Private Hard Money—California Style

By now you’ve probably heard a handful of terms thrown around when it comes private hard money. California, in fact, is no stranger to private hard money. The truth is that many people flip and fix as well as rent out houses or commercial buildings in California. Thus, if you are interested in joining the craze or doing some trust deed investing, it may be helpful to learn a little more about it first.

As a savvy business person, you probably already know there are several reasons to use private hard money. California, furthermore, has some of the best lenders in the business when it comes to private hard money. So, it’s almost a no-brainer that real estate investors who are looking to flip and fix are doing in California and doing with private hard money.

Nevertheless, this is not the only reason one should consider using private hard money. California is also home to a good place to renovate. In other words, there are dozens of rehab-worthy houses, buildings and commercial office parks that could use a little TLC. Of course, this yet another reason you or your business should consider using private hard money.

Ultimately, these are just two of the many reasons for the use of private hard money. With that being said, these two reasons are the top reasons more trust deed and commercial real estate investors use this particular kind of financing for. Thus, it may be helpful to dig a little deeper when it comes to flip and fix. Moreover, it may be helpful for your future commercial business venture to see what you can do with private hard money and all things renovation.

How to Use Private Hard Money for Rental or Rehab

For starters, you can use private hard money as front-end finance. Front-end finance is, in essence, a way to purchase your future venture without a financing contingency. You can also use private hard money as upfront financing that includes rehab funds. Clearly, this a great option as you generally acquire your property and do the necessary improvements without spending any of your own money. You can also use private hard money as what is referred to as hard money front-end/private money back-end financing. Sure, at this point you may be thinking isn’t that just a combination of the two previous uses? Well, yes in some ways. Ultimately, this particular use is about using the hard money to get the project done and then having the private money take over once it’s all said and done.

Win- Win Solution: Hard Money Front-end/ Bank loan Back End

This last option or rather private hard money use is often a favorite for those that still want some form of traditional financing involved. Similar to the “hybrid use”, if you will, this last use offers financing that you know and maybe even come to love once. Truthfully, this last option is just another option for you to choose from. At the end of the day, the point is that private hard money can be used to get the job done quickly with hardly any out-of-pocket costs and that matters to investors.

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.