgage Insights. https://azmortgagebrothers.com/top-7-reasons-arizona-investment-home-buyers-choose-private-money-lenders/

(n.d.). Hard Money Loans Arizona | Hard Money & Private Money Lender. Metro Private Lending. https://metroprivatelending.com/

Geraci, A. (2025). Arizona Private Money Lending: Licensing, Compliance & Document Requirements. Automate Loan Docs. https://automateloandocs.com/pages/blog/arizona-private-lending-guide.html

(2025). Private Money Terms — REI Prime Glossary. REI Prime. https://reiprime.com/glossary/private-money-terms

(n.d.). A&A Funding Corp - About Us. A&A Funding Corp. https://www.aafundcorp.com/about

Geraci, A. (2025). Arizona Private Money Lending: Licensing, Compliance & Document Requirements. Automate Loan Docs. https://automateloandocs.com/pages/blog/arizona-private-lending-guide.html

(April 16, 2025). Arizona Supreme Court Limits Enforcement Of Deeds Of Trust. Platt & Westby, P.C.. https://www.plattwestby.com/arizona-supreme-court-limits-enforcement-of-deeds-of-trust/

Have you ever been homeless? Living on the street?

 Here's a bit about my life. I've lived in many different places over the years. I started out in #2 and, after getting married, spent two years in #3, then moved to #6. After college, my wife and I moved into a single-family home. Later, we upgraded to a nicer, upper-class home. When the Great Financial Crisis hit, we ended up living in a van. From there, we slowly moved up again—first to a small cottage we bought, then a bigger cottage, and eventually back into a single-family home. We've been here for the last ten years. Now that I'm older and my health isn't great, we plan to stay here for the rest of our lives. I've made good money since the crash, but we haven't moved to a bigger house. We're happy with what we have. Bigger homes are harder to maintain and cost more. We could afford to move, but I'm content here, and my wife wants to stay. So, this is where we'll stay.

Here is a list of different housing situations. Where are you on the list? Are you happy where you are?

1. Living and sleeping on the street is the lowest level of housing. It costs nothing, but people sleep right on the ground or sidewalk. There’s no real bed, just cardboard or old mattresses. You’re out in the open with nothing over your head. I experienced this myself for a short period during the financial crash. Sleeping outside with only a blanket or a piece of cardboard was tough and made me realize how important a roof really is.
2. Living and sleeping on the street, but in
   1. Tents cost a little money, but they give you some protection from the weather. You’re still sleeping on the ground, though.
   2. A car is a step up because you can move around. It costs more for things like maintenance and gas, and the car is often not registered or insured. Still, you have a solid roof over your head, even if it’s cramped. You can also use the car to make money, like delivering for DoorDash.
      
      
      
   3. A van is better than a car because it gives you more space for
      your things. When I was living in our van, I learned that it helps to park near a gym so you can take showers and use the restroom. I also tried to keep my important things organized in bins, so space didn’t get too cluttered. All furniture and some personal items were put into storage. When we moved into the van, I wondered whether my wife would divorce me.  She did not.  Ask her later, why not?  She said she had faith in me and that I would figure it out. She has been with me for 52 years.
      
      
      
   4. A motor home is bigger and might have a kitchen and a working bathroom. You need to find a place to park it. Maintenance is either not needed or very cheap, but when they break down, they usually stay in one place.
   5. A boat is similar to a motor home. It might have dock hookups so you can connect to utilities.
3. Many people today rent a room in someone else’s house, often from family. These ‘kids’ are usually grown adults. Some pay rent and help with utilities. Many grown children live this way now, often in the basement or back bedroom. This trend has become more common due to rising housing costs, student debt, and economic pressures, making it harder for adults to afford their own place. Living with family sometimes offers a practical solution while they get back on their feet or try to save money.
4. Some people live with extended family, like an aunt or a sibling. They might pay rent and help with utilities.
5. An extended-stay hotel room is usually in an older hotel rented by the week or month. The rooms are small, and some have a kitchen with a small oven and fridge. Some hotels offer laundry facilities and a pool. Seniors on a fixed income can sometimes afford these, hoping Social Security covers rent and leaves a bit for food and clothes. Utilities may or may not be included.
6. Apartments come in different sizes, from studios (like hotel rooms) to one-, two-, or three-bedroom units. Some buildings have laundry rooms, pools, or gyms.
7. A rental home is a single-family house you rent. You can rent by the day, week, or month. These homes come in different sizes, like townhomes, cottages, or standalone houses.
8. A single-family residence is a home you buy, so you don’t pay rent. You own the property, and the size or location usually depends on your income.
9. An upper-class single-family home is a large house, usually on a big lot with a two-car garage.
10. 
    A large single-family residence is a bigger home with three to five bedrooms and a garage for three or more cars.
11. A mansion is a much larger single-family home. It has a multi-car garage, many bedrooms and bathrooms, and sits on about an acre of land.
    

So, where are you now? What has been your experience over the years you've lived? Tell me in the comments.

 

Dennis Dahlberg
Private Hard Money
DBA Setabay/SetabayLoan/Level 4 Funding
26731 N 90th Drive
Peoria AZ 85383
Matt@Level4Funding.com
Telephone: 623-582-4444

 

Things You Need to Know about Real Estate Private Money Lo

 

When is an Arizona Private Money Loan a good option for me?

Arizona Private Money loans are a good choice if banks have turned you down. If you can’t get a traditional loan, private money could help. Learn the basics first so you can decide what’s right for you.

Private Money means getting a loan from a private individual or group rather than a bank. These lenders often have their own rules for who qualifies. Both sides take on more risk with private loans.

Private Money Lenders in Arizona usually offer rates similar to national averages, but rates can reach 8-20% when risk is higher. (Geraci, 2025) More risk means higher interest rates for everyone involved.

Private money lenders are common and want higher returns, but there are real risks. If you don’t pay them back, they may sue you quickly. They might also hold your deed as collateral or demand property insurance to protect themselves.

Arizona Private Money lenders don’t have to follow banking laws or state and federal usury laws. However, if they make too many loans in a year, they might need a mortgage broker license. (Arizona Revised Statutes Title 6. Banks and Financial Institutions § 6-903. Licensing of mortgage brokers required; qualifications; application; bond; fees; renewal, 2025)

Be careful if you’re thinking about a Private Money loan. These loans aren’t usually recommended for homeowners and are mostly used for fix-and-flip projects. (42 Solutions | Private Money Lender in Arizona for Real Estate Investors, 2026) Many private investors lack much experience outside banking, which can lead to legal problems. (Geraci, 2025) Always get good advice first.

How can I get an Arizona Private Money loan?

Many groups offer private money loans in Arizona. Look into their background to see if you trust them, since you might work with them for a while. They’re taking a risk lending to you, so make sure you feel comfortable, too.

How can I find a trustworthy Arizona Private Money lender?

What should I look for?

Ask if the lender is part of any Arizona private money lender groups. This adds some accountability and gives you a place to turn before going to court. Check their credentials and talk to past borrowers. Most lenders are honest, but it’s smart to verify.

Private Money loans can be very helpful if banks think you’re too risky.

 

Matt Prosory RI/MLO/Broker

NCO Enterprises LLC

Private Hard Money

DBA Setabay/SetabayLoan/Level 4 Funding

26731 N 90th Drive

Peoria AZ 85383

Matt@Level4Funding.com

Telephone: 623-582-4444

NMLS 2062278 NMLS 1118493

Equal Housing Opportunity. This is not a Good Faith Estimate, and it is not a Guarantee to lend; it should not be considered as such. Costs, rates, estimates, and terms can only be determined after a full application is completed. To the extent this message includes any tax or legal advice, this message is not intended or written by the sender to be used, and cannot be used, for legal or tax purposes or advice. This is an advertisement. Copyright © 2026. All rights reserved.

 

References

Geraci, A. (2025). Arizona Private Money Lending: Licensing, Compliance & Document Requirements. Automate Loan Docs. https://automateloandocs.com/pages/blog/arizona-private-lending-guide.html

(2025). Arizona Revised Statutes Title 6. Banks and Financial Institutions § 6-903. Licensing of mortgage brokers required; qualifications; application; bond; fees; renewal. Arizona Revised Statutes Title 6. Banks and Financial Institutions § 6-903. https://codes.findlaw.com/az/title-6-banks-and-financial-institutions/az-rev-st-sect-6-903/

(2026). 42 Solutions | Private Money Lender in Arizona for Real Estate Investors. www.weare42solutions.com/. https://www.weare42solutions.com/

Geraci, A. (2025). Arizona Private Money Lending: Licensing, Compliance & Document Requirements. Automate Loan Docs. https://automateloandocs.com/pages/blog/arizona-private-lending-guide.html

Years ago, when the economy crashed, before I did Hard Money Loans in Arizona, I found a way to keep going.  I started Flipping Homes. But soon I found that the home came with another unexpected asset.  The cat was the prior lift behind.  People did this, and it became a problem that had to be solved.  I always wondered why people would do this. 

If summarized, some of the reasons why cards are dumped are:

Some people see pets much like a cheap piece of furniture: nice to have if it fits your space and life, but not worth the bother of moving.

Some believe the myth that cats prefer their location to your company.

Some just don’t grasp that pet cats will not be fine fending for themselves, so if they can’t have them where they’re going, or transportation will be difficult, they leave them.

Some leave because of disaster and cannot make accommodations for their pets on short notice.

And some treasured pets choose moving day as the time to wander off for a few days (or to escape, if indoor-only) and cannot be found in time or from a distance.

Some People abandon pets in this way to remain anonymous.

Some People are embarrassed/guilty and don’t want to hand their pet over to a shelter in person

Some People abandon pets in a piece of real estate because it’s easy. They’ve packed all their belongings, and the pet is an afterthought

Some People abandon pets at the last minute if they’ve found out their new apartment doesn’t allow pets, and they don’t know what to do

Some People abandon pets this way because the animal will be protected from the elements, and a person (the realtor or property owner) will find them fairly soon

Here are some of the common comments from people who dumped their cats.

Last time I moved my cat could tell something was up and ran away. I went back to that place for months trying to catch her but she wouldnt let me touch her anymore.

When I Ieft for college, the cat who bonded with me the most kept sitting on top of the boxes, just moving to a new one every time we took one away. They really hate change

People are monsters. They just see them as disposable. I moved countries and always took my cat.

I don't necessarily think it's always intentional. Pet's freak out when all of a sudden everything in their home is disappearing, and their humans are acting weird.

I work at a shelter and though it is sad that people feel the need to surrender their pets, I just try to remember that it's better they surrender

My neighbor did this. I took the cat in and she became my best friend for 18 years.

There's an affordable housing crisis. I'd imagine in some cases people can't find housing that allows pets and still need a place to live.

Yes of course some people are just careless / terrible / wtv but I tend to think they are the minority.

Because it is SO hard to find housing, a lot of people are moving under bad circumstances and their new situations in no way will allow them to keep a pet.

People can't have pets in their new home or don't want to pay a pet deposit.

 

Matt Prosory RI/MLO/Broker
NCO Enterprises LLC
Private Hard Money
DBA Setabay/SetabayLoan/Level 4 Funding
26731 N 90th Drive
Peoria AZ 85383
Matt@Level4Funding.com
Telephone: 623-582-4444
NMLS 2062278 NMLS 1118493

Equal Housing Opportunity. This is not a Good Faith Estimate, and it is not a Guarantee to lend; it should not be considered as such. Costs, rates, estimates, and terms can only be determined after a full application is completed. To the extent this message includes any tax or legal advice, this message is not intended or written by the sender to be used, and cannot be used, for legal or tax purposes or advice. This is an advertisement. Copyright © 2026.  All rights reserved.

Why I Nearly Went Broke Flipping Houses, Broken Into, Robbed, and Unsured

Here are some of the things that caused me to fail and lose money on my Fix and Flip Properties

“Land Mines” that caused me to fail on flips over the year

• I didn’t check the back taxes. On one flip, I found out there was $20,000 in property taxes owed. That was a tough lesson.
• I underestimated how long it would take to fix up the property. I planned for 30 days, but it ended up taking 180. That hurt!
• I bought a house in a remote area called Sun City Festival. It was a nice place, but the nearest store was 25 miles away. It took 8 months to sell, and I just broke even.
• I trusted a contractor to do the job right, but he didn’t. He kept the money and even stole the appliances.
• I bought a condo and paid too much from the start. When I tried to sell, I realized I’d lose $10,000. So, I rented it out for two years before selling.
• I hired the wrong contractor to do the work. People often ask me how to find a good contractor. I usually get referrals from friends or other professionals I trust. My top rule is: “Don’t hire anyone who has nothing to lose if they mess up.” In other words, avoid hiring someone with no assets or stability. There’s a running joke in the trades that some plumbers, tile layers, and painters have drinking problems, which is why they work for themselves. I’ve actually hired tile layers who were so drunk they installed tiles upside down. On the other hand, I know a great tile layer who’s been sober for five years and does excellent work. Every time I hire him, I ask him directly if he’s still sober, and so far, he says yes. It took me a long time and a lot of money to learn that many people claim they can do the job, but just want to take advantage of you. Craigslist is full of these types. Most of the time, I use the biggest home improvement company for carpet, tile, appliances, and counters. They have a lot to lose if something goes wrong, and they make sure the work is done right. Who is it? Home Depot. Seriously, use them—they get the job done, and sometimes they have great sales on appliances, carpets, and countertops. It might cost a bit more, but I don’t mind. The work is done right, on time, and comes with a warranty.
• Never pay for labor in advance. Ignoring this rule has cost me a lot of money.
• Ask for references and actually call them. Hopefully, the reference isn’t just their mother.
• Don’t hire relatives. In my experience, they’re the most likely to take advantage of you.
• Buy appliances yourself and have the company handle the installation.
• Check their License. If someone says they’re licensed, make sure to verify it.
• Failed to get homeowner's insurance. Get insurance on your property as soon as possible. But be aware: most standard homeowner’s policies have an exclusion. If the home is vacant for more than 30 days, the coverage ends. You can get a rider to extend coverage, so ask your agent about it. I learned this the hard way when one of my flips was broken into, and tools, doors, and appliances were stolen. I thought, "Hot doggie, I have insurance." But when I called, the company kindly pointed out that the policy says, “no coverage after 30 days of vacancy” (you are out of luck). That was an expensive lesson. You are going to assume that your flip will be broken into and that items will be stolen.  So, plan for it. Plan to walk on the property every day.  Even if no one is working.  Need to keep a close eye on the home. I have come to flips to find the following: someone living in the home, the door unlocked, appliances stolen, the $1,000 front door gone, the neighbor swimming in the pool, the A/C gone, and the pool equipment gone.  It is tough out there. Things are going to get stolen. If it’s a rough area, I wait to bring in appliances until the new owner moves in. I’ll put a picture on the counter showing what’s coming and say it’s backordered.

Over the past 30 years, I've flipped many properties.  In most cases, I’ve made money on every flip.  It's been a joy to do his work, and my wife has come along with the journey. 

Matt Prosory RI/MLO/Broker
NCO Enterprises LLC
Private Hard Money
DBA Setabay/SetabayLoan/Level 4 Funding
26731 N 90th Drive
Peoria AZ 85383
Matt@Level4Funding.com
Telephone: 623-582-4444
NMLS 2062278 NMLS 1118493

Equal Housing Opportunity. This is not a Good Faith Estimate, and it is not a Guarantee to lend; it should not be considered as such. Costs, rates, estimates, and terms can only be determined after a full application is completed. To the extent this message includes any tax or legal advice, this message is not intended or written by the sender to be used, and cannot be used, for legal or tax purposes or advice. This is an advertisement. Copyright © 2026.  All rights reserved.

29% Interest Rates? How Trust Deeds Destroy Stock Returns, Trust Deed Investor, be the bank.

There are three parties mentioned in a deed of trust document:

1. the beneficiary (private money lender, you),

2. the trustee (usually a neutral party, such as a title company),

3. the trustor (the borrower).

The trustee holds specific powers under a Trust Deed. If the borrower defaults, the trustee may initiate a streamlined foreclosure process called a trustee’s sale. This process is typically faster and less costly than judicial foreclosure. (Team, 2026) At the trustee’s sale, the property may be purchased by a third-party bidder or revert to the lender. Ownership is then transferred to either the beneficiary or the winning bidder.

Benefits of Deeds of Trust Investing: Deeds of Trust typically offer higher returns than traditional bank or savings accounts, with annual yields ranging from 8% to 18%. (Trust Deed Investments Explained: How Investors Earn 10–13% Secured Returns, 2026) Each investment is secured by real estate collateral at a favorable loan-to-value ratio, usually 70% or less, providing added security. (Team, 2025) Investors can begin with as little as $50,000. (BSTN Fund One: A Private Real Estate Investment Fund, 2026) Unlike stocks or mutual funds, Deeds of Trust provide predictable monthly payments, which are deposited directly into your account or sent by check. This investment is not a get-rich-quick scheme; it operates similarly to a CD, with your funds committed for a fixed term, such as 6 to 60 months, after which your principal is returned.

High-yield Deed of Trust investments are suitable for private individuals, non-profits, corporations, pension plans, retirement funds, 401(k)s, IRAs, and SEP accounts.

Currently, professional real estate investors acquire properties at foreclosure prices and resell them for profit. These investments generally offer favorable returns with relatively low risk. Compared to other options with similar risk profiles, the likelihood of loss in Deed of Trust investing is minimal. (Trust Deed Investments Explained: How Investors Earn 10–13% Secured Returns, 2026)

If a borrower defaults and foreclosure occurs, Deeds of Trust investments are protected by real estate collateral. The investor assumes title to the property and may sell it to recover the investment. As the lien holder, the investor’s position is secured by the property.

Why do people invest in Trust Deeds?

Monthly Cash Flow: Trust Deed investments provide monthly interest payments while protecting your principal. In a recent survey, over 96% of our investors cited consistent cash flow as their primary reason for investing. (CrowdStreet, 2021) If monthly payments are reinvested, even at moderate rates, returns can compound significantly beyond the base rate.

Security is another key benefit of Trust Deed investing. When you invest in a first Trust Deed, your funds are backed by a specific property. Investments are typically funded at 75% or less of the property’s current market value, offering equity protection. (Team, 2025)

Easy to Do. If you have ever borrowed money from a bank, you understand the basics of Trust Deed investing. As a Trust Deed investor, you have simply switched seats to the lending side of the table. You are the bank.

Diversification: Trust Deeds allow investors to diversify into real estate without the responsibilities of property management. The borrower manages the property, including repairs, maintenance, and tenant relations, while you receive monthly payments.

Lower Volatility: Investing in a first Trust Deed through a reputable broker with a strong repayment history is considered safe and low-stress. Compared to the stock market, Trust Deeds are significantly less volatile. (DEED vs SPY: Performance Charts & Full Comparison, 2026)

Guarantees: The property is secured by title insurance, property insurance, and a personal guarantee from the borrower.

Matt Prosory RI/MLO/Broker
NCO Enterprises LLC
Private Hard Money
DBA Setabay/SetabayLoan/Level 4 Funding
26731 N 90th Drive
Peoria AZ 85383
Matt@Level4Funding.com
Level4funding.com
Telephone: 623-582-4444
NMLS 2062278 NMLS 1118493

References

Team, L. (2026). Judicial vs. Non-Judicial Foreclosure: Key Differences. LegalClarity. https://legalclarity.org/judicial-vs-non-judicial-foreclosure-key-differences/

(2026). Trust Deed Investments Explained: How Investors Earn 10–13% Secured Returns. KARPE. https://www.karpe.com/2026/02/03/trust-deed-investments-explained-how-investors-earn-10-13-secured-returns/

Team, L. (2025). How Trust Deed Investors Evaluate Risk and Return. LegalClarity. https://legalclarity.org/how-trust-deed-investors-evaluate-risk-and-return/

(2026). BSTN Fund One: A Private Real Estate Investment Fund. BSTN Fund One. https://bstnfund.com/one

(2026). Trust Deed Investments Explained: How Investors Earn 10–13% Secured Returns. KARPE. https://www.karpe.com/2026/02/03/trust-deed-investments-explained-how-investors-earn-10-13-secured-returns/

CrowdStreet. (January 27, 2021). CrowdStreet Unveils 2021 Investor Sentiment Survey Results and Investment Thesis. PR Newswire. https://www.prnewswire.com/news-releases/crowdstreet-unveils-2021-investor-sentiment-survey-results-and-investment-thesis-301216839.html

Team, L. (2025). How Trust Deed Investors Evaluate Risk and Return. LegalClarity. https://legalclarity.org/how-trust-deed-investors-evaluate-risk-and-return/

(2026). DEED vs SPY: Performance Charts & Full Comparison. PortfoliosLab. https://portfolioslab.com/tools/stock-comparison/DEED/SPY

Flipping Houses Successfully | The Exact Process That Works

Hello, my name is Dennis. I own a business and have over 44 years of experience helping business owners worldwide, from seven-figure enterprises to small businesses and startups that grew to millions in annual revenue.

Why do I do this work? Years ago, someone made a significant sacrifice to help me. I learned that real purpose and happiness come from giving, not taking. This drives me to help you reach your business goals and personal fulfillment. Serving others defines wealth and happiness. Your success is my success. With this in mind, I will share some challenges I've faced.

 

A few years ago, my wife and I lost everything: our business, home, and savings. We lived in our van and my office, facing lawsuits and asset seizures. Through this hardship, my wife's support never wavered. Eventually, we moved our belongings into storage and began life anew, determined to rebuild.

 

Despite working long hours, I realized I needed a new approach. I explored flipping homes and, with determination and education, created a strategy that worked. This guide is the result, designed to assist you.

House Flipping Mistakes That Can Bankrupt You | Do This Instead

 

Your Guide to Flipping Homes - 8 Things You Must Do To Be A Successful Home Flipper

 

Let's begin with step 1: Calculate your profit before you purchase the home.

The old saying is, “you make your profit when you purchase the home, not when you sell it.”  This means calculating the project's profit and loss before you purchase.  Determine the gain before you buy – work backward.  Do not do a project unless there is clear profit potential.

 

Calculate your profit/Loss.  The sales price minus costs is your profit.

Costs

Acquisition

• Purchase Price
• Back taxes and other lines
• HOA Fees (and HOA transfer fees)
• Keys
• Bid or Real Estate Fees
• Title closing costs

Repairs

• Contractor or do it yourself
• Appliances + much more

Holding

• Cost of your capital to hold                        
• Payments on hard money loans
• Utilities
• Insurance
• Maintenance

Selling

• Real Estate Commissions
• Staging
• Title closing costs
• Marketing plans

Administration

• Bookkeeping/accounting
• Other non-related expenses

Moving to step 2: Have a good team of Contractors/others to do the work.

• Suppliers
• Real Estate Agent (hopefully it will be you)
• Hard Money Lenders (give me a call)
• Insurance agents

Now on to step 3: Get educated.

Do not start buying homes without knowing the process.  The best way to get started is to get your Real Estate License.  Yes, it is work, but it will give you the knowledge you need to understand how homes are transferred and the laws associated with Real Estate.  Also, you will have access to the Multiple Listing Service, which is invaluable for your research.  Plus, you can avoid paying the seller's commission in full when you are the listing agent.  Every successful flipper I’ve ever met had a real estate license.  So, GET IT!

 

Next, step 4: Be patient.

Courthouse auctions once offered many properties daily; now, there are fewer. Explore alternative ways to find opportunities. Renovating and selling takes patience and time. Success is possible, but real estate requires precise timing.

 

Step 5: Have Money.

Be wary of claims about no-cash deals; they are mostly false. You’ll need your own capital. Hard money lenders often want 20–30% down and interest rates from 9–18%. Include these costs in your calculations. Though some advertise 100% LTC, it’s rare. Occasionally, hard money lenders share in profits, but still judge your experience and usually require at least 10% investment.

 

Step 6: Do not buy something you cannot fix or ever sell.

Many deals exist for a reason: some can't be fixed or sold, no matter the money or effort. Avoid homes with major, unchangeable issues, such as being near landfills, dumps, sewage plants, or major airports.

 

Now let's look at step 7: Buy your project through your LLC.

There are many tax and liability reasons to do this.  Plus, private money lenders prefer to lend to LLCs.

 

Finally, step 8: It is going to be work.

Don’t believe flipping shows. You must work hard and spend time on-site. Check progress often and visit daily after listing.

 

Matt Prosory RI/MLO/Broker

NCO Enterprises LLC

Private Hard Money

DBA Setabay/SetabayLoan/Level 4 Funding

26731 N 90th Drive

Peoria AZ 85383

Matt@Level4Funding.com

Level4funding.com

Telephone: 623-582-4444

NMLS 2062278 NMLS 1118493