Learn To Be A Fix & Flip Investor

Monday, February 20, 2017

How To Be Successful Using Hard Money Lenders in California To Flip Houses

The thought of making money can be intoxicating. It can make people believe nothing will go wrong or could go wrong. So to get the ball rolling, they use Hard Money Lenders in California rather than banks to fund multiple projects. But then the unexpected happens and trouble ensues.

Hard Money Lenders California--After you pound out the details of your business plan, it is easy to envision success. It is easy to see your plans being carried out and all the money you are going to make. So, when it comes down to getting started, it is not hard to be too excited and try to do too much. Your plan I spot on and can’t fail so why not hit the ground running?

Easy—because you never know what is going to happen. All sorts of problems can arise that make the best project turn into a dud. Sometimes, when one turns into a dud, there can be a domino effect. As you work to save one, you neglect the other, and it too fails.

An Investment Tale With Hard Money Lenders in California Gone Wrong

Bob and Jim are best friends living in Santa Barbara, California. After going to a weekend seminar on flipping houses, they feel confident that they can succeed and make a lot of money flipping houses. So, they call a friend in the real estate industry, and she presents them with three properties that would be perfect. They can’t make up their mind which to take so they decide to take all three.

After all, they know what they are doing so what can go wrong?

The deals have to be done now and can’t wait for a bank loan to be approved, so they decide to go with hard money lenders. Both recommend the friends stick with one house at a time, but they are determined to follow through on all three.

They complete the first one, but it takes longer to sell than they anticipated—and the offer was for a lot less. The buyer insists that a couple of repairs be made as well. With the cost of the additional repairs and the lowball offer, they end up only making a few hundred dollars.

Before they got to work on the first project, they gave a contractor a check to do the work on the second. After finishing the first, they go to inspect what they think is going to be a finished project to find out the contractor ripped them off. So now they have to pay another to get the work done. Upon completion, they find a buyer, but thanks to the first contractor, half the profit is eaten up.

At this point, they are not as excited, but neither likes to quit, and they want to see the final project through even though they are behind on every timetable they created. They find someone willing to take it off their hands as is, but they are going to lose a few hundred dollars.

Determined to succeed, they push through. The project takes longer, it costs more, and they end up taking a loss just to get rid of it (and the interest on the loan).

And The Lesson Is…

When you get started in real estate investing and working with Hard Money Lenders in California, take it easy. Don’t try to do too much too fast. Take your time getting your feet wet, so you don’t end up regretting it in the end.

Happy senior business man making his notes at work 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.

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Friday, February 17, 2017

There’s Danger In Trying To Do Too Much Too Quick With Hard Money Lenders in California

The thought of making money can be intoxicating. It can make people believe nothing will go wrong or could go wrong. So to get the ball rolling, they use Hard Money Lenders in California rather than banks to fund multiple projects. But then the unexpected happens and trouble ensues.

An Investment Tale With Hard Money Lenders in California Gone Wrong

After all, they know what they are doing so what can go wrong?

Determined to succeed, they push through. The project takes longer, it costs more, and they end up taking a loss just to get rid of it (and the interest on the loan).

And The Lesson Is…

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Thursday, February 16, 2017

How To Be Successful With Hard Money Lenders in Dallas

There is a method to the madness when it comes to investing whether you do it with Hard Money Lenders in Dallas or somewhere else. Figuring it out can be the difference between succeeding and failing.

Hard Money Lenders Dallas—It takes money to make money, right? But how much fun is it to have to invest your own money? Or what if you don’t have enough? You can go to the bank, but you better have all your ducks in a row—not to mention excellent credit—if you take that route.

But if you don’t, there is nothing to worry about. Hard Money Lenders in Dallas or wherever you are, are more than happy to give you the opportunity when banks are not. However, there is a method to the madness when dealing with them as well.

Key To Working With Hard Money Lenders in Dallas

Hard money lenders are more likely to approve your loan application, but that does not mean you can overlook the process. You still need to look ahead in the process, prepare accordingly, and then continue to do so until the loan is paid off.

The loan approval process is easier and not as strict, but the surest way for it to bog down is to not be prepared. Find out what you need ahead of time and have it ready to turn in when the loan company wants it. If they have to continually stop reviewing your application to call and tell you something is missing, your application will seem to take forever to get approved.

Take too much time, and you risk missing out on whatever project you were looking to invest in.

If you are working with a hard money lender once, chances are good you are going to be interested in working with him/her again. Should that indeed be the case, you want to make sure you don’t give them any reason to be unhappy with you. So—pay our note on time. Nothing will aggravate a lender more than having to chase you down, call you constantly, and hound you to make your payments.

Should they have to, don’t expect them to be too excited about working with you on future projects.

Do Your Homework Before You Apply

There are plenty of Hard Money Lenders in Dallas or wherever you want to do business. While it may seem easy just to go down the page in the phone book and start calling locations, you would be much better off taking the time to look into each one. Find out if they specialize in anything if they tend to work with particular people or business types. Try to get an idea what their terms are going to be like, how flexible they may or may not be, or how strict they are about their minimum requirements.

Whichever lender you choose is going to want to know anything and everything about you when you start the application process. It only makes sense for you to know everything about them.

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Wednesday, February 15, 2017

A Success Story For One Of The Hard Money Lenders in Dallas

It is easy to go into business as one of the many Hard Money Lenders in Dallas, but it is not easy to succeed as Longhorn Investments appear to be doing.

Hard Money Lenders Dallas—Going into business is a hard thing to do. It is even more difficult to succeed in your chosen field; especially if your area requires you to judge whether you think someone else can succeed in their chosen field with the help of your money. But that is exactly what the people that founded Longhorn Investments in Dallas, Texas, back in 2008 have done.

They are not just succeeding, though. They are thriving in an industry that involves giving people the bank did not trust giving money to a lot of money.

Growth Is Good

Hard money lenders in Dallas are like hard money lenders everywhere else. They don’t want to bite off more than the can chew, but they want to expand and grow like any other business. After all, when you go into business, you don’t want to just make money. You want to make a lot of money. At some point that is going to mean testing your limits and exploring additional revenue streams.

When Longhorn Investments got started, their intent was to focus on the single family residential investment market in Texas. Since then they have expanded operations into Missouri and North Carolina. They have also expanded the scope of what they will approve loans for to include multifamily and commercial investments properties as well.

“We started in this business with our own money and then went out to family and friends to grow the business. However, to do more loans we needed more capital and thus we started working with investors. Now we have over 100 investors who are making over double-digit returns from investing in our hard money lending program," said Michael Hoffman, Principal of Longhorn III Investments, LLC, and fund manager of Trident Realty Investments, in a press release.

After five years, they had already done more than 750 loans valued at over $60 million. Their success has continued over the years to the point where they have decided to focus on real-estate related businesses.

They are also affiliated with a title business in Houston and Dallas that helps them provide investors with a more complete service.

But How Far Can They Go?

Hard Money Lenders in Dallas and anywhere else will often find themselves limited in what they can get involved in by their cash flow. Do they have enough to take on certain investments that will allow them to grow? Should they turn some down in hopes that other—better—options become available? Or should they just do like Longhorn Investments and align with someone that has access to a lot of money?

Longhorn Investments has access to over $222 million through their sister private equity fund, Trident Realty Investments, LLC, proving once again—it’s not always what you know, but who you know.

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Tuesday, February 14, 2017

Federal Regulations Will Soon Make California Hard Money Lenders Filthy Rich

When it becomes legal to sell recreational marijuana in California, developers are going to need money but thanks to federal regulations, they will not be able to get it from a bank. They are going to have no choice but to borrow from California Hard Money Lenders.

Some people have been touting the benefits of legalizing marijuana for years. They have gone on at length about the impact on the courts and jails and the boost it can give the economy. With the passing of Proposition 64 in California, residents of the Golden State will soon realize those benefits.

Thanks to federal regulations, the banks will not be seeing as much (if any) of that financial boost. Instead, the beneficiary will be the California Hard Money Lenders that will be ready willing and waiting to do business.

What Regulations?

Many states, like California, have been passing state laws to legalize marijuana, but the federal statute remains. As far as the Feds are concerned, marijuana is still an illegal drug and is listed by the DEA as a Schedule 1 controlled substance. But the Department of Justice has not been prosecuting cases in states that have legalized marijuana.

So—on a criminal level, federal authorities have been backing off. But on a financial level, the federal government has been doing a little flexing of their muscles. Businesses need money to get off the ground, but federally insured banks will not approve loans for marijuana-related businesses. Nor will they allow marijuana businesses to set up accounts.

“It continues to be an issue because banks are regulated at the federal level,” Taylor West, deputy director of the National Cannabis Industry Association, said in an article in the Scotsman Guide. “Some businesses have been able to get bank accounts through one means or another, but as an industrywide situation, it is still pretty much a problem.”

This, of course, makes California Hard Money Lenders the No. 1 option for anyone thinking of opening a marijuana dispensary. However, there is an option.

The Financial Crimes Enforcement Network

If a bank wants to be approved by the Department of Treasury to provide loans to the marijuana industry, they have to abide by the rules as set forth by the Financial Crimes Enforcement Network. The network enforces the regulations outlined in the Bank Secrecy Act which essentially requires a bank to investigate potential lenders as much as possible and to not do business on purpose or by accident with “bad actors.”

For now, even though they are legal according to the states, marijuana businesses are considered the bad actors. Violators stand to risk being fined, but new regulations have opened the door to allow banks to do business with marijuana-related businesses. But there are stipulations. They can do so as long as they investigate the company and the parties involved as completely as possible. They will also have to continue to monitor clients after approving a loan for any potential wrong doing.

Banks do not want to go through all that hence the door being wide open for California Hard Money Lenders to be real busy in the near future.

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Monday, February 13, 2017

California Hard Money Lenders Should Beware The Pitfalls Of The Cannabis Industry

When it becomes legal to sell and tax the sale of recreational marijuana in California in 2018 there will be a tremendous opportunity for California Hard Money Lenders to make money—but there will also be some serious pitfalls to be wary of.

When Proposition 64 passed in California during the November elections, many celebrated it as the right thing to do. They firmly believe that by legalizing recreational use that the world they live in could be a better place. There would be less of a burden on the legal system, and people could have access to something that could be beneficial to them.

Oh yeah—and there would be a ton of money to be made once it becomes legal to sell (and tax) next year.

For now, people 21 and older are allowed to possess up to six plants and possess about an ounce of marijuana. So, or now, the law will likely result in fewer people being arrested. But come January 1, 2018, when the sale and taxation of marijuana for recreational use becomes legal, there will be an opportunity for California Hard Money Lender to make some serious money.

Beware The Deal That Looks Too Good

When that fateful day comes, there will be a mad scramble among investors looking to cash in. They will want to do whatever they can to set up shop and open the doors as quickly as they possibly can. It will be interesting to see if banks decide to approve loans for a cannabis shop, but if they do not, California Hard Money Lenders will be more than happy to fill the void.

First—he or she will need enough capital to open shop. California Hard Money Lender will likely get a good percentage of that business since they are more forgiving than traditional loan sources, easier, and quicker to approve. However, they may want to be wary of who they get into business with due to some potential legal ramifications:

- Criminal liability: Under the Controlled Substances Act, financing a marijuana business can open up the possibility of criminal prosecution. A federal court has blocked the Act from being applied to the state’s medical marijuana industry, but there is no guarantee that the recreational one will be protected as well.

So, basically, invest at your own risk.

- Money laundering: many financiers have expressed concern over federal anti-money laundering laws being applied and leading to prosecution. Should a financial institution step up and agree to follow the Financial Crimes Enforcement Network’s regulations, they could end up becoming the bank of the cannabis industry in California.

Is There A Future For California Hard Money Lenders In Pot?

It is hard to tell exactly what government entities are doing or are sometimes planning, but maybe Proposition 64 required investors to wait until 2018 for a reason. Maybe the idea behind the delay was to give lawmakers chance they need to set up the proper and necessary regulations before business are ready to open their doors.