Things to Consider as an California Hard Money Lender

With an California hard money loan, the payor needs the money. If he is coming into the private market and paying higher rates, it is because he has been rejected by or cannot go to the banks. I like paper because it can have a lower risk factor than any investment that I know. I am an equity investor. I know the property can pay me when the payor can’t. I do not want a loan turned down by the institutions unless there is enough equity that I would love to own the property and have the staying power to re-market it. As a hard money lender California, when I buy a discounted mortgage I am doing so because the seller of the note needs the money - not the payor. In addition, my yield is derived by buying the note at a discount, not because the payor is being charged usurious rates. Which brings up another important point!

As a hard money lender California, if you are loaning money at high rates you may be in violation of your local state usury laws. "Usury" is charging more interest than is allowed by law. These laws vary from state to state. In a situation where I make an California hard money loan at 18% interest, I could be in violation of a local state's usury laws. If I buy a 10% note discounted to yield 18% - that would not be usury. Making or buying a usurious loan can lead to a complete loss of all interest as well as other potential damages. There are federal "truth in lending" laws that apply to mortgage lending as well as local state versions in some states like California. For example, the APR - Annual Percentage Rate must be disclosed on a loan that includes points and other loan costs. It can be a violation of federal law not to do so. Violation of these laws could lead to a total loss of interest and principle on a loan, lawsuits or judicial problems. Buying a discounted mortgage is a whole different matter. Most laws do not apply to a secondary buyer.

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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.

Regulations For California Hard Money Lenders

You may have heard that hard money lenders California do not need a license. But is there any truth to this? It’s true that private money lenders California don't need one in the commercial sector. But do hard money lenders California need a license to lend for residential properties? Hard money can fall in the gray. The answer will vary depending on the state where the property is located.

If private money lenders California lend to a business who fixes up a residential property then it is many times completely valid to consider the loan a commercial loan. That means the commercial loan rules could apply. If hard money lenders California lend to an owner occupant for their primary residence they are definitely in the residential space and need to be licensed and also follow all the regulations. Most private money lenders California will not lend on residential property that will be owner occupied. That should give you a clue as to what most hard money lenders California think about the residential loan market and the regulations.

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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.

How You Know When to Use an California Hard Money Lender

When should you use an California hard money lender? Hard money is great for beginning investors who may not have money or for those who have bad credit and cannot qualify. Investors also use California hard money when they need to purchase quickly. Typical soft money or conventional loans take 30 days or more. Sometimes that is too long. Using an California hard money lender is also a creative way to finance a property. Most like to call it "Nothing Down." If you can borrow enough money to buy the property, fix it up and then sell it under market value for a profit, then you've just made money without any of your own money. Sure it will cost you money to borrow that money, but the rewards outweigh the expense.

How can you find a hard money lender California? There are hundreds of hard money lenders waiting to lend you money. It could be your next door neighbor. The best way to a find hard money lender California is to talk to a mortgage company and ask for referrals. You can also call a title company or a real estate agency. They deal with buyers and sellers of houses every day. Shop around until you find the best one that will fit your needs. Another way is search online to find a hard money lender California. Some will lend nationwide, but these typically want a credit check. A hard money lender California will typically do a drive-by of the property if it is in-state.

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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.

How Fast Can You Get Your California Hard Money?

Something you need to consider is how quickly the funds will be available from your hard money lender California. Many times, when you find investment properties, you need to move quickly. Your ability to get access to California hard money quickly can make all the difference. It's important to begin relationships with potential private money lenders California as quickly as possible. You also need to be aware of pre-payment penalties. Pre-payment penalties can really hurt your deal and cut into your profits substantially. Try to avoid pre-payment penalties when you look for private money lenders California.

Many private money lenders California today will also require you to fill out a credit application that may ask you for W-2's and or tax returns, your most recent pay stubs, and bank statements. Again, it's all about protecting their assets. Yet, some like the old fashion way where they only care about the deal so they do a drive by or physically look at the property. Again it all depends on whom you deal with. It’s very important to pinpoint that hard money lender California that you want to work with and make sure that you can get the terms that you need in order to successfully make the type of profit that you need.

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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.

Be Sure to Know the Terms of Your California Hard Money Lenders

It is good to know what the terms are when dealing with an California hard money lender so you can find the one that will fit your needs. Here are some of the terms you can expect to see from many California hard money lenders. Typically they will only loan you up to 70% ARV (after repaired value). This means that a hard money lender can loan you up to 70% of what the home is worth in repaired condition. So if you find a home worth $45,000 in the condition it's in, and needs $20,000 in repair work, and after it is repaired the current fair market value is worth $100,000, then typically they can lend you up to $70,000, which would cover the cost of the house and the repairs.

Other terms you can expect from hard money lenders California are high interest rates. Interest rates vary from 12% - 20% annually and terms can last for 6 months to a few years. Many times these rates vary depending on your credit score and experience. In most cases, there will be closing costs or fees to use hard money California. Typically hard money lenders will charge anywhere from 2-10 points just to use their money. One point equals one percent of the mortgage amount. So charging 1 point on a $100,000 loan would be $1000. These are all important things to consider when choosing a hard money lender California.

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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.

Real Estate Investment Opportunities Using California Hard Money

The sole purpose of an California hard money lender is to provide people with the fastest and easiest access to private money and hard money loan options secured by real estate. In fact, you may even be able to get funding in as little as 5 business days through one of their California hard money loan programs. Hard money lenders California are equity based lenders who will give you a loan based on the merits of the property you want to buy, not your own personal merits.

What exactly does that mean to you? It means these hard money lenders California provide you hard money regardless of your credit, job history or income, as long as they can see upon evaluation of the property that you will make a profit doing a fix and flip. So does your credit score matter? Yes, it can help you to get a better interest rate, but it won’t be used to determine whether you qualify for a loan. If you need 100% financing so you can get started with no money out of pocket, you may even be able to find a hard money lender in California who can help. Some have developed programs that gives you access to additional financing options on top of hard money, that can make it possible for you to break into real estate investing with no money of your own.

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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.

Crunching numbers on hard money lending

So what are some of the many benefits to a hard money loan? Well, here’s some numbers for your calculator to use. But first, remember that a hard money loan is a form of asset-based borrowing instead that deals with real estate financing. Some borrowers also pursue Arizona hard money loans when their financing needs are super urgent and more traditional and conventional financing sources cannot respond in time.

In many cases a hard money lender Arizona will offer a smaller loan size based upon a lower "Loan To Value Ratio". This only means they may opt to loan no more than 65% of the property value. Therefore it is more common for real estate investors to offer additional real estate as collateral in order to obtain a larger loan amount. This is known as cross-collateralization.

Then, it’s simply a matter of contacting them with your idea or offer of investment. They’ll invite you into their office where they’ll give you free coffee (score!) and you can discuss all the grimy details of this exciting new loan available to everyone, even people like you.

Don’t think too much when dealing with these types of loans. Remember, you are a valuable person so fight for your right…. To vary!!! That means, don’t let yourself be jerked around by people who use a bunch of mumbo jumbo to confuse the drizzle out of you. You want your hard money lender to be your friend, because you’re already in a tight spot and could use a shoulder to lean on. That’s the whole idea behind hard money lending in the first place.

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.

Technorati Tags: commercial real estate loan,commercial hard money lender,commercial hard money lenders

Labels: commercial hard money lender commercial real estate loan

Speaking the language of hard money lenders.

If you are a borrower or mortgage broker, the chances you’ll be someday needing to deal with private money lenders Arizona increases every day, especially in this economy. At some point during your search for a loan, you’re going to need to consider the many options hard money offers. Unfortunately, outside of real estate professional that deal with hard money lenders Arizona on a regular day to day basis are not going to be as skilled at communicating and selling these lenders on their credit worth. It will help you avoid some of the conflicts you’ll face if you simply understand their language.

So why is it so difficult to communicate with hard money lenders? They’re acrafty bunch, like a pride of witches, because almost none of them are the same. Like snowflakes, they’re all different.

What works for one lender won’t always work for another, and they interpret information in a multitude of different ways. Going around in circles with private lenders can make your head spin clean off and eventually make you think that getting approved for a hard money loan is more difficult than pushing a camel through the eye of a needle. But what if you could greatly increase the odds that your loan request will not only get a favorable look from almost all hard money lenders but also increase your overall odds of getting an approval?

It’s simple – show some good character, be honest and forthright and you’ll do splendidly.

Real estate flippers – you’ve got some ‘splaining to do!

Hey, I Love Lucy fans, did you catch that pun? Well, in the more serious, tedious and doldrums of work life, you really, seriously need to be able to explain your position to a multitude of people. Your little pet project, where you want to turn a former prison into a preschool (same difference, no?) won’t be approved by the major banks or mortgage companies. At least, it’s not likely. So yes, you’ll have to consider Arizona hard money, but while it seems a little more straight forward, you need to be as clear as glass.

Always be clear with your information as most lenders will require an executive summary of some sort before you even begin. What’s included in this summary depends on you and the situation, but usually it’ll be cost estimates, due dates, time frames and what you expect to pay for monthly payments.

All of which means that you’re going to have to do some amount of explaining as to why you or your client deserves such and such a loan and how the loan structure will provide a win-win scenario for borrower and hard money lender Arizona. Not providing information that’s clear and concise can be an absolute deal breaker, especially when the deal is more complicated, as many commercial scenarios are.

If you feel your project is really worth going through with, simply make your plans as clear as possible. This will make any ship sail that much more smoothly.

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.

Technorati Tags: commercial real estate loan,commercial hard money lender,commercial hard money lenders

Labels: commercial hard money lender commercial real estate loan

Getting your eggs into other baskets, then counting them

One of the hardest challenges in the real estate “flipping” business (when you buy a property solely to fix it up and resell it for a profit) is getting approved for a loan. Most banks or mortgage companies will turn their nose up at you because they’re well aware this is a short term project and although probably a labor of love, not the kind of long term investment they desire. You’ll probably already consider finding a hard money lender Arizona, but even that route isn’t always easy peasy. Even if you can get approved in approximately 24 hours without much of a credit check or background check, you’ll want to do your homework.

Make sure you understand the history of the property. What happened to it that got it into it’s decayed state and why. For example, if a McDonald’s closed, it may be because property taxes were too high or the neighborhood was too rough or poor to afford visiting the place. You’ll want to be sure that the decay is more superficial than complete and utter destruction of the property.

Talk to contractors. Get a few estimates on what it will cost to paint, refinish, tile and otherwise repair the property. If you head into the private money lenders Arizona 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. Everyone likes someone knowledgeable about their job, so do a little extra research and then make offers.

Real estate flipping isn’t just a job – it’s a passion

Just like with any business, bank or mortgage company, hard money lenders Arizona want to see that you're interested in a particular project. Always return calls promptly and get the information they need in a timely manner. Hard money lenders keep less capital on hand than banks. If you delay in getting back to a hard money lender, they may lend their assets to another borrower.

The first step to being the first in line to get approved for one of these loans is to so a deep, penetrating interest in the project. Let them know you’re not just in it for the money. You don’t want to just renovate an old nursing home, you want to give it a modern feel and make sure the community at large is prepared for such a great benefit to the area. Showing this kind of enthusiasm shows private money lenders Arizona that you’re committed to the project and will see it all the way through. And if it appears to be some kind of charitable act that will make the world at large a better place, they’ll be all the more ready to join your team and fund your project. After all, everyone loves to feel like they’re doing some good in the world.

Also, don’t forget to do a little homework. Make sure you know the potential property inside and out, including but not limited to talking to contractors and getting estimates on costs and repairs. You’ll really show them what it’s all about if you’re passionate and knowledgeable.

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.

Technorati Tags: commercial real estate loan,commercial hard money lender,commercial hard money lenders

Labels: commercial hard money lender commercial real estate loan

What does it mean to fix or flip a property? Find out!

Fix and flip is really a slang term to describe a type of real estate investment deal. The fix part is where a real estate investor purchases an undesirable family home below market value and does some repairs to the property in order to make it more appealing. The idea is to significantly increase the market value of the property with the minimal expense possible so that the home can be resold for a tasty profit. Typical repairs done are: adding bedrooms as needed, putting in a new kitchen, finishing a basement, replacing a roof or doing anything required to make a home have more curb appeal to buyers and of course, more valuable then when they started. It is part science and part art to know what repairs to do and how much to spend doing them. It also involves getting a loan approval, usually something like California hard money.

The flip part refers to getting the property listed for sale in a short period of time and then locating a new person that will buy the home to live in it or rent it. This new buyer gets a loan and pays for the property. When the closing happens with the new buyer then the real estate investor, assuming they did the deal right, makes a profit. Fix and flip investing has been around for quite some time, but it has become much more popular with the advent of TV shows such as Flip This House and Flip That House among others on cable stations. If you are interested in becoming an investor who does fix and flips, then you have come to the right place. Just contact your local hard money lender California today!

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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.