How to get started as a residential hard money lender

If you were to walk down the street stop someone and ask them, “If you could change your job would you,” what do you think their response would be? A handful would be content in the current position they are in, while another handful would say they would love to change jobs. What separates most, though, is executing their goal.

Take for example entrepreneurship, it is one of the most sought after fields people want to enter. Real estate is one of those areas that many people want to be involved in. If you were to search the major real estate companies, you would come up with agencies like RE/MAX or Century 21. For other positions, like residential hard money lenders, or contractors usually, they run smaller private companies that look for clientele in the surrounding areas.

So, how do you become a hard money lender? The first thing you want to do is expand your Rolodex of contacts. In every business, it is not always about what you know, this goes double for people that are in the real estate field. When starting your journey into lending, you want to make sure that you are making a lot of friends that are in the industry. You should look for another residential hard money lender that has at least five years’ experience. They will be able to give you the tools you need to succeed in the business.

Conferences are the best places to start your search for business contacts. Some conferences are held bi-annually, while others could be held quarterly. The best place to look for the next one in your city is to go online and search. Most of the time you would be able to find one wading through advertisements on Facebook.

Next, you have to figure out how you are going to pay for all this…

As a residential hard money lender, you need to be able to be in a position where you are able to give someone a loan if they need it. Some people use different means of loaning people money. Some people use their retirement funds or IRA investments. If you believe you are not able to take on all the responsibility on your investments, you could try being a fractionalized investor.

What this allows you to do is divide a lot of the financial burden among a few partners that have an equal stack in the investment. Having more investors allows you to take on bigger projects if you want to, and it gives you a safety net if something were to go wrong. The biggest drawback that residential hard money lenders have with fractional investing is the struggle for power at times. Instead of being able to approve something instantly, the parties involved have to sign off, as well.

If you truly believe it will come.

Once you feel like you have gathered all the information, tools and people you need in your corner the last thing you must do is take a leap into the deep end. Business, in general, is a very risky thing to take on, for real estate risk seem to compound exponentially. To be a successful lender you have to know when to back out or when you should jump on a good deal. Yes, it will be very nerve-racking at first, but how will you know if you do not get in the field?

 

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@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: residental hard money lenders,residential hard money lender

Is VR the future for real estate?

Virtual reality is slowly gaining a lot of steam in the tech world. While it is still in its early stages VR has started displaying its worth in many different sectors. Video games are not the only application that can benefit from the use of VR. For example, instead of subjecting people to the side effects of too many X-rays, what if there was a way a physician could scan someone and use VR to view their body? With innovation comes expansion and there is no reason the real estate market should not benefit from the use of virtual reality.

Think about the time residential hard money lenders could potentially save visiting homes or potentially save using this technology. For the lenders that like to do above average research on the properties, they are providing loans for VR will help them greatly. For example, instead of going to the two story on Maple St., they could opt for a 360 tour that immerses them as if they were actually there. If the lender wanted to look at blueprints for the property they could have a three-dimensional model in their headset.

Contractors could provide a more accurate estimate on the time and cost it could potentially take to complete a home. Instead of guessing what is wrong with your potential flip you could dig deeper into the design of the home. Maybe there is foundational damage that the naked eye cannot pick up.

Or the support beam that is in place is not rated to take the amount of weight the home is exerting on it. What if an investor lives in another state and needs someone to purchase the property on their behalf? Instead of traveling to see the home in person they could stream a walk through in real-time.

Virtual reality also helps cut down finances on the backend.

Say you are investing in a property that you want to flip for a profit within the year. With the use of VR, you would be able to calculate the time and expenses you may have. Now, we will add a loan from a residential hard money lender, you use that initial loan to purchase the home. It is relatively small and you have figured out how long it will take you to pay it back. Before we start construction on the property your contractor, with the aid of VR, found a mold problem in a bathroom.

Now, you know that you will most likely have to spend more time and money on the home. This gives you the ability to recalculate the amount of time that you need to pay your residential hard money lender. Instead of taking three months to pay the loan back it may take six.

VR has the ability to change the real estate industry

Technology is like the universe, ever expanding. With innovations in VR happening every single day real estate is next to reap the benefits of its applications. Whether you are a contractor, a home buyer, a residential hard money lender, or an investor you should definitely be doing your research on virtual

 

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@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: residental hard money lenders,residential hard money lender

Should residential hard money lenders get involved with ‘tiny houses’?

Recently, there has been a boom of people that want mobility to coincide with their dream home. However, instead of purchasing a mobile home or RV, they have opted to scale down regular homes and place them on a trailer. Yes, people, we are talking about the tiny home fad that is carving a new lane in the real estate market. With their popularity increasing should residential hard money lenders look to invest in the tiny house market?

So, what is a tiny house? Well, a tiny house is defined by a home that is roughly 100 to 400 square feet. The typical weight for a tiny house is around 10,000 to 17,000 pounds. The home can be stationary or mobile as needed by the buyer. Most of the homes are built as backyard projects, but there are many homes that are prebuilt and ready to move in. Some can come with the bare essentials, such as a loft area, kitchen and storage. While others can be extremely extravagant with multiple live areas and a nice sized bathroom.

The allure of owning a tiny house is different for everyone, for many, it is the sense of adventure that awaits. Having a tiny home allows you to travel as much as you want and still be able to “come home,” each day. So, should residential hard money lenders get involved? The quick and dirty answer to that is, yes.

Many people are opting out of having a permanent home. Most tiny home buyers choose a minimalist lifestyle where they are able to live almost debt-free. Since they do not want to have a large financial footprint most likely you will receive your money back quickly. This is perfect for residential hard money lenders, instead of waiting in between regular investments you could potentially gain a handful of these micro investments.

So, how do you build a market for something like this?

This is a very easy answer: social media. Many people that are looking to take on the tiny home life are extremely active on social media. Whether it be Instagram or Pinterest as long as you have the right hashtag you will have clients. If you take a closer look at the tiny home demographics you will find that a large portion of buyers are seniors. After you have fully exhausted all the typical “millennial” sites try finding places that cater to the older community. For example, when most people get older they want to travel, but they still want to have a cozy home. Tiny homes are the answer for those trips to the Grand Canyon or Yellowstone.

The possibilities are endless when you are investing in tiny homes

Is it a radical idea to take on this kind of investment? Maybe, but the payoff could potentially be worth a lot of money. Instead of worrying about the four bedrooms, two and a half bathrooms turning for a quick profit; instead, you could issue a loan for an 800-square foot tiny house. Grow your business by going tiny.

 

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@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: residental hard money lenders,residential hard money lender

How transparent of a residential hard money lender are you?

In the age of instant gratification, transparency is the key to being successful. As consumers, we want to be able to trust every single product that catches our eye. Will businesses always come off as trustworthy? Of course, not but it is the duty of the owner to be upfront with their business. For residential hard money lenders, this should be a top priority when you are conducting business.

After the housing bubble peaked many people were on guard about any potential lemons in the market. People are still purchasing home, but the numbers are not as they were in 2008. So, why has there been a decline in home buying? Frankly, it’s too expensive to pay for most Americans. Couple that with many people taking bad loans and investing in terrible properties no one wants to buy right now.

Potential homebuyers want to be able to trust the person that they may be investing with. The best way you can start earning people’s trust is through social media. No, you do not have to do a daily vlog like Casey Neistat, but you could offer differ tips and tricks that could help a potential investor. For example, a quick informational Instagram video will suffice for many people. As long as the information that you are presenting is in small bite size chunks people will follow.

Facebook is your friend if you are a residential hard money lender.

Facebook has begun dragging itself out of the mud in recent years by adding more user-friendly tools that will increase traffic and transparency. Give your customers updates on current trends that are happening in the real estate world. Take the time to research different properties around your immediate area to help homebuyers get the most for their money. Make sure you are actually talking to the people that leave you messages. We live in a tech-heavy world now and many people crave human to human communication. Automated mailing lists are not going to cut it anymore.

After you have replied to your messages try using Facebook Live to broadcast whatever you may be doing. You could hold a free fifteen-minute seminar each Friday; in it, could be a Q&A forum providing people with short answers to any questions they have. If you tend to be outside the office more you could also begin live video with Instagram or Periscope. Make yourself more available and start getting familiar with different types of social media.

All that aside you need to provide unwavering service.

When you look at the real estate market it is evident that residential hard money lenders are very common. Major cities could have up to a half-dozen. To stick out as a lender you communicate and handle all of your business effectively. To win in this climate you have to be able to connect with your clients on a deeper level.

Take the time out to get to know a few of your clients. Give them a few incentives that you know your competition cannot provide. Above all make sure that you come across as a real person.

 

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@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: residental hard money lenders,residential hard money lender

How you can get the money you need from a residential hard money lender in California

What happens when you need $5000 for that tiny house in San Bernardino? What about that noir style house in Hollywood? Maybe the best option you have is a residential hard money lender. They are able to give you the capital that you may need for that perfect dream villa on the California coastline.

Real estate can be a very sticky situation if you do not have everything checked correctly. If you mess up on a certain form or your credit is not bank standard you could miss out on thousands of dollars. In the event, this happens who do you need to turn to? Your family members have already exhausted their finances bankrolling that café you said would catapult your barista career. Your best option is going with a residential hard money lender.

So, what does a private money lender do generally? Basically, they are non-institutional entities that are able to loan money for a property. Usually, they will require you to provide a note and deed of trust before you are able to receive your loan. Generally, they do not require you to have a great credit score, however, you do need to have a solid amount of collateral. The collateral is used to make sure the lender can be reimbursed of the borrower happens to default on said loan. We are not saying you are going to do that but it is nice to have a failsafe if you need it.

Often people that take on these types of loans if they want to flip the property fairly quickly. Most of the homes purchased with these loans are in the process of being foreclosed or have been foreclosed. Investors will usually get a small loan that could pay off extra costs that you may incur. For example, say you used a loan to purchase the home instead of your own assets; you could use any extra money for any mishaps that you might run into.

You do not need to be an investor to use these services.

Yes, you Joe Schmo, you can benefit from these services, as well. You have to act fast though a lot of these homes are flying off the lot. Seriously, though, these types of loans are great for people that need quick cash before they miss out on a property. In fact, this type of loan works great for people that are in danger of losing their home. Instead of losing it to a bank you could pay off whatever fees you may have and then flip it for a profit.

Residential hard money lenders often will help people that are in need more than an institution would. Most of the time these companies are small and have close ties to the community. They probably shop at the same stores as you, or they attend the same gym. You are at a much better advantage at finding someone that is willing to give you the money you need for your future property.

There a few drawbacks to using a residential hard money lender.

Most of the time borrowers have a problem with the interest rates that they have to pay back. The rates for these loans usually tend to be in the low teens. Depending on the climate of the market and how quickly homes are being sold this could vary. The reason they are so high is because of the risk that lenders take on. Flipping a home is very hard and it could take months before a lender receives a return.

 

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@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: residental hard money lenders,residential hard money lender

Why do you need a residential hard money lender?

One of the best tools that you have at your disposal when you are looking for a residential property is a residential hard money lender. But, many of us have no clue where to start when beginning the vetting process for a potential lender. Are you dealing with a lender that calls for collateral? What are you planning on using the property for? Will you be able to potentially make a profit off it to pay off your loan? These are just a few questions that need to be asked before you want to take on another expense.

For most of you reading this most likely you are looking for a lender that will give all the money you could possibly need for the property that you are interested in. One of the biggest issues you may run into is time. How much time do you have before this property is off the market? Can you afford to wait until you get your loan? If the answer is no, then you should consider a residential hard money lender. Typically, if you are in dire need of quick cash you can get a loan from a lender in about 10 business days. Banks usually take about 60 days before you are able to receive anything.

Usually, the paperwork you have to go through consumes most of your time. For example, banks generally require more paperwork on the property before considering awarding a loan. A residential hard money lender will not need the same documents to process your loan request. Usually, if you have the deed to the property that you are looking to buy there will not be a lot of hassle. Apart from saving you a lot of time going the hard money route could allow you to receive a loan with bad credit.

Yes, you read that right, if you have bad credit a residential hard money lender can help.

Many of us have to come to grips with our financial status in 2017. You may be a recent grad that needs to move out of your parent’s basement. Maybe you and your partner are trying to get that first dream home, but one of you filed for bankruptcy. Having a residential hard money lender handle your loan request could be the best option for you. For example, typically if you were going to go the regular bank route your FICO score would need to be above 700. Can you count on one hand the number of people you know with that score?

We all run into financial hardships, but our credit score should not be the deciding factor on what we can or cannot afford. With a traditional bank, there is also a ton of paperwork that you may have to fill out before you are able to even get your score checked.

If you value your case being taken on personally residential hard money lenders are great

Since many of the lenders are private investors they may not take on a lot of clients at one time. They can provide you with the answers you need in a timely manner. They also could potentially give you more service. For example, if your residential hard money lender is familiar with the are you are looking to purchase they could give you advice on your buy. This is great for people that are looking to move to a new area and have no clue about the current market. If you are looking for a quick lender with less hassle you should look no further.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@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: residental hard money lenders,residential hard money lender