Should you keep pursuing your career as a California hard money lender?

The real estate business can be a very tough and long process. There is a certain type of grit that you have to possess within yourself to make it as a California hard money lender. You have to be able to pick yourself up at times and drive through it so that you can come out on top in the long run.

The real estate market has had to deal with a lot of backlash in the recent years. The Great Recession near the end of the decade left a bad taste many people’s mouths. States, like California, are still trying to rebuild and remedy the fallout. So where does this place the typical California hard money lender? This could mean hundreds of things that you have to now worry about to make sure your business stays afloat.

For example, one of the biggest things that you have to keep in mind is the Dodd-Frank Act that was passed by Congress. Essentially, the Act was drafted to help prevent another Recession from happening in the future. Within the 14,000 pages, there is a lot of political jargon that is supposedly used to protect the general public; although many real estate professionals argue otherwise. This is very understandable since there are now a lot of new regulations that could affect lenders in a negative way. For example, now there has to be a certain level of transparency with the government. For instance, if in a previous year you made over a certain amount in revenue you have to report it to the SEC.

For California hard money lenders especially the real estate business is a tough cookie.

California has been making steady growth over the last couple of years. After the real estate market took a decline of about half getting back in the swing of things has been an uphill battle for a lot of people that are trying to get their foot in the door. One of the biggest things that you would have to deal with if you do want to become a California hard money lender is the lack of people that want to buy property. So the scraps that you could potentially find may not be sold or paid off for a while. In time as we all know this will lead to less money coming in to your business.

In fact, when you pull up a Google search of current California real estate you will find that a lot of the homes are being sold at extremely high prices. Depending on how you flip the pricing or the way you could potentially award your loan there is not a super high guarantee on a return.

And do not forget about the other California hard money lenders

You also have to remember that there will always be another person trying to get the same clients as you. As soon as you hit enter in your search bar at least 20 different investment firms will pop up, and those are only the ones that have figured out how to work Google analytics. Just imagine all of the smaller California hard money lenders that you will most like have to battle with over potential investments.

Level-4-Funding-Dennis-Dahlberg-Mort[1]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 | 85027
111 Congress Ave |Austin | Texas | 78701

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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.