Sunday, January 29, 2017

Commercial Real Estate Lenders—Pending Changes and Trends

The vast world of commercial real estate lenders is in for a few changes in the New Year. For many this may not come as surprise, but as a potential borrower or an investor, you are going to need to know how these pending changes and new trends will affect you.

Working with traditional commercial real estate lenders has always been a rite of passage for most business people. However, in the coming months that may no longer hold true. The reason you will see more and more people shying away from traditional commercial real estate lenders is due to the uncertainty will recently implemented regulations. Thus, this climate has opened the doors for more non-bank lending or rather non-traditional lending.

Of course, as a potential borrower or investor this is not necessarily bad news. As you may already be aware, most traditional avenues of lending were often stingy with their approvals. But, one potential consequence of this trend is that non-traditional lenders will now up their requirements and criteria either now that they are dealing with a wealth of potential borrowers and investors or they will become so unregulated that another lending crisis occurs. One pending change that definitely adversely affects everyone is the increased rates, which though minimal in percentage still make it that much harder for borrowers to meet the terms of their commercial loans.

Yet, another predicted trend in 2017 is the decrease of foreign investments. For instance, it is has been predicted that China and other foreign countries are making it a point to not invest as much as they have done in previous years. This trend is one more issue to add to an already uncertain climate, thus as most of the country watches and waits for what is to come so too are players in the commercial real estate industry. Unfortunately, with so much uncertainty, you as a borrower or an investor may not know if this year is the right time to make your business venture a reality. Therefore, it is highly recommended that you reach out to local lenders and see what your real options are amidst all of the possible confusion that is to come with this current presidency.

Advice for the Future from

Commercial Real Estate Lenders

These above-mentioned changes and trends may or may not stand the test of time, thus as a savvy business person you should take stock in your plans. This is why there are brokers, lenders and a whole host of people in your corner. Nevertheless, if you are more of the do-it-yourself kind of business person then it never hurts to do your research and seek advice of counsel before making any major decisions.

On the Verge of a Commercial Real Estate Deal

On a final note, if you are on the verge of getting approved or have submitted a dozen plus loan applications already, then it is important that you stay on top of the current changes and trends. But, remember, if you already started the lending process, then you will likely have nothing to worry about, at least until the next business venture.

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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Friday, January 27, 2017

Hard Money Lenders—California is Calling

If you are like most, you probably think that all lenders are alike; well, you might want to think again, when it comes to hard money lenders. California is no stranger to these particular kinds of lenders and is the best place to really note the distinction between private money and hard money lenders.

Clearly, when dealing with private money, you are for the most part dealing with private money lenders and not necessarily hard money lenders. California based lenders, however, make it a point to make a clear distinction between these two kinds of financing. For instance, private money is generally obtained through close personal working relationships and is used for investment properties and ventures. Thus, California lenders who offer private money tend to be more flexible with repayment options and more tailored to a specific group of borrowers.
On the other hand, hard money is almost always obtained via hard money lenders. California lenders of hard money look at the actual property being purchased and essentially determine if there is enough value for them to loan you funds. Moreover, these particular lenders tend to cut through the red tape in comparison to private money lenders and traditional lending institutions. The reasoning being that, again, these particular lenders (hard money) are more focused on the property value and in reality, the approval is just the beginning for these kinds of lenders.
This means that hard money lenders take things a step further and typically manage many of the processes necessary to get your loan closed. For example, it is not shocking to see your lender create your loan package, order the necessary forms such as your title and appraisal report. Hard money lenders will also generally verify payoffs and/or restatements advise you on the best loan program as well as provide all your disclosures. Furthermore, your lender will likely handle underwriting responsibilities, investor matching, decide on a loan servicers for your loan and create/manage pertinent documents (loan docs, loan settlement and/or closing). Of course, this is just a quick overview of everything your hard money lender can do for you. So, let us discuss a more in-depth explanation of one of the main services—the loan package.
Beyond Approval
Creating your loan package is no minor tasks. In other words, your lender will spend some time making sure that you have everything you need to secure an investor. It is important to let your lender take the lead on your loan package for several reasons. The main reason being that a tailor-made package that knows the market and is well documented/organized is what will attract quality investors. In your loan package, you will have a credit report, financial statements, statement of information, tax returns, proof of relevant liabilities and assets—just to name a few.
A Win- Win Solution
Ultimately, all of the above is what sets hard money lenders apart from the pack. Moreover, an reputable and highly experience lender of hard money will make sure the entire process from start to finish is as seamless as possible, which gets you one step closer to making your real estate dreams a reality.

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Technorati Tags: hard money lender california,hard money lenders california

Friday, January 20, 2017

Residential Hard Money Lenders—What You Should

Residential Hard Money lenders are not always discussed at length, as many investors and borrowers are more interested in all things commercial. However, that does not mean there will never come a time for residential hard money lenders, so let us go over what you should know.)

Unsurprisingly, residential hard money loans are really just financing for traditional real estate. This means properties such as single-family or a duplex would constitute or rather qualify for a residential hard money loan. This seems simple enough, right? Of course, it does. But, nevertheless, you may be wondering what the real difference is between a standard or traditional loan/mortgage and residential hard money financing? Well, there are actually a few subtle differences.
For starters, when it comes to dealing with residential hard money lenders versus the bank, you will quickly see those differences. For example, banks typical require quite a bit of documentation such as proof of income, credit score, appraisal, financial statements and so on. Yet, when dealing with residential lenders and hard money financing you need a lot less. This means if you show up with residential real estate assets in tow (not actually in tow) and have pretty much everything you need to start the approval process.
Moreover, with residential hard money financing, you do not need to meet any minimum FICO scores requirements or pay any upfront fees. Lastly, you will typically receive your hard money loan for a residential property within 10 business days versus your standard 60 days or more with a traditional loan/mortgage. Thus, as you can see, there are many reasons why an investor or a borrower would consider working with a residential lender that offers hard money financing.

Managing Your Expectations with a Residential Hard Money Lender

Nevertheless, it is still important to manage your expectations when dealing with these particular lenders. You may think since there are a variety of California-based lenders that offer residential hard money financing all you need to do is show up and sign. Well, the reality is residential hard money loans have a time and a place. In other words, you need to make sure that your particular investment or project is right for this kind of financing. Of course, any lender will be glad to help you determine if you should proceed with residential hard money. However, if you are like most people you may want to know ahead of time if you should be working with a different lender or a financial institution.

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.

Residential Hard Money Lenders—What You Should

Residential Hard Money lenders are not always discussed at length, as many investors and borrowers are more interested in all things commercial. However, that does not mean there will never come a time for residential hard money lenders, so let us go over what you should know.)

For starters, when it comes to dealing with residential hard money lenders versus the bank, you will quickly see those differences. For example, banks typical require quite a bit of documentation such as proof of income, credit score, appraisal, financial statements and so on. Yet, when dealing with residential lenders and hard money financing you need a lot less. This means if you show up with residential real estate assets in tow (not actually in tow) and have pretty much everything you need to start the approval process.

Moreover, with residential hard money financing, you do not need to meet any minimum FICO scores requirements or pay any upfront fees. Lastly, you will typically receive your hard money loan for a residential property within 10 business days versus your standard 60 days or more with a traditional loan/mortgage. Thus, as you can see, there are many reasons why an investor or a borrower would consider working with a residential lender that offers hard money financing.

Managing Your Expectations with a Residential Hard Money Lender

The Real Deal Residential Hard Money Lenders

Hard Money Lenders — California Niche

If you are searching for hard money lenders, California is more than likely the best place to start. The main reason you should start your search in California is that you likely have a particular niche, say for this instance it is fixing and flipping houses, you need a lender that is no strange to that market or any other market.

When looking to flip and fix a house, the reality is the best place to start looking for financing is hard money lenders. California lenders that offer hard money financing for this particular niche have a clear set of criteria before you even walk in the door. This may sound like a bad thing at first, but the truth is that a clear set of guidelines means you know exactly what you need to do get the ball rolling on your financing.

Thus, as you can probably guess, it is important to know the criteria no matter your niche. Nonetheless, for the sake of flipping and fixing houses, let us go over that standard flip and fix criteria for hard money lenders. California lenders who offer hard money financing for flip and fix projects generally look for the following things: a clear understanding of the property’s value, the ability to move quickly to give you a timely response, reasonable terms and rates that you can adhere as well as the ability to build a growing relationship.

This may seem like a tall order, but the good news is that you as borrower or even an investor should want these thing as well. For instance, being able to understand the real value of your property means you and your lender are informed. Moreover, it gives you an opportunity to have a meeting of the minds with you and your lender. Similarly, when everyone is clear on the value and the percent of financing then it allows for the entire process to move along faster.

Key to a Successful Relationship with your California Hard Money Lender

Speaking of a quick response, again you also, no matter your role in the loan process, want things to move along quickly. Think about it, with a flip and fix everyone’s profitability margin really depends on how quickly everything can be accomplished. Moreover, going over the terms and rates with your lender to ensure that you are able to meet them given your situation, again, not only benefits you, it also helps to foster a good relationship with your lender. Lastly, it is important to build this relationship because your new lender can become an asset for future endeavors and it helps provide a potential helping hand if you do have trouble meeting the terms down the road.

Benefits all around

Ultimately, knowing the basic criteria of your hard money lender helps everyone. Therefore, there is no reason you should not do your research/ preparation beforehand so that the entire process can be as streamlined and beneficial as possible. But do not take our word for it; speak to a few hard money lenders in your area and California too.

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
http://www.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.

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.

Learn To Be A Fix & Flip Investor

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The Big Show is Coming to Town.

Sunday, January 29, 2017

Commercial Real Estate Lenders—Pending Changes and Trends

Advice for the Future from

Commercial Real Estate Lenders

On the Verge of a Commercial Real Estate Deal

Friday, January 27, 2017

Hard Money Lenders—California is Calling

Friday, January 20, 2017

Residential Hard Money Lenders—What You Should

Managing Your Expectations with a Residential Hard Money Lender

The Real Deal Residential Hard Money Lenders

Residential Hard Money Lenders—What You Should

Managing Your Expectations with a Residential Hard Money Lender

The Real Deal Residential Hard Money Lenders

Hard Money Lenders — California Niche

Key to a Successful Relationship with your California Hard Money Lender

Thursday, January 19, 2017

Hard Money Lenders California Hard Money Loans California

Why Choose Level 4 Funding for California Hard Money

The Pitfalls of a California Hard Money Lender

Private California Hard Money Lender Requirements and Regulations

The Benefits of Hard Money Loans California

How to find a California Private Hard Money Lender

The Real Deal Residential Hard Money Lenders

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