Beretta Only

Friday, October 7, 2016

Pitfalls That Will Cause A California Private Hard Money Lender To Reject You

California Private Hard Money Lenders are a preferred form of financing for many because of the relative ease and quickness in which loans are approved. However, just because it is easier, doesn’t mean it’s a sure thing.

Your loan application has been rejected by four banks. You are starting to think you might as well hit up the local loan shark, but the thought of having your legs broken for missing a payment doesn’t appeal to you. So instead, you decide to give your local California Private Hard Money Lender a try.

You’ve been told it is much easier to get approved and it will not take anywhere near as long to get a decision on your application as it did with the bank. However, while getting approval from a private hard money lender is easier and faster, there are still ways it can be messed up.

Three Ways To Get Your California Private Hard Money Lender To Reject You

You thought a private hard money lender was supposed to approve anyone, but you forgot about one thing—they are still a business. Like any other business, they want to make money. To do so, they can’t just approve any old application for a loan. They have to draw a line somewhere.

Here are three places many will do just that:

1. Insufficient equity/down payment: A California Private Hard Money Lender is expecting to take on some risk with any loan, but doesn’t want to take all the risk. The borrower will need to have a substantial amount of equity in another property in order to secure the loan. If they don’t, they will need to be able to make a sizable down payment instead. If the borrower can’t do either the lender will probably reject the application.

2. Insufficient income: Private hard money lenders will not be as stringent about what they require, but they still need to believe that the loan is going to be repaid; or at the least, that you can make the monthly payments right now. If you can’t show enough income to make the payment now, chances are you will not have it later and your loan will be denied. No one wants to get on board a sinking ship.

3. Exit strategy: the loan you will get from your California Private Hard Money Lender will be a short term one that will probably have a balloon payment at the end. Most people will not have sufficient cash on hand to pay off the balloon payment so before approving your initial loan, the lender will want to know your exit strategy (how you will handle it). Are you going to sell the property, sell a different one, or refinance with a new hard money loan or maybe even a conventional one? If they don’t see that you’ve thought ahead chances are good you will not get approved.

What To Do After You’ve Been Rejected

One of the many good things about a private hard money lender, is that you will get your rejection notice relatively quick. So once you find out why they said no, you can go about correcting the error.

If you can’t afford a larger down payment or don’t have enough equity in anything, you may have to reconsider your plans. If you already have an operating business that isn’t making enough income, you may need to see where you can cut cost and increase it. As for an exit strategy—be prepared; it’s as simple as that.

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, October 6, 2016

How To Evaluate If A California Private Hard Money Lender Is For You

Before you apply for financing through a California Private Hard Money Lender it is important to consider the advantages and disadvantages of doing so.

Back in the old days, when it came to financing options you had the bank down the road, the bank your friend uses, the one your cousin twice removed works at, and the bank that your Mom and Dad have used since you were a kid. Nowadays, those options are still viable, but there are many more open to wannabee investors and entrepreneurs—especially those with bad credit.

So when all you had to do before was decide which bank you wanted to try, now you have several options to consider. For those with a troubled credit history, the banks are no going to be too kind, but private lenders—such as California Private Hard Money Lenders—will be more forgiving.

But before you get the ball rolling it would be a good idea to evaluate the advantages and disadvantages to working with a California Private Hard Money Lender.

Advantages

There are three primary advantages to working with a private hard money lender:

1. Speed: traditional financing options take time and have quite a few hoops to jump through just to be considered. Just because you do successfully navigate the process doesn’t mean you will get approved. Private hard money lenders are more likely to approve your loan and will do so quickly. It is not unheard for the process to begin and money to be in hand within 3-5 days.

2. Fewer requirements: With a traditional loan you will have to provide all sorts of documentation just to be considered for a loan, but when you work with a California Private Hard Money Lender you will not have to jump through nearly as many hoops. Even if you do have some of the issues that would normally cause a bank to reject you, hard money lenders are less likely to do so.

3. Hard money lenders will finance what banks will not: there are some projects that banks will not consider getting behind, no matter what your application looks like. If they perceive there to be too much risk, they will not want to get involved. Private hard money lenders, on the other hand, will finance the projects banks will turn down.

Disadvantages

1. Interest rates: Banks are okay with making a little interest over a long period of time on less-risky opportunities. However, your California Private Hard Money Lender will want to be compensated for taking a chance so they will charge higher interest rates.

2. Shorter terms: As if paying a higher interest rate wasn’t bad enough already, but you will have less time to pay a private hard money loan back than you would a traditional loan. Often times, they will be for anywhere from a few months to a couple years.

3. Down Payments/Equity: While a banks approves a loan according to your credit score and income history (among other things), a private hard money loan is asset secured. While they are willing to take on the risk involved with a loan, they don’t want all the risk. So they will usually require you to put down a substantial down payment or to have sufficient equity in the investment.

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, October 5, 2016

The Real Deal When It Comes To The Process Of Getting A California Private Money Loan

When you try to research the process involved with gaining approval from a California Private Money lender there can be a lot of confusing jargon, but what’s the process actually entail? What’s the real deal?

There is a process to everything. No matter what it is, someone in the know can sit down and write out a list of how to get from point A to point B, whether it’s changing your car’s oil, fixing a peanut butter and jelly sandwich, or applying for a loan. However, if the process is written with professionals in mind it can be hard for the layman to understand.

This can especially be true for something technical like gaining approval for a loan from a California Private Money Lender.

The Process Made Easy

• Finding a lender: while banks are everywhere and easy to see, that is not the case with private lenders. There are services, websites, and brokers that would be more than happy to connect with someone—but don’t just accept them because they got nothing but five-star reviews online. Ask them for references from current and former clients. Find out how easy/hard they are to work with. Also, contact your country clerk and find out what their foreclosure rate is. If it is above average, you may want to consider going with someone else. You don’t want to choose a California Private Money lender that forecloses on a lot of properties.

• Submit Your Application: This may be the longest part of the process, but if you find the right one, they may be willing to work with you on it and help you get it done properly the first time you turn it in. They don’t want to waste time reviewing incomplete applications as much as you want your application rejected for being incomplete.

• Don’t Leave Anything Out: If you want the process to o quicker and easier, don’t leave anything out. The more complete and accurate a picture the lender has of you, the easier it will be to approve your application.

• Choose A Loan Program: There are several options for you to choose from. Before turning your application in, you should know what sort of programs your California Private Money lender offers and which one will fit your needs the best.

• The Approval Process: Once you get to this stage there will not be much for you to do other than stay available should the lender need something in addition to the materials you turned in. At this time a preliminary title report will be ordered and an appraiser will determine the value of the property.

• Document Review: This does not necessarily refer to looking over your loan documents, but whether there may be any outstanding liens or judgements against you, the property, or the entity under which the loan is vested. The lender will want them cleared so that their lien will have the best position.

• Final approval: Don’t be too eager to complete the final steps of the process. Once the loan has been approved and the documents prepared, take a day to review them and make sure your comfortable with them.

• Settlement/Loan Funded/Documents Recorded: After the papers are signed, the escrow company will make sure the appropriate ones are filed with the county. The lender will also arrange to have the money forwarded to the escrow company who will pay out the loan to you.

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, October 4, 2016

Four Things To Consider Before Calling Your California Private Money Lender

When you are looking to snatch up a property before someone else comes along, you need to act quickly, but before you call your California Private Money lender, there are four things about the property you may want to consider.

One of the toughest things an investor has to do is keep from getting too excited about a property. It can be real easy to see something, for whatever reason fall in love with it, and then lose all sense of objectivity when evaluating it as an investment. There is nothing worse than revisiting it days or weeks later with fresh eyes and seeing everything you didn’t before.

So before you jump the gun, call your California Private Money lender and commit yourself to expensive loan, there are certain things you may want to consider first.

Before You Call Your California Private Money Lender…

One of the great things about a private money lender is the ability to get a loan fast tracked and the money in hand needed to secure a property. However, before you get the ball rolling, make sure you take four things into consideration:

Property Location: You’ve heard it before—location! Location! Location! A good location can save the worst of properties. People don’t want to buy the city dump, but if the dump has a prime spot in the local mall or a great view of the ocean, that may be enough for an investor. The investor will in turn be more than happy to fix up the property and sell or rent it for a small fortune.

Property Condition: Location has a lot to do with the value of a property, but if it is in deplorable condition, it may still be difficult to sell. At the same time, beware taking on a project that is a clear fixer upper. Once you start working on it, there is no telling what you may find. Be aware of just how bad the condition may be so you don’t find yourself biting off more than you can chew.

Price: Of course you want to take a look at the price! Everyone knows that, but the question is why? If it appears to be too high, do they know something you don’t? There must be a reason why the price is what it is. If it is too low, you have to wonder why they don’t want more. Do they just want to get rid of it? Is there a drainage, electrical, or some other kind of issue brewing? If it will cost a lot to rehab the property, is that factored in to the price tag?

After Rehab Value: This will more than likely be why you call your California Private Money Lender. What can you sell the property for after you fix it up? Will it be worth paying what they are asking for it and the rehab expenses? Or do you need to negotiate a lower price? Can you make enough money off the rehabbed property to make it worth buying?

Your Private Money Checklist

Decisions involving investments are often pretty hard to make. You don’t want to rush into anything, but at the same time, you don’t want to wait too long and lose an opportunity. So if you are an investor or someone looking into it, you should keep a checklist in mind to help you make objective decisions on things.

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, October 3, 2016

Things To Consider When Applying For A California Private Money Loan

Whether you are working with a private money lender in Texas or a California Private Money Lender, there will be things that you will want to consider before committing to anything.

Any financing option is going to come with certain clauses, regulations, and/or requirements that a borrower should familiarize themselves with before pursuing the option. For instance, when someone in Los Angeles hunts down a California Private Money Lender so he can get his reality show off the ground, he will need to be prepared for certain things.

Since it is a private money loan, the interest rate will be a lot higher. It is the tradeoff you have to accept to get the money sooner rather than later and because of less than desirable credit. It’s the cost that everyone expects when they apply for a private money loan.

But it isn’t the only cost.

Beware The Cost Of Working With A California Private Money Lender

Like private money lenders everywhere, there will be cost borrowers will have to handle when they apply for a California Private Money loan. Those costs can be categorized as up-front, interim, and renewal:

Up-Front: when you apply for a private money loan you will have to deal with certain costs as part of the application process. Points are basically compensation to the lender for just getting the ball rolling. A borrower may also have to pay a referral fee to whoever pointed them in the right direction. Since the loan documents are typically not cut and dry, the processing, document prep, and other fees may be a little higher as well.

Interim: throughout the life of the loan there will be certain costs a borrower will have to pay along the way like interest, amortization, late fees, and taxes and insurance costs. Should a borrower become delinquent, the lender can advance against the loan to cover the costs of appraisals, unpaid taxes, foreclosure fees or legal fees.

Renewal Costs: it is not unusual for a California Private Money loan to include a massive balloon payment at the end of the loan’s term. If the borrower can’t pay it they may request a renewal. In doing so, they will likely have to give up more points up front as well as cover closing costs and any expenses related to document preparation.

The Truth About Private Money

There is money to be made in financing, which is why so many companies exist for the sole purpose of providing people with the financing option of their dreams. While it all may seem magnanimous at the time, the cold, hard truth is the lender doesn’t care about the borrower or his/her dreams. They know you can’t get a loan elsewhere and have no choice but to turn to them.

So what do they do? They do like any good business person would—they take advantage of the borrower’s necessity and charge accordingly.

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 30, 2016

Beware The Pitfalls Of Working With A California Private Money Lender

The finance world has lots of options these days, but with each one there comes a certain amount of risk. There are certain risks you should be prepared to deal with or accept when working with a California Private Money Lender.

Traveling overseas by plane is a lot like trying to work with traditional financing options. The process is doable and one you can get through, but it is going to take forever and could be very uncomfortable in the process (unless you are in first class and keep getting your champagne glass filled).

Traditional financing options typically do take a long time from the beginning of the application process to final approval. For some, the wait is reason enough to look for other options.

But for some, the wait is just the beginning of the frustration. They learn the hard way that when you apply for a loan there is no guarantee you’ll get it. After taking months to go through the process to just get rejected can be the most frustrating experience possible.

The possibility is another reason why many will forgo traditional routes and just seek out a California Private Money lender instead. Like private money lenders across the country, they are quicker and more likely to approve someone—no matter how questionable their credit history is.

However, with the ease and speed of a private money lender comes risk.

Beware The California Private Money Lender That Seems To Good To Be True

When you decide to go with any private money lender there are certain things you have to be prepared to deal with. For instance, since they do tend to work with people that cannot get approved for loans through traditional channels they will charge higher interest rates. It’s their way of being compensated for taking a chance.

At the same time, the lender will do everything they can to mitigate that risk by requiring a borrower to provide sufficient collateral and possibly even a deed to the property in the lender’s name or insurance in their name. Either could then be used to recoup their losses should a borrower default on the loan

The Trade Off With Private Money Lenders

Whether you are using a California Private Money lender or one in another state the benefits are easy to see—a borrower gets the money they want sooner rather than later. However, at the same time it is going to cost them much more (due to a higher interest rate) and they stand to lose everything should they have to default on the loan.

Then again, chances are the property they would have a deed to would be the same one a traditional lender would want to secure a loan. So essentially, a borrower is paying higher interest rates to get money sooner.

Is it worth it? Only the borrower can say for sure—and probably not until they pay back the loan or default on it.

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 29, 2016

Is Going To A California Hard Money Lender The Right Decision For You?

There are a lot of options for people when it comes to financing these days, but not every option is right for everyone. There are two where it would be smart to look up your nearest California Hard Money lender.

At one point in time, if you wanted to get a loan so you could open your own business, the one and only option was your local bank. Now, there are several options available to potential entrepreneurs depending on what your need is.

Commercial banks are a popular option as are mortgage banks and brokers. Credit unions have gotten into the action as well, and there are now many finance companies looking to make loans along with online lenders.

Each type of lender has its pros and cons just like every loan option has them. In many cases, there are two factors that are more important than others. For those in the Golden State, depending on how these two factors apply to you, a California Hard Money lender may be the right option for you.

When A California Hard Money Lender Is The Best Option

When it comes to business-related loans, there are usually two factors that impact every borrower—time and their credit score. They may need the money sooner rather than later and can’t wait. They could also be one of the many that have made a poor decision or two in regards to their credit.

Taking too much time to close on a loan can cost an investor a good deal. While they wait for the bank to give their approval, they may lose out to someone who has the money or approval on hand. Should there be several competing bids for a property, having the money on hand for a quick close can be the factor that has pushes the seller to go with you over others.

Probably the primary reason a borrower goes with a California Hard Money lender over the local bank is their credit score. Traditional lenders, like banks, are not known for being too forgiving when it comes to poor credit scores. They prefer to get involved with deals that appear less risky. They don’t want to risk a loan defaulting by approving someone with a history of not paying their bills.

It may not necessarily be that they don’t want to approve your application, but are restricted by guidelines and regulations. What makes this frustrating is that the cut off between getting approved and denied can be as simple as having a 625 credit score or a 575. While the 50-point gap looks small to us, it can be cavernous to a lender.

A hard money lender will look at your credit score, but will be more interested in how much equity you have in whatever property is securing the loan. They will also take the same consideration in regards to your income history (i.e. someone starting a new job can get denied by traditional lenders even though they make a healthy salary).

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, October 7, 2016

Pitfalls That Will Cause A California Private Hard Money Lender To Reject You

California Private Hard Money Lenders are a preferred form of financing for many because of the relative ease and quickness in which loans are approved. However, just because it is easier, doesn’t mean it’s a sure thing.

Three Ways To Get Your California Private Hard Money Lender To Reject You

What To Do After You’ve Been Rejected

Thursday, October 6, 2016

How To Evaluate If A California Private Hard Money Lender Is For You

Before you apply for financing through a California Private Hard Money Lender it is important to consider the advantages and disadvantages of doing so.

Advantages

Disadvantages

Wednesday, October 5, 2016

The Real Deal When It Comes To The Process Of Getting A California Private Money Loan

When you try to research the process involved with gaining approval from a California Private Money lender there can be a lot of confusing jargon, but what’s the process actually entail? What’s the real deal?

The Process Made Easy

Tuesday, October 4, 2016

Four Things To Consider Before Calling Your California Private Money Lender

When you are looking to snatch up a property before someone else comes along, you need to act quickly, but before you call your California Private Money lender, there are four things about the property you may want to consider.

Before You Call Your California Private Money Lender…

Your Private Money Checklist

Monday, October 3, 2016

Things To Consider When Applying For A California Private Money Loan

Whether you are working with a private money lender in Texas or a California Private Money Lender, there will be things that you will want to consider before committing to anything.

Beware The Cost Of Working With A California Private Money Lender

The Truth About Private Money

Friday, September 30, 2016

Beware The Pitfalls Of Working With A California Private Money Lender

The finance world has lots of options these days, but with each one there comes a certain amount of risk. There are certain risks you should be prepared to deal with or accept when working with a California Private Money Lender.

Beware The California Private Money Lender That Seems To Good To Be True

The Trade Off With Private Money Lenders

Thursday, September 29, 2016

Is Going To A California Hard Money Lender The Right Decision For You?

There are a lot of options for people when it comes to financing these days, but not every option is right for everyone. There are two where it would be smart to look up your nearest California Hard Money lender.

When A California Hard Money Lender Is The Best Option

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