Borrowers use California Hard Money loans for investing in real estate such as commercial property. In contrast, a mortgage is usually reserved for your primary residence, has a formal application process and longer repayment terms. California Hard Money lenders however, which are typically private investors or small companies, will sometimes lend money when a bank or traditional lender will not. The tradeoff of a hard money loan is a higher interest rate. When getting a hard money loan for an investment property including commercial property, you face the risk that the investment will not turn a profit. Before attempting to borrow from a hard money lender, understand the payment terms and other lending criteria and do your homework. Inquire about the lender’s history and terms before settling on a hard money lender. Hard money lenders use the property value to determine the loan-to-value. For example, a LTV of 65 percent means the lender will only lend up to 65 percent of the value of the investment home. Some lenders require that you fill out a credit application and provide income verification such as a W-2, pay stubs and tax returns. However, since hard money loans are for real estate investments, many lenders only use the property value and an inspection of the property as a basis for the loan which may be difficult to gauge when dealing with commercial property.
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.