There are a lot of options for people when it comes to financing these days, but not every option is right for everyone. There are two where it would be smart to look up your nearest California Hard Money lender.
At one point in time, if you wanted to get a loan so you could open your own business, the one and only option was your local bank. Now, there are several options available to potential entrepreneurs depending on what your need is.
Commercial banks are a popular option as are mortgage banks and brokers. Credit unions have gotten into the action as well, and there are now many finance companies looking to make loans along with online lenders.
Each type of lender has its pros and cons just like every loan option has them. In many cases, there are two factors that are more important than others. For those in the Golden State, depending on how these two factors apply to you, a California Hard Money lender may be the right option for you.
When A California Hard Money Lender Is The Best Option
When it comes to business-related loans, there are usually two factors that impact every borrower—time and their credit score. They may need the money sooner rather than later and can’t wait. They could also be one of the many that have made a poor decision or two in regards to their credit.
Taking too much time to close on a loan can cost an investor a good deal. While they wait for the bank to give their approval, they may lose out to someone who has the money or approval on hand. Should there be several competing bids for a property, having the money on hand for a quick close can be the factor that has pushes the seller to go with you over others.
Probably the primary reason a borrower goes with a California Hard Money lender over the local bank is their credit score. Traditional lenders, like banks, are not known for being too forgiving when it comes to poor credit scores. They prefer to get involved with deals that appear less risky. They don’t want to risk a loan defaulting by approving someone with a history of not paying their bills.
It may not necessarily be that they don’t want to approve your application, but are restricted by guidelines and regulations. What makes this frustrating is that the cut off between getting approved and denied can be as simple as having a 625 credit score or a 575. While the 50-point gap looks small to us, it can be cavernous to a lender.
A hard money lender will look at your credit score, but will be more interested in how much equity you have in whatever property is securing the loan. They will also take the same consideration in regards to your income history (i.e. someone starting a new job can get denied by traditional lenders even though they make a healthy salary).
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
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.