Hard Money Drawbacks and how to avoid them

Like even the most beautiful woman in the world, hard money is not perfect. While it seems simple - an asset secures the loan so everybody’s safe – California hard money is only one option. It is expensive, so things have to work according to plan for profits to materialize. So make sure that your plans are clear and good! Hard money works differently from loans you may have used in the past. Lenders use more conservative methods to value property than you may expect.

Here’s a few ways to keep things going to plan:

Everyone likes someone knowledgeable about their job, so do a little extra research and then make offers. Talk to contractors to get a few estimates on what it will cost to refinish and otherwise repair the property. If you head into the private money lenders California office with information on repairs needed, a little history and an estimate of the costs involved, you’ll be that much more likely to get approved.

Also, have an exit strategy. Hard money loans are typically short term and usually are 1-2 years in length. The lender always wants to know that the borrower has a solid plan for either selling or refinancing the property long before the term is up. Knowing how you plan to repay the loan is a key factor in a hard money lender's decision. If you are doing this all wily nily, you’re going to look bad in the eyes of everyone and no one wants that.

 

 

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
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.