Beretta Only

Wednesday, October 19, 2016

Private Hard Money—California is Calling

By now, you know that lenders that offer private hard money are everywhere. Moreover, you may have realized that you can decide which lender is best for your project in-state as well as out-of-state therefore if you curious about private hard money, California may be the place to start asking questions.

If you are like most business savvy individuals, you are probably asking yourself when is the best time to use private hard money. California lenders can tell you the best time to acquire private hard money financing is when you need to act quickly. In fact, you should be inclined to obtain this particular type of financing for such major projects as land loans, constructions loans, fix and flips, rehabilitation ventures, in the case of credit issues—this is all in addition to simply need to act quickly.

In addition to what types of deals or projects you should use private hard money for, it is also important to know why you are using this particular financing in the first place, right? Well, the truth is commercial real estate investors and trust deed investors, in general, have can list a number of good reasons for using private hard money. California investors, nevertheless, that it is mainly about time being of essence when it comes to their business ventures.

But, do not take their word for it instead just look at the facts. Traditional or rather conventional financing typically takes anywhere from 30 to 45 days to be funded. In that time, your particular business opportunity could have come and gone. What is more, is you are more than likely to lose that commercial venture to the next investor who chooses to use private money. Sadly, this happens time and again with less experienced business investors. Ultimately, if you are a seasoned investor, you already know what to do and if you are new to the game then it is definitely time to take notes.

How to Move Quickly on Investments

As you can see, moving quickly on an investment tends to be the name of the game. Moreover, with most investment properties you are dealing with multiple bids and high risks. Thus, going with traditional or conventional funding not only means you have to wait longer for your potential funds, it also means that you may not even be approved. Most borrowers, especially self-employed, have a colorful income history. Your income history may be colorful for a variety of reasons—maybe its credit issues or simply an insufficient income history. The reality is a colorful history does not sit well with banks. Thus, you should get ahead of this problem by knowing from the very start who you need to work with in order to obtain financing.

Advice

In the end, no matter what you decide or what the specific details of your particular situation are, you have to do your due diligence. So, make it a point to do your homework on your private money lending options as well as the other options available to you out-of-state.

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.

Tuesday, October 18, 2016

Hard Money Lenders—California Rehab Financing

At this point, you are probably aware of the hand-in-hand relationship that hard money lenders, California based, have with rehab projects. Of course, this is not the only use for hard money financing ,but it does tend to be one of the top two reasons.

Since hard money lenders, California based that is, have a bulk of their business comes from rehabilitation projects, we thought it would be useful to over a few basics. For starters, many trust deed investors often wonder what it takes for a project to qualify as a rehab project. Moreover, many people in generally are curious to the rehab guidelines when working with hard money lenders. California commercial and trust deed investors, in particular, may be wondering about the rehab basics as well.

Thus, without further ado, let’s address who can qualify for rehab financing? Well, for starters commercial or trust deed investors can. But, investors are not the only ones. In fact, contractors, subcontractors, brokers and even realtors can all get hard money rehab financing. With that being said, just because you qualify does not mean you can use your hard money financing all willy nilly. In other words, there are specific projects and they include the rehabilitation of single family residence, multi-family dwellings, commercial, apartments, duplexes, triplexes and fourplexes (in short, investment properties only).

So, now that you know who qualifies and what kinds of projects are hard money rehab financing eligible, it is important to note that most lenders that deal in hard money only lend up to 60% of the purchase price. Of course, this is not a set standard and you will be able to find other lenders whose lending percentage varies. But, nevertheless, you should be aware of what is out there and what if any after repair value regulations apply.

After Repair Value Regulations

Besides, a noticeable difference in the lenders LTVs, you will also often see a large range of down payment percentages i.e. anywhere from 15% to 30% of the purchase price. What you will not see a large variation in are the loan terms. This means your standard hard money rehab loan terms apply (12 to 60 month for rehab with an option to extend short-term rehab loans of 6 to 12 months). Moreover, just like any other type of hard money financing, rehab refinancing does not impose prepayment penalties. Thus, you can see that most hard money lenders understand the nature of the rehabilitation business. In fact, these particular kinds of lenders, understand that for a rehabilitation project to truly be successful it needs to be completed in almost record time.

Budget Expectations

Since hard money lenders understand the urgency that comes along with these kinds of projects, you will typically see funds being released quickly and in the most appropriate manner for your particular project. This means if you need your rehab financing in two installments as soon as possible it can be done. Similarly, if you prefer weekly disbursement most lenders will also accommodate your needs. Lastly, because most lenders understand that time is money , they often allow documentation (photos of completed repairs) to be emailed versus scheduling an inspection.

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 17, 2016

Hard Money Lenders—California Investors

(If you are like most people, you want your hard money loans funded as soon as possible and outside of that you don’t have too many questions about where your hard money is coming from. Sure, you are working with hard money lenders; California investors, however, is where your financing is more than likely coming from.)

To get a better idea of trust deed investing, you must first look at your hard money lenders. California investors often invest in hard money loans for their own lucrative reasons. But, nevertheless, most lenders of hard money are individuals or private companies. The key word there, however, is most lenders i.e., not all. So, how do you know if you hard money financing is coming from a trust deed investor? Well, the simple answer to this question is you may not.

The reason you may not know if your financing is coming from trust deed investors is because California law requires that a trust deed investor must be in compliance with usury laws. Thus, the easiest way for this particular kind of investor to do this is by working with a broker. Consequently, you may not deal with your specific investor directly.

With that being said, your trust deed investor, in essence, is the bank. You are the borrower and your potential business venture has the best chance of getting financing via hard money lenders. California investors, in the end, make it all possible. So, now that you know a little more about trust deed investors, you may be wondering just what makes these particular investors different from your regular investors? Ultimately, there are not tons of differences. Nevertheless, it still helps to know those differences.

The Differences

The major difference between regular real estate investors and trust deed investors is really the amount of risk that he or she assumes. As you probably know by now, trust deed investing offers a little more security when it comes to the promises of you, the borrower. This means, if you the borrower do not honor your terms or commitments, a trust deed investor can recoup the majority of their losses. A real estate investor, on the other hand, does not have this additional safety net if you will. This is why you will often see that private real estate investors are more eager to help or rather are more accommodating because your success is ultimately their success. Of course, this is not to say that one type of investor is better than the other type. Remember, you have to choose the right lender for you. Thus, this could be a close family friend or it could be a private lender that works with a trust deed investor.

Your Investor Fuels Cost

If you are not sure about what kind of investor or lender suits your specific business venture that is okay. You can easily solve this problem by asking around and doing a little research. In the end, there are dozens of reputable hard money lenders in California and even more investors—you just have to know where to look.

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, October 14, 2016

California Private Hard Money – A Helping Hand for Trust Deed Investing

California private hard money is currently all the rage and realistically it should be . The truth is that private hard money financing has made a name for itself amongst the big banks and traditional institutions.

California private hard money can be characterized as a helping hand because, despite the larger down payment requirements and the higher interest, this particular kind of financing is all about making the underdogs’ dreams come true. Of course, in this case, the underdog is more than likely a trust deed investor. But, nevertheless, as movie-esque as this all sounds, it is the truth. California private hard money has partnered itself with trust deed investing and the real estate market is much better for it.

If you are new to the wonderful world of trust deed investing, the good news is you are not the only one. As of recent, many investors have realized that they are able to invest in a variety of loans that are secured by real estate or commercial investment property. This means that foreclosures are being bought and flip ( if necessary) at a record rate. Ultimately, this is great news for people that are looking to invest or own a home or office building.

With that being said, the issue with traditional or conventional banks is, of course, a story as old as time. Banks are afraid of the risks that are associated with foreclosure and property that is not turn-key at the time of funding. In response to their fear, private hard money and trust deed investing were born. Moreover, since this particular kind of investing and financing is so attractive, it is more than evident that it is not going away anytime soon.

The Benefits

Trust deed investing is so lucrative or attractive to investors because if done right, the investor usually ends up with a nice annual return. Furthermore, the common risks and fears that keep the traditional institutions at bay do not really apply when it comes to trust deed investing. Due to one of trust deed investing’s top benefits, there is little risk associated with taking a loss and you can thank the built-in margin of safety (as it is often called). The built-in margin of safety, in essence, is the difference between the amount of the loan and the value of the property.

Trust Deed Investing—The Real Difference

Ultimately, at its core, this particular type of investing is better for the investors if you are comparing the benefits of standard, private hard money. It is better because the built-in margin of safety is really a clause. In other words, if the borrower fails to perform, the investor/lender can foreclose on the property or office building almost instantly if they so choose. This means that the investor/lender will essentially recoup their investment and most likely including any past due interest or penalties. Of course, it is still important to note that this particular kind of investing is not without some risk rather that most of the time the investor or lender makes out better in the deal if things do go south.

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 13, 2016

Choosing Hard Money Lenders—California

There are many reasons to choose hard money lenders. California has some of the best hard moneylenders to offer, in fact. Nevertheless, it is still important to understand why these particular kinds of lenders may be the better option for you versus getting financing from conventional lenders.

If you are torn between choosing hard money lenders and conventional lenders, it may help to compare the two. Obviously, there are major differences between the two types of potential financing you could receive. For instance, looking at hard money lenders, California trust deed investors are ripe for the picking. In other words, there is no shortage of hard money borrower thus there is also no shortage of lenders that cater to this particular market.

The reason you see a wealth of hard money lenders is because they ultimately help bridge the lending gap. What is the lending gap? Well, the lending gap is common with conventional lending. In essence, it is the gap between acquisition and refinancing. In other words, with conventional lending, you have to pay a larger down payment, which often cuts into the available capital for expense or renovation. In other words, unless an investor wants to pay out-of-pocket for renovations they are not happening with conventional financing.

Moreover, everyone knows this, especially hard money lenders. California commercial developers and trust deed investors just need better options. This is generally, where bridge loans and construction loans come into play—all of which are hard money loans. Other major differences, of course, include the amount of time it takes to approve and the level of flexibility in regards to loan terms. So, what do all these differences mean when it comes time to evaluate conventional lenders? Well, that is a great question. The truth is conventional financing has its place in the wonderful world of commercial real estate. Therefore, it is up to you ultimately decide which kind of financing and what type of lender are right for you.

How to Evaluate Conventional Lenders

With that being said, there are still a few handy tips that you can use when evaluating conventional lenders. For starters, you should have a good idea of who you want to work with i.e. do want your lender to be a credit union, a private lender or actual banking institution? Next, you want to be clear on the terms of your financing as conventional financing often has terms of 10, 15, 20, 30 years. You will also want to figure out if you want a fixed or adjustable rate. This means deciding who offers the right terms and best rate option.

Avoid the Pitfalls

Lastly, you will need to decide what kind of financing is best for you. In the world of conventional financing, this means nonconforming or conforming loan limits. If you are too sure of any of these terms, then it may be time to sit down with a few lenders to ensure you are making the best decision. Ultimately, both hard money lenders and conventional lenders will take the time to help you figure out your options.

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 12, 2016

California Private Hard Money Perks—Top Advantages

Deciding that the best financing option is California private hard money is a big step. So, how do you know if it’s the right step? Well, there are several perks or rather advantages to choosing this particular line of financing.

California private hard money means many different things to different lenders. As you may already be aware, your financing options and loan terms are in your private lender’s hands. Of course, this does not mean choosing California private hard money means your will pay an absorbent amount of interest and you will be stuck with terms that you did not choose rather it means you need to choose wisely.

With that being said, overall there are some perks or rather advantage when it comes private hard money. For instance, private hard money often means rapid funding. Rapid funding is possible due to the lack of red tape that you often get with traditional financial institutions. Less red tape means there aren’t dozens of forms to fill out or hard-to-find documentation require. In addition to the lack of hoops, you must jump through, private individuals or companies also make their decision in record time so that you can get started on your venture as soon as possible. Another advantage to this particular kind of financing may come as a little bit of an unexpected surprise—flexible term structure. What is a flexible term structure? That’s a great question.

In its simplest answer is flexible term structure is customizable loan terms for your business. In other words, traditional financial institutions play by the books or rather they offer one-size-fits all terms and who needs that? But, with private hard money lenders, you are able to work with a lender that not only understands your needs but is also willing to take them into account when it comes to your term structure.

A Helping Hand – No Repayment Penalties

Private hard money lenders are also thoroughly invested in the success of your venture, thus you will often find that these non-traditional lenders do not penalize you for your changing circumstances. This means that if you are able to pay off your commercial business loans sooner then everyone wins. Similarly, if you have only partially paid off your loan by its due date, most private hard money lenders are willing to work with you so that you can succeed.

Take Away

Ultimately, this means that choosing private hard money can be extremely beneficial in just the right way. Thus, whether you are choosing a standard hard money financing or considering bridge loans your commercial business venture can be a reality. Moreover, your terms can be easily customized to meet your need and your industry with little to no bureaucracy. Lastly, you are given the opportunity to work with a company, a trust deed investor or an individual who truly does want to see you succeed. Furthermore, this company or private individual will go above and beyond to make sure that you succeed because they invested in your and your business i.e. you are more than just another commercial borrower.

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 11, 2016

California Private Hard Money Complaints

Unsurprisingly, there are two sides to every story or rather, in scenario, there are advantages and disadvantage when it comes to California private hard money. Therefore, if you are new to the trust deed investing game or financing world, you may want to brush up on some of the complaints and/or disadvantages of private hard money so that you are properly prepared.

California private hard money, as briefly suggested, can be a godsend to those who need quick and red tape-free financing. But, of course, nothing good comes without a little bad. So, what are those pesky private hard money complaints already? Well, no worries let’s go over them.

One of the top complaints about California private hard money financing or loans is the interest rate. Think of it this, you have to pay to play thus if you want your financing quickly you have to pay for it. Of course, this doesn’t cause too much of a hardship if you use your hard money financing correctly. For instance, most private hard money loans are obtained for short-term financing needs. This means if you pay your loan back before your abnormally high interest rate doesn’t get too out of control then you will more than likely survive.

Another major complaint when it comes to private hard money we just touched on a bit –short-term use. Many commercial real estate and trust deed investors wish they could use private hard money for more than the standard limit of up to 5 years (3 years in some other places). But, as previously mentioned, extremely high interest rates make that a bad idea. So, why on earth would this be a complaint? Well, as you already know private hard money loans or financing are a lot easier to get than your traditional financing. Remember, red tape-free and quick approvals—who wouldn’t want that to last a little longer.

Managing Your Private Hard Money Expectations

The third common complaint is the down payment requirement. Typically, you will find a larger down payment requirement or equity of 25% or more. The reason you will you see such harsh requirements with private hard money financing is because lending will always be a business. In other words, these particular lenders are taking a chance on your business venture and if by chance things do not go as planned or you are unable to meet your loan terms then your lender needs to be financially alright. So, what does all this really mean? It means you need to manage your expectation when it comes to your lenders as well as when it comes to your future business venture.

Private Hard Money Can Still Make Dreams Come True

Ultimately, these top private hard money complaints are not enough to deter those business-hungry individuals who want to make their dreams come true. In fact, private or hard money lenders, especially in California, are actually in the business of making hard to approve dreams come true. So, if you are still looking for short-term financing, then it would behoove you to also check out the top advantages of private hard money loans.

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, October 19, 2016

Private Hard Money—California is Calling

How to Move Quickly on Investments

Advice

Tuesday, October 18, 2016

Hard Money Lenders—California Rehab Financing

At this point, you are probably aware of the hand-in-hand relationship that hard money lenders, California based, have with rehab projects. Of course, this is not the only use for hard money financing ,but it does tend to be one of the top two reasons.

After Repair Value Regulations

Budget Expectations

Monday, October 17, 2016

Hard Money Lenders—California Investors

The Differences

Your Investor Fuels Cost

Friday, October 14, 2016

California Private Hard Money – A Helping Hand for Trust Deed Investing

California private hard money is currently all the rage and realistically it should be . The truth is that private hard money financing has made a name for itself amongst the big banks and traditional institutions.

The Benefits

Trust Deed Investing—The Real Difference

Thursday, October 13, 2016

Choosing Hard Money Lenders—California

There are many reasons to choose hard money lenders. California has some of the best hard moneylenders to offer, in fact. Nevertheless, it is still important to understand why these particular kinds of lenders may be the better option for you versus getting financing from conventional lenders.

How to Evaluate Conventional Lenders

Avoid the Pitfalls

Wednesday, October 12, 2016

California Private Hard Money Perks—Top Advantages

Deciding that the best financing option is California private hard money is a big step. So, how do you know if it’s the right step? Well, there are several perks or rather advantages to choosing this particular line of financing.

A Helping Hand – No Repayment Penalties

Take Away

Tuesday, October 11, 2016

California Private Hard Money Complaints

Managing Your Private Hard Money Expectations

Private Hard Money Can Still Make Dreams Come True

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