What to do when Contacting a Lender

There are many hard money or Private Money Lenders, California included, throughout the United States, so researching one near you is not a problem. The Internet directory Moolahlist.com lists lenders. Rather than settling on one or two lenders, create a list of lenders in your area. Use a lender familiar with the property values around the investment home. If you have a hard time locating a lender, contact a local mortgage broker who may have names of private money lenders. Having multiple sources of quick cash is a good idea in case of rejection. Obtain each lender's borrowing criteria to compare notes before settling on one. First of all, have a plan. The purpose behind a hard money loan is to provide capital to acquire an investment home which you intend to sell for a quick profit. To this end, obtaining a hard money loan requires that you have a plan for selling the property, which includes making any repairs. Knowing exactly how much you need -- not only for buying the property but also repairs and maintenance -- prevents you from borrowing too much. Before requesting money, estimate ancillary costs, such as repairs, maintenance and construction costs, and factor these into your loan application. Provide sufficient detail regarding the investment home, including any supporting documentation, to improve your chances of receiving a loan. Secondly, know the risks. California Hard Money loans carry higher interest rates than typical bank or commercial loans. A quick sale of the property is preferable, but this may not be the case in reality. You are responsible for making interest payments as long as the property remains unsold. You also face the risk that the property will decline in value or you will sell it for less than expected for a smaller profit or even a loss. In addition, the lender may foreclose on the property to recoup its money, leaving you with nothing to show for your work and effort

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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.

Private Loans Come with a Price

Customers who can find an California Hard Money lender shouldn't expect to be offered grade-A terms, though. Private money mortgages typically have rates well into the double-digits and often come with several upfront points. People who don't own at least 30 percent or 40 percent of their homes probably won't even be able to get a loan. That's because hard money lenders limit borrowers' loan-to-value ratios so they can still make money off their properties if they have to foreclose. If a property in a subdivision is worth $100,000, the loan-to-value on a hard money loan may be 50 percent to 65 percent, so maybe $65,000 maximum on a first mortgage is loaned against the property to pay off the old lender who's preparing to foreclose. That does not mean that that customer can't take the property and sell it tomorrow for $100,000 and reap the benefits of that additional $35,000. A person is better off paying 14 percent, or a higher rate than the normal rate of 9 or 10, to keep the property rather than lose it. Or say you don't get $100,000 for it, you get 90. However, ninety is better than zero. Consumers need to watch out for "loan-to-own" predators, too. They structure hard money loans in such ways that borrowers inevitably fail just so they can take possession of their homes and profit off their sale. It's the same rules you get on any loan. Before you agree, clearly understand what it is you're getting into. Understand what the fees are and what the actual cost of the money is to you. You have to be smart. Despite the pitfalls, lenders say that an California Hard Money loan can provide borrowers a lifeline in times of need. Consumers just need to make sure their loans will help get them out of debt, not bury them even further.

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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.

Why do Private Money Lenders Supply Loans?

Would you lend to a borrower in foreclosure? Or someone looking to buy a large ranch whose value couldn't accurately be determined with a standard appraisal? How about refinancing someone's mortgage so the person can take out hundreds of thousands of dollars in cash? For California Hard Money lenders, it's all in a day's work. These private individuals and small local companies operate where even subprime lenders fear to tread, making loans to the desperate and needy the same way regular banks and brokers service traditional customers. Private lenders are harder to find than mainstream lenders and they don't come cheap, but they can help hard-luck borrowers make bad situations better, and sometimes, they're an California consumer's only choice. There are Private Money Lenders, California included, who, if the interest rate is high enough and the perceived risk is low enough, will put the money up front for you to use. Brokers and other intermediaries who arrange hard money, or private money loans, go to people who have money to lend and match them up with people who can't get money any other way.
That may sound a little like how the Mob works, which is why people call it ‘buying a home the “hard” way’ but don't worry. Hard money lenders aren't loan sharks who break borrowers' kneecaps when they can't repay. At the same time, these lenders aren't your typical bank lender either. They charge interest rates and fees that would make conventional borrowers cringe and often base lending decisions on whether there will be enough equity in their subject homes that they can foreclose and still turn a profit even if your plan goes south. Yet, private money lenders fill a niche in mortgage lending, helping consumers who have specialized needs or too many credit problems to get conventional financing.

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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.

Importance of Finding a Quick Private Money Lender

One of the most important things to consider, when buying a property, is how quickly funds will be available. Many times, when you find investment properties, you need to move quickly, especially in the California market. Your ability to get access to money quickly can make all the difference. It's important to begin relationships with potential California Hard Money lenders 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. Many Hard Money Lenders, California not being the exception, 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 the lender protecting their assets. However, 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. All of this depends on whom you deal with. Now, one may ask, when should you I a hard money lender? Hard money is great for beginning investors who may not have funds readily available or for those who have bad credit and cannot qualify. Investors also use hard money when they need to purchase quickly which is why you need to find a lender that can move as quickly as you. Typical soft money or conventional loans take 30 days or more. Sometimes that is to long. Using a hard money lender is also a creative way to finance a property. Some 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 out way the expense, as long as your profits on the property exceed what it cost you to borrow the money.

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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.

What is Hard Money? Do you want to flip a home? Get Hard Money.

A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Hard money is similar to a bridge loan, which usually has similar criteria for lending as well as cost to the borrowers. Hard money is essentially an asset-based loan with a high interest rate. The credit score of the borrower is not important, as the loan is secured by the value of the collateral property. Many hard money mortgages are made by private investors, generally in their local areas. Typically, the biggest loan one can expect would be between 65% and 70% of the property value. That is, if the property is worth $100,000, the lender would advance $65,000–70,000 against it. This low LTV (loan to value) provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property. California Hard Money loans are collateralized against the property for which the loan is made. Our private lenders fund in the first lien position, meaning that in the event of a default, they are the first creditor to receive remuneration. Many California Hard Money loans are based on a percentage of the “quick-sale value” or “purchase price at auction” of the subject property depending on the specific lender. This is called the loan-to-value or LTV ratio and typically hovers between 60 and 70% depending on which of our lenders you choose to use for your purchase. For the purpose of determining an LTV, the word "value" is defined as "today's purchase price" for some of our lenders and “current market value” for others. Your final purchase price at auction would dictate which of our private hard money lenders we would recommend to finance your purchase and finalize the transaction. Private hard money lenders fund the transaction in 24 hours in accordance with ARS statutes associated with purchase of homes at trustee sales

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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.

Curb Appeal is great for home flipping.

A huge aspect to consider when flipping a home is curb appeal -- the outside of the house. You might need to paint, landscape and fix up the driveway, which adds to the budget. If you've bought in a pricey neighborhood, mowing the lawn and repairing the fence may not be enough -- there could be homeowners' association fees. In up-and-coming neighborhoods, you might have to budget for security measures. once you have your budget, and your California Hard Money loan you can choose your spot to buy your home. Once you've decided on what kind of house to flip -- new construction, a fixer-upper or a foreclosure -- you need to figure out the neighborhood. Don't skimp on the research here. Make sure you really investigate the area -- drive around during the day and at night, check recent sale prices and find out if any other flippers are sitting on empty houses. If you've decided to flip a new home, your options are somewhat limited to what's being built in the area -- typically in housing developments. Some communities also have restrictions on buyers, requiring them to live in the house so the community doesn't end up a ghost town. If you've opted to buy a home in foreclosure, you'll be buying from a lender -- foreclosed homes are also known as REOs, or real estate owned by the lender. Purchasing an REO is a lengthy process, typically six to eight months. This is because for a bank to foreclose on a home, it must file court papers against the homeowner, which takes awhile. If it's an auction, you're ruled by that timetable. And because the home is sold "as is," banks might not be as willing to hand out a loan. In this case definitely find Hard Money Lenders California, because they will hand out a loan for a properly that need renovations and work. If you're determined to buy a house in foreclosure, there are plenty of Web sites that list REO houses, often for a fee. And many lenders, like Fannie Mae, list the homes they have in foreclosure. A warning here: Many of these sites will let you search for homes anywhere in the country, but experts agree that one of the biggest mistakes flippers make is buying a house sight-unseen. The photo of the house may be pretty, but there's no way to guarantee anything else. It doesn't give you any clues about the neighborhood, and there's no way of knowing how old the picture is.

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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.

Fixer-Upper Budgets for flipping homes

If you're working on a fixer-upper, the budget starts to grow when you consider the renovations you'll need to make. According to most experts, you should add 20 percent to your estimate for the final cost. If you overestimate, you get a surprise windfall -- but if you underestimate, you get stuck with unexpected bills. However many of these cost can be built into an California Hard Money loan. Structural improvements -- like plumbing, electrical, insulation, pest control, and HVAC -- are typically the least sexy but most important improvements a flipper can make. New hardwood floors and coat of paint may get buyers in the door, but a termite problem can kill a deal quickly. If your technical skills are lacking here, you'll have to figure in the cost of labor, too. Most real-estate agents advise fixing up the kitchen and bathrooms for the best return on your investment. In addition to the structural changes, this can include new cabinetry, counters, hardware, sinks, backsplashes, appliances, floors and lighting. Kitchen upgrades can be expensive, but they make a big impression like granite countertops and wine storage, for example. You could also decide to go green, which can add value to the house when the improvements are marketed as money-savers. Obviously, you'll keep costs down if the house is in good structural shape and just needs updated paint and carpets -- but things can quickly get pricey, especially if you're using contractors and outside labor. Again in California make sure to utilize an California Hard Money loan to help get the funds to pay contractors and outside labor

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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.