The Difference between Bank Commercial Loans and Private Hard Money Lenders

3page_img1Hurricane Harvey is gearing up to be the second most costliest natural catastrophe to hit the United States. Investors and developers are already reaching out to commercial lending institutions in search of funding.

In addition to the immense devastation and human tragedy caused by Hurricane Harvey, its economic impact is expected to rank as the second most expensive natural disaster to occur in America. According to an article in the New York Times, Moody’s Analytics have estimated the damage to be in the $40 to $50 million ballpark. This is second only to Hurricane Katrina which killed almost 2,000 people and caused $130 billion in damage. Note: A recent article in USA Today raised the estimated cost of Hurricane Harvey to $190 billion. Commercial properties that have been flooded are estimated to cover approximately 455,000 square feet. Just as in 2005, rebuilding will accelerate once insurance checks are cut and federal aid is disbursed. And investors are already lining up to raise funds from commercial lending institutions for distressed properties.

Before Harvey hit, the building and construction segments were, as in other parts of Texas, booming in Houston. According to an article in Dallas News, “At midyear, more than 27,000 single-family homes were being built in the Houston area. And more than 23,000 apartments were under construction and scheduled to open this year.” Due to the increase in demand, construction firms and those they employed were already maxed out when Harvey hit. Now, in the wake of the devastation, other investors and contractors will be arriving to fill in the gaps. Just a few of the investment companies looking for commercial lending include Delshah Capital, Madison Realty Capital and Steven Witkoff, a New York developer.

The San Diego Union reported that more than 3,000 national and state guard troops were being deployed to assist with relief and recovery efforts. Water, food and shelter are the top priorities at this time. As the waters recede, there will undoubtedly be an influx of contractors, insurance adjusters and FEMA employees. Currently, there are more than 200 shelters housing more than 32,000 people who have been displaced due to the catastrophic nature of Harvey. Because of these two factors, multifamily units are expected to be in high demand.


At Level 4 Funding, our hearts and prayers go out to those affected by this national disaster. With an office in Dallas and clients in Houston, we are very close to those affected. We hope that investors and developers will show good taste and wait for the waters to recede and displaced residents to find housing before making their move. At the right time, these individuals and businesses will be a great asset to the recovery of this place in America that has shown its true colors of faith, humanity and neighbor helping neighbor in the midst of incredible challenges.

“Bad things do happen in the world, like war, natural disasters, disease. But out of those situations always arise stories of ordinary people doing extraordinary things.”—Daryn Kagan.

When the time is right, we are here to help those looking for immediate funds and commercial lending with which to rebuild this incredible area of our country.

mark-gowlovech-150x150Dennis Dahlberg


Level 4 Funding LLC  Private Hard Money Lender

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

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   

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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.

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