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Showing posts with label hard money lenders in California. Show all posts
Showing posts with label hard money lenders in California. Show all posts

Friday, March 17, 2017

How the real estate industry benefit from the medical marijuana market?

The cannabis industry has been, and always will be a major cash crop. With the passing of Prop 64, California has become a hotbed for the plant. California has always been known for its cannabis culture, and with more states jumping on the bandwagon the real estate industry can profit from it. Hard money lenders in California should consider lending in this area, as well.

So, how can a hard money lender in California make money in the industry?

2page_img2-bigThis is simple, do what you do best, lend people money. You may be a little apprehensive about loaning money to someone who is involved with this market, but you may make a lot off your investment. Medical marijuana has been taking off like a rocket over that last few years and is estimated to be worth billions of dollars. Most of this comes from merchandise and of course the plant, but production is key when you are getting in the business. Since it is considered a part of the “gray market,” you have to be vigilant when choosing a piece of property that you want to use.

You need to make sure the property you are looking into follows certain guidelines. For example, the dispensary or lab you will ultimately open needs you follow certain zoning laws. You are obviously not allowed to open anything near a school. That facility also needs to be in a commercial area since it will be operating as a business.

Where do you start in the business?

Well, the first thing you need to do is find a building that you are able to use. Sometimes you will have to make sure you contact the city you are working in. If you are the main proprietor of the building another you want to start looking for a lender that wants to help you. A commercial hard money lender in California is a great way to start the process. Lenders, if they can see your vision, should be able to lend a sizable amount.

Depending on if you are planning to open a warehouse or a dispensary, you have a fairly large loan that you may be able to use for the facility. You could potentially be able to borrow a loan anywhere from $500,000 to $3,000,000. This is contingent on the size of your lender. The loan would typically last around one to three years with an interest rate of about 12 percent. Since the market makes so much money, you can pay off the loan quickly.

This real estate market is ripe for the picking

Cannabis is a cash crop that is going to be around for a while; well in California at least. Money can be made by everyone. With enough work and the right real estate team there could be shops and dispensaries throughout the state. On average, about 760,000 people benefit from medical marijuana in California. With the law still in its early stages, this is the right time to jump on the bandwagon.

Happy senior business man making his notes at workDennis 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

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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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How do you make money fixing and flipping houses?

Let’s face you are on here to find quicks tips to making money in real estate. Becoming a successful investor or hard money lender in California is the end goal. If you manage your money well and pick solid property you can find your fortune fixing and flipping. It will not happen overnight, but here are a few tips to get you on the right track.

One of the first things you want to do is scope out the area that you think you want to flip in. Most of the time you can save some cash by looking for auctions that are being held. Most of the time these homes are being foreclosed and will have cheaper prices than cold searching through a company.

The only thing you need to worry about is the competition. These auctions are usually held in the traditional sense where you have an auctioneer and multiple people there with you. If your purse is a little light this may be difficult. Most people can circumvent this by hiring a solid hard money lender in California that is able to lend you enough money to purchase and pay for the home you are looking to buy. Most of the time you will need to have a nice amount of collateral at stake.

When you are purchasing the home or property you want to make sure you can make money back when you are attempting a new investment. Now, this can vary person to person, but as a general rule of thumb most investor get a goal for return. For some investors, this means they will not take on an investment unless they can make a $25,000 profit on it. Others want to make enough to pay off their debt. The main thing you want to focus on is what works for you.

Use your property to your advantage

fast money hard money at level 4 fundingLet’s say you have a property that you are looking to purchase, and instead of selling it at a higher price you opt to keep it. Depending on the area and the quality of the home you could use the property as an addition source of income. You can rent it out to a family, or you could turn it into a hostel and charge people vacationing in your area.

You can then use the funds to ask your hard money lender in California for a short-term bridge loan. After you can purchase another home and flip the property, as well. Once you get good at this method you could end up owning multiple homes that provide you with a recurring income that can help support future flips.

You should start out on the lower end

This may seem like an obvious tip, but if you choose to purchase low-end homes you may be able to save some money. Most of the time they are cheaper which can potentially mean less of a loan you have to apply for. Most hard money lenders in California will be able to work with you and your new properties, as well.

Happy senior business man making his notes at workDennis 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

 You TubeFace Book Active Rain Linked In 

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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Thursday, March 16, 2017

Common mistakes made when looking for short sale homes

Banner_imgRehabilitating distressed homes is a popular way to make money in the real estate business. When you are starting out rehabbing can give you many sleepless nights and stress. Short sales are a great way to begin your real estate career, however, there are some mistakes many new investors make when attempting to complete a short sale.

You have read “short sale” four times now, but what are they? Basically, a short sale is when an owner of property agrees to sell even though the net profits will not cover all the debt associated with the home. As long as all parties that own the property agree to the terms of the sale you are able to buy it. If you know how your contacts you could end up with a great home, however, if you skip a few steps you could have a lemon on your hands.

What should you be on the lookout for when considering a short sale

One of the first things you should look out for when considering a short sale property is fraud. There are many laws and practices that are in place to protect from any fraud that may happen. Perpetrators are usually taken care of by the proper authorities. While there are, many resolved cases, there are many victims that fall for the scheme.

One of the most popular schemes that people are fooled by is “flopping.” Flopping occurs when a buyer or a hard money lender in California is offer a price that does not accurately represent the value of the home. Usually, victims end up paying much more than the actual value of the home.

To make it easier to understand, the owner or lien holder will withhold information from the lender about buying the property for a low price. After they will list the property at a higher value to another buyer. Once the buyer confirms they want to pay the “fake” price. After the deal is concluded the owner pockets the difference.

Use these precautions to help combat fraud

For starters, if you are the one that is buying the home one of the first things you should do is go through the home. Make sure you take time out to go through every nook crawlspace in the home. With short sales, you are able to take a walk through of the home before you commit to purchasing it. Many foreclosed homes will have underlying cosmetic issues that you cannot always see.

Things like foundation repair, mold and mildew or electrical malfunctions can cost you more money in the end. Make sure you have the proper professionals come to clear the home for anything you might feel is wrong.

In regard to the proper authorities, hard money lenders in California also want to make sure the property is appraised by a trusted building inspector. Having an extra pair of eyes will make sure nothing slips through the cracks. When taking on a short sale make sure you cover all your loose ends.

Happy senior business man making his notes at workDennis 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

 You TubeFace Book Active Rain Linked In 

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.


 Free Report The 8 Things You Must Do To Be A Successful Home Flipper






          

How to protect yourself from getting scammed by hard money lenders in California

A sucker is born every minute. This is a hard pill to swallow for some people, but it is true and many lenders will use a person’s lack of knowledge to their advantage. Which is why we at Level 4 Funding want to make sure you are covered when dealing with hard money lenders in California.

4page_img6In the state of California, there are hundreds of hard money lenders that you can go to for your loan needs. Before you ink any deal, you want to make sure that you do all your research. You have to become a detective when searching for a potential lender. Scour thousands of reviews from past clients if need be. Find everything you can about the lender and the firm they represent.

If they have open cases on with the Better Business Bureau make sure you bring it up when you meet with the lender. If the firm is not recognized by the BBB, which is not uncommon for many firms, you can try sites like California Real Estate Fraud are great places to start. If you cannot find enough information on sites like this, try contacting past clients personal via email. Some hard money lenders in California will post fake reviews on their company website to keep up the appearance of a legitimate business.

What if you are already sitting in the lender’s office already?

Simple, keep your composure and listen for certain clues that will tip you off to impropriety. It could be as small as the lender being too eager to give you a loan before hearing what you plan on doing with the property.

One of the biggest things that trip people up are the fees associated with the loan they are applying for. Take bridge loans, for example, most hard money lenders in California will charge you a fee anywhere from $2,500 to $15,000. Yes, it is a lot but you need to make sure you are committed to the project.

That being said, if the lender asks for a fee higher than that you should not go through with the deal. If the loan you are looking to borrow is less than the fee something is most likely off with the lender.

REO fraud is popular with some hard money lenders in California

An REO property, or a real estate owned property, is sold by the lender. Many people fall prey to this scam due to a lack of research. What usually happens is the lender sells the property for a relatively low price to a secondary buyer then sells the property at a ridiculously high price. If you do not look into the past buyers and prices you could fall victim to this.

Many of the frauds are beginning to eliminate the middleman altogether and just selling the property for a high price. Investors can prevent being taken advantage of if they take the proper precautions when looking for lenders. Peace of mind is worth more than a new property.

Happy senior business man making his notes at workDennis 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

 You TubeFace Book Active Rain Linked In 

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.


 Free Report The 8 Things You Must Do To Be A Successful Home Flipper






          

Wednesday, March 15, 2017

Two rules to being a successful real estate investor in California

We all see those commercials beckoning us to go to California to visit. What if you want to stay, though? Sure, the traffic and smog can be unbearable at times, but California has a great real estate. When you are living a such a fast-paced city it is easy to get jaded. With cities like Los Angeles and San Francisco, it is easy to get in over your head when taking on a new property.

So, what do you do? Well, that is what Level 4 Funding is for, we have the tools you need to be a successful real estate investor in California. As far as real estate goes the west coast can be one of the toughest places to “stake your claim.” Clichés aside here are a few tips that you can implement to be successful in the real estate business in the Golden State.

It is better to have allies in the real estate business

4page_img7When you are getting into the business, it is beneficial to have as many people in your corner as possible. For some, it may be investors, but for many, it will be lenders. Hard money lenders in California act as gatekeepers on the market. They can tell you where to look if the property you scoped is not the right fit, or they can give you advice on how you should restructure your approach.

Having a lender that is willing to teach you the basics of borrowing and lending will pay dividends in the future. Yes, some of them will come off a money hungry profiteers, but most of them are here to help. A hard money lender in California can guide you in the right direction when you are looking for your next project. Maybe your focus should be on the Bay area instead of downtown LA. Above all having a solid lender in your pocket will allow you more money when the time comes and better resources.

Proper preparation makes perfect

Yes, that is a bit of a tongue twister, but alliteration aside this is spot on. One of the best things a new investor can do is research. Before you take out a loan or call an auctioneer, doing the proper research will help you tremendously.

This first thing you should do is research the market that you want to be a part of. If you want to focus most of your investments on beachfront bungalows, make sure you are looking at the geography of the surrounding area. Hard money lenders in California will take this as a sign that you are willing to put in the work for your property.

If you plan accordingly you will also be able to avoid some of the less than spectacular properties that will ultimately cost more money.

Above all make sure all your funds are in order

If you want to play in the big leagues you have to learn how to handle your money with care. One thing that puts many would be investors in the red is miscalculating the assets need for a home. Many times, there will be unexpected fees that you will need to pay, but you want to be comfortable when that time comes.

Happy senior business man making his notes at workDennis 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

 You TubeFace Book Active Rain Linked In 

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.


 Free Report The 8 Things You Must Do To Be A Successful Home Flipper






          

Monday, March 13, 2017

How To Spot A Shark Among Hard Money Lenders In California

In a perfect world, every business would have good intentions and want to do nothing but the right thing. Sadly, that is not the case, and some Hard Money Lenders in California are ready to pounce and unsuspecting borrowers like sharks going in for the kill.

It doesn’t happen often, but from time to time there have been shark attacks in the waters off the coast of California. While dangerous, the larger problem for people is not the sharks in the water but the ones on land. No, not Land Sharks like from the old Saturday Night Live sketches or from “shark-nadoes” from the SyFy channel movies.

The sharks people have to worry more about are the unscrupulous Hard Money Lenders in California. They may appear nice. They may act like they are your friend. But if you are not careful and let them get too close, they can make you wish you were swimming with actual sharks rather than doing business with them.

How To Spot A Shark Among Hard Money Lenders In California

cid_87129CA4-8997-4497-93EA-0E8446CC772AIn the ocean, it is pretty easy to tell what’s a shark and what isn’t. So when one does get a little too close for comfort you can move away. However, when it comes to Hard Money Lenders in California, it is not as easy. The sharks can be a lot like the good guys. They can say all the right things and appear to be your new best friend while secretly plotting to kill your dream and take you for everything you own.

So—how do you avoid a shark in a sharp suit pretending to be your friend? There are ways to see a shark coming before he/she gets too close to bite:

• Upfront fees or Success fees: If the broker is legitimate, he or she will be compensated by the lender—not you, the borrower. If they want any sort of fee upfront or try to hit you with a “success” fee because they actually did their job right, take your business elsewhere. Something shady is going on.

• Experience: This does not mean an inexperienced lender is a charlatan. But with the barriers to becoming a loan broker being as low as they are, it helps to know about their experience before getting into bed with them. Do they know what they are doing? Have they been successful more often than not? Dig into their history. If any red flags pop up, take your business elsewhere.

• Exclusivity: If your broker works with just one hard money lender in California or only a few, be worried. The better brokers will have relationships developed with numerous lenders and will cultivate more as often as possible to get you a better deal. If they only work with a few, chances are they were created for the sole purpose of funneling clients to those lenders.

• Careful thinking or flooding: a good broker is going to carefully review your application and needs and send your loan package to a select group of hard money lenders that are more apt to approve your loan. A not-so-good broker is going to flood the market with your application in hopes that someone will bite and give you an offer—but not necessarily a good one.

• The Commission: a good broker will take a modest fee from the lender upon the completion of the deal. A bad one will try to take a larger one or charge ridiculous fees. Do your homework, and you can avoid these guys.

Happy senior business man making his notes at workDennis 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

 You TubeFace Book Active Rain Linked In 

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.


 Free Report The 8 Things You Must Do To Be A Successful Home Flipper