A Few Pitfalls To Avoid With Hard Money Lending Institutions

There are really two different kinds of hard money lending companies. The first are direct hard money lenders California who will do all the work. They will underwrite, fund and service your loan. The second are brokers who just shop your loan out to a direct lender. You have to be careful when dealing with companies that only broker hard money loans. Many of them are simply fee collectors that will require you to put up anywhere from a few hundred dollars to a few thousand dollars before they will give you a hard money lending decision. These types of places may or may not have the intention of funding your application, but if they don't, they will keep your money! There is a direct hard money lender that can fund in 13 states. However, they have nosey partnerships with other direct hard money lender California so that they can fund deals in states that are not our primary lending states. That way you get the best of both worlds because if you have a good deal, they will get you funding!

The hard money for funding your real estate investment deals has to come from somewhere. Hard money investors are people who believe in real estate and understand how important it is to driving our economy and building long term sustainable wealth. These people put up their own capital to fund real estate investment deals. Now they don't do this simply out of the kindness of their heart, they are looking to make a profit off the interest they charge on the loan. However, it's a win/win scenario because you make money on buying and selling a property, they make money on the interest from your hard money loan.

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 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 | 85027111 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.

Hard money – the easy way to financing your project

You wouldn’t know it unless someone told you or you were a super smart accountant or knew a lot about investing, but hard money lenders California is actually easy. It’s so easy, almost anyone could do it – and what’s that Geico slogan? A caveman could do it? It’s so true it hurts, but the sentiment remains – it’s simple, it’s a breeze, it’s easy.

Let’s look at it this way: Phoenix, California has a population over 1.44 million and that number is only expected to rise in the coming years, like a helium balloon inside of another helium balloon. Yet, it’s not a very condensed place, spread out to the far reaches of the horizon. So many houses were built in the real estate bubble a few years ago, but many of these properties now stand empty, neglected and decaying.

You could easily start a few projects where you rehabilitate these homes, or “flip” them as the industry big shots say and all you’ll need is an approval from private money lenders California. Why do you want to go the hard money route? Because it’s much more easy than heading to a bank or mortgage company. They want buyers and loaners that will stick around a lot longer than someone just wanting to fix a property up. You go through the middle man and soon, everyone is happy.

That’s why there’s no need to break a sweat – just learn the in’s and out’s of hard money, which would take only a few weeks, and then you could start doing business your way.

 

 

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.

The Real Deal When It Comes To Hard Money Loans

there are many different ways to get a loan for your new business. This article is going to give you the pros and cons of applying for hard money loans.

Hard money loans are a great option when you are thinking about borrowing money for your business or new property. Like most things it has its drawbacks. Hard money loans are great if you are denied a loan from a bank. While most loans usually take a long time to get approved, hard money loans are turned around quickly.

Hard money loans are classified as loans that are given by a private company. Traditional loans from banks take longer because they are interested in how you can repay the loan back. For example, if your credit score is not great it may take some convincing to receive your loan. The same goes for your job; if you are a freelancer, for example, a bank may not view your profession as reliable. 

When it comes to hard money loans, however, they really are not worried about that. Lenders are more interested in what you already have. Collateral is taken into consideration when you are applying for a loan from a private company. If you cannot pay your loan off, then your collateral is taken and sold off to cover your debt. The value of your collateral is taken into consideration more than your credit score or job.

Many people favor a hard money loan because of its short duration. Usually, these loans last one to five years. For those of you who are in the fix and flip business, this type of loan would be very beneficial to you. Say you find a property fix it up and then rent it out to a few tenants. After a short period of time, the money you receive from the property can be used to repay your loan.

Here is the crux of hard money loans

So far hard money loans have been the best option for someone to get the money they need quickly. Usually, lenders do not care too much about your credit status or how money you have. Getting approved all around much easier than going the traditional route. So what are the cons of a hard money loan? Well, the biggest one is the cost of the loan itself. As stated these loans are slated for a short amount of time. This means the interest rate that you have to pay is high than one from a bank. Usually, the APR is over 10%.

Also, your credit may be something you have to worry about. You may be thinking, “but you just said it may not matter.” In most cases it won’t, however, some lenders may pull your credit report to see if you have red flags. Most of the time this does not happen but you want to make sure you do your research with all the companies you are considering.

Bottom Line Are Hard Money Loans Worth It?

In short depending on your property and what you want to do with it, yes. If you see a great property that is in a great location that you believe can turn a great profit fast, this is something you want to do. Most properties that are in great locations are bought quickly if you do not have the liquid assets this is a great option for you. Always make sure to weigh the pros and cons of any loan that you are thinking of applying for.

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.