Showing posts with label California Hard Money lender. Show all posts

Thursday, February 23, 2017

California Hard Money Lenders—A Helping Hand

California hard money lenders are not your ordinary lenders. If you have not had much experience working with California hard money lenders, it can be very easy to forget or rather overlook all the wonderful things you can accomplish when working with these lenders.

So often, when you read about California hard money lenders, you find out that they are great for business endeavors or for borrowers with less than perfect credit. Of course, these things still hold true, but you have really only hit the tip of the iceberg. In other words, these particular lenders are that helping hand that everyone needs.
Think about it this way, how many lenders do you know that are willing to lend to a borrower who is in foreclosure or are willing to assist a buyer of high-value properties refinance?

Moreover, how many lenders do you know that are willing to work with borrows who still need a little more time to get all these paperwork and appraisals together? Well, the answer is not many. The reality is that securing financing is still a business— no matter who your lender is or what kind of financing you secure. Thus, as you probably know firsthand, lenders can be fickle if you are coming with your A game.

Yet, lenders who offer hard money financing, are more willing to see the potential in your project or business venture. They are also more interested in you and building the right kind of business relationship. This means, that your top lenders of hard money financing are just as interested in finding the right match as you are. What’s more, unlike traditional and large non-traditional lending institutions, these particular lenders are flexible with their terms as well as rate, which leaves room for everyone to benefit from this newly formed business relationship.

Meeting Everyone’s Expectations

In addition to helping borrowers do the next to impossible, lenders who offer hard money are not afraid to see potential where others simply will not. For example, hard money financing is often used for rural properties and non-traditional construction properties. As you probably guessed, banks, traditional and other lending institutions more than shy away from properties like these for a variety of reasons, but often it is because they just are not willing to see the potential or future return. Of course, that is not to say there will not be any additional risks with unique borrowing scenarios such as the above-mentioned, but lenders of hard money are truly here to help you succeed.

Successful Borrowing

Ultimately, the takeaway here is that lenders of hard money financing do not shy away from a challenge nor do they write borrowers off for past mistakes and bad credit. Consequently, if you are in need of a temporary fix loan or financing to make what seems like the impossible into a reality then you know where you should start. Just remember, that these particular lenders do come at a price so make sure your venture is truly feasible before looking for a helping hand.

Happy senior business man making his notes at work

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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Becoming Financially Secure With The Help Of California Hard Money Lenders

The ultimate dream for everyone is to be able to live without the fear of running out of money. Everyone wants to be financially secure, and California Hard Money Lenders can help people do just that.

California Hard Money Lenders--When I got my first job out of college, the economy had just started to take a turn for the worse. For me, that ended up being a good thing because when I added money to my company’s 401K more could be done with it since prices were so low. My co-workers, however, were not so happy. Most of them had been with the company for years and had just seen half of their retirement fund disappear because the market had declined.

To the man, each one complained about not being more involved in the decision to do certain things with their money. The investment firm said they could have been; all they had to do was ask. But no one knew that was an option. They just knew they were going to be facing retirement in a few years and they didn’t know how they would be able to afford it.

A Lesson Learned

As the fresh-faced, youngster in the group I was not concerned about the crashing market since I didn’t have a 401K that could be gutted. I wouldn’t need it for another 35-45 years anyway. But what the experience told me was that I better make sure that I exercise as much control and power over my money as I can.

Where these guys went wrong was trusting someone else to do it all or them. This told me that I needed to be more proactive with my investments. I needed to keep an eye on my 401K and shift money before something crashes too far.

I also needed to make sure I’d have enough on my own—and to accomplish that I contacted a couple of California Hard Money Lenders.

I couldn’t use the money from my 401K, but they said I could use it as collateral along with the property I was buying to secure the loan. With that loan, I purchased a duplex that needed a lot of work. After getting a little help from friends and co-workers, I was able to fix the place up within the budget I had projected.

When it was done I put that sucker back on the market, sold it, and went back to the couple California Hard Money Lenders I had talked to before and said,” That was fun. What’s next?”

California Hard Money Lenders Are My Friends

Since the economy has improved, my 401K is doing fine, but my associates will never get back to what they had before the downturn—unless they don’t retire. I don’t want to be in that situation when my time comes. I want to be able to retire early and go on some ridiculous vacations in my golden years.

To make sure that can happen, I am going to keep working with the California Hard Money Lenders I know to find and invest in the right properties so that my nest egg can grow. I am not going to trust an investment firm that gets paid whether I make money or not. I’m going to trust myself (and my California Hard Money Lenders) to make sure I am financially secure when it is time to retire.

Happy senior business man making his notes at work Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

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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Tuesday, February 21, 2017

Where Does All The Money Come For Private Hard Money Loans in Califonia?

By: Melissa Martorella

Many people wonder where the money comes from to originate mortgage loans. How do banks and lenders have a seemingly unlimited supply of money to loan for the next 30 years?

Well, the short story is that the money comes from Wall Street. Banks do not have piles of money sitting in their vault just lying around until borrowers come in to ask for it. For every real estate loan that banks finance, one of two things happen – they retain and service the loan, or they sell the loan on the open market.

Banks originate two types of mortgages. They are known as “saleable” and “portfolio” loans. Saleable loans are those scheduled to be sold off to investors on Wall Street in the form of “mortgage-backed securities.” These saleable loans are typically adjustable rate mortgages or subprime loans, but ideally, a mortgage securitization trust will consist of a balanced mix of both low-risk and high-risk notes. Loans that have fixed rates, well-qualified borrowers, and low loan-to-value ratios are considered low-risk and are deemed a portfolio loan. Banks may choose to hold on to these types of loans, making money off of the servicing and the interest earned.

While the market has dramatically changed since the financial crisis of 2008, the system to replenish money within the mortgage industry has pretty much stayed the same. Lenders and brokers originate loans based on program guidelines and sell those loans to secondary market investors. The investors in these securities are primarily made up of investment trusts or institutional financial companies. Loans that meet certain requirements may also be purchased by government-backed agencies such as Freddie Mac, Fannie Mae, or Ginnie Mae, who hold and service them.

Private Hard Money Lenders in California or Investment trusts operate as aggregators of loans. They create a securitization trust that then “pools” hundreds of loans, sometimes with diverse underwriting criteria, to create an investment rated security. This pooling helps mitigate risk and provides a good rate of return to individual investors. The loan pools, or trusts, are assigned to investment firms who hold and service the account on behalf of the investors. The investors in mortgage-backed securities usually earn a rate of return that is far higher than that of traditional government or money market bonds, making them in high demand.

CYCLING THE MONEY IN PRIVATE HARD MONEY LENDERS IN CALIFORNIA

The secondary market pools loans in securitization trusts and offers them for purchase to Wall Street investment firms. Individual certificates for the trust, similar to stock certificates, are sold to institutions or individual investors. This provides for the capital supply to be replenished for banks and other lending institutions that have established credit lines, and as the cycle continues, that money goes back into the economy in the form of new mortgages.

Hard Money Lenders and Hard Money Brokers depend on the secondary market to purchase the loans they originate so they can continue uninterrupted lending operations. With the new rules and regulations established under Dodd-Frank, individual errors or omissions in loan documentation can cause a closed loan to become “unpurchasable,” leading to the inability to offload the loan to investors. When this happens, it reduces the amount of capital that is available to go back into mortgage lending. Besides the risk of carrying excessive mortgage debt, if a bank or lender gets caught with too many loans on their books, they may not be able to continue operations until those loans are remedied and sold.

The buying and selling of California Hard Money Loans (securities) is known as "mortgage banking" and is the backbone that keeps the mortgage industry humming along. Ensuring this market continues to operate normally, through common sense oversight and regulation, is vital to maintaining a reliable mortgage industry.

Author Learn more about the author, Melissa Martorella by reading her bio.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

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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Tuesday, February 14, 2017

Federal Regulations Will Soon Make California Hard Money Lenders Filthy Rich

When it becomes legal to sell recreational marijuana in California, developers are going to need money but thanks to federal regulations, they will not be able to get it from a bank. They are going to have no choice but to borrow from California Hard Money Lenders.

Some people have been touting the benefits of legalizing marijuana for years. They have gone on at length about the impact on the courts and jails and the boost it can give the economy. With the passing of Proposition 64 in California, residents of the Golden State will soon realize those benefits.

Thanks to federal regulations, the banks will not be seeing as much (if any) of that financial boost. Instead, the beneficiary will be the California Hard Money Lenders that will be ready willing and waiting to do business.

What Regulations?

Many states, like California, have been passing state laws to legalize marijuana, but the federal statute remains. As far as the Feds are concerned, marijuana is still an illegal drug and is listed by the DEA as a Schedule 1 controlled substance. But the Department of Justice has not been prosecuting cases in states that have legalized marijuana.

So—on a criminal level, federal authorities have been backing off. But on a financial level, the federal government has been doing a little flexing of their muscles. Businesses need money to get off the ground, but federally insured banks will not approve loans for marijuana-related businesses. Nor will they allow marijuana businesses to set up accounts.

“It continues to be an issue because banks are regulated at the federal level,” Taylor West, deputy director of the National Cannabis Industry Association, said in an article in the Scotsman Guide. “Some businesses have been able to get bank accounts through one means or another, but as an industrywide situation, it is still pretty much a problem.”

This, of course, makes California Hard Money Lenders the No. 1 option for anyone thinking of opening a marijuana dispensary. However, there is an option.

The Financial Crimes Enforcement Network

If a bank wants to be approved by the Department of Treasury to provide loans to the marijuana industry, they have to abide by the rules as set forth by the Financial Crimes Enforcement Network. The network enforces the regulations outlined in the Bank Secrecy Act which essentially requires a bank to investigate potential lenders as much as possible and to not do business on purpose or by accident with “bad actors.”

For now, even though they are legal according to the states, marijuana businesses are considered the bad actors. Violators stand to risk being fined, but new regulations have opened the door to allow banks to do business with marijuana-related businesses. But there are stipulations. They can do so as long as they investigate the company and the parties involved as completely as possible. They will also have to continue to monitor clients after approving a loan for any potential wrong doing.

Banks do not want to go through all that hence the door being wide open for California Hard Money Lenders to be real busy in the near future.

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Thursday, January 19, 2017

Hard Money Lenders California Hard Money Loans California

Why Choose Level 4 Funding for California Hard Money

For instance, starting out with the benefits, you will find out early on that these particular loans are approved and funded quickly, which is often the main reason people choose to use hard money lenders in California in the first place. The next benefit you will find is that hard money financing options have fewer requirements. This means that unlike traditional financing options or bank lending you will not have to deal with an exorbitant amount of red tape. Consequently, common red flags such as bad credit, a previous foreclosure or bankruptcies are less likely to harm your chances of getting approved.

Another major benefit to Hard Money loan California is the ability to get a project funded that you were unable to get funded or rather financed anywhere else. One common example is a fix and flip project. Often, banks are not interested in short-term lending. This is not to say that banks do not offer short-term options but rather that banks are in the business of making money and the easiest way to do that is to approve long-term loans more often. Furthermore, banks look at these kinds of projects such as a fix and flip as high-risk which only make getting financing harder.

The Pitfalls of a California Hard Money Lender

So now that we’ve covered the major benefits of all things hard money, let’s talk about those pesky pitfalls and disadvantages. The top disadvantage when dealing with hard money financing is of course that higher than average interest rate. But, in reality, just as banks need to make a profit and are concerned about high-risk borrowers, non-bank lenders need to see some return on their investment hence the higher rates. Disadvantage number 2 is the fact that hard money financing is only available for short-term use. This means if you are looking for financing for a project that others have deemed high-risk for more than 1-5 years you may have to look elsewhere.

California Commercial Hard Money

Lastly, hard money loans require either a minimum amount of equity i.e. at least 25% or a significant down payment. In the world of California Commercial Hard Money, that minimum amount becomes 40% and the down payment is much larger. This increase is ultimately due to the fact that if there is a default, selling the commercial property is much harder to do and often requires a discounted sale price in order to recoup what the non-bank lender lost.

Private California Hard Money Lender Requirements and Regulations

When dealing with a California private hard money lender there are several things you need to know to ensure that you are not falling victim to predatory lending. Moreover, let’s go over a few tips so you are not just borrowing blindly.

As you are probably already aware, hard money lenders, in essence, are still private money lenders. This means that your potential California private hard money lender is a non-bank lender. Historically, non-bank lenders have been able to lend money with limited regulations. Originally, this flexibility with California private hard money lender requirements made sense as the government shouldn’t be able to tell your father that he cannot lend you some cash for your start-up.

But, now financial reforms which were absolutely necessary after the real estate collapse means that there are some requirements when it comes to non-bank lending. For instance, the issue of mortgage licensing was not applicable to non-banker lenders i.e. individuals, companies and so on. Moreover, due to the almost overwhelming number of non-bank lenders in California, these new requirements have a lot of weight.

So what exactly do new regulations and requirements for potential borrowers and you? Well, for starters, there is now a fixed interest rate (the Usury law ensure that you will not be charge excessively high rates) that applies to these particular types of loans. In California, that “usury rate” is a maximum of ten percent per year. In addition to making sure that you aren’t financially drowning due to a commercial purchase or business purpose loan, etc., as previously mentioned, the issue of mortgage licensing now affects what type of property you can use hard money financing for. You also now need more documentation in order to properly secure your hard money loan than you once did.

The Benefits of Hard Money Loans California

Considering a hard money loan in California loan for your next commercial project or business plan? If that’s where your financing search is headed then it’s important to know the pros and cons.)

By know you know Hard Money Lenders California are some of the most readily available hard money financing options, which is great for shopping around for the best rates and terms. But, in general, you may be wondering what exactly the benefits or rather advantages of hard money Lenders in California loans are? Moreover, you may also want to know exactly what the disadvantages are of these particular kinds of loans. Well, the good news is the benefits outweigh the disadvantages by far.

For instance, starting out with the benefits, you will find out early on that these particular loans are approved and funded quickly, which is often the main reason people choose to use hard money in the first place. The next benefit you will find is that hard money financing options have fewer requirements. This means that unlike traditional financing options or bank lending you will not have to deal with an exorbitant amount of red tape. Consequently, common red flags such as bad credit, a previous foreclosure or bankruptcies are less likely to harm your chances of getting approved.

Another major benefit to hard money is the ability to get a project funded that you were unable to get funded or rather financed anywhere else. One common example is a fix and flip project. Often, banks are not interested in short-term lending. This is not to say that banks do not offer short-term options but rather that banks are in the business of making money and the easiest way to do that is to approve long-term loans more often. Furthermore, banks look at these kinds of projects such as a fix and flip as high-risk which only make getting financing harder.

How to find a California Private Hard Money Lender

(When it comes to finding a California private hard money lender, you probably don’t even know where to begin or rather how to start a viable search and that is okay. In California, there are so many lender options that you will more than likely need a helping hand.)

Generally, when you are trying to a reputable California private hard money lender the first place you should start is by checking the nationwide lender directory online. This particular directory allows you or anyone to search by loan type, loan size, location or keyword such as construction loan, etc. Moreover, this directory will provide you with direct access to your potential lenders in general or specific private non-bank lenders. In addition to searching for a private hard money lender California via the nationwide lender directory, you can also ask for references from your business associates.

Regardless, of which search method you choose to take advantage of, finding a few good names doesn’t mean you are done. Clearly, you need to contact at least your top 10 lenders and present each of them or the majority of them your loan scenario. Remember, it is important to find a lender that is likely to approve your loan request, but it is also important to work with someone that you feel comfortable working with.

Once you have set your sights on your future lender, the next step is clearly the application process. Nevertheless, it is still important to highlight that you make sure your future lender offers the commercial real estate loan type that is right for your business venture or project. By taking the time to make sure you have chosen your best option as well as the most compatible private lender you will ultimately save yourself a lot of time and money.

The Real Deal Residential Hard Money Lenders

Consequently, here is something you should definitely keep in mind when determining what kind of lender you should be working with. Above all else, it is important to note that residential hard money financing is appropriate in a variety of scenarios such as impaired credit, liens or judgments, time constraints, pending foreclosures and Foreign Nationals—just to name a few. Thus, if you are still interested in your residential hard money options, it helps to focus your lender search on niche lenders that can meet your needs (whatever they may be) and vice versus.

Saturday, January 14, 2017

Private Money Lenders in California—Are there when you need them

There is no shortage of private money lenders in California. The reason that there is no shortage is because private money lenders in California are not afraid to offer investors what they need when they need it.

It is no secret that private money lenders in California have the market cornered. But, if you are new to the world of investing and borrowing, you are probably wondering why? Well, private money lenders, in general, offer three major upsides that definitely outweigh the downsides. Nevertheless, before going over those three major upsides, it is still important to know what the downsides actually are.

For starters, one of the main downsides or drawbacks to working with private money lenders is the substantially higher interest rates. However, this downside should not deter you from working with these particular kinds of lenders. The reality is that you will have to deal with interest rates regardless of the type of financing you choose. When you using private money, it helps to just remember your interest is higher because your need is greater. In other words, you use private money when time is of the essence.

With that being said, private financing lenders, especially in California, typically offer the quickest funding. Besides, besides being the best way to secure quick financing, these lenders’ qualification requirements are more relaxed. Of course, this is not to say that there are less adherence state regulations. Instead, California lenders who offer private money loans are accustomed to approving loans against virtually any properties (no occupancy or low occupancy, etc.). This means that any non-traditional purchases are not off the table with California lenders. Moreover, any previous bad credit problems or history tend do not affect your chances of approval and there is a lot less red tape involved. What’s more, there are still additional benefits that come from choosing to work with California lenders in order to secure private money.

Other Benefits from Private Money Lenders in California

In addition to quick approval time and easy-to-meet qualifications, another major benefit you will see with this particular kind of funding is an opportunity cost. If you are unfamiliar with the phrase, opportunity cost is essentially having the ability to make one’s money go further. This means that not all of your assets are tied up in any specific property when you use private money. Furthermore, California lenders are open to negotiating loan terms when dealing with private money. Therefore, despite the higher interest you still may come out ahead.

A Win-Win Solution

Ultimately, choosing to work with California lenders who offer private money financing is practically a no-brainer. As you can see for yourself, all the benefits clearly outweigh the disadvantages. Nevertheless, if you are still unsure about working with a new California-based lender for your private loan, it always helps to do your research—no two lenders will be the same, of course. Thus, you should do a cursory search in your particular area as well as outside of your location—you will instantly see the difference in what non-California lenders and California lenders offer.

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