One of the most important things to consider, when buying a property, is how quickly funds will be available. Many times, when you find investment properties, you need to move quickly, especially in the California market. Your ability to get access to money quickly can make all the difference. It’s important to begin relationships with potential California Hard Money lenders as quickly as possible. You also need to be aware of pre-payment penalties. Pre-payment penalties can really hurt your deal and cut into your profits substantially. Try to avoid pre-payment penalties. Many Hard Money Lenders, California not being the exception, will also require you to fill out a credit application that may ask you for W-2’s and or tax returns, your most recent pay stubs, and bank statements. Again, it’s all about the lender protecting their assets. However, some like the old fashion way where they only care about the deal so they do a drive by or physically look at the property. All of this depends on whom you deal with. Now, one may ask, when should you I a hard money lender? Hard money is great for beginning investors who may not have funds readily available or for those who have bad credit and cannot qualify. Investors also use hard money when they need to purchase quickly which is why you need to find a lender that can move as quickly as you. Typical soft money or conventional loans take 30 days or more. Sometimes that is to long. Using a hard money lender is also a creative way to finance a property. Some like to call it “Nothing Down”. If you can borrow enough money to buy the property, fix it up and then sell it under market value for a profit, then you’ve just made money without any of your own money. Sure it will cost you money to borrow that money, but the rewards out way the expense, as long as your profits on the property exceed what it cost you to borrow the money.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
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.