Thinking hard about hard money lending

The particular ragged edges of the housing market hasn’t eradicated the sales of houses, but it’s true that it’s not easy these days. People still buy houses, of course, but nowadays flipping properties is far more popular.

That’s why private money lenders California are such a popular tool these days – even people who have lost it all in the recent real estate bubble bursting can stand proud and say, “My credit is terrible, but there’s no reason why I can’t make a profit!”

Typically, individualized hard-money lenders are paired with borrowers through loan brokers who then receive a commission on each deal. As with traditional mortgage brokers, everyone charges points and fees, which can be several thousand dollars per transaction, so make sure you have that kind of cash on hand.

Some loans are made up with light monthly payments and a ballooning payment due at the end of the loan term — a feature they share with some of the mortgages that contributed to the financial bust.

But even if the economy does recover, it’s not likely that California hard money will go away – after all it existed before the economy got bumpy. Some of the benefits that will always be there include faster funding, loan values up to 80%, so therefore investors or flippers are treated fairly and interest only payments are encouraged. Markets always crash and recover – trends like this tend to stay on track, even when times are good. Like with everything, it’s best to get in on something when the going is good and not when it’s too late.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
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.

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