Laws that California hard money lenders should be aware of.

When you are getting started in the real estate investment business there are a lot of things that you must be aware of. In each state there are different regulations that you must abide by. The same goes for California hard money lenders. If you are not careful you could end up with a lot of people upset or with a mountain of debt. Here are some laws that you should make sure to keep an eye out for if you want to become a hard money lender.

As we all know, California is one of the best places to start your career in the commercial real estate business. You have a variety of regions that can be flipped as long as you have the right market and business plan. There are the beautiful snowcapped mountains to the North and of course that beautiful white beaches along the coast.

California is one of the best places to make your fortune in the commercial real estate market. If you want to make it as a California hard money lender you must make sure that you have a full understanding of the laws in your new town. For example one of the most important laws that you have to worry about is usury. This is the act of overcharging the interest on your client’s loan. Yes, as a hard money lender you do have room to play with the when it comes to the types of loans you have. You have the power to choose who you want to lend to, and how much you want to lend. Usually you will have to deal with a usury law if the amount of interest that is being charged exceed 10%.

So what does usury mean for a California hard money lender?

Quite simply it means that you have to make sure you thoroughly vet all you potential clients. Say the real estate market is going through a lull period, and your client as little to no credit. The collateral that they have may not be sufficient to cover the loan that they are asking for. Now depending on the loan you may not see a large part of your money back from your investment.

For a California hard money lender now if the loan that is issued is found to be usurious you may have to deal with a variety of issues before you can resolve the issue. For example, if awarded damages the person that took out the loan can ask for more than the amount paid on the initial loan. The borrower can also ask that any future interest be cancelled from the loan, as well.

What can a California hard money lender do to make sure there are no hiccups?

Well, with these laws passed and the Dodd-Frank Act making it is much harder for lenders to operate their business smoothly. Hitches in a situation are inevitable, how to circumvent those obstacles will help you make it in the real estate business. There are some exemptions that will work in your favor.

For example, if the loan was used to repair or buy real property with the loan you may be exempt from the usury laws in California. Or if the loan is used for a business that has $2 million in assets may also be exempt, as well.

 

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.

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Hard money lenders versus hard sales people

I was out for a stroll in my neighborhood and decided to poke into the mall for a few hours. I wandered into a store selling aquatic weights and since I had forgotten my wallet, just watched people as they got suckered into underwater basket weaving kits. I watched a sales rep approach this young gal and belittle her. It was really funny.

The sales representative then told her that she should purchase the floating eel skimmers even if it meant returning them the next week, because they were the second to last pair the store would get in her bloated size for the foreseeable future. Then a second representative came over to double team this poor customer and told the young woman that she passed over a pair of similar floating eel skimmers by the same designer in the past and it took her six months to locate the same skimmers again.

I whistled to myself, thinking how grand it was that California hard money doesn’t act like that. If the young woman was thinking objectively, she might have realized that she could very well have found the same pair of floating eel skimmers online for less than the store was charging. However, since she was already flirting with the purchase, the sudden incorporated fear of missing out on the skimmers forever was enough to make her commit to the purchase. Jeez, she should get out more! Private money lenders California never do that. If they did, there’d be public outrage and riots in the street.

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 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 | 85027111 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.

Hard money loans are straight forward, unlike salesmen.

These days, people are really frickin’ sick of being tried to be sold something everywhere they turn or look. But there are ways to look through it. Like, did you know that there are many common sales techniques that most people keep on falling for without realizing it? The sooner you understand, the sooner you can stop them from pouring on the Honey.

The most commonly used technique in any sales representative's quiver of tactile strength weaponry is flattery. Consumers, by nature, want to be validated for their purchases – that’s why the home shopping network exists, by the way.

However, no one is more willing to pour on the compliments than the attending salesman. They're always the first to tell you that the dress you're trying on is stunningly slimming or the car you're test-driving makes you look like an executive.

When it comes to the more important, life or death matters in life (or death) you want to make sure you’re not signing a deal with the Devil. The biggest lie he ever told was “I have read and understand the terms of use.” Then, click accept.

Luckily, hard money lenders California aren’t swindlers like that. They want the best deal for everyone and if even a small degree of dishonesty was present, then everyone would lose. That’s because California hard money isn’t about sales – it’s about results. Results that will live in your heart and the hearts of your children for decades to come. And then everyone can breath a collective sigh of relief and go back to their daily living.

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 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 | 85027111 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.

Tips on keeping hard money in line.

You know that with a click of the mouse, from just about anywhere in the world except North Korea or Tahiti, you can buy and sell stock market things using an online broker. The right tools for the trade are key to every successful independent venture; finding success in the market begins with choosing the right private money lenders California. I mean, if you really believe in your project, your dreams and your future, you want the right cat to be in charge. Let’s hope that’s the case.

Return on cash is money in the bank so you can say woohoo! You are that much more likely to always have some cash in your favorite hard money lender California account. That’s the idea, right? How else can you do what you need to do?

Some brokerages will only offer 3-5% interest on this money, while others won't offer you a nickel. They should really get rid of that type of currency. Phone or email the brokerage to find out what it offers. In fact, this is a good question to ask while you're testing its petty customer service! All those little extras can make all the difference between success and failure. Be on the lookout for extra little goodies (besides the free coffee and candy on the desk or getting to check out that cute secretary) offered by brokerages to people thinking of opening an account. Don't base your decision entirely on the $500 in free trades, but do keep this in the back of your skull.

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 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 | 85027111 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.

Hard money is the independent way

Did you know alternative trading methods, like California Hard Money provides you with more flexibility? Although we all love the internet, we can't always be at our iPads, though we are trying. Check to see what other options the hard money lender California offers for placing trades. Other alternatives may include touch-tone telephone trades, pay by fax ordering, or doing it the low-tech, physical, touchy feely way - talking to a broker over the phone.

Word to the wise: make sure you take note of the prices for these alternatives. In fact, why aren’t you keeping an investing diary? Don’t be caught with your pants down. They will often differ from an online trade. The broker's professional background matters. What are others saying about the brokerage? Just as you should do your research before buying a steak at a restaurant, you should find out as much as possible about your broker.

Price isn't everything. Don’t you forget the saying "you get what you pay for"? As with anything you buy, the price may be indicative of the quality. Don't open an account with a broker simply because it offers the lowest commission cost. He’s cut corners somewhere. You know it. Advertised rates for companies vary between zero and $140 per trade, with the average around $120. There may be fine print in the ad specifying which services the advertised ratings will actually allow you to. In most cases, there will be higher fees for limit orders, options and those trades over the phone with your broker. You might find that the advertised commission rate may not apply to the type of trade you want to try out.

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 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 | 85027111 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.

Understanding hard money loans aren’t free – but they’re a nice deal.

So most people are aware, loans aren't simple hand-outs, and they shouldn't be approached as such; a bank's primary concern is determining whether or not you will be able to pay back your debt based on its time frame and agenda.

How do they do that, you ask? Well, banks judge potential borrowers based on a number of key things. Among them: Who in the heck are you? What do you have to offer the bank? That is, what can they get out of you?

Also, what's that money gonna be used for? If you were to be smart and get a loan from a hard money lender California, they’d still ask this so be prepared. A bank is a lot more likely to lend money to someone who wants to build something like a home addition (and add equity) than someone who is planning on spending the money on consumption or disposable crap or junk food.

Where you're trying to get your loan from can be a big factor of whether or not you get it. That’s why some people choose hard money lenders California. Lending criteria can vary between a brick-and-mortar bank and an online financial institution as well as between various geographic regions - some lenders are going to be more prone to give than others. The length and terms of the loan - both the interest rate and the duration of the loan - determine when banks can start recording a profit and also how much profit it will reap. How: Can the bank be sure that you will be able to pay the loan off based on the terms? How can you guarantee payback or at least hedge the bank's risk in some way?

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 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 | 85027111 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.

What to do when Contacting a Lender

There are many hard money or Private Money Lenders, California included, throughout the United States, so researching one near you is not a problem. The Internet directory Moolahlist.com lists lenders. Rather than settling on one or two lenders, create a list of lenders in your area. Use a lender familiar with the property values around the investment home. If you have a hard time locating a lender, contact a local mortgage broker who may have names of private money lenders. Having multiple sources of quick cash is a good idea in case of rejection. Obtain each lender's borrowing criteria to compare notes before settling on one. First of all, have a plan. The purpose behind a hard money loan is to provide capital to acquire an investment home which you intend to sell for a quick profit. To this end, obtaining a hard money loan requires that you have a plan for selling the property, which includes making any repairs. Knowing exactly how much you need -- not only for buying the property but also repairs and maintenance -- prevents you from borrowing too much. Before requesting money, estimate ancillary costs, such as repairs, maintenance and construction costs, and factor these into your loan application. Provide sufficient detail regarding the investment home, including any supporting documentation, to improve your chances of receiving a loan. Secondly, know the risks. California Hard Money loans carry higher interest rates than typical bank or commercial loans. A quick sale of the property is preferable, but this may not be the case in reality. You are responsible for making interest payments as long as the property remains unsold. You also face the risk that the property will decline in value or you will sell it for less than expected for a smaller profit or even a loss. In addition, the lender may foreclose on the property to recoup its money, leaving you with nothing to show for your work and effort

.

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 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 | 85027111 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.