Level 4 Funding

About Level 4 Funding

Based in Arcadia, CA, Level 4 Funding is a private lender providing loans in 8 states across the country. They offer cash out hard money loans, short term bridge loans, construction loans, rental property loans, private commercial loans, and short term fix and flip loans. They issue terms between 3 months and 5 years, rates starting at 7.99% , and loans with a maximum LTV of 90%. They will make loans on numerous types of properties, including single family units, multi-family, apartment buildings, offices, retail spaces, hotels and motels, storage facilities, assisted living communities, mixed use buildings, warehouses, industrial buildings, and medical facilities.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Refinance / Cash Out Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical

Areas Served: AZ, CA, CO, FL, ID, OR, TX, WA

Licenses: NMLS 1018071, AZ MB-0923961

Lending Guidelines for Level 4 Funding

Below are the general loan guidelines published on the Level 4 Funding website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Level 4 Funding.

Loan Example 1

Level 4 Funding issues a private money loan to Sue for a renovation project in Houston, TX, on a property that is listed for $310,000. The lender agrees to issue a note with a 80% loan-to-value (LTV) so they will loan $248,000 on the project. The terms of the loan also include a three point origination fee which will be paid at the closing and a 12 month, interest-only note with a 13% rate of interest.

Sue will need to contribute a total of $32,400 up front to cover the $62,000 down payment in addition to the $7,440 origination fee. The monthly interest-only payments will then be $2,687 to Level 4 Funding. Sue's intention is to finish the project by the end of the 12 months and resell it for $387,500. If she succeeds she will collect a profit of $37,820 ($387,500 price - $248,000 principle - $62,000 cash paid at closing - $7,440 origination fee - $32,240 in total interest payments.

Loan Example 2

Todd is a an investor in Houston, TX. He purchases a run-down property for a remodeling project and takes a hard money loan from Level 4 Funding with the following paramters:

$160,000 sales price
50% loan-to-value (LTV)
18 month term
11% interest rate
4% origination fee

Once the renovation project is complete, if Todd sells the project for $232,000, the final numbers would be as follows:

$232,000 sales price
- $80,000 loan principle (50% LTV)
- $80,000 down payment (50% on 50% LTV)
- $3,200 origination fee (4% of the $80,000 principle)
- $13,200 interest payments (18 months x 11% interest)
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= $55,600 gross profit (doesn't include taxes or renovation costs)