How Do I Find A Lender That Works In Private Hard Money In California?

The bank has just turned down your application, but you don’t want to give up on the dream just yet. So you need someone who deals with private hard money in California. How do you find that someone?

You’ve been a good boy for most of your life. You are honest on your tax returns, you stop at traffic lights in the middle of nowhere even if there is no one in sight, and you keep your word. But you haven’t always paid your bills on time.

So your credit rating is not the best. This, when combined with what the bank described as “insufficient employment history” caused your loan application to be denied. But the clerk sympathizes with you and can see how much starting your business means to you, so they tell you to find a lender who works with private hard money in California. The interest rate will be a lot higher, but at least you’ll get approved.

There is just one problem.

How Do I Find Private Hard Money In California?

Finding conventional lenders is easy, but it can be a little more challenging to find a private hard money lender. It’s not that there are so few of them and it’s hard to locate one. It’s quite the opposite. There are plenty of options out there. You just have to know where to look to find one—like the internet.

Everything is online these days. Run a search for whatever you need and thousands of options are likely to pop up. Going that route can be confusing though since you’ll get options from all over the world and anything that can relate to your search word. If you want to use the internet, you’ll have better luck searching for investment forums and chatrooms. There you will find people that will be more than happy to recommend someone (or warn you to stay away).

However, you don’t want just to pick someone off the internet because you can’t ever know for sure how good they are. Reviews are faked all the time so you can’t trust them to be 100 percent accurate. Companies will pay people to write false reviews on Yelp and other places.

Probably the best way to find a private hard money in California would be to ask someone or ask multiple someones. Talk to the people that often work with lenders who approve loans for private hard money in California:

• Mortgage Brokers: They probably have a few that they prefer to work with and can recommend when asked

• House Flippers: if there is anyone that will know of a good hard money lender, it will be someone that has used one or two themselves—like a house flipper.

• Real Estate Agent: Who works with more lenders and investors than a real estate agent? Few people do (if any). Like brokers, they probably have a few that they have developed a relationship with and feel comfortable recommending.

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.

How To Get Rejected By Hard Money Lenders In California

When it comes to seeking out hard money lenders in California or anywhere else, most of us are too concerned with what we think we need to do to get approved to make sure we don’t do things that will get us rejected.

It’s natural for people to want to focus on what they need to do to make forward progress. It’s what we are all after, and depending on the number of distractions in life, we may need to have laser focus to reach or goals.

However, in the process of locking in that laser focus on the end goal, it is not unusual for people to miss some of the details that hinder progress towards that goal. Do so when you turn in your loan application to hard money lenders in California or anywhere else and your application will end up being denied.

Three Things That Will Get Your Hard Money Loan Denied

As important as it is to focus on the things you need to do right to get approved, you must keep in mind those things that can get you rejected by hard money lenders in California:

• Insufficient down payment or equity: Hard money lenders can get away with charging the high-interest rates that they do because of the increased risk involved. To mitigate that risk, lenders will often require a sizable down payment or that you have sufficient equity in the property; 25 percent is a typical amount. Lenders tend to feel better when they feel you have “skin” in the game too.

• Insufficient income: Hard money lenders want to know you have some “skin” in the game before approving your loan, but they also want to feel confident you will be able to repay the loan. Just saying you’ll pay when the product you are selling explodes and every has to have a piece doesn’t count. The best way to soothe these concerns is to have sufficient income coming in already or with cash reserves.

• No exit strategy: Hard money loans are often shorter; no more than a year to five years typically. But that does not mean your payments are going to be crazy high. It just means you are going to have a balloon payment at the end—which is where many people tend to run into trouble. So when that time comes, it helps to have a strategy for handling that payment. Acceptable exit strategies include selling the property, selling a different property, refinancing with another hard money loan (or a conventional one or a subprime one).

Hard Money Lenders in California Don’t Want To Reject You

Hard money lenders don’t want to deny you. They want to loan you the money you need. It’s why they exist. But if they aren’t careful and approve too many of the wrong types of people, lenders may soon find they have no money to lend.

So do your homework—all of it. Find out why hard money lenders in California will reject you as well as what it takes to get approved. This way you can prepare for everything and ensure you will get what you need.

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.

If Your Hard Money Lenders in California Are Compared to Ezuabo—That’s Not A Good Thing!

Hard money lenders California—For every success story and for every honest lender there is a story about a dishonest one. The story of Ezuabo is one of the dirty ones.

When people talk about—well, just about anything, they will compare it to something else. It’s like by comparing one thing to another thing, which people are more familiar with, we can understand how beautiful or terrible something is.

For example, how many times have you heard a tired person talk about drinking a good cup of coffee and how the “fog suddenly lifted?” Have you ever heard something that just walked into the room, joined a conversation, or been hired on described as a “breath of fresh air?” Or how about the teacher that’s as mean as the Wicked Witch of the West?

Get the idea? So—with that in mind—if any of the hard money lenders in California you are considering going with have been described as “similar to Ezubao”—run away. Run far away.

The Story Of Ezubao

At first, the story of this hard money lender in China was your typical rags to riches kind of story. It’s founder, Ding Ning, was a 34-year old high school dropout. He opened the company in numerous cities and took out some expensive ads to promote the venture. It wasn’t your typical lending company, though. No, it focused on working with individuals with poor credit histories that could not get approved for a traditional loan.

With over 1.3 billion people living in China, it is safe to say that there were thousands if not millions of people seeking out loans in China that fit perfectly into the segment of the population Ezubao wanted to target--or at least that was what Ning wanted his investors to believe.

Ning could justify the insane number of borrowers he claimed the company had because his interest rates were not higher than the banks like the typically are for hard money lenders in California, China, or anywhere else. They were lower than the banks.

So it was easy to imagine people flocking to Ezubao. If you could get your money faster and for less, why wouldn’t you go to them? Except people were not. Approximately 95 percent of the borrowers Ning claimed the company had were fake. In the process, over 900,000 investors lost $7.6 billion.

Could There Be A Hard Money Lender In California Like Ezubao?

Investors and lenders alike always have to be on the lookout for potential scams. These days they have become more and more elaborate and can be hard to pinpoint. But that is why there are as many regulations as there are for hard money lenders in California and across the country.

Could a scammer get his or her hands on the appropriate licenses to appear legitimate? That is always going to be a possibility, but if ever in doubt, refuse to take their word for it. Call the appropriate local or state agency that issued their license. If you still aren’t sure—go with someone else.

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.

New Laws Helping Borrowers Avoid Common Pitfalls From Hard Money Lenders In California

Hard money lenders California—With all the options available nowadays, it can be hard to realize who is a legitimate lender, and which ones are scams. Some relatively new laws in California are geared towards protecting borrowers.

Hard money lenders California—It has happened way too much in the past. A person with too low of a credit rating wants to follow his dream and open his own business. He can’t get approved for a loan from a traditional lender, so he has to find a hard money lender to approve him.

But there are so many! Who do you trust? Who is legitimate? Is there any way a person can weed out the bad so you can just choose from the good and not have to worry about being a victim of some elaborate scam?

Yes.

How You Can Protect Yourself From Fraudulent Hard Money Lenders in California

There is no way to weed out the bad from the good completely, but there are ways in which you can bend the odds in your favor that the guys you are choosing from are not going to cheat you:

• Federal Licensing: Lenders in California have to be licensed by national and local agencies to conduct business. Licensing is one of the easiest things to check on and something you should always ask about. If they have it—great—but if they don’t or try to give you some excuse as to why they don’t, it may be time to try someone else.

• Law 6500 of Consumer Protection on balloon loans: One of the ways lenders can make hard money loans more appealing is by making the payments smaller. However, when they do, they are also making the balloon payment you will have to make at the end of the loan term that much higher. What this law does is limit balloon payments by not allowing them to mature in less than five years.

• Negative Amortization Bans: One of the negatives involved with hard money loans is the higher interest rate. After all, lenders deserve to be compensated for their risk. But what this refers to is banning interest rates that are so high that they cause undue financial hardship on the borrower (negative amortization).

• Predatory Loans: In the interest of approving a loan application faster (which is a big selling point for hard money lenders) the step involving income verification is sometimes overlooked. Either that or the lender knows the borrower can’t pay back the loan but makes it anyway so they can eventually seize the property used as collateral. Whether it is by accident or on purpose, it is considered predatory lending—which is illegal. Federal law now requires lenders verify the ability to repay a loan before approving a loan.

• Upfront payments: Some hard money lenders in California and elsewhere will require borrowers to make a pretty large payment up front to possibly cover interest and an advance installment fee. Federal law keeps a lender from making it too large (no more than two reasonably sized payments depending on the structure of the loan).

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.

New Trends In California Private Hard Money Loans Making It Easier For Dreams To Come True

If you have been thinking about going into business for yourself or flipping houses some of the new trends in California private hard money lending may encourage you to quit thinking about it and do it.

We all want to make more money. We want to be able to say we don’t depend on anyone to provide for you and your family. We all want to be good providers and not have to worry about whether we will be able to buy food for our families.

However, for many of us, if we lose our jobs we may be okay for a few weeks or a couple of months, but if we don’t get a new job quickly, we are going to be in trouble. That possibility makes the thought of going into business or investing in something like house flipping more appealing.

But then we know that our bad credit is going to keep conventional lenders from approving our loan application. That is where the friendly, neighborhood California private hard money lender comes in handy. With some of the new trends in hard money loans, the option is becoming more appealing.

New Trends in Hard Money Loans

Getting a loan from a traditional lender or bank is often preferred, but they can take a long time and if you have questionable credit or insufficient income history chances are good you’ll get rejected. Thanks to California private hard money lenders, the dream doesn’t have to die. Yes, it may cost you a little more, and you may need more money of your own upfront, but you can get approved in spite of the issues a bank may have with you.

With some of the new trends in hard money loans, the option is looking better:

• Decreasing rates: What keeps many from even considering applying for a hard money loan is the higher interest rate. But as the housing market stabilizes and interest rates go up, the rates for private hard money lenders will go down (because more people will find success with bank loans). They will still be on the high side, but they will be lower than what they have been.

• International Lenders: More and more international-based lenders are starting to get involved in the U.S. loan market. They see an opportunity and want to cash in. For investors, it means more competition among lenders for your business which translates into better terms for you.

• Commercial Loans: If people are finding success with California private hard money loans for individual purposes, it stands to reason that they could work for business purposes. This, of course, means you take out a larger loan at a higher interest rate. But if the bank says no, what other choice do you have? With more lenders willing to take that chance, why shouldn’t investors?

• Crowdfunding: While not exactly private hard money lending, it is pretty similar and becoming more common. However, the option may go away in the near future depending on how lawmakers deem regulations apply to it.

Don’t Let Fear Of Rejection Hold You Back

It can be very hard to handle the thought of being rejected for a loan. You go through all the work that it takes to get to the point where you need the money only to get rejected—it’s devastating. But with hard money loans becoming a better option, there is no reason to let the dream die because the bank doesn’t see it.

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.

Benefits To Investing With A California Private Hard Money Loan

When it comes to investing, people often try to go the traditional route first and apply for a loan from the bank, but there are benefits to using a California private hard money loan that can’t be ignored.

For many investors, going with the tried and true route (conventional or traditional loans) is the only way to go. They feel like they know what is going to happen and can trust the process, so it is safe. However, at the same time, there are others that rely on hard money loans and claim that they can get a leg up on the competition by using them.

Can they? What sort of benefits could there be to using a California private hard money loan over a conventional bank loan?

Make More Money Faster With A Private Hard Money Loan

Investors want to make money, and if they can make it sooner rather than later. A California private hard money loan can help them do just that. How?

• The application process is easier and faster which will result in you getting your money faster. That way you can spend more time hunting for the best investment opportunities and less on the loan approval process.

• Conventional bank loans can have issues that will hold up the approval process or cause your application to be declined. Investors can avoid those problems with a private hard money loan.

• You can negotiate a better price for the property since you will be able to close faster than someone awaiting approval for a conventional loan.

• If you have poor credit and inconsistent income history you will have trouble getting approved for a conventional loan, but not a hard money loan since they are equity based.

• Having cash on hand thanks to your California private hard money loan will help you close a deal faster. Sellers like money in hand much more than having to wait for a conventional loan to come through.

• Since hard money loans are equity based, it is easier to get approved for a loan if you have equity in another property. You can then take that money, invest it, and make more money.

• Short sales and foreclosures will not hold you back since hard money loans are equity based.

• Hard money lenders have the freedom to be more creative with terms for a loan and can make them more beneficial to all parties.

• With conventional loans, many lenders will stop at four financed properties, but with a hard money lender, there is no such limitation.

It’s All About Speed

In today’s world, we want everything to come faster. We want our downloads to go quicker, our tax refund checks to arrive sooner, and our fast food to be faster. Many investors will caution people that are looking to make a quick dollar through investing since those investments typically come with a lot of risks.

However, with a California private hard money loan, it is possible to invest in more reliable properties and speed up the process.

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.

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.