Beretta Only

Friday, September 9, 2016

California Private Money Construction Loans

California private money financing can be used for a variety of business purpose such as new construction or remodeling/updating your current commercial property. So let’s go over a few important details when it comes to using private financing for construction loans.

California private money construction loans are generally the way to go when your new business venture is one of construction or remodeling. It is the way to go because, as anyone in the commercial real estate business will tell you traditional financing avenues are less likely to approve loans for construction purpose. This somewhat reason change in lending doesn’t mean that California private money construction loans are instantly approved but rather that non-bank lenders are willing to fund these kinds of loans if they meet the necessary requirements.

Typically, these requirements allow non-bank lenders to feel more confident in their assumed risk. Therefore, when dealing with these lenders, it is important to keep in mind several key factors that have the ability to make or break your new construction or remodeling funding. One key factor, in particular, that you should make note is your desired location for your project or if you are remodeling an existing commercial property make note of the actual benefit of the upgrades to your business. Remember, your lender has to be comfortable with what you are using, in essence, their money for.

Another important key factor here is the overall process of the construction i.e. the actual draw process of your builder, if applicable to your situation. In other words, if your lender is insisting that the builder is paid via the title company—you need to understand how that process works. You also need to understand California state lien laws. Similarly, it is important to know where your lender stands in regard to the lot cost/lien when dealing with new construction.

Other Things to Consider

Unsurprisingly, other things you should be considering are your potential lender’s down payment requirements. As you are more likely already aware of, there are state regulations that affect your lender’s requirements, rates and fees. But, with that being said, there is a wealth of non-bank lenders, especially in California. Consequently, as long as non-bank lenders abide by the set state regulations, there is still some wiggle room i.e. lenders rates can still vary as long as they do not exceed a certain percent amount. So be clear on what you need as well as how much of a deposit you are able to come up with and do not forget to do your research so you are clear on general terms/fees.

New Construction Dreams come true

Ultimately, if you are prepared and keep in mind the above-mentioned important key factors, getting approved for non-bank funded construction loan should not be extremely difficult. Lastly, if your project calls for more than one construction loan as in the case of real estate development projects do not be discouraged many non-bank lenders are willing to work with you and allow you to have more than one active loan at a time.

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.

Wednesday, September 7, 2016

California Private Hard Money Lender Requirements and Regulations

When dealing with a California private hard money lender there are several things you need to know to ensure that you are not falling victim to predatory lending. Moreover, let’s go over a few tips so you are not just borrowing blindly.

As you are probably already aware, hard money lenders, in essence, are still private money lenders. This means that your potential California private hard money lender is a non-bank lender. Historically, non-bank lenders have been able to lend money with limited regulations. Originally, this flexibility with California private hard money lender requirements made sense as the government shouldn’t be able to tell your father that he cannot lend you some cash for your start-up.

But, now financial reforms which were absolutely necessary after the real estate collapse means that there are some requirements when it comes to non-bank lending. For instance, the issue of mortgage licensing was not applicable to non-banker lenders i.e. individuals, companies and so on. Moreover, due to the almost overwhelming number of non-bank lenders in California, these new requirements have a lot of weight.

So what exactly do new regulations and requirements for potential borrowers and you? Well, for starters, there is now a fixed interest rate (the Usury law ensure that you will not be charge excessively high rates) that applies to these particular types of loans. In California, that “usury rate” is a maximum of ten percent per year. In addition to making sure that you aren’t financially drowning due to a commercial purchase or business purpose loan, etc., as previously mentioned, the issue of mortgage licensing now affects what type of property you can use hard money financing for. You also now need more documentation in order to properly secure your hard money loan than you once did.

The Real Deal with Licensing

The real deal with mortgage licensing (Real Estate Broker License) is it may or may not apply to your particular business venture. In other words, depending on the property type your lender may need to be licensed or they may not. This means if your next business venture is multi-family residential property your lender will most likely need to be licensed( depending on the particular state your potential property is located in also factors in as laws and requirements vary per state). Furthermore, it is important to note that what truly determines whether or not a broker license is required is actually your intended use of the financing.

Your Win-win Solution

Ultimately, it pays to do your research and figure out what your state requirements are. Furthermore, if your business venture ends up being a cross-state transaction you should be aware of the fact that both states regulations and requirements are applicable. With that being said, if you are looking for a non-bank lender, then make sure that you ask around i.e. get references, especially if you are not sure on whether or not you needed a licensed non-bank lender. You can also find reputable lenders by attending real estate events in your area or by networking with other real estate investors.

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, September 6, 2016

California Private Money – Providing a Helping Hand

If you are in the market for some prime California commercial real estate or land, it can be hard to properly manage your expectations. The good news is you may not have to compromise on what you need if you consider your California Private Money options thoroughly.

First thing’s first, private money is the best option for you or your business venture when you are looking for non- institutional financing i.e. when you are looking for loan money that comes from an individual or a company even. Based on that definition, it is also important to note that California private money is not necessarily as their hard money or anyone else’s for that matter.

Though both California private money and hard money are both asset-based financing, the true different is that hard money still comes from a licensed lending source whereas private money can come from a non-licensed source such as friend or family member or business partner. Furthermore, when dealing with private money, there is often more flexibility overall i.e. fewer regulations. Due to this flexible, you have more room to negotiate your loan terms (limits, loan duration, interest rates, etc.).

So what does this all mean? It means that private is usually more affordable but in reality, hard money is typically easier to find, especially in California. With that being said, you feel a little more comfortable with the term private money. Moreover, you should be clear on the difference between private and hard money in California. So without further ado, let’s go the various types of private money loans that are available to you and your business.

Types of Private Loans

There are several different types of private money loans you should consider. Clearly, depending on your business plan one particular kind of private loan will stand out amongst the rest or rather will be the better option in the long run. Since private money, in essence, can be acquired from practically anyone who has the spare change it doesn’t seem too far-fetched that you can get private money for basically anything i.e. real estate purchases, land new construction, commercial and more.

Advice on Who to Ask

Generally, you can ask a handful of people for a private money loan. In fact, who you can ask to help you finance your next commercial venture is so broad there ate categories—primary, secondary and third circles. The primary circle for your private money options is, as briefly mentioned, your co-workers, family members, neighbors and friends. On the other hand, your secondary circle is basically comprised of associates of your primary circle members, if that make sense. In essence, your secondary circle people are a result of proper networking. Lastly, you have your third circle potential private money lenders include strangers, people you’ve been able to connect with through advertising and accredited investors. Ultimately, regardless of where you decide to pool your financing from, it is important to note that you can raise capital or rather find investors in any of one these third circles so you are not limited.

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.

Monday, September 5, 2016

Do California hard money lenders need Twitter or Instagram?

Social media reigns supreme over everything in this day and age. If you were to go outside right now most likely you would see at least 50 people with their heads craning over a smartphone or tablet. Most of the time they are endlessly switching through various applications and websites. Why not have your clients look at a local California hard money lender’s site or account?

In the real estate industry being ahead of the curve technologically could help you gain a lot of clientele. A simple tweet about the current statistics of the real estate market is greatly appreciated by the general public. But how can this help the local California hard money lender?

Yes, it can be advantageous to your business if you want to make yourself be known in the industry. A simple Twitter account is simple and easy to make and maintain. Since people have busy lifestyles to maintain and they do not have time to read a brochure or a well thought out blog post about the differences between commercial loan and a balloon loan is. A quick 140 characters on what is popular in the market or what type of homes are gaining a lot of attention are really good at getting more followers.

Now even Twitter and Instagram have started catering toward business focused accounts. You can now add your personal information and websites so your followers can go directly to your business profile. It also allows you to have your own Twitter apart from your business. This allows you to still have your personal life without conflicting with your real estate business. As we have previously stated before you need to make sure that you have a fairly clear digital footprint. Separating the two will give you the option to say and do what you want when you want.

What should you don't post as a California hard money lender?

When you have a specialty account to have to focus on what makes you, as a California hard money lender, different from other people. You want to make sure that your personality shines through the blue screens of your potential clients. That being said you do not want to say or retweet certain things that may seem controversial to a potential homebuyer. For example, you may follow a person that has dissenting views of immigrants; it may not be a good idea to reblog a lot of tweets from them.

If you favor Instagram over Twitter, make sure that you check and double check all of the pictures that you are thinking about posting. You do not want to accidentally post a picture of you in a bathing suit with a caption about how the market is making a roaring comeback. No one will take your business seriously.

How can you make money as a California hard money lender on social media?

Easy, you can have advertisements posted throughout your page with companies that can pay you. Depending on what type of business it is you could also gain an ally in the long run.

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, September 2, 2016

Do you have a digital footprint that stand apart from other California hard money lenders?

Your digital footprint is one of the most important things that you should care about in your day to day life. This goes double if you are in the real estate business. You want your potential clients to see that you are a fair and just business person. As a California hard money lender you should always be aware of what you are posting on the Internet.

This is the age of transparency. With the right technique and a few keystrokes your career could possibly end, and there would not be a thing that you could do about it. California hard money lenders are not the exception to this at all. In fact they should be certain to keep your business free and clear of any indiscretions. With California being one of the states that suffered tremendously from the housing bubble burst, it is a good idea to keep things simple and clear.

You already have a lot of things going against you in the real estate industry; do not be one of the things that could potentially hold you back. If you can, try to wipe most of the negative things about yourself off the internet. That embarrassing photo you took while at a realty convention, delete it. That horrible joke you may not agree with but decided to repost anyway, delete it. The terrible paragraph long rant you had about the government, once again, delete it. Any and everything can hurt you and possibly have you passed up for another California hard money lender.

You do not have to like or comment on every single thing that you see cascading down your timeline. In fact, if you can, try to remove yourself from your social media for a periods of time. Take a break to focus on what really matters; finding new clients and building better communities. If you can try to hire a social media consultant that can help you. This can be one of your greatest investments for your business. However, you want to make sure that you are periodically checking to make sure things run smoothly.

Do not try to discredit or bash other California hard money lenders.

Yes, this is a capitalist country, people want options, but never throw another California hard money lender under the bus. You especially do not want to do that out in the open where everyone can see it and repost it. Once you put some on the Internet it usually stays there forever. So be extremely careful.

You also want to make sure that you leave your personal views out of cyberspace, as well. Yes, you may believe that the President is a bonehead, but you do not need to express it every ten minutes. People see and people get extremely annoyed by it.

Do not do what other California hard money lenders do.

No every California hard money lender’s website has to have a bald eagle with an American flag on it saying, “God Bless America.” It is very cliché and it makes you look very xenophobic. And please for the love of God, don’t share your political views.

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, September 1, 2016

California Hard Money lenders go where banks won’t

There are few things more disheartening than financial troubles. Worst case scenario is when you find yourself in a hole you know you can’t get out of. You may have had a difficult financial past, but that doesn’t necessarily predict your financial future. If you need a quick loan for a home or project and your bank or other money lending companies will not approve you, you can almost always count on an California Hard Money lender.

California Hard Money lenders take a significant risk in loaning their money out to borrowers. Not only do they loan the money to a complete stranger, they do not base the loan on your credit, income, employment history, or ability to pay. Hard Money loans are strictly equity-based and they use the home you are purchasing as collateral in order to ensure repayment. California Hard Money lenders will loan to YOU, and they can get you your money in a matter of 24 hours.

California Hard Money lenders are on your side

Like stated previously, California Hard Money lenders will go where banks wouldn’t even consider. Obviously, they are you, the borrower’s, side. They want to help you out and will be willing to do so if they can see that your investment or project would be profitable in some home. Most California Hard Money lenders loan money for buying a foreclosed or short saled home, fix-and-flip projects, and other types of property or real estate investments. Needless to say, you can’t exactly go buy a new ferrari with Hard Money, but you can certainly put the money toward the home of your dreams.

Most Hard Money loans have a little higher interest rates than traditional loans. This is because, as mentioned before, California Hard Money lenders are taking a bit bigger risk by loaning to you without first checking your credit or other components of your financial history. However, these loans are typically shorter than other loans (around 3-36 months) so that higher interest rate does not add up quite as quickly. Remember that California Hard Money lenders will often approve you for a loan of up to 80% of the property’s value (though this number is usually closer to 60%) in as little as 24 hours.

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: califronia hard money loans,california hard money

Should you keep pursuing your career as a California hard money lender?

The real estate business can be a very tough and long process. There is a certain type of grit that you have to possess within yourself to make it as a California hard money lender. You have to be able to pick yourself up at times and drive through it so that you can come out on top in the long run.

The real estate market has had to deal with a lot of backlash in the recent years. The Great Recession near the end of the decade left a bad taste many people’s mouths. States, like California, are still trying to rebuild and remedy the fallout. So where does this place the typical California hard money lender? This could mean hundreds of things that you have to now worry about to make sure your business stays afloat.

For example, one of the biggest things that you have to keep in mind is the Dodd-Frank Act that was passed by Congress. Essentially, the Act was drafted to help prevent another Recession from happening in the future. Within the 14,000 pages, there is a lot of political jargon that is supposedly used to protect the general public; although many real estate professionals argue otherwise. This is very understandable since there are now a lot of new regulations that could affect lenders in a negative way. For example, now there has to be a certain level of transparency with the government. For instance, if in a previous year you made over a certain amount in revenue you have to report it to the SEC.

For California hard money lenders especially the real estate business is a tough cookie.

California has been making steady growth over the last couple of years. After the real estate market took a decline of about half getting back in the swing of things has been an uphill battle for a lot of people that are trying to get their foot in the door. One of the biggest things that you would have to deal with if you do want to become a California hard money lender is the lack of people that want to buy property. So the scraps that you could potentially find may not be sold or paid off for a while. In time as we all know this will lead to less money coming in to your business.

In fact, when you pull up a Google search of current California real estate you will find that a lot of the homes are being sold at extremely high prices. Depending on how you flip the pricing or the way you could potentially award your loan there is not a super high guarantee on a return.

And do not forget about the other California hard money lenders

You also have to remember that there will always be another person trying to get the same clients as you. As soon as you hit enter in your search bar at least 20 different investment firms will pop up, and those are only the ones that have figured out how to work Google analytics. Just imagine all of the smaller California hard money lenders that you will most like have to battle with over potential 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.

Beretta Only

Friday, September 9, 2016

California Private Money Construction Loans

California private money financing can be used for a variety of business purpose such as new construction or remodeling/updating your current commercial property. So let’s go over a few important details when it comes to using private financing for construction loans.

Other Things to Consider

New Construction Dreams come true

Wednesday, September 7, 2016

California Private Hard Money Lender Requirements and Regulations

When dealing with a California private hard money lender there are several things you need to know to ensure that you are not falling victim to predatory lending. Moreover, let’s go over a few tips so you are not just borrowing blindly.

The Real Deal with Licensing

Your Win-win Solution

Tuesday, September 6, 2016

California Private Money – Providing a Helping Hand

If you are in the market for some prime California commercial real estate or land, it can be hard to properly manage your expectations. The good news is you may not have to compromise on what you need if you consider your California Private Money options thoroughly.

Types of Private Loans

Advice on Who to Ask

Monday, September 5, 2016

Do California hard money lenders need Twitter or Instagram?

What should you don't post as a California hard money lender?

How can you make money as a California hard money lender on social media?

Friday, September 2, 2016

Do you have a digital footprint that stand apart from other California hard money lenders?

Do not try to discredit or bash other California hard money lenders.

Do not do what other California hard money lenders do.

Thursday, September 1, 2016

California Hard Money lenders go where banks won’t

California Hard Money lenders are on your side

Should you keep pursuing your career as a California hard money lender?

The real estate business can be a very tough and long process. There is a certain type of grit that you have to possess within yourself to make it as a California hard money lender. You have to be able to pick yourself up at times and drive through it so that you can come out on top in the long run.

For California hard money lenders especially the real estate business is a tough cookie.

And do not forget about the other California hard money lenders

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