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Wednesday, October 26, 2016

Things To Consider When Applying For A California Private Hard Money Loan

When investors think about applying for a California private hard money loan, they typically worry about the questions they are going to be asked, but there are some that they should be asking lenders.

The process of going into business for yourself or flipping houses is not an easy one to make. There are many things to consider, and the process of getting approved for a loan can be the tricky part—especially if you need to apply for a California private hard money loan.

Maybe you are already getting a traditional mortgage loan, but you need a cash infusion to keep things going, or maybe you need a little more to finish a project off right. Whatever the reason, getting approved is vital to the project, so you worry about what the loaner is going to ask you.

However, while you do need to be prepared for those questions, you should also be prepared to ask the lender a few as well.

Five Questions To Ask Your Private Hard Money Lender

It is not unusual for a person to be so concerned about getting approved that they end up accepting a bad deal from a lender that is not as reputable as you might think. So before signing the papers for you California private hard money loan, consider asking the following questions:

• What is their experience like? The more experienced they are, the more understanding they will probably be. Terms will likely be friendlier as well since the lender will be aware of what it takes to succeed and will do what they can to help.

• What’s their real estate license ID? If they have one—and they should—you can search for them on the state website and find out if there have been any issues with them (i.e. disciplinary action).

• Are they a broker or a lender? If they are a broker, it will take longer to get your loan processed and approved. If they loan finance the loan themselves, the money will come sooner rather than later.

• References? Just like employers like to know how an applicant did at previous jobs, it doesn’t hurt to hear what experiences other borrowers have had.

• Fees? One of the most frustrating parts of the loan approval process can be finding out after the fact that there are fees you have to pay that drive up your cost. Ask about them ahead of time, so you can accurately compare rates and costs of different lenders.

Other Things You Should Inquire About

There are other questions worth asking when applying for a California private hard money loan. You’ll want to know the interest rate and how many points they charge as well as the loan to value ratio.

Chances are you need the money sooner rather than later since you are applying for a private hard money loan, so make sure you ask how long it will take to get approved. You should also ask how long of a term you can get and if there is a prepayment penalty.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Tuesday, October 25, 2016

How To Exit Your California Private Hard Money Loan

When people need money for an investment, they want to know how to get a California private hard money loan, but they don’t often think about how they’ll get out of it.

In the process of running a business or flipping a house in sunny San Diego or Los Angeles (or another part of California), it is not unusual to need money quickly. Traditional avenues take too long, so it is not uncommon for people in those situations to seek out a California private hard money lender.

However, while they will often go to any length to figure out how to get approved for a private hard money loan, many folks do not think about how they are going to exit the loan. After all, it is borrowed money, and the terms are always relatively short (typically from a year to no more than five years).

Failure to consider what one’s exit strategy is going to be could lead to issues when the loan comes due.

Five Strategies For Exiting A Private Hard Money Loan

Now that you have the money to get your business back on track or the final repairs made to the house you are trying to flip, not only do you need to get to work but you need to think about how you are going to pay the loan off. It is important to have a plan before you need it. Otherwise, the balance of your loan could come due, and you may not be ready to pay it.

The following are five strategies that could help you exit your California private hard money loan with ease when the time comes:

• Sell the property: If you can get the work done before the loan is due, selling the property is the easiest and probably the quickest way to pay off of the loan along with recouping the cost of fixing and flipping the property.

• Refinance with a conventional mortgage loan: If you are going to occupy the property yourself, this is an excellent option. You can take the loan from a short term one to a long term one, and lower the interest rate.

• Refinance with a subprime loan: If you are still having difficulty getting approved for a traditional loan, refinancing with a subprime loan is a good route to take. However, while it may be easier to get approved for one, terms are not always good, and interest rates are higher than traditional loans (but lower than hard money loans).

• Refinance with another hard money loan: If you can’t get a traditional loan or a subprime one, you may be able to refinance your hard money loan. If you’ve missed or been late with payments, it will be hard to get approved. You will likely be charged a fee for extending the loan, but at least you will not have to have the money now.

• Sell another investment: If you can’t get a loan or don’t want to and have another investment property, selling it is a good option.

Know Your Exit Strategy Before Applying

It may seem silly, but it needs to be said. It is not unusual for an investor to be so focused on getting a project done that they didn’t think about how they were going to take care of their California private hard money loan. Most lenders will want to know it before approving you, but if they don’t ask, you should have one in mind already before you sign the loan papers.

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.

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.

Monday, October 24, 2016

Hard Money Lenders—California Investor Advice

Deciding you want to become an investor is a big deal, especially when working with hard money lenders. California real estate guidelines clearly lay out how to become a standard investor, but there is definitely a need of some clarity when it comes to becoming a trust deed investor.

By now, you may already know that trust deed investing is pretty much the way of the future. In fact, more and more lenders are working closely with trust deed investors, especially hard money lenders. California investors, therefore, should take advantage of this opportunity as this particular form of investing absolutely has its benefits.

If you do want to take advantage of trust deed investing then you should definitely beware of what the guidelines are. Of course, you can read through pages and pages of trust deed investing information or you ask a few reputable hard money lenders. California is notorious for having some of the country’s best hard money lenders, thus you cannot go wrong with asking around. Nevertheless, if you have already done some extensive research and feel you are ready to become a trust deed investor then you are one step ahead of the game.

Becoming a trust deed investor is necessarily complicated. Rather, becoming a successful trust deed investor involves understanding how trust deed works and understanding how this particular form of investing is different from your traditional forms of real estate investing. Thus, whether you are a newcomer or a well-informed businessperson who has done the research, you more than likely can benefit from a brief refresher course. So, let’s go over what it means to invest via trust deeds.

Becoming a Trust Deed Investor

For starters, trust deed investing is all about private lending. In other words, you are still a private real estate investor; trust deed lending is just another means of providing financing. The benefit to this form of lending is that you are, in many ways, sheltered from uncertainty. This means the state of the stock market does not affect your invest nor does a changing economy. At this point, you are probably wondering, well, how can this be? In fact, you are more than likely thinking that this all sounds too good to be true. The truth is this is your safety net when it comes to investing. It is a safety net because you receive a fixed income whereas a standard private or hard money lender receives interest income via the loan (and of course a standard private lender is repaid in full upon the fulfillment of the agreed upon terms).

Staying Successful

Ultimately, trust deed investing is just another way to become a private or hard money lender. Thus, if you are looking to become a trust deed investor today, you can easily search the private hard money lender directory and fill out the necessary paperwork today. However, just a word of caution, there is still risk associated with this particular form of lending so make sure you ask all the necessary questions before you start investing.

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 21, 2016

Private Hard Money— California Trust Deed Investing and Expectations

Becoming an investor in private hard money California loans can be lucrative move, even for a newcomer. If you are a newcomer to trust deed investing, there are a few things you should know or rather expect when you make the decision to invest.

Up until three years ago, many investors were not clear on how trust deeds played a role in private hard money. California, however, wanted to make sure that all potential investors understood the trust deed investing guidelines. Thus, it was not too long before the California Bureau of Real Estate decided to release new guidelines. In these new guidelines, it became apparent that in order to invest, one could not invest more than a fraction of their net worth—10% to be exact.

In addition to this new provision or rather clarification, it also became apparent that there were several advantages to this particular form of investing. For starters, trust deed investing meant more private hard money. California investors, brokers and borrowers all benefited from this fact. Another clear advantage was the fact that this particular form of investing meant a consistent income stream for investment portfolios in need. Furthermore, trust deeds are, in essence, separate from the stock market. The separation between the stock market and trust deeds means that there is less risk associated with this form of real estate investment.

Other important advantages were clear from day one such as the predictable principal and interest payments that you as an investor would receive. It is also very hard to discuss the advantages and expectations of trust deed investing without highlight the fact that your investment is secured via tangible collateral (the real estate or property). This not only means that you have a viable cause of action if the borrower does not live up to their end of the agreement; it also means that your investment has clear equity.

A Win-win Solution

With that being said, let’s not forget why you are really here—you came here to make a sizeable return. Well, the good news is when you choose to become a trust deed investor you more than likely will see a sizeable return. In fact, many trust deed investors have been known to earn double-digit returns all through investing. So, what does all this mean for you? It means that there is an opportunity to earn more while risking less and that is a win-win in really anyone’s book. Lastly, there are dozens of ways to invest wisely when it comes to trust deed investing. For instance, you should always determine a safe amount to lend and you should always make it a point to establish the property value. These are just two ways that you can risk less. Remember, all you have to do is just ask around and pretty much anyone will have a tip or two, especially when it comes to first trust deed investments.

Get the Advice you Need

Ultimately, if you are interested in learning more about trust deed investing or you are just curious about those helpful tips, do not be afraid to also speak with a reputable broker.

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 20, 2016

Private Hard Money—California Style

By now you’ve probably heard a handful of terms thrown around when it comes private hard money. California, in fact, is no stranger to private hard money. The truth is that many people flip and fix as well as rent out houses or commercial buildings in California. Thus, if you are interested in joining the craze or doing some trust deed investing, it may be helpful to learn a little more about it first.

As a savvy business person, you probably already know there are several reasons to use private hard money. California, furthermore, has some of the best lenders in the business when it comes to private hard money. So, it’s almost a no-brainer that real estate investors who are looking to flip and fix are doing in California and doing with private hard money.

Nevertheless, this is not the only reason one should consider using private hard money. California is also home to a good place to renovate. In other words, there are dozens of rehab-worthy houses, buildings and commercial office parks that could use a little TLC. Of course, this yet another reason you or your business should consider using private hard money.

Ultimately, these are just two of the many reasons for the use of private hard money. With that being said, these two reasons are the top reasons more trust deed and commercial real estate investors use this particular kind of financing for. Thus, it may be helpful to dig a little deeper when it comes to flip and fix. Moreover, it may be helpful for your future commercial business venture to see what you can do with private hard money and all things renovation.

How to Use Private Hard Money for Rental or Rehab

For starters, you can use private hard money as front-end finance. Front-end finance is, in essence, a way to purchase your future venture without a financing contingency. You can also use private hard money as upfront financing that includes rehab funds. Clearly, this a great option as you generally acquire your property and do the necessary improvements without spending any of your own money. You can also use private hard money as what is referred to as hard money front-end/private money back-end financing. Sure, at this point you may be thinking isn’t that just a combination of the two previous uses? Well, yes in some ways. Ultimately, this particular use is about using the hard money to get the project done and then having the private money take over once it’s all said and done.

Win- Win Solution: Hard Money Front-end/ Bank loan Back End

This last option or rather private hard money use is often a favorite for those that still want some form of traditional financing involved. Similar to the “hybrid use”, if you will, this last use offers financing that you know and maybe even come to love once. Truthfully, this last option is just another option for you to choose from. At the end of the day, the point is that private hard money can be used to get the job done quickly with hardly any out-of-pocket costs and that matters to 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.

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.

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 26, 2016

Things To Consider When Applying For A California Private Hard Money Loan

When investors think about applying for a California private hard money loan, they typically worry about the questions they are going to be asked, but there are some that they should be asking lenders.