Monthly Archives: August 2016

How to make hard money make it easy to invest.

August 15, 2016Uncategorizedcalifornia hard money, California Hard Money lender, california hard money lenders, california hard money loan, california hard money loansbigdaddydennis

.Everyone agrees that investing in the future is expensive, but we have to do it because society tells us to and it’s worth it in the end. Be it a college education, a house or a vehicle, sometimes a loan is the only option to get what you want when you’re browsing for an expensive item. As a young dude, it can seem almost impossible to get approval for a loan without mom and dad’s support. That’s why understanding the ins and outs of the loan process can be essential to getting that check from the bank on your own.

That’s where California hard money comes in. It’s like a regular loan, but not with the same kind of prices and it can be a little daunting, but if you can understand it, you can understand anything. Consider talking to private money lenders California instead of mom and dad.

When thinking about getting a loan, it’s smart to try and look at the situation from the bank’s perspective. To the bank, loans are not a minor source of revenue, so they take it very seriously. The bank cuts you a check for a certain amount of money (this is called principal – you might want to get a dictionary), and you give the bank that same amount of money back as well as the interest that is charged for the privilege of letting you have that money. Interest payments are the lifeblood of most banks. Understanding that is the first step to moving out of the garage.

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.

August 15, 2016Uncategorizedcalifornia hard money, California Hard Money lender, california hard money lenders, california hard money loan, california hard money loansbigdaddydennis

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?

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.

The real deal with hard money – You’d be surprised!

August 15, 2016Uncategorizedcalifornia hard money, California Hard Money lender, california hard money lenders, california hard money loan, california hard money loansbigdaddydennis

One of the most important and pressing investment decisions you’ll make has nothing to do with stock markets, bonds or mutual funds. This crucial decision is picking the correct hard money lenders California.

There are dozens of companies offering private money lenders California services on the internet, and many of them are just as good if not far better than traditional, brick-and-mortar businesses that you drive by on the way to work at McDonalds, but how to decide which one is best for you? Here are a few lighthearted critical factors you’ll want to ponder.

Discounts are always a good deal. Consider starting out with a full-service broker. They are often best for amateur investors who may still need to build confidence and knowledge of the markets. As you become a more sophisticated investor, you can graduate into investing more of your money yourself. Everything fits together in these situations so paying attention is key. Try hitting up the company’s website at different times throughout the day, especially during peak trafficking hours. If you don’t know these times, you may not be as internet savvy as you think you are. Watch how fast their site loads and check some of the links to ensure there are no technical difficulties. That would be a disaster on the scale of Y2K.

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.

A Lender for Every Kind of Buyer

August 14, 2016UncategorizedCalifornia Hard Money lender, california hard money lenders, california hard money loan, california hard money loansbigdaddydennis

There are many types of Hard money loans, it’s across the board. When it comes to Private Money Lenders California has seen everything from a $70,000 foreclosure to a half-a-million-dollar loan, where somebody just needs so much cash at one time, but can’t verify their income to make it worthwhile for a traditional lender to look at. For instance, recently a private lender did a hard money construction loan for someone building a cabin near Yosemite National Park. Regular lenders balk at such deals because they don’t like financing properties in remote locations or those that aren’t of standard frame, concrete block or other traditional-type construction. Rural buyers in California also sometimes use California Hard Money loans. That’s because conventional lenders get antsy about mortgages for properties that derive a substantial portion of their value from the land rather than the house, which in California account for a large portion of properties. Buyers of expensive properties and those who already own such homes and want to cash out large amounts of their equity via refinance loans also turn to private money lenders. So do real estate investors. These buyers purchase properties on the cheap, fix them up and sell them for profit. They use private loans because the loans come with less red tape and restrictions than bank loans. Lastly, borrowers facing foreclosure make up the last major category of hard money customers. When someone misses a mortgage payment, that person usually has some leeway to bring the loan current. But once a 30-day delinquency turns into a 120-day or 180-day one, the lender will usually start the foreclosure process. At that point, the borrower is so far behind that even subprime lenders are reluctant to come in, refinance the loan and start the clock ticking again. A hard money lender, on the other hand, may be willing to give that person a new loan. The customer can use it to pay off the original lender, gaining enough time to sell the property and find a new place to live. Borrowers who miss payments because of temporary problems, such as a job loss, can benefit, too. They can use the breathing room a hard money loan provides to rebuild their credit. By making payments on time for a year or two, they’ll lay the groundwork for a future refinance into a more favorable loan.

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.

Private Loans Come with a Price

August 14, 2016Uncategorizedcalifornia hard money, California Hard Money lender, california hard money lenders, california hard money loan, california hard money loansbigdaddydennis

Customers who can find an California Hard Money lender shouldn’t expect to be offered grade-A terms, though. Private money mortgages typically have rates well into the double-digits and often come with several upfront points. People who don’t own at least 30 percent or 40 percent of their homes probably won’t even be able to get a loan. That’s because hard money lenders limit borrowers’ loan-to-value ratios so they can still make money off their properties if they have to foreclose. If a property in a subdivision is worth $100,000, the loan-to-value on a hard money loan may be 50 percent to 65 percent, so maybe $65,000 maximum on a first mortgage is loaned against the property to pay off the old lender who’s preparing to foreclose. That does not mean that that customer can’t take the property and sell it tomorrow for $100,000 and reap the benefits of that additional $35,000. A person is better off paying 14 percent, or a higher rate than the normal rate of 9 or 10, to keep the property rather than lose it. Or say you don’t get $100,000 for it, you get 90. However, ninety is better than zero. Consumers need to watch out for “loan-to-own” predators, too. They structure hard money loans in such ways that borrowers inevitably fail just so they can take possession of their homes and profit off their sale. It’s the same rules you get on any loan. Before you agree, clearly understand what it is you’re getting into. Understand what the fees are and what the actual cost of the money is to you. You have to be smart. Despite the pitfalls, lenders say that an California Hard Money loan can provide borrowers a lifeline in times of need. Consumers just need to make sure their loans will help get them out of debt, not bury them even further.

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 for Commercial Property

August 14, 2016Uncategorizedcalifornia hard money, California Hard Money lender, california hard money lenders, california hard money loan, california hard money loansbigdaddydennis

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 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

August 14, 2016UncategorizedCalifornia Hard Money lender, california hard money lenders, california hard money loan, california hard money loansbigdaddydennis

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

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.

Importance of Finding a Quick Private Money Lender

August 13, 2016Uncategorizedcalifornia hard money, California Hard Money lender, california hard money lenders, california hard money loan, california hard money loansbigdaddydennis

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 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 Find a Hard Money Lender

August 13, 2016Uncategorizedcalifornia hard money, California Hard Money lender, california hard money lenders, california hard money loan, california hard money loansbigdaddydennis

How can you find an California Hard Money lender? Well, there are hundreds of hard money lenders in California waiting to lend you money. For all you know a private lender could be as close as your next door neighbor. The best way to find hard money lenders is to talk to a mortgage company and ask for referrals. You can also call a title company or a real estate agency. They deal with buyers and sellers of houses every day. Shop around until you find the best one that will fit your needs. Another way is search online for Hard Money Lenders California. If you don’t specify California the results will be for a nation-wide search with most of the lenders wanting a credit check. However, if you find a hard money lender in your area, they may just do a drive by of the property you are interested in. Now that you know a little more about hard money and how it works, you can make an educated decision if you want to go this route. Understand there are quite a few lenders out there. It is a good idea to shop for the best one to fit your needs. Then you can establish a long term relationship with them. If you use them once and everything went smooth, you will more than likely use them again, and they will be happy to oblige.

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.

Why do Private Money Lenders Supply Loans?

August 13, 2016Uncategorizedcalifornia hard money, California Hard Money lender, california hard money lenders, california hard money loan, california hard money loansbigdaddydennis

Would you lend to a borrower in foreclosure? Or someone looking to buy a large ranch whose value couldn’t accurately be determined with a standard appraisal? How about refinancing someone’s mortgage so the person can take out hundreds of thousands of dollars in cash? For California Hard Money lenders, it’s all in a day’s work. These private individuals and small local companies operate where even subprime lenders fear to tread, making loans to the desperate and needy the same way regular banks and brokers service traditional customers. Private lenders are harder to find than mainstream lenders and they don’t come cheap, but they can help hard-luck borrowers make bad situations better, and sometimes, they’re an California consumer’s only choice. There are Private Money Lenders, California included, who, if the interest rate is high enough and the perceived risk is low enough, will put the money up front for you to use. Brokers and other intermediaries who arrange hard money, or private money loans, go to people who have money to lend and match them up with people who can’t get money any other way.
That may sound a little like how the Mob works, which is why people call it ‘buying a home the “hard” way’ but don’t worry. Hard money lenders aren’t loan sharks who break borrowers’ kneecaps when they can’t repay. At the same time, these lenders aren’t your typical bank lender either. They charge interest rates and fees that would make conventional borrowers cringe and often base lending decisions on whether there will be enough equity in their subject homes that they can foreclose and still turn a profit even if your plan goes south. Yet, private money lenders fill a niche in mortgage lending, helping consumers who have specialized needs or too many credit problems to get conventional financing.

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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Monthly Archives: August 2016

How to make hard money make it easy to invest.

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

The real deal with hard money – You’d be surprised!

A Lender for Every Kind of Buyer

Private Loans Come with a Price

Hard Money for Commercial Property

What to do when Contacting a Lender

Importance of Finding a Quick Private Money Lender

How to Find a Hard Money Lender

Why do Private Money Lenders Supply Loans?