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Friday, June 1, 2018

Tips for Success When Considering Hard Money Loans Arizona

Every industry has its good and bad participants and hard money lending is no exception. But following a few tips can help to ensure success when seeking hard money loans Arizona.

As with any loan, careful evaluations should be completed for each lender and the terms for all hard money loans Arizona. If you are not familiar with the process or the loan documentation it is always a good idea to have your lawyer review any documents before you sign them because a hard money loan document is legally binding. In addition, there are a few other tips that can help you to ensure that your entire loan application and funding process goes smoothly.

There can be a few legitimate upfront fees that a borrower is asked to pay when requesting hard money loans Arizona. But be cautious of any extremely large fees that you are presented with prior to being approved for the loan. In most cases, these fees are being charged by a third party or a “broker” who is not actually the lender but is trying to get a fee and masquerade as a lender. Not only is there a good chance that you will not get funding from this person but there is also a good chance that they will sell your identity or personal information to others for an additional profit at your expense.

When you are presenting information to a potential lender, assume that they will find out any “little secret” that you might know about the property. Do not try to hide information about the title, tax liens or any issues that could become a problem in the future. A lender is going to fully investigate the property and will not look kindly on any borrower who has attempted to be dishonest or take advantage of them.

Know the Current Rates

Not all lenders are dishonest just like not all used car dealers are dishonest. But that are a few in every crowd. So be sure that you have polled several lenders and are well aware of the current rates and terms for hard money loans Arizona. This will let you know immediately if a lender is trying to take advantage of you and you can cease the relationship immediately.

As for A Detailed Fee Breakdown

In the end, all you are really shopping for is the loan with the best overall cost to you. So it only makes sense to clearly ask for a list of all of the fees and costs that you will be paying for the use of the lenders money. Having this clear list of the total cost will allow you to easily compare all of your offers without having to sort through various terms and jargon that can be a part of a loan document.

Using these few tips will help you to more easily determine which hard money loan is the least expensive and will allow you to get the best return on your investment.

Sunday, April 29, 2018

Tactics to negotiate a better hard money deal

You may be seeking a hard money loan and looking for the lowest possible interest rate, but there may be additional costs you could be unaware of beyond the interest rate. You will be at a disadvantage if you aren't aware of these expenses and don't try to negotiate with your lender.

Some private lenders may earn their profits by charging fees rather than collecting interest payments. In the worst case scenario, an unscrupulous lender could lure in borrowers by advertising a low-interest rate, all the while charging them exorbitant fees. Even if a lender is reputable, borrowers should be aware of any additional expenses when it comes to their loan.

Private asset based lenders are business savvy and approach each loan as a business deal. There is always room to negotiate the terms of any business deal, and the same holds true for your loan.

The most apparent expense on an asset based loan is the point fee, which is a percentage of the loan amount which is paid by the borrower up front. You should do your best to negotiate the point fee because depending on the size of your loan this cost can be considerable.

You as a borrower need to be aware of the cost of your loan in points and any other fees that may apply.

Which fees can you negotiate when it comes to hard money loans?

In the first place, there's the underwriting fee, which is the cost of a lender's due diligence. The cost of underwriting can range from 750 to 2,500 dollars depending on an individual deals complexity. In addition depending on your circumstances the cost of servicing your loan could also be a factor. Loan service fees cover the cost of recording payments and generating reports, and this price can be considerable. A lender may charge a fixed monthly payment or charge a given percentage of the loan amount annually.

In addition, be aware of any late fees, or any potential change in your interest rate if you miss a payment. You will want to keep these fees as low as possible because if you miss a payment due to financial difficulties, higher interest rates and late fees will make it harder to catch up.

The main advantage of asset based lenders over traditional banks is that they are flexible and that their is always room to negotiate the terms of your loan. If you don't try to negotiate these additional fees you may be taking on an unnecessary expense.

Take advantage of the flexibility offered by hard money lenders

Some of the fees mentioned before may or may not apply in your case. But you should try to take advantage of the flexibility offered by private lenders. If you are a borrower with considerable experience and strong collateral on hand, in most cases your private lender will work with you to negotiate any fees.

In short don't look at an attractive interest rate when shopping for a loan. If you want to get the best deal possible, know the fees that are being charged and to do your best to negotiate.

How to find the right hard money lender for your next project

Just because you cant secure a traditional bank loan doesn't mean you don't have other options, you may have considered a hard money lender but where do you start? What should you expect from a potential lender, and what will a lender expect from you?

A quick google search for private lenders should turn up an endless array of financing options. Because you might need a specific type of lender to match your particular project an online search can prove to be a little overwhelming. You could always try to be more exact with your search terms, trying things like ‘private rehab loans,' or ‘private construction loans.' Being specific with your online searches may help you find the lender that is right for you, but this isn't always the case.

Consider using one numerous lender databases available online to narrow down your financing options. The ideal database would allow you to aim your search for lenders based on the amount of financing you need or will enable you to search for lenders based on your specific project, (i.e., Renovation, construction, commercial, etc).

If you'd rather avoid the hassle of searching for a lender on your own, you could seek out a referral from a licensed mortgage broker. Local real estate investment groups could also put you in touch with lenders they have worked with in the past.

If you find the right lender, the question then becomes what should expect from them and how do you know you're getting the best possible deal.

What should you expect from a potential hard money lender during the application process?

Search relevant government databases to ensure your lender is licensed. Your lender should also be transparent throughout the process. Ensure that they meet their published guidelines related to fees and closing costs. You should also be wary of teaser rates offered by unscrupulous lenders.

Know that every private lender is different and will have their criteria when it comes what they expect from you as a borrower.Ask your lender to be transparent about any documentation you might need throughout the loan application process.

Know what your hard money lender expects from you to get the best deal possible

This type of loan is often used to finance rehabilitation and construction projects.If your seeking financing for renovation or construction, a lender will want to ensure that you are competent and knowledgeable about your project. In these cases, before approaching any lender, have details about the property you wish to purchase, a budget for your renovations and thorough projections about the future profitability of your project. You build up your lenders confidence and gain room to negotiate by demonstrating your understanding of a project's potential.

You need to have a detailed understanding of what your property is worth to qualify for the best possible loan. A private lender usually bases the amount of financing offered on the market value of the property you are purchasing. You won't qualify the largest possible loan if you don't have a good sense of what your property is worth.

Sunday, April 15, 2018

HOW TO GET A HARD MONEY LOAN APPROVAL

You have located the property that seems undervalued. Now, how do you get a hard money loan approval to make your first project a reality?

Hard money loans are loans that are generally available from investors as opposed to banks. They are often used to finance real estate transactions, though businesses and those looking for bridge loans also turn to these types of lenders. If your credit score is not strong enough for you to get a loan from a bank, then this is the option for you. These can be used as “bridge” loans between construction and long-term loans. Others turn to hard money loans that they use for rehabbing projects before turning to long-term lenders that want a completed project or a fully leased project.

Some of the questions you should consider are:

1) Does the company you are considering doing business with have a legitimate web site as compared to the web sites that are designed to just gather names and pass it along to a third party.

2) Are there any lawsuits? Any forclosed properties? Are they in good standing with investors?

3) When considering a lender, what is their area of focus? What kind of project have they financed previously?

4) Is there a physical presence for the company, do they have someone you can talk to?

Hard money loans are designed for one to five years. At this time, you will need to refinance the loan or pay it off. Some lenders have the option to extend the loans for a period of time. Interest rates are higher than loans through banks, generally 10% to 20%. Hard money loans fund quickly, usually in as little as one week. This is much shorter when compared to conventional loans which can take up to 30 to 60 days for an approval.

Collateral

The hard money loan is valued at the collateral value of the property not your credit score. Hard money loans are sometimes given to first time home buyers or to home owners that need a bridge loan so that they can buy the house of their dreams without having to wait for their first home to sell. Some hard money lenders fund 60%-70% of the after-repair-value(ARV). This leaves the remaining 30%-40% that you will need to fund. This generally refers to individual properties and not large commercial projects.

The lenders may ask for additional documents such as W-2s and bank statements. Protect yourself legally.

Most hard money lenders are not subject to government regulations. Have an attorney review all documents before you proceed and have an accountant review your projected cash flows. You should have all your documentation in a row such as the schedules and fees for the contractors and when and what they will be doing. Ultimately, you will need to repay the loan which usually occurs in 1 to 5 years. Have an exit strategy and know your lender. Many will consider extending a loan if you are having difficulty coming up with the final balloon payment. At Level 4 Funding, we’ve been in the business of hard money lending for decades and have a solid reputation behind us. Call us if you have any questions or concerns regarding this lending option.

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 loans,commercial lending,commercial mortgage

Saturday, April 14, 2018

5 Tips to Successful Hard Money Loans

Hard money loans are a great way to begin a successful career in real estate. Following a few tips will ensure your success.

Any borrowing experience can be stressful if you are not well prepared. But understanding the process and knowing about a few tips to follow can make your first experience with hard money loans simple and successful. Even without personal experience this information will give you a confidence that you are making good choices and will have success with your project.

Picking the right lender is a very important first step in the process. You will want to do some research to make sure that the lender has a good reputation and has experience working with borrowers. You will also want to be sure that you are comfortable working with the lender and within the standard terms that the lender offers. Equally important is selecting the right property. You need to be sure that the numbers work on any property that you are considering. Remember that this is a business deal and there should be no emotional attachment to the property. If the numbers won’t end with you making a profit then it is not the right deal for you.

Being Prepared Is Critical To Your Success

Even with the fast funding of hard money loans, you need to have been planning for your purchase for a considerable amount of time. The loan is likely to be limited to 75% of the cost of the property so you will need to have access to the remaining cash. This down payment is your “skin in the game” and also represents your equity in the property. Having the time to save the 25% down payment also relieves the added stress that will occur if you are using another unsecure resource to borrow additional money. You will also want to be sure that you have carefully prepared all of your paperwork. This can include research on the property and your business plan for buying, improving and selling the property. Some lenders will also want to see documentation showing your cash reserve for any repairs or operating costs and proof of the down payment funds. Having your financials ready can help to reduce the time that it takes you to be ready to seek a loan when you find the perfect property.

Manage Your Expectations

It is critical that you begin each real estate purchase and project with a realistic time line. It can be easy to get over excited on the first few projects and start to believe that the work can be completed more quickly than you first estimated. But in almost every case, you will find that the initial time estimate is shorter than the time required to complete the entire project. Be sure to build in a little extra time as a buffer. This will allow you to complete the project without the added worry of defaulting on the terms of your loan. Hard money loans are a great tool to begin real estate investing but you must be sure to make good decisions and maintain realistic expectations throughout the process.

Sunday, March 25, 2018

Can you make money by investing in hard money loans?

Consider using a deed of trust investment. A deed of trust investment allows you to earn steady returns and interest payments on the loans distributed by hard money lenders.

Deeds of trust may be an unfamiliar concept for many first-time real estate investors. A deed of trust is a promissory note in which a borrower promises to pay back the lender (i.e., you the investor). Your investment goes to the borrower in the form of a loan, and the borrower's property acts as collateral in case of default. You earn both the interest payments and any portion of the principle the borrower manages to pay off throughout the term of the loan. Because a real property secures them, deeds trust are relatively safe and can offer steady returns to novice real estate investors.

Investing in a deed of trust is also a great way to diversify your portfolio. A deed of trust investment allows you to act as a passive owner and earn income from a property without owning it outright. You also save money because you will not need to purchase the entire property upfront and you avoid the hassle of maintaining the property yourself. Deeds of trust can also offer higher returns over an ordinary saving or an investment account.

Use a hard money lender to get the help you need when it comes to investing in deeds of trust

Trust deed investment companies (TDIC's) connect investors with deeds of trust and usually known as "hard money" lenders. The loans issued by these groups are secured by the value of the "hard" asset which the borrower wants to finance. Often TDIC's use deed of trust investments as a way to raise capital for the loans they issue to prospective borrowers.

Some may consider merely acting as private lenders on their own behalf. If you have the money and you want to earn interest, you could always lend the money yourself.

Working with a TDIC allows you to benefit from their knowledge and experience when it comes to the real estate market and the rules and regulations related to lending. The lender can underwrite the loan, take care of legal obstacles, perform the necessary due diligence and in some cases service the mortgage directly.

Level 4 Funding is an Arizona based hard money lender and can guide you through the process of investing in deeds of trust

Level 4 funding will perform the necessary due diligence on any deed of trust investment, ensuring any mortgage you invest in is of the highest quality. Level 4 funding differs from other TDIC's. Because Level 4 has already issued any mortgage you invest in whereas competitors may need your investment to fully finance their loans. With Level 4 Funding you have added the safety of knowing that any loan invest in already has a steady payment history.

To qualify you will need to make a minimum investment of 50,000 dollars, and your investment cannot exceed 10 percent of your total net worth or annual income. For more information about a deed of trust investment at Level 4 funding click here.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Monday, March 19, 2018

Benefits of Non-Recourse Commercial Loans

There are many options to explore when seeking commercial loans. One of the factors which can reduce personal liability and risk of assets is a non-recourse loan.

As you begin to explore the options for commercial loans you will quickly find that there are two main categories for these loans, recourse and non-recourse. The more common of the two is the recourse loan which requires the borrower or borrowers to personally sign as the guarantor of the loan. This simply means that in the event of business failure or inability of the business to make the loan payments for any reason, then the guarantor is personally responsible to make the payments. Obviously, this presents a significant personal financial risk to the guarantor.

Non-recourse commercial loans do not require the borrowers to become personal guarantors of the loan. Therefore, these loans do not require the risk of the personal assets of the borrowers. This is one of the biggest advantages for any borrower. Knowing that a business failure means the loss of income is bad enough but to also be faced with the responsibility of personal liability on a commercial loan can be devastating. No business owner ever chooses to take out a loan which they believe the business will default on but there is always that rare possibility, and the added stress of personal liability. But a non-recourse loan eliminates that stress and potential issue.

An additional benefit is that non-recourse loans are assumable. This can be a huge advantage if you plan to sell the property in a few years or if a situation changes and you need to sell the property quickly. Currently, commercial lending rates are very favorable, but they are expected to increase. So the current loan rate is likely to be much lower than a rate which will be offered on a loan in a few years. So when you do decide to sell the property, you have the ability to offer to have the buyer assume your loan. This will be a great incentive for the buyers as the interest rate could be significantly lower than the current rate.

The Perfect Non-Recourse Loan Candidate

Non-recourse loans are most often used to purchase properties which provide a strong cash flow as the property is the only collateral. This means that even if the property is not the more visually appealing or if it needs a face lift, it could still be a candidate for a non-recourse loan. The critical factor is the cash flow. As long as the property is generating 1.25 times the proposed payment of the loan then lenders will be eager to offer this financing solution.

Great Benefits if the Fit is Right

Non-recourse commercial loans can offer a huge benefit for the right borrower and the right commercial property. Knowing that the property does generate a strong and steady cash flow allows the borrower to get a great loan and rate without having to personally guarantee the loan in the event of a business failure. It also provides added benefits to the borrower when it is time to sell the building by allowing the buyer to take advantage of a lower interest rate on the assumed loan.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Sunday, March 18, 2018

Tips to Obtaining Hard Money Loans Fast

Hard money loans are used for short-term projects, usually ranging from as little as 30 days to 5 years. But these loans also come with higher interest rates. But if you need to get extra finances quickly, this type of funding is the right choice for you.

Fast approvals are usually quite easy when it comes to hard money loans. On top of quick approvals, these loans also come with high flexibility and less documentation is required for approval. Usually they are used as a last resort when unable to get a mortgage, but it can be well worth it.

If you are looking to finance a real estate investment, this type of funding is very beneficial in its own ways. The application process is much shorter compared to other loans. Financial history of course does play a role, but other factors come into play as well. Many lenders aren’t concerned with the present value. Their main concern is to see that in a short time, they will be able to make their money back on the investment, including interest.

Since lenders are looking more at the final project, making plans for the property plays a big part and can help you get hard money loans even faster. Most of the time, funding is provided in just a couple of weeks. But if need be, you sometimes can get the funds as little as just a few days, all depending on the lender and certain circumstances.

The first thing to do to obtain a loan quickly is to gather all of the important documentation.

Gathering all of the important documentation and information needed for lenders is one of the most basic factors for a speedy process. Things that lenders are looking for include: what kind of property you are looking to invest in (residential, commercial, industrial or land), the estimated value of the property, the requested loan amount and how the loan with be paid back (this includes the terms of loan, the length and monthly payments).

Not only is the process of getting funds quick, so is the application.

Unlike other loans, hard money loans come with much easier applications. In fact, the application is only 5 pages long. The entire process will even go quicker if you are able to present all of the information that the lender needs sooner rather than later. This is why organization of all of your documents and plans come in handy.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Friday, November 11, 2016

California real estate investors beware: Common issues with trust deed investing

When you are investing in commercial real estate risk and reward are words to live by. You have to be able to roll with whatever the market throws at you. Trust deed investing is no different, there will be ups and downs that you have to face. This brief will shed light on some things you may encounter.

Real estate can be a tumultuous and tiresome profession if you let it. The market consistently goes through a feast and famine period. There could be a time when you have revenue coming in from multiple ventures. There could also be times when you have to claw and gnash for a small investment. It is enough to make you not want to be in the industry.

Trust deed investing is not without its faults, however, there are still some cons that you will have to face. One thing that you need to keep in mind is the margin of safety. Basically, the margin of safety is the difference between the loan amount and the actual value of the property that you are investing in. For example, the value of a home that you are looking at has a low value and your loan is relatively high you may run into issues you were to default.

Many investors face complications when they misjudge the market and the margin of safety associated with it. The property that you had high hopes for is in foreclosure because no one could be convinced that this was a good investment. Now you, as the owner of the deed of trust, have to take on sole responsibility for repayment of the loan until the lender can sell it. Trust deed investing can sneak up on you if you are not careful.

One of the biggest drawbacks that trust deed investing poses is it not being FDIC insured. For example, if you were to go to your local bank and get a loan for a home that you are interested most likely you would be able to have the loan insured by the FDIC. In regard to trust deeds, however, the safety of your investment relies solely on the value of the property that you are trying to turn a profit.

You have a lot more work that needs to be done before taking on trust deed investing.

We have said before that for you to be successful in the commercial real estate business paying attention to the details is paramount. Trust deed investing comes with confusing documentation just like the rest. The deed of trust, along with all documents should be double and triple checked to make sure that there are no errors. In some cases, the borrower you are lending to could have ample right to sue you for having invalid documentation. This will end up costing more money in the end.

In rare cases, if you are not diligent in you bookkeeping you could be stuck footing the bill of the investment. Depending on the market and value of the investment it could be months that you would wait to see your money again.

There is no guarantee with trust deed investing.

With trust deed investing the capital appreciation could be very low if you are not careful, as well. When if you are lending someone a loan for an investment most of the time the profit that you will receive will most likely come from the interest the will incur on said loan.

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.

Thursday, November 10, 2016

The Real Deal with Trust Deed Investing

When you are investing it is paramount that you have many different options to make the most out of your capital. Trust deed investing is a great way to build multiple relationships while bringing in great business. This brief article will show you the basics.

First and foremost, what is trust deed investing? Trust deed investing is defined by the investor having their name on the deed of trust for a property. So what do you, as the investor need to do to be successful in trust deed investing? Research is the biggest thing that needs to take place before you do anything.

Why is this the best option for you? What are your other options in regard to investing in a property? What makes this a better option in lieu of hard money investing? Trust deed investing basically allows you to invest in a loan that is backed by real estate. Most of the time these types of loans only last for about five years. Usually, there is a promissory note that states the intent to pay back the money owed. Some can be paid off in as little as two years. Typically the interest of the loan that is issued is around 7 to 12 percent.

If you are trying to invest in California there is a document, called the deed of trust, that verifies the owner of the property. This is useful when payments are not being made to the lender. Once everything is varied the deed of trust becomes public record. When you are considering trust deed investing any form of payment is accepted for the loan that you are applying for.

Why would trust deed investing be the right choice for you?

So why should you consider trust deed investing? If you are borrowing, trust deed investing challenges you to find the highest quality real estate as possible. This means you have to do your due diligence when looking for the right property. If you are looking into buying a home it should be one that you can see making a profit fairly quickly. This pushes you to make better decisions when you are looking for a potential investment. If you are lending the funds for the investment, trust deed investing gives you the power to foreclose on the property to recoup your money.

When you take this type of investment there is more transparency as well. For example, when you are applying for a loan depending on the value of the property that you are trying to resell determines your loan. Lenders also have a lot more control over what happens is the borrower were to default on the loan.

So will you make any money in trust deed investing?

Short answer yes you will. But with all commercial real estate investing there are certain things that you have to look out for. In some cases, it may be better for you to apply for a traditional bank loan or a hard money loan from a reputable lender. Always way your pros and cons when attempting any type of investments.

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.

Tuesday, November 8, 2016

Beware Of The Dangers Involved In Investing In Private Hard Money In California

We all wish we had more money than we do. We may not need it now, but we would feel better knowing we will have it later when we need it. So we invest. We try to take our money and turn it into more money by investing in something we hope will be profitable.

Of course, when you invest in a project, there is a chance that the project will fail and you will lose money. This goes for any project, but some will come with more or less risk than others. Often, those with more risk come with greater rewards. While making more money can be appealing, there is more of a chance you’ll lose it all.

There is a risk-reward aspect to every investment, but for those that get involved in private hard money in California, there is a little more risk involved than just whether the project fails.

Beware The Risk Of Outside Influences

Just getting a business to succeed on its own is challenging enough, but having to deal with how outside influences can affect the success of your venture can be maddening. For example, let’s say you invest in a company that claims it is going to revolutionize the hybrid car industry. You throw everything you have into it because everyone will want a hybrid car when they become more affordable.

But then OPEC decides to release millions of barrels of oil and the cost of gasoline plummets. While it may be nice for the environment, people are more concerned with cheaper travel—and your investment is dead in the water.

With private hard money in California or anywhere else, the risk is similar but more involved. Not only do you have to deal with factors that are related to your venture, but you have to deal with those related to the equity people use to secure their loans.

Let’s say they use a few rental properties (houses) as collateral to secure a loan to be used to acquire an apartment building. But then the housing market crashes. You would think apartments would do fine since people still need a place to live, but what if its location is poor and it isn’t filling up fast enough?

Without rental income coming in, the borrower has trouble making payments. They default, and the lender takes possession, but since the loan for the apartment building was secured with a few houses. With the crash, the value of those homes has dropped significantly—and whoever invested in the loan for the apartment building is screwed.

Greater Risk Equals Greater Reward With Private Hard Money in California

Market crashes have wreaked havoc among lenders in the past and very well could in the future if all parties involved are not careful. So how can investors protect against it? Well—it’s kind of hard to. They just have to be aware of the state of the market as much as possible and pull out before the crash gets bad (if they can).

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

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 To Be Successful When Borrowing Private Hard Money In California

Borrowing private hard money in California and anywhere else is supposed to be easier than getting approved for a traditional loan, but it is still possible to screw it up. The following tips will help keep you from doing so.

In a perfect world, people would not need to borrow private hard money in California. People would have excellent credit ratings and more than enough income history to get approved by traditional lenders. But the world is far from perfect. Most of us do not have good credit ratings and don’t have the kind of income history traditional lenders like to see.

So it’s a good thing private hard money lenders exist to give people another option.

Tips To Getting Approved For A Private Hard Money Loan

Private hard money in California is supposed to be easier to get approval for, but that does not mean that just about anyone that applies will get approved. It’s just as easy to screw up a private hard money loan application as it is a traditional bank loan.

The following tips will help keep your application from getting rejected:

• Don’t hide anything. One of the quickest ways to make sure your application is denied is for the lender to discover something that paints your application in a negative light from a source other than the borrower. So be up-front and tell them anything and everything they want to know-- even if it’s bad. At least if they find out from you, you only have to answer for it and not for why you tried to hide it as well.

• Don’t be pushy. A private hard money loan is going to be approved faster than a traditional loan jut by the nature of the process alone. Following up (which is a good thing) too often or in too aggressive a manner will not help your cause.

• Don’t make claims you can’t backup. The lender is going to do its due diligence. Lofty goals are nice to shoot for, but your lender is going to want to see that you can keep expectations realistic.

• Do what you say you are going to do. Lenders and investors need to believe in you. Lie, act in a dishonest manner or fail to follow through on something and your integrity will come into question.

• Don’t shop around too much. Doing so will eventually get lenders wondering if there is something wrong and if they should trust you.

• Seek out an experienced, local lender. A qualified lender is going to have a track record of success you can verify and possibly even some insight that can help you out in the long run. A local one is going to be more apt to fund you since they are invested in the community and will like seeing their money at work.

The One Rule You Must Remember

When seeking private hard money in California keep in mind one thing—there are rules, and then there aren’t rules. While there are regulations involved in hard money lending, it is also private. So while there are rules to follow, since the lender is a private entity they essentially make up their own rules. Be aware of them, be flexible, and be ready to adjust, if necessary.

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

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.

Friday, June 1, 2018

Every industry has its good and bad participants and hard money lending is no exception. But following a few tips can help to ensure success when seeking hard money loans Arizona.

Know the Current Rates

As for A Detailed Fee Breakdown

Sunday, April 29, 2018

You may be seeking a hard money loan and looking for the lowest possible interest rate, but there may be additional costs you could be unaware of beyond the interest rate. You will be at a disadvantage if you aren't aware of these expenses and don't try to negotiate with your lender.

Just because you cant secure a traditional bank loan doesn't mean you don't have other options, you may have considered a hard money lender but where do you start? What should you expect from a potential lender, and what will a lender expect from you?

Sunday, April 15, 2018

You have located the property that seems undervalued. Now, how do you get a hard money loan approval to make your first project a reality?

Saturday, April 14, 2018

Hard money loans are a great way to begin a successful career in real estate. Following a few tips will ensure your success.

Being Prepared Is Critical To Your Success

Manage Your Expectations

Sunday, March 25, 2018

Consider using a deed of trust investment. A deed of trust investment allows you to earn steady returns and interest payments on the loans distributed by hard money lenders.

Monday, March 19, 2018

There are many options to explore when seeking commercial loans. One of the factors which can reduce personal liability and risk of assets is a non-recourse loan.

The Perfect Non-Recourse Loan Candidate

Great Benefits if the Fit is Right

Sunday, March 18, 2018

Hard money loans are used for short-term projects, usually ranging from as little as 30 days to 5 years. But these loans also come with higher interest rates. But if you need to get extra finances quickly, this type of funding is the right choice for you.

The first thing to do to obtain a loan quickly is to gather all of the important documentation.

Not only is the process of getting funds quick, so is the application.

Friday, November 11, 2016

You have a lot more work that needs to be done before taking on trust deed investing.

There is no guarantee with trust deed investing.

Thursday, November 10, 2016

When you are investing it is paramount that you have many different options to make the most out of your capital. Trust deed investing is a great way to build multiple relationships while bringing in great business. This brief article will show you the basics.

Why would trust deed investing be the right choice for you?

So will you make any money in trust deed investing?

Tuesday, November 8, 2016

We all wish we had more money than we do. We may not need it now, but we would feel better knowing we will have it later when we need it. So we invest. We try to take our money and turn it into more money by investing in something we hope will be profitable.

Beware The Risk Of Outside Influences

Greater Risk Equals Greater Reward With Private Hard Money in California

Dennis Dahlberg Broker/RI/CEO/MLOLevel 4 Funding LLCArizona Tel: (623) 582-4444 Texas Tel: (512) 516-1177 Dennis@level4funding.comhttp://www.Level4Funding.comNMLS 1057378 | AZMB 0923961 | MLO 105737822601 N 19th Ave Suite 112 | Phoenix | AZ | 85027111 Congress Ave |Austin | Texas | 78701

Borrowing private hard money in California and anywhere else is supposed to be easier than getting approved for a traditional loan, but it is still possible to screw it up. The following tips will help keep you from doing so.

Tips To Getting Approved For A Private Hard Money Loan

The One Rule You Must Remember

Dennis Dahlberg Broker/RI/CEO/MLOLevel 4 Funding LLCArizona Tel: (623) 582-4444 Texas Tel: (512) 516-1177 Dennis@level4funding.comhttp://www.Level4Funding.comNMLS 1057378 | AZMB 0923961 | MLO 105737822601 N 19th Ave Suite 112 | Phoenix | AZ | 85027111 Congress Ave |Austin | Texas | 78701

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

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