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Wednesday, September 28, 2016

Three Situations When A California Hard Money Lender Could Give You A Helping Hand

Going with a California Hard Money lender may not always be the best option to take, but there are certain situations where they can be exactly what you need.

One of the hardest things about starting a new business in the Golden State has to be securing whatever financing you need to get your project off the ground and running. In the beginning, you are going to need as much as you can get but don’t want to take too much if doing so can be avoided—you will have to pay it back with interest after all!

However, one of the sad truths about business ownership is that there is always going to be something that will come up that will require you to spend more money on than you have to deal with. You can’t ignore it; it has to be addressed.

When you need money in a pinch, traditional loans are typically not going to be approved fast enough for business operations not to be hampered—which makes it nice to have California Hard Money lenders available.

When Should You Call Your California Hard Money Lender Before Your Bank

Hard money loans are typically paid back sooner with terms of a few months to a few years. Since credit scores are not weighed too heavily, interest rates tend to be higher along with whatever fees may be required. However, with how they are structured and processed, for certain situations they are the best option for a borrower to take:

Renovations/Flipping a property: It is not unusual for a property to be for sale at a low price because of the state the property is in. But an astute investor can see past the dirt, grime, and disrepair and visualize how the diamond in the rough will look once its cleaned up and a few fixes are made. However, while your bank loan allowed you to buy the property, you don’t have enough to make the necessary upgrades.

Hard money lenders, unlike most traditional ones, will look past the immediate appearance and see the diamond you see. Since the approval process is quicker, you will not have to sit on the property for long before getting to work.

Construction: traditional lenders like to see for properties to be ready and not require much work, but sometimes construction is necessary for a property’s value to be realized. Traditional lenders will not necessarily say no, but they will have a number of hoops for borrowers to jump through. Miss one, and you could very well be out of luck. Traditional lenders may also only be willing to finance part of a project, requiring you to come up with the rest.

While the same hoops are important to California Hard Money lenders, they are not as important. They are more apt to look for compensating factors that can make a developer look more appealing.

Time-Sensitive Property Purchases: one of the most frustrating things to a real estate investor has to be finding a tremendous deal on a great property and losing it because you had to wait on your bank to close on your loan. A traditional loan backed by Fannie Mae will take at least 120 days before it can be refinanced. A hard money loan can be just the thing to help you secure the property without having to wait 120 days.

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.

Friday, September 23, 2016

Benefits of Working With A California Hard Money Lender

People do have options these days when it comes to their money lending needs so when it comes to a California Hard Money lender, why should you go with them.

In a perfect world, we would all be so rich we would not need to take a loan of any kind out to conduct business. However, the world is far from perfect, so it is good that California Hard Money lenders exist to help bridge the gap between our business dreams and reality.

When it comes to taking out a loan, there are several options available to someone in need these days. There are banks, of course, as well as private lenders, etc., but there are some that can be easier to work with than others.

There are certainly benefits for people in the Golden State to work with a California Hard Money lender.

Expectations When You Work With A Hard Money Lender

When you work with a California Hard Money lender there are certain aspects of the loan and the process involved in getting it that make this option more appealing than many of the traditional routes:

Application Process: when you go to the bank for a loan, it can take a long time to just fill out all of the paperwork not to mention how long you’ll have to wait for an approval or a rejection. The process with a hard money loan is often easier and more straight forward and have fewer hoop for you to jump through than many other types of loans.

Guidelines: the guidelines for hard money loans are often a lot less restrictive than other financing options. They are often more creative and be constructed to be more beneficial to the lender and the borrower.

Options: when it comes to financing options, borrowers will have more options with hard money lenders than with traditional financing routes. Access to the money is easier and applications are often approved relatively fast as well.

Quick Closing: is there anything more annoying than knowing you’ve been approved or will be and then it still takes forever to close the deal? With hard money lenders, this will not be an issue. This can be especially helpful if you need the money to cover an expense sooner rather than later.

The Biggest Benefit To Using A Hard Money Lender

Whether you are looking for a California Hard Money lender or one in another state, the biggest benefit to them is pretty universal. Unlike traditional loans that often rely on your credit score for approval, hard money loans are not restricted by your credit score. Hard money lenders are more concerned with the present and the property than the mistakes you may have made in the past.

This is not to say that they will approve anyone, but even if your credit score is terrible, you can still get approved. You will, however, be expected to provide a property of sufficient value to secure the loan.

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 22, 2016

Dreams Can Come True With The Right Loan From A California Hard Money Lender

Getting approved for a loan from a California Hard Money lender can seem like a dream come true, but only if it is the right loan for you.

Sitting in a cubicle in a high rise in downtown Los Angeles has to be one of the worst job locations a person could have. Yes, you are in sunny, beautiful Southern California, but you can’t even see it! Yeah, you have to go to work and can’t always enjoy the sun and surf but it sure would be nice if you could at least see it.

You know, and get a reminder of why you work as hard as you do. But until you become the boss, chances are, it isn’t going to happen. So why not become your own boss? Why not go for a loan, open your own establishment, and take the office with a view?

Or better yet—delegate your work to your underlings and catch some waves!

Wait—your credit isn’t even close to being good enough to get a loan from the bank. So your screwed, right?

Not at all! You can get a hard money loan from one of the many California Hard Money lenders and get on track to living the dream. However, before you do that, it may help to know a little bit about your loan options.

Loan Options With California Hard Money Lenders

A hard money loan is a specific type of financing where a borrower reasons funds from a loaner and secures them with some kind of tangible asset, typically real estate. There a few different options when it comes to what type of loan you can get from a hard money lender:

Commercial: when it comes to hard money commercial loans (which are for businesses; not individuals), the duration is typically short term; from three months to a year. They are not usually pursued for major construction projects, but for things like inventory or equipment purchases.

Wholesale: this isn’t a loan you can get from Sam’s Club, but one where the lender works with a broker and not directly with the borrower. They tend to come with lower interest rates and make life easier on lenders. Rather than advertise and pursue borrowers, they can let the broker do all the work.

Flip Loans: you don’t need to take gymnastics to get a flip loan; what the flip refers to is one of the main reasons people get this type of loan—flipping houses. Also referred to as a rehab loan, this type is used to cover repair costs or to improve a property before selling it.

Cash-Out Refinance Loans: this is the kind of loan you get if you also need some quick cash. For example, if you are mortgaging a property and take some cash out on top of the loan, you have a cash-out refinance loan.

Which Option Is The Right One For You?

If your California Hard Money lender can’t tell you which loan option is the right one for you, it may be time to call someone else. The differences should be clear enough to a professional that he or she should be able to point you in the right direction without blinking twice.

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 21, 2016

California Private Hard Money Lender—Negotiating a Win-win Solution

You’ve probably heard that the best deal you can get with a California private hard money lender is one that has a reasonable or affordable interest rate, which in many ways is true. But, that’s not the only thing a good deal is about i.e. there are few more things you should negotiate with your lender to get the best deal.

Dealing with a California private hard money lender means that you are dealing with a skilled, business-savvy individual who is no stranger to how private money or hard money works. Consequently, even the most transparent lender still needs to a decent return on their investment. In other words, you can easily work with a reputable lender to get the best deal for your commercial business venture. But, if you leave all the negotiating in your lender’s hands, you are more than likely putting yourself at a disadvantage.

Obviously, it is a win-win situation if you get the best deal possible and your California private hard money lender receives a profitable return. So, how is this all possible? Well, let’s discuss the ins and outs of hard money deals so that a win-win solution is in your hard money future.

For starters, you know that your interest rate matters. Thus, you clearly want to settle on a rate that you are comfortable—that goes without saying. Moreover, when discussing that lovely interest rate make sure to also inquire about your default interest rate. Your default interest rate is just as important as your regular interest rate because in the event that you breach the terms of your hard money loan you need to know how much your overall rate is going to increase. Furthermore, you should negotiate your points with your potential lender. Points are essentially fees that you are responsible for at closing i.e. part of your closing costs. In addition to agreeing on a fair and reasonable number of points, you should also try to negotiate your underwriting fee, referral fee (if applicable), renewal fee (fee to renew your loan for another term), foreclosure fees (this fee is added to your loan balance) and/or your late fees (if you are unable to make a payment on time) as well as really any fee that you are potentially liable for.

Loan Servicing Advice

With that being said, another important component of hard money loans is loan servicing. Typically, a private investor will cover this particular fee or rather pay the hard money lending company in the event that the hard money lending company is the entity servicing your loan. If another entity or a third-party is handling the loan servicing, then make sure you are clear on who is responsible for paying the fee. In most cases, you may not be responsible for this particular fee, but, nevertheless, it is important to double check so there are no surprises down the road.

Avoid the Pitfalls

Ultimately, these above-mentioned fees, rates, and points are crucial things to hammer out with your lender. So, do yourself a favor and make sure your deal is truly the best possible deal because you’ve covered all your bases.

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 20, 2016

California Hard Money—the Basics and things to Consider

California hard money lenders are not lenders to be fearful of rather they are lenders you should definitely learn more about. In many ways, hard money requirements and regulations are the same no matter where you go but it does know the basics for the state your potential commercial property is located in.

If you are like many business entrepreneurs you may have just started figuring out what your loan options truly are and that’s perfectly okay. In general, hard money loans are, in their purest form, short-term loans that use real estate as collateral. This means, in order to obtain a California hard money loan you need to aware of the value of the commercial property you are interested in or if you want to secure this particular kind of loan with a commercial property you already own instead, you also need to know that value.

Obviously, the reason the value of your potential property or current property that you want to use as collateral matters because California hard money lenders, just like other hard money lenders, are more interested in the value of the proposed property versus your credit. With that being said, there aren’t necessarily specific types of property you must use for a hard money loan i.e. industrial property, commercial land, multi-family homes and so on are all okay for the purpose of collateral.

Now that you know what kind of property is good collateral for hard money loans, let’s address when it is the idea situation for these particular kinds of loans. As you know hard money lenders are your best option when traditional avenue are not (due your credit or the timeframe in which you need the financing for); thus, the ideal hard money situation includes land loans, construction loans, fix and flips or simply you need to move quickly on a property.

The Real Deal When Dealing with Hard Money

Now that you are clear on some of the basics, you may be asking yourself is hard money right for your particular venture? Well, only you can truly answer that question for sure. But, if you have less than prefect credit, need to move on a property within a week or two or simply have been rejected already by traditional banks then you’ve more than likely come to the right place—hopefully with a detailed business plan in hand.

Before Moving Forward

Nevertheless, before you move forward with your hard money options, it is important to take into consideration the true price of obtaining financing when you need it and in spite of your credit. In other words, make sure you compare interest rates and are fully apprised of your loan to value ratios. The good news is that California tends to have lower rates due to the almost overwhelming number of hard money lenders. Lastly, make sure that your future business venture falls in line with the loan amount that is available i.e. most hard money lenders will lend anywhere from 65-75% of the current value so be conscious of that fact going in.

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 19, 2016

California Private Money – Rehab Loans

If you know a thing or two about California private money then you probably know that there are several different types of loans that you can get with this particular kind of financing. For instance, if you are looking for a rehab loan then your best bet in securing that loan is either via a private lender or a lender that offers hard money financing.

Rehab loans are essentially loans that allow you to modify an existing commercial property in order to increase the overall value or worth of the property. These particular kinds of loans are typically not so easy to come by even when dealing with private niche lenders that thoroughly understand your goal and business vision. But, just because it is more challenging to secure rehab loans with California private money does not mean it is impossible.

In fact, if you do your research you can find a few reputable private niche lenders that are willing to lend a helping hand. Generally, one of the best ways to find these kinds of lenders or any lenders for that matter is to first do an extensive search via your state’s lender directory or you can start small even by doing a cursory online search of private rehab lenders. With the online lender directory, you will be able to narrow down your list of potential lenders based on the loan amount desired, the type of project i.e. industrial, commercial, land or multi-family, etc. If on the other hand, you choose to do a cursory search via a search engine such as Bing or Google, you will find a variety of local niche lenders that may be of use to you. Moreover, you can also find your future private lender by referral if you are looking for options closer to home or without the hard money middle man i.e. obtaining financing from a business associate or family member, etc.

Regardless, of where or how you find your potential niche lenders, it is important to know what each specific lender expects. In other words, you may have found a few good California private money lending options that will ultimately result in you securing a rehab loan, so make sure you know what is required of you so your business remodel is quickly funded.

Rehab Lender Expectations

Of course, it’s important to note that private money, in general, is more flexible. Consequently, what one rehab lender will require or need from you another rehab lender more than likely will not. With that being said, it is still in your best interest to learn up front what each potential lender does or doesn’t need from you.

Things to Consider with Rehab Lenders

Lastly, when dealing with your private lender remember that they generally want to some protections in place just in case you do not make the agreed-to improvements. You should also consider the extent of the project, the upside to the remodel, your personal financials and the possible prepay penalties that your private lender has a right to impose if they so choose.

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 16, 2016

California Hard Money Loans—How They Differ from Bank Loans

So you are exploring your financing options for your commercial business venture and maybe you haven’t even begun to see if you meet the necessary requirements for a bank loan since you’ve got your eye on a California hard money loan. Obviously, you need to choose the financing option that will work best for you, but it doesn’t hurt to know the difference between these types of loans.

If you are in the California area or are looking at commercial real estate in California, you are probably hearing a lot about California hard money loans these days. Moreover, with “harder to find financing for” projects in your near business future California hard money loans can sound like just the thing you need. But, have you compared and contrasted the differences between these particular kinds of loans and more traditionally-funded loans i.e. good old bank loans?

Maybe you have done thorough research on bank loans and maybe you haven’t—no one is judging you. But, with state lending laws changing practically every couple of years, you definitely should stay up-to-date on what your actual lending options are. With that being said, let’s go over some of the current bank loan basics.

OF course that’s not to say there aren’t a few bank loan basics that are forever. For starters, as you may already know, bank loans are either funded via bank money or through bank-approved third party institutions. Bank loan approvals are heavily based on your credit scores and bank loans are now more difficult to secure due their specific guidelines, many of which have been put in place by state lending laws. Other major difference between hard money financing and bank loans include the how much the borrower’s income factors into being approved, interest rates, closing costs and the underwriting process ---just to name a few.

Hard Money Expectations

So what can you expect with hard money financing? Well, obviously they are generally easier to get than bank loans as hard money is less regulated by state laws. Of course, hard money is often the financing of choice when you need your business venture funded sooner rather than later. Moreover, you can expect your income to not be as big a factor for approval as it is with a bank loan. However, what does matter more with lenders who offer hard money financing options is the value of your proposed collateral. In addition to the importance of collateral, interest rates tend to be much higher with hard money in order to compensate for the fact that they are sometimes approved almost instantly with loan terms ranging from weeks to several months. With bank loan terms you will typically see terms ranging from three to five years.

Closing costs and Underwriting

Lastly, closing cost for bank loans tend to range from two to five percent of the overall loan amount whereas hard money financing ranges from 3 to 10 points depending on loan amount. And in regards to closing cost, you will typically see banks using in-house software and lenders of hard money using third party underwriting service of their choosing.

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

Wednesday, September 28, 2016

Three Situations When A California Hard Money Lender Could Give You A Helping Hand

Going with a California Hard Money lender may not always be the best option to take, but there are certain situations where they can be exactly what you need.

When Should You Call Your California Hard Money Lender Before Your Bank

Friday, September 23, 2016

Benefits of Working With A California Hard Money Lender

People do have options these days when it comes to their money lending needs so when it comes to a California Hard Money lender, why should you go with them.

Expectations When You Work With A Hard Money Lender

The Biggest Benefit To Using A Hard Money Lender

Thursday, September 22, 2016

Dreams Can Come True With The Right Loan From A California Hard Money Lender

Getting approved for a loan from a California Hard Money lender can seem like a dream come true, but only if it is the right loan for you.

Wednesday, September 21, 2016

California Private Hard Money Lender—Negotiating a Win-win Solution

Loan Servicing Advice

Avoid the Pitfalls

Tuesday, September 20, 2016

California Hard Money—the Basics and things to Consider

The Real Deal When Dealing with Hard Money

Before Moving Forward

Monday, September 19, 2016

California Private Money – Rehab Loans

Rehab Lender Expectations

Things to Consider with Rehab Lenders

Friday, September 16, 2016

California Hard Money Loans—How They Differ from Bank Loans

Hard Money Expectations

Closing costs and Underwriting

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