Learn To Be A Fix & Flip Investor: private money lender in california

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Wednesday, March 29, 2017

Here’s Why You Need to Reconsider Private Money Lenders in California

Well, you must have heard the phrase “All that glitters is not gold; same is the case with private money lenders in California. These lenders do vouch to get you money at a faster pace. However, it is advised to make an informed decision after weighing the pros and cons.

The corporate fraternity is prone to vulnerabilities that might affect your business. Such circumstances are unavoidable and need to be dealt with precision. However, if you are a nascent business in its initial phase, then the probability is high that you might not have an ample capital at your disposal.

For such situations, here are a few things that can help you make an informed decision.

Assess the situation

The private money lenders in California are a viable option for immediate capital that might sound attractive. However, knowing what you are getting into before opting for the loan seems a safer bet.

It needs to be cleared that no private money lender in California will give you a long-term loan. That is not how it works.

In most cases, the timespan to payback stretches to 18-months. Thus, within a short passage of time, you will be expected to make the refund. Moreover, since the loan is short-term, the interest rate will be high and expected payment will be hefty.

As appealing as getting your loan within a few days sounds, in contrast to a few weeks; the payback can be a major setback if not planned smartly. Thus, make sure to evaluate if you will be able to make timely payments before signing the deal.

Look at the greater good

In certain cases, private money lenders in California might seem like the best possible option. However, if the intensity of the situation is not high then making an objective decision that takes the pros and cons into consideration is a smarter way to go about things.

In scenarios where such loans will help you generate a steady revenue stream, private money lenders in California is the right choice. On the contrary, if the cash flow will not blossom, then an alternative revenue stream is a safer option.

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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Monday, March 13, 2017

Things To Consider Before Approaching Private Money Lenders in California

Private Money Lenders in California can you get you the money you need and get it to you quickly, but are you fully aware of what you could be getting into by using one of them?

It’s a sad fact in business, but a fact nonetheless. Sometimes, there are going to be things that come up that you can’t plan for and can’t ignore. You are going to have to deal with them. But if you are a young, up-and-coming business, chances are good you are not going to have a lot of capital just laying around waiting for you to put it to work.

So—you are going to need money and depending on the severity of the issue that arose, you are going to need it quick. Private Money Lenders in California are generally quick to approve loans for cases such as yours, so you decide to hit one up.

However, before doing so, there are things you should keep in mind.

Do You Really Know What You Are Getting Into With Private Money Lenders in California?

Before you get into business with a private money lender, it is good to have an understanding of what you are getting into.

They are not going to give you a 30-year loan. They don’t do long-term loans. Private money lenders are into short-term loans; stuff more in the three to 18-month range. Before you know it, you are going to have payment to make, and since the term of the loan is short, they are going to be bigger. It’s great to be able to get the money in a few days rather than weeks or months (like through other channels). But they are going to want their money back quickly as well.

So, be sure you can handle the payments before entering into any kind of deal. With the high-interest rate that you’ll get charged and the fewer number of payments, your monthly note can be high depending on how much your loan is. Yes, you may need the money and don’t have any other choice, but there is always another way.

No sense in trading one problem for another.

Will it Really Help?

At the time, it may feel like the cash you can get from Private Money Lenders in California is the only viable option. But sometimes you need to figure out how to take a step back and look objectively at your situation to figure out if it will really help.

Will it help you generate revenue? The loan is money you are going to have to pay back so will whatever you need it for help you make more money? Or are you trying to cover expenses because you didn’t make enough? If so, then you may have a larger issue on your hands.

If this loan is not going to help your cash flow, then maybe it is time to come up with an alternative solution—or an alternative form of revenue.

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Friday, February 24, 2017

Finding Private Money Lenders in California

So you have heard that private money lenders in California are practically on every corner, but now that you are actually looking for private money lenders in California you do not know where to begin. Well, the good news is you came to the right place to figure everything out.

It is true that Private money lenders in California have a lot to offer potential borrowers; thus, it is no surprise that you are looking to work with them. In general, the best private money lenders are often found by networking, as private money lenders tend to be individuals or non-financial institutions. Moreover, the very nature of borrower and private money lender is more relationships-based, if you will.

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Therefore, it almost goes without saying that, before you embark on a vast search of lenders in California you should network (primary circle acquaintances i.e. friends, family, co-workers and even neighbors) and asking your real estate acquaintances (secondary circle). Nonetheless, if you are just starting out in the business of commercial and residential real estate, you may not have as many contacts as you would like, which is perfectly okay. This is what the Scotsmen Guide, private money lender directories, and Goggle were created for—you have to begin somewhere right? Of course, you may be a little wary of using Google or some other internet search engine, but you shouldn’t be—there are dozens of reputable you can find with a cursory search online.

Besides taking advantage of directories, guides, online searches, and networking, you can also find lenders in a few other ways. For instance, you can look for reputable lenders via investors (third party circle) or through contact sites. These particular sites are little different that your standard directories and guides, but there is no need to worry, navigating contact sites become second nature in no time at all.

How to Navigate Contact Sites and More
With that being said, here is a mini-tutorial of how to navigate these above-mentioned contact sites. For starters, the contact sites that are used the most tend to be Lenderpost, Lending Club, and Bigger Pockets Marketplace—just to name a few. On these sites, not only do you have access to valuable lending information, you also have a forum for finding your private money lenders or at least a place that will point you in the right direction in terms of your search. Furthermore, if you are trying to maximum the number of private money lenders available to you, you can also take advantage of investor direct mailing list. Remember, you are in control of your real estate or commercial endeavor, so make it happen by whatever means necessary.

Other Things to Consider
If after doing all of this, you still cannot find a private money lender that meets your needs, then do not be afraid to reach out locally to lenders. However, it is important to note that the likelihood of you not finding a private money lender by using these tips is pretty much non-existence. Therefore, drop whatever you are doing and start your lender search today—make your real estate endeavor a reality.