Hard Money Lenders—California Draw Request Basics

If this is your first time around working with hard money financing, you may not be too clear on what is allowed by hard money lenders. California lenders, for instance, do allow you to be paid for repairs if you complete the necessary paperwork.

When using hard money financing, you may have a few questions here and there, which is perfectly normal. One question, in particular, that most borrower or builders have is, can they be paid for repairs? Well, the short answer is yes. Generally, most lenders will allow this if you fill out what is known as a draw request.

A draw request, in essence, is a form that details the completed repair work. It is your job to ensure it is properly filled out and that any necessary copies are given to sub-contractors as well as submit the original form to your hard money lenders. California lenders will allow for payment or rather disbursement of funds after the work is properly inspected. It is important to note that payment is typically never in advance, as most lenders want to ensure the quality of the repair work first.

So now that you know that you can submit a draw request to hard money lenders, California especially, let us go over the draw request basics. For starters, some lenders will make this caveat a part of the loan itself. In other words, a select few lenders will allow for a 10% upfront disbursement during the loan closing. This small percentage is so that you can get started on the necessary repairs with proper funding. However, after this initial payment or disbursement, the rest of the repair work payments are traditionally paid to the contractors upon completion of the work.

Draw Request Expectations
If your lender does allow for the initial 10% when the loan closes, then moving forward it is important to know how to submit additional draw requests. For instance, it is highly recommended that you submit around four draw request each in 25% increments. Each draw request should include a detailed description of the work completed, the necessary amount needed, as well as any additional instructions for accessing the property for inspection. This will allow you to pay for completed work as it occurs and ensure that the entirely of the repair work that passes inspection is paid for. Moreover, you should submit all invoices and receipt for all work you or your contractors complete. It is important that these documents match or are in the neighborhood of the original bid. After all of this, you will have to complete a lien release and indicate where you want the funds to be disbursed. The draw request process from start to finish generally takes five to ten business days.

Final Advice
Ultimately, these draw requests will help you complete your rehab or construction project in a timely and seamless fashion. Thus, it is important to stay organized, keep all pertinent receipts, and plan ahead for the actual date of disbursement so that you do not experience any hiccups along the way.


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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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.

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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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.

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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More than a Standard Business Loan

With a large chunk of your business loan research under your belt, you may feel as though you are clear on all your options. But, you might pleasantly surprised to know that there are more than traditional term loans, short-term loans, personal loans for businesses, business credit cards and lines of credit available when it comes to securing additional financing.

So, if you are like most newbies in the business world, you have probably been led to believe that a “standard” business loan is the only way to go when it comes to securing additional financing. Well, get ready to be shocked and amazed or rather just better informed. The fact is you can apply for a standard business loan and/or explore several different lending options.

For instance, you may or may not know about SBA loans. SBA loans are basically a long-term and low-interest loan for small businesses that is partially guaranteed by the government. The reason you may not have heard of SBA loans is because they are hard to come by as they often involve lengthy paperwork, longer approval times and collateral that you may not have available. Nevertheless, SBA loans still offer some of the lowest down payments and terms. Moreover, these loans come with reasonable interest rates and can ultimately be used for a wide variety of business purposes.

In addition to the existence of SBA loans, you may also be surprised to know that there are lenders (private, family and alternative) out there that are sympathetic to your start-up state i.e. these specific lenders offer start-up loans. Start-up loans are, in essence, any kind of financing aimed at helping businesses with no business history. You can also use business assets that are already in your possession. In other words, you can use such things as your accounts receivables or business equipment in order to secure additional funding.

How to Secure Additional Financing In-house

In-house financing, if you will, is when you utilize such things as your accounts receivables or invoices as collateral. This essentially means that you sell your invoices to another entity in order to not have to wait for payment which in turn provides you with the cash flow you would have eventually received had your customers paid. As an additional financing option, this can be advantageous if you only need the amount of your outstanding invoice, though it is important to note that fees are typically the downside to this kind of financing. Similarly, equipment financing is yet another in-house option where you are able to receive a loan for new equipment by using that new equipment as collateral. Equipment financing is a great way to have quick access to cash with very little paperwork, but keep in mind that equipment depreciates which can and will affect your bottom line.

Things to Consider with a Merchant Cash Advance

Another rarely-discussed option is merchant cash advances. This is basically a lump sum of additional financing that you gradually repay via a portion of your daily credit card transactions. This particular option is definitely the quickest and easiest way to get additional funds, but it also the most expensive—so choose wisely.

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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How I Got My Hard Money Loans in California Approved

Jackson always wanted to live and work near the beach in Southern California but quickly found that his job kept him away from the beach and didn’t allow him to make enough to live close to it. So he decided he was going to open a business off the beach, but since his credit was not good, he had to apply for a couple of Hard Money Loans in California rather than use a bank.

Hard Money Loans California--My name is Jackson, and I run a bar and grill near a beach in Southern California. I’ve always wanted to live and work near the water which made opening an establishment a dream come true. But it was not easy getting started. My credit was terrible, and I couldn’t get a loan approved by anyone.

Luckily, there was an option available that would allow me to get the funds I needed, but it came with an element of risk as well. Not so much risk. It was more expensive. But if I wanted to chase the dream, so what choice did I have?

The Process

After going through the process with a few banks only to get turned down, I knew that I might as well be as up-front as I possibly could be with the lender. If I tried to hide something, they’d probably find out on their own anyway. If they caught me lying, they’d probably reject me.

Along with being as up-front as I could be, I created a detailed timeline of my project showing when I would need funds and when I would be expected to pay them back. I had to be careful because I didn’t want to seem pushy, but I got the feeling that if I didn’t follow up with the lender as I did, my application could have taken a lot longer.

While I didn’t always like what he said to me, I know this is business and not personnel. He wants to protect his money, and I want him to give it to me. So I can’t over-promise, and I had to follow through.

It took some time and required a bit of patience, but in time I was approved. It helped that my lender was local and that I hadn’t shopped around too much. He was experienced and was more than willing to offer advice and helped me keep from boxing myself in at times. While the loan terms were not ideal, they were certainly better than no loan at all.

I may not have wanted to go this route, but I am quite happy I did. Thanks to the availability of Hard Money Loans in California my dream has come true!

Remember The Golden Rule—There Are No Rules!

After my first year in business, I had my first loan paid off—business was good. But then my roof buckled during a storm and my place suffered a lot of water damage. I was in need of some love in the form of Hard Money Loans in California yet again.

I thought about trying someone different, but since everything went so well the first time I returned to my original lender. Since we had a preexisting relationship, the terms were a little better this time.

Like the first one, I had to watch my spending to make sure I could stay on top of my payments. It wasn’t easy, but I did it. As a result, my lender is happy, I’m happy, and after Happy Hour, my customers will be happy!

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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When You Want To Apply For Hard Money Loans in California Over Traditional Loans

There are times when it is appropriate to apply for Hard Money Loans in California rather than try to gain approval through traditional channels.

Hard Money Loans California--At one point in time, if you wanted to open a business, build an addition onto your house or business, or make some much-needed repairs, you had to apply for a loan through your local bank. If they didn’t approve you, you were pretty much out of luck—but not anymore.

Now borrowers have access to money through private entities such as hard money lenders. However, it is important to note that there is a time and place to apply for Hard Money Loans in California or anywhere else.

So—went would that be?

When A Hard Money Loan Is Appropriate

If you have good credit, no strikes against you, and plenty of time before you need the money, you may want to go ahead and apply for a traditional loan. But there are plenty of factors that point towards applying for Hard Money Loans in California instead:

1. Less than perfect credit: traditional lenders are going to want to see an excellent credit rating on your application. Hard money lenders are more concerned about the value of your property.

2. If you have had tax liens, court judgments, and/or unpaid items on our record.

3. If you need money sooner rather than later for any of a wide variety of reasons

4. For house flipping (see No. 3)

5. You need to close on a deal quickly

6. The borrower needs a loan due to tax returns (or lack thereof)

7. To avoid foreclosure (again, see No. 3)

8. If you are not a citizen; foreign nationals

9. Your bank wants to do a complicated loan with multiple pieces of collateral

10. You really don’t want to pay a ton of fees.

Essentially, when it comes to a hard money loan, most people that apply for them will not have the credit needed to get approved for a traditional loan and/or will need the money sooner rather than later. Thanks to the easier application process, faster approval is something borrowers can count on.

Other reasons would point a borrower towards hard money over a traditional lender, but the reasons mentioned above are some of the more common ones.

What To Remember About Hard Money Loans in California

While it will be nice to get your money quicker and put it to use, there are things a borrower needs to remember. The life of the loan is going to be a lot shorter meaning you will have to make fewer, but larger payments to pay it off. Also, to compensate themselves for the increased risk, hard money lenders charge a higher interest rate.

So if you can, pay your hard money loan off as soon as you can to reduce the cost to you.

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.









          

Technorati Tags: hard money loans in california,hard money loans california