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Thursday, January 31, 2019

Do Private Money Lenders Work Like Traditional Loan Lenders?

Considering a private money lender is a common evaluation for anyone deciding on the best loan choice for them. It certainly was for Brianna and David when they didn’t qualify for a traditional public loan and learned the major differences between private and public lenders.

Brianna and David wanted to invest in a fixer upper. When they approached their local public lender, their nearby credit union, they found that they did not qualify for a major public loan. To do so, they needed a strong credit score and a solid debt to income ratio. Unfortunately, to seek out their dream of flipping a house, they would need to seek untraditional options.

Brianna and David were certainly a little wary of Colorado Hard Money Lenders—they were unsure what to expect, and the promise of an easy approval process made them suspicious. As they began to learn of their options, they became aware that private money lenders could offer a few things: money and speed.

Finding Success with a Hard Money Lender

Brianna and David didn’t rely on speed when it came to obtaining their loan. They weren’t working to prevent a foreclosure and their property wasn’t particularly competitive. Still, the prospect of speed was attractive. They found that their hard money lender could begin the loan process as soon as a day—something banks couldn’t get close to matching. Public lenders typically need a month to begin the loan process. As Brianna and David discussed prospects with their private money lender, they learned of their lender’s flexibility. For one, their lender could approve their loan request based on the potential of their property—and since the loan would be going toward a project that would be reaping benefits and a high probability of making a profit, they were able to qualify. Second, their lender was also open to expanding the terms of their loan agreement. Hard money loans work best with people seeking out funding for short-term projects, but they can sometimes be expanded with the right lender. Brianna and David were happy to learn their lender believed in their circumstances to support an extension.

Effects of Eligibility

Brianna and David were thrilled to come to an agreement with their private money lender. However, as they looked over the terms to the agreement, the major differences between a private and public lender were much more apparent. For example, private lenders have high fees and interest rates incorporated into the loan. This is something that banks do not do, and private lenders do this to weed out potential clients, and help ensure the reliability of their borrower, if it isn’t immediately reflected in their credit score or debt to income ratio. The high costs combined with the comparatively steep interest rates often weed out a lot of potential borrowers because, while the easy approval process may deem private lenders “affordable,” the hidden costs reveal they are not. Brianna and David weren’t thrilled about the fees, but found that, with some work, they could afford them provided their property didn’t come with any unfortunate surprises. Fortunately for Brianna and David, their hard money lender was a great option for their first fixer upper. Though it was costlier than they expected, they were able to complete their project successfully.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

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 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Wednesday, January 30, 2019

Why Colorado Private Money Lenders Can Get You Money Fast

Who are private money lenders—and should you borrow from one? Read more below to find out the advantages of their speed and if they are the best choice for you.

Private money lenders are untraditional and alternative options to public lenders. They usually consist of private companies and investors. Traditional public lenders usually consist of banks and credit unions. The process of borrowing from private and public lenders is a little different, based on the requirements each type have. Typically, people who cannot qualify for a loan with a private money lender will be referred to a private lender who offers hard money. Colorado Hard Money Lenders evaluate the value of the property first. Then, they evaluate the prospective borrower. Because of this, they are able to approve more people for loans than traditional public lenders. While they are able to provide a rapid approval that is unmatched by banks, there are a few things to know before committing to a private lender.

Expectations of Colorado Hard Money Lenders

Private money lenders are a great alternative option, but it is important to know that their speed is accompanied by high costs. The ability to approve borrowers with credit that doesn’t meet typical standards is paralleled by the assurance they provide themselves by requiring their own high rates. These rates can be 5 percent higher than those on the average loan market. Additionally, the short repayment period is something that should be considered heavily. In combination with the high rates, repayment may not be as feasible as you think. Hard money lends itself to short-term scenarios. So, even if you can get approved by a private lender while you are struggling to be approved by a bank, it doesn’t mean it’s the best option for you.

Evaluating Your Loan Eligibility Successfully

Even though private lenders offer many benefits, like speed and flexibility, it is important to understand how other factors may affect the balance of the lending process. For example, it’s important to know other situations people turn to hard money. They turn to hard money when they need it fast, but they also turn to it for short-term projects. These short-term projects should also have solid plans, with little wiggle room for wavering, so that if you are hit with the unexpected, you can afford it. If you are unsure if you’re a great candidate for a hard money loan from a private investor, you can always turn to a real estate attorney. Real estate attorneys can help you analyze the terms of the loan agreement so you’re understanding of all expectations, and any possible hidden fees or stipulations. This would be one great way of moving forward with a private lender confidently. If you are wary of the situation, it is likely that is not the best option for you. Colorado Hard Money Lenders are there to help make your dreams come true—you just have to put in the evaluation and research to know if they are the ones who will help provide you a happy ending, or another alternative option with similar benefits.

Can You Really Qualify for Texas Hard Money Loans?

Interested in obtaining funding with an alternative loan but unsure if it’s for you? Continue reading to learn more about how you can be successful with hard money, and if it is right for you.

Hard money loans are offered by untraditional lenders. Untraditional lenders are usually private companies and investors. Normally, a traditional loan can be obtained from a bank or credit union. However, because traditional lenders have qualification standards, not everyone can receive traditional loan funding. This is why many turn to Texas Hard Money Lenders, and why you may be interested in learning more about hard money yourself. Hard Money Lenders utilize the property’s potential when approving borrowers for loans. The value of the property, its potential profits, and collateral are the overall determining factors. And while financial history is important, it doesn’t play as big a factor as the property’s value will.

Qualifying for hard money loans will certainly be exciting, especially if you have been turned down in the past by other lenders. Though before moving forward, you will need to consider a few things before accepting and signing the terms to your loan agreement.

What to Know if You’re Eligible for Private Hard Money

Private lenders have high interest rates and loan fees that accompany the terms of private hard money. The rates can be as high as 15 percent and meant to protect the lender for possibly risky loans and unreliable lenders. It is not uncommon, either, to see ill-intentioned individuals hide under the premise of these loans. Doing your research and feeling confident in the reliability of your lender is going to be as important as proving yourself a reliable borrower. It’s not unheard of to have lenders pull deals out at the last minute. Understanding their past success with previous clients will give you an idea if you make a good fit with the kind of work they are intending to do, but you should also be aware of common situations when hard money is completely ideal.

Is Hard Money Right for You and Your Situation?

The short repayment period of hard money loans usually means it is most ideal for short-term projects. Examples of this include: renovating a fixer upper, obtaining money fast to prevent a home from foreclosing or to grab it quickly off of a competitive market. Fixer uppers are great for hard money because the loan can be used for renovations before the home is sold for a profit, in a very short-term scenario. Using the loan for something like the necessities of a rental property, which involves a profit after obtaining a tenant long-term, would not be ideal. 12 months are usually given for the repayment period, unless another deal is compromised with your lender. Timelines are extremely important. It’s one thing to obtain funding, but it’s another to not be able to work with the given circumstances of the agreement. Knowing how the timeline of hard money functions within your own personal timeline will determine if you will find success with hard money.

If You Need Speed, Private Hard Money Loans Might be the Best Option for You

Trying to borrow money fast? If you can’t qualify with traditional lenders and have a need for speed, hard money loans offered by private investors just might be for you.

Lots of people turn to traditional lenders like banks and credit unions when they need money. However, it doesn’t take a genius to know that traditional lenders have some tough requirements to meet. Having a great credit score and debt to income ratio can make or break you when it comes to qualifying for loans, often leading people to seek out alternative options.

Alternative loan lenders are not bad. They are untraditional, private investors that can usually offer money faster than traditional lenders. Because they can cater to a wider audience, their needs and expectations are often different. For example, they have different loan approval requirements, as well as steeper fees and interest rates.

Are You Eligible for Private Hard Money?

Qualifying for hard money loans is possible, even if a bank denies you. This is because Texas Hard Money Lenders consider property potential before they consider borrower potential. If you are working to obtain a property with high potential, it is likely that a private investor will provide you with funds to support your property. Private Texas Hard Money Lenders consider the LTV—the loan to value ratio. Sometimes, they can offer 65 percent of the property’s worth to you in funds. Additionally, because they work a little differently than traditional money lenders, the relationship is usually more transparent with a little flexibility. Usually hard money loans are paid off in 12 months, but can be expanded as long as 60 months, or 5 years. In this way, Texas Hard Money Lenders may seem “individualized,” making the loan process suitable to each individual that has been denied by banks due to high, generalized standards.

Borrowing from Texas Hard Money Lenders Successfully

If you think this sounds too good to be true, it probably is. While Texas Hard Money Lenders offer lots of benefits, they also have some cons that should be considered thoroughly—before making any rash decisions out of excitement. For one, Texas Hard Money Lender maintain very high fees. This is a stipulation of their easy approval process, and acts almost as a reliability buffer for them as lenders. Knowing if you can handle high fees and a short repayment period is important. Even if there is flexibility within the repayment period, you still want to be realistic. Researching a reliable lender will also be important. While Texas Hard Money Lenders typically provide good, transparent relationships with their borrowers, it is not unheard of for lenders to pull out at the last minute, or hide fees within the loan agreement. If you are feeling unsure of your hard money lender, you can always invest in a real estate attorney who can help you evaluate and understand the terms of the loan agreement, so that you can feel confident you will be making the best decision for you. Hard money loans are a great option for people who need money fast—just make sure that your need for a loan doesn’t overlook stipulations that could cause you trouble in the long run if you aren’t being realistic about all of your needs.

Do Texas Hard Money Lenders Really Make Dreams Come True?

Are you in need of a loan but unsure if hard money is right for you? Read Julia and Robert’s story below to find out the best way to take advantage of the hard money market.

Julia and Robert are married, successful business partners who have been working together for over 10 years in the housing market. With an eye for design and innovation, Julia has been working as an interior designer, while Robert has been working as a real estate agent. Having been in the industry for so long, it’s a wonder that they haven’t branched out into home renovations. Perhaps it’s been the hours of binging HGTV that’s inspired them to explore new opportunities.

Despite being successful in the industry already, it was still necessary for Julia and Robert to take out a loan to begin renovating a home. They were exciting to begin work right away, and were interested in pursuing Texas Hard Money Lenders because of the speed they offered.

Eligibility of Private vs. Public Lenders

Making money with private hard money investors means being aware of all of their expectations. Private money lenders work differently than traditional lenders like banks and credit unions. For example, they have an easy to pass approval process. Instead of evaluating the borrower’s financial history first, they evaluate the value of the property. Considering the property’s potential allows them to determine if it would be a successful investment. Then they can consider if the borrower is someone, they would be willing to work with. In this way, they offer flexibility that is appealing to many, especially when gaining approval by banks is so difficult. Working in the housing market made it necessary for Julia and Robert to understand finance and credit. This made them great candidates for a loan from the bank because they had a great credit score. Not only that, but the wealth they’d accumulated from work also made for a great debt to income ratio, something else that disqualifies many from bank loans. Despite these benefits, Julia and Robert turned to Texas Hard Money Lenders for another reason: speed.

How to Make Money with Private Money Lenders

Using the advantages of hard money was exactly what Julia and Robert wanted to do. Obtaining a property with high potential was going to be hard to do on a competitive market, though the speed of their private investor allowed them to bid fast. Banks can take as long as a month, but their investor allowed them to make a bid the following day. After obtaining the property, Julia and Robert were able to begin renovations. Because the fees of private investors are higher than traditional public lenders, Julia and Robert’s decisions had to be considered carefully. Anything can go wrong when renovating a house, and if the opportunity is there, it will. Creating a buffer for financial downfalls is exactly what Julia and Robert did, but they were fortunate not to have to fall back on them for much. Then, Julia and Robert were able to post their house on the market successfully. With a successful sale within their profit margin, making for less stressful loan repayments, Julia and Robert were able to prove that Texas Hard Money Lenders can help make dreams come true.

Tuesday, January 29, 2019

Triple Your Chances at Becoming a Borrower with Texas Hard Money Lenders

Being disqualified from a loan can be frustrating, and you may not know what your next steps should be. Fortunately, for those who don’t qualify for traditional loans, alternative lenders exist to provide options for those who may be struggling to find funding elsewhere.

Traditional lenders like banks and credit unions may have some hard to meet requirements for the average borrower. If you’ve fallen behind in a payment or have weak financial history, you are probably not the best candidate for a traditional lender. While it may be discouraging at first, you should know you may qualify with untraditional, private lenders who offer hard money.

Texas Hard Money Lenders are the common go-to for people who can’t qualify for traditional loans. They offer speed, transparency, and a quick approval process—perfect for those who are ineligible for bank loans, and are looking to moving forward fast.

Benefits of Borrowing from Private Investors

Borrowing from private investors usually means having a more personal relationship with greater transparency. In a successful deal with a hard money lender, you will get the money you need fast, as well as have some flexibility within the loan. Private investors focus on the property’s potential. This means they will evaluate it using a loan to value ratio, or LTV. Sometimes they are able to offer borrowers as much as 75% of the LTV. Banks differ because they evaluate the reliability of the borrower first—they seek out credentials, ensuring they are lending to a candidate who will be successful in the repayment period. This is not to say that private lenders do not consider your finances—they do. But they also evaluate how successful you will be with the property. In cases of fixer uppers, where a profit is hopefully being made, they will consider how this will factor into your ability to repay.

Tactics to Borrowing Successfully

Borrowing from Texas Hard Money Lenders successfully comes down to using your smarts in making decisions. Doing research and understanding all the factors involved will make your life easier. This involves the terms to the loan agreement, expectations of your lender, and factors regarding the property itself. The repayment period for hard money is fast. Because it is paid off so quickly, usually in 6 months to a year, it is a great option for fixer uppers. The success of a quickly sold and renovated home lends itself to this option. However, others with a need for speed may also turn to this option—like those trying to prevent foreclosures, or just trying to obtain a competitive property. One major stipulation all borrowers of hard money need to consider is the high fees. While obtaining loans from private investors may come easier than public investors, it definitely comes with a noticeable price. Because lenders are going into a loan agreement with someone deemed “unreliable” by banks, the high fees act as a buffer between the lender and borrower. Knowing your financial situation and thoroughly evaluating if you can couple the fees of hard money as well as its repayment period will be essential, because while private investors offer great alternative options, they may not be the best bet for everyone, even if approval comes easy.