Monthly Archives: October 2016

California Private Hard Money – A Helping Hand for Trust Deed Investing

October 14, 2016california hard money, california hard money lender, california hard money loan, california private hard money, california private hard money lender, california private moneycalifornia private hard moneybigdaddydennis

California private hard money is at current all of the fad and realistically it must be . The fact is that private hard money financing has made a status for itself amongst the massive banks and traditional institutions.

California private hard money could also be characterised as a serving handy on account of, whatever the greater down price requirements and the higher curiosity, this particular kind of financing is all about making the underdogs’ objectives come true. In any case, on this case, the underdog is bigger than seemingly a trust deed investor. Nevertheless, nevertheless, as movie-esque as this all sounds, it is the actual fact. California private hard money has partnered itself with trust deed investing and the precise property market is considerably higher for it.

In the event you’re new to the good world of trust deed investing, the good news is you are not the one one. As of newest, many patrons have realized that they’ll put money into numerous loans which will be secured by precise property or commercial funding property. Which implies that foreclosures are being bought and flip ( if necessary) at a file payment. In the long run, that’s good data for of us that wish to make investments or private a home or office developing.

With that being acknowledged, the problem with typical or typical banks is, in truth, a story as earlier as time. Banks are afraid of the risks which will be associated to foreclosures and property that is not turn-key on the time of funding. In response to their fear, private hard money and trust deed investing had been born. Moreover, since this particular kind of investing and financing is so attractive, it is higher than evident that it is not going away anytime rapidly.

The Benefits

Trust deed investing is so worthwhile or attractive to patrons on account of if executed correct, the investor typically ends up with a nice annual return. Furthermore, the frequent risks and fears that keep the conventional institutions at bay do most likely not apply regarding trust deed investing. Attributable to one in all trust deed investing’s excessive benefits, there could also be little risk associated to taking a loss and chances are you’ll thank the built-in margin of safety (because it’s usually known as). The built-in margin of safety, in essence, is the excellence between the amount of the loan and the value of the property.

Trust Deed Investing—The Precise Distinction

In the long run, at its core, this particular sort of investing is finest for the patrons in case you might be evaluating the benefits of regular, private hard money. It is larger on account of the built-in margin of safety is usually a clause. In numerous phrases, if the borrower fails to hold out, the investor/lender can foreclose on the property or office developing practically instantly within the occasion that they so choose. Which implies that the investor/lender will primarily recoup their funding and most actually along with any late curiosity or penalties. In any case, it is nonetheless important to note that this particular kind of investing is simply not with out some risk barely that as a rule the investor or lender makes out larger inside the deal if points do go south.

Regarding the creator: Dennis has been working within the precise property enterprise in some functionality for the ultimate 40 years. He purchased his first property when he was merely 18 years earlier. He quickly realized in regards to the fantastic funding options equipped by trust deed investing and hard money loans. His wish to help others make money in precise property investing led him to give attention to completely different funding for precise property patrons who may have hassle getting a standard monetary establishment loan. Dennis is obsessive about completely different funding sources and sharing his data with others to help make their objectives come true.

Dennis has been married to his nice partner for 42 years. They’ve 2 beautiful daughters 5 fantastic grandchildren. Dennis has been an Arizona resident for the earlier 40 years.

Choosing Hard Money Lenders—California

October 13, 2016Uncategorizedcalifornia hard money, California Hard Money lender, california hard money loan, california private hard money lender, california private moneybigdaddydennis

There are many reasons to choose hard money lenders. California has some of the best hard moneylenders to offer, in fact. Nevertheless, it is still important to understand why these particular kinds of lenders may be the better option for you versus getting financing from conventional lenders.

If you are torn between choosing hard money lenders and conventional lenders, it may help to compare the two. Obviously, there are major differences between the two types of potential financing you could receive. For instance, looking at hard money lenders, California trust deed investors are ripe for the picking. In other words, there is no shortage of hard money borrower thus there is also no shortage of lenders that cater to this particular market.

The reason you see a wealth of hard money lenders is because they ultimately help bridge the lending gap. What is the lending gap? Well, the lending gap is common with conventional lending. In essence, it is the gap between acquisition and refinancing. In other words, with conventional lending, you have to pay a larger down payment, which often cuts into the available capital for expense or renovation. In other words, unless an investor wants to pay out-of-pocket for renovations they are not happening with conventional financing.

Moreover, everyone knows this, especially hard money lenders. California commercial developers and trust deed investors just need better options. This is generally, where bridge loans and construction loans come into play—all of which are hard money loans. Other major differences, of course, include the amount of time it takes to approve and the level of flexibility in regards to loan terms. So, what do all these differences mean when it comes time to evaluate conventional lenders? Well, that is a great question. The truth is conventional financing has its place in the wonderful world of commercial real estate. Therefore, it is up to you ultimately decide which kind of financing and what type of lender are right for you.

How to Evaluate Conventional Lenders

With that being said, there are still a few handy tips that you can use when evaluating conventional lenders. For starters, you should have a good idea of who you want to work with i.e. do want your lender to be a credit union, a private lender or actual banking institution? Next, you want to be clear on the terms of your financing as conventional financing often has terms of 10, 15, 20, 30 years. You will also want to figure out if you want a fixed or adjustable rate. This means deciding who offers the right terms and best rate option.

Avoid the Pitfalls

Lastly, you will need to decide what kind of financing is best for you. In the world of conventional financing, this means nonconforming or conforming loan limits. If you are too sure of any of these terms, then it may be time to sit down with a few lenders to ensure you are making the best decision. Ultimately, both hard money lenders and conventional lenders will take the time to help you figure out your options.

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.

Choosing Hard Money Lenders—California

October 13, 2016california hard money, california hard money lender, california hard money loan, california private hard money, california private hard money lender, california private moneyhard money lenders Californiabigdaddydennis

There are numerous causes to determine on hard money lenders. California has a lot of the best hard moneylenders to produce, in precise reality. Nevertheless, it is nonetheless important to know why these specific kinds of lenders stands out as the upper selection for you versus getting financing from typical lenders.

In case you might be torn between choosing hard money lenders and customary lenders, it might help to match the two. Clearly, there are foremost variations between the two types of potential financing you may acquire. For instance, hard money lenders, California trust deed merchants are ripe for the selecting. In numerous phrases, there is not a shortage of hard money borrower thus there could also be moreover no shortage of lenders that cater to this specific market.

The reason you see a wealth of hard money lenders is because of they lastly help bridge the lending gap. What is the lending gap? Correctly, the lending gap is frequent with typical lending. In essence, it is the opening between acquisition and refinancing. In numerous phrases, with typical lending, it is vital to pay an even bigger down charge, which repeatedly cuts into the obtainable capital for expense or renovation. In numerous phrases, till an investor needs to pay out-of-pocket for renovations they are not occurring with typical financing.

Moreover, all people is conscious of this, significantly hard money lenders. California commercial builders and trust deed merchants merely need increased selections. That’s normally, the place bridge loans and constructing loans come into play—all of which are hard money loans. Completely different foremost variations, in any case, embody the time frame it takes to approve and the extent of flexibility with regard to loan phrases. So, what do all these variations indicate when it comes time to guage typical lenders? Correctly, that could be a pleasant question. The truth is typical financing has its place inside the improbable world of commercial precise property. Resulting from this reality, it is as a lot as you lastly resolve which kind of financing and what sort of lender are finest for you.

One of the simplest ways to Take into account Commonplace Lenders

With that being talked about, there are nonetheless a few useful concepts that you need to make the most of when evaluating typical lenders. For starters, it’s best to have a great suggestion of who you should work with i.e. do want your lender to be a credit score rating union, a private lender or exact banking institution? Subsequent, you should be clear on the phrases of your financing as typical financing normally has phrases of 10, 15, 20, 30 years. Moreover, you will have to work out should you want a hard and quick or adjustable charge. This suggests deciding who offers the becoming phrases and most interesting charge selection.

Steer clear of the Pitfalls

Lastly, it would be best to resolve what kind of financing is most interesting for you. On this planet of typical financing, this suggests nonconforming or conforming loan limits. In case you might be too constructive of any of these phrases, then it could possibly be time to sit down with a few lenders to be sure to make the most effective decision. Ultimately, every hard money lenders and customary lenders will take the time that may assist you to work out your selections.

Regarding the creator: Dennis has been working within the true property enterprise in some functionality for the ultimate 40 years. He purchased his first property when he was merely 18 years outdated. He quickly realized regarding the very good funding options provided by trust deed investing and hard money loans. His want to help others make money in precise property investing led him to concentrate on totally different funding for precise property merchants who might have trouble getting a standard monetary establishment loan. Dennis is eager about totally different funding sources and sharing his information with others to help make their needs come true.

Dennis has been married to his improbable partner for 42 years. They’ve 2 gorgeous daughters 5 very good grandchildren. Dennis has been an Arizona resident for the earlier 40 years.

California Private Hard Money Perks—Top Advantages

October 12, 2016Uncategorizedcalifornia hard money, California Hard Money lender, california hard money loan, california private hard money, california private hard money lender, california private moneybigdaddydennis

Deciding that the best financing option is California private hard money is a big step. So, how do you know if it’s the right step? Well, there are several perks or rather advantages to choosing this particular line of financing.

California private hard money means many different things to different lenders. As you may already be aware, your financing options and loan terms are in your private lender’s hands. Of course, this does not mean choosing California private hard money means your will pay an absorbent amount of interest and you will be stuck with terms that you did not choose rather it means you need to choose wisely.

With that being said, overall there are some perks or rather advantage when it comes private hard money. For instance, private hard money often means rapid funding. Rapid funding is possible due to the lack of red tape that you often get with traditional financial institutions. Less red tape means there aren’t dozens of forms to fill out or hard-to-find documentation require. In addition to the lack of hoops, you must jump through, private individuals or companies also make their decision in record time so that you can get started on your venture as soon as possible. Another advantage to this particular kind of financing may come as a little bit of an unexpected surprise—flexible term structure. What is a flexible term structure? That’s a great question.

In its simplest answer is flexible term structure is customizable loan terms for your business. In other words, traditional financial institutions play by the books or rather they offer one-size-fits all terms and who needs that? But, with private hard money lenders, you are able to work with a lender that not only understands your needs but is also willing to take them into account when it comes to your term structure.

A Helping Hand – No Repayment Penalties

Private hard money lenders are also thoroughly invested in the success of your venture, thus you will often find that these non-traditional lenders do not penalize you for your changing circumstances. This means that if you are able to pay off your commercial business loans sooner then everyone wins. Similarly, if you have only partially paid off your loan by its due date, most private hard money lenders are willing to work with you so that you can succeed.

Take Away

Ultimately, this means that choosing private hard money can be extremely beneficial in just the right way. Thus, whether you are choosing a standard hard money financing or considering bridge loans your commercial business venture can be a reality. Moreover, your terms can be easily customized to meet your need and your industry with little to no bureaucracy. Lastly, you are given the opportunity to work with a company, a trust deed investor or an individual who truly does want to see you succeed. Furthermore, this company or private individual will go above and beyond to make sure that you succeed because they invested in your and your business i.e. you are more than just another commercial borrower.

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.

California Private Hard Money Perks—Top Advantages

October 12, 2016california hard money, california hard money lender, california hard money loan, california private hard money, california private hard money lender, california private moneycalifornia private hard moneybigdaddydennis

Deciding that among the finest financing selection is California private hard money is a huge step. So, how are you conscious if it’s the exact step? Properly, there are a variety of perks or pretty advantages to selecting this particular line of financing.

California private hard money means many alternative points to completely totally different lenders. As chances are high you will already bear in mind, your financing decisions and loan phrases are in your private lender’s fingers. In any case, this does not indicate choosing California private hard money means your pays an absorbent amount of curiosity and you will be caught with phrases that you simply simply did not choose pretty it means it is worthwhile to pick correctly.

With that being acknowledged, whole there are some perks or pretty profit when it comes private hard money. As an illustration, private hard money sometimes means speedy funding. Speedy funding is possible on account of lack of pink tape that you simply simply sometimes get with standard financial institutions. A lot much less pink tape means there aren’t dozens of varieties to fill out or hard-to-find documentation require. Together with the dearth of hoops, it is important to leap by, private individuals or corporations moreover make their decision in file time to have the ability to get started in your enterprise as shortly as attainable. One different profit to this particular kind of financing would possibly come as barely little little bit of an shocking shock—versatile time interval building. What’s a flexible time interval building? That’s a terrific question.

In its best reply is flexible time interval building is customizable loan phrases for what you’re selling. In numerous phrases, standard financial institutions play by the books or pretty they supply one-size-fits all phrases and who desires that? Nevertheless, with private hard money lenders, you can work with a lender that not solely understands your desires nonetheless will also be ready to take them into consideration as regards to your time interval building.

A Serving to Hand – No Compensation Penalties

Private hard money lenders are moreover fully invested inside the success of your enterprise, thus you will sometimes uncover that these non-traditional lenders do not penalize you to your altering circumstances. Due to this if you can repay your commercial enterprise loans sooner then all people wins. Equally, once you’ve obtained solely partially paid off your loan by its due date, most private hard money lenders are ready to work with you to have the ability to succeed.

Take Away

Lastly, due to this choosing private hard money can be terribly helpful in merely the exact strategy. Thus, whether or not or not you is likely to be choosing a standard hard money financing or considering bridge loans your commercial enterprise enterprise is often a actuality. Moreover, your phrases can be merely custom-made to fulfill your need and your enterprise with little to no paperwork. Lastly, you is likely to be given the possibility to work with a corporation, a trust deed investor or an individual who actually does want to see you succeed. Furthermore, this agency or private explicit individual will go above and previous to only make sure you succeed on account of they invested in your and what you’re selling i.e. you is likely to be further than merely one different commercial borrower.

In regards to the creator: Dennis has been working within the precise property enterprise in some functionality for the ultimate 40 years. He purchased his first property when he was merely 18 years earlier. He quickly realized in regards to the great funding alternate options supplied by trust deed investing and hard money loans. His need to help others make money in precise property investing led him to focus on varied funding for precise property merchants who might need trouble getting a traditional monetary establishment loan. Dennis is keen about varied funding sources and sharing his info with others to help make their objectives come true.

Dennis has been married to his unbelievable partner for 42 years. They’ve 2 beautiful daughters 5 great grandchildren. Dennis has been an Arizona resident for the earlier 40 years.

California Private Hard Money Complaints

October 11, 2016Uncategorizedcalifornia hard money, California Hard Money lender, california hard money loan, california private hard money, california private hard money lender, california private moneybigdaddydennis

Unsurprisingly, there are two sides to every story or rather, in scenario, there are advantages and disadvantage when it comes to California private hard money. Therefore, if you are new to the trust deed investing game or financing world, you may want to brush up on some of the complaints and/or disadvantages of private hard money so that you are properly prepared.

California private hard money, as briefly suggested, can be a godsend to those who need quick and red tape-free financing. But, of course, nothing good comes without a little bad. So, what are those pesky private hard money complaints already? Well, no worries let’s go over them.

One of the top complaints about California private hard money financing or loans is the interest rate. Think of it this, you have to pay to play thus if you want your financing quickly you have to pay for it. Of course, this doesn’t cause too much of a hardship if you use your hard money financing correctly. For instance, most private hard money loans are obtained for short-term financing needs. This means if you pay your loan back before your abnormally high interest rate doesn’t get too out of control then you will more than likely survive.

Another major complaint when it comes to private hard money we just touched on a bit –short-term use. Many commercial real estate and trust deed investors wish they could use private hard money for more than the standard limit of up to 5 years (3 years in some other places). But, as previously mentioned, extremely high interest rates make that a bad idea. So, why on earth would this be a complaint? Well, as you already know private hard money loans or financing are a lot easier to get than your traditional financing. Remember, red tape-free and quick approvals—who wouldn’t want that to last a little longer.

Managing Your Private Hard Money Expectations

The third common complaint is the down payment requirement. Typically, you will find a larger down payment requirement or equity of 25% or more. The reason you will you see such harsh requirements with private hard money financing is because lending will always be a business. In other words, these particular lenders are taking a chance on your business venture and if by chance things do not go as planned or you are unable to meet your loan terms then your lender needs to be financially alright. So, what does all this really mean? It means you need to manage your expectation when it comes to your lenders as well as when it comes to your future business venture.

Private Hard Money Can Still Make Dreams Come True

Ultimately, these top private hard money complaints are not enough to deter those business-hungry individuals who want to make their dreams come true. In fact, private or hard money lenders, especially in California, are actually in the business of making hard to approve dreams come true. So, if you are still looking for short-term financing, then it would behoove you to also check out the top advantages of private hard money loans.

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.

California Private Hard Money & Trust Deeds

October 10, 2016Uncategorizedcalifornia hard money, California Hard Money lender, california hard money loan, california private hard money, california private hard money lender, california private moneybigdaddydennis

There literally dozens of questions you may have when it comes to California private hard money and trust deeds. The good news is you came to the right place for answers.

The wonderful world of trust deed investing is on the rise. Of course, if you are like most people, you are probably asking yourself, if that is such a good thing? Well, if you are worried that California private hard money is going anywhere, you can stop. Trust deed investing, if anything is more of an add-on to California private hard money.

But, do not take our word for it. Instead, do even a cursory review trust deed investing and you will see that most private or hard money financing is funded via a trust deed investor, at least as of late. So, what does all of this mean for you, the potential borrower? Well, there is more good news and some bad news. Let’s start with the good news, for starters, an influx of trust deed investing means more financing obviously or rather more loan approvals.

The bad news is that even though your future hard-to-finance commercial deals and business ventures are subject to a new kind of bank. In other words, trust deed investors are the new people to please. What this means for your bottom-line is that if you fail to meet your commitments as a borrower, your trust deed investor can, essentially, foreclosure on your property in order to recoup their losses. This may seem like standard business, but the reality is that if you obtained financing through a non-trust deed investor you would incur interest and applicable penalties. So, now that you know what these guys are all about, why not find out who you are actually dealing with?

Trust Deeds—The Real Deal

When it comes to trust deed investing, not just anyone can be an investor. In fact, there are clear guidelines as to who can invest in trust deeds. Nevertheless, it is still important to note that the list is not overly exclusive. Thus, you will quickly learn that private individuals, corporations, foundations, pension plans, LLCs and more can invest. However, those individuals that using retirement funds are often limited in the amount they can offer. Similarly, the law requires that no single trust deed can be more than 10% of that individual’s or entity’s net worth. Of course, this yet another provision that has the investor’s best interest at heart, but it is still important information to know.

Avoid the Pitfalls

Ultimately, this is just a small fraction of the information about there about trust deeds and trust deed investing. Therefore, it is highly recommended that you do your own research and more than just a cursory review of private hard money financing. With that being said, if you need some assistance with finding more information, you can always start with the California Department of Real Estate (DRE). There you will find entire documents covering almost every possible question you can think of when it comes to this particular avenue.

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.

California Private Hard Money & Trust Deeds

October 10, 2016california hard money lender, california hard money loan, california private hard money, california private hard money lender, california private moneycalifornia private hard moneybigdaddydennis

There really dozens of questions you might need in relation to California private hard money and trust deeds. The good news is you bought right here to the right place for options.

The unbelievable world of trust deed investing is on the rise. In spite of everything, in case you might be like most people, you could be possibly asking your self, if that is such an outstanding issue? Correctly, in case you might be fearful that California private hard money goes wherever, you could stop. Trust deed investing, if one thing is further of an add-on to California private hard money.

Nonetheless, do not take our phrase for it. As a substitute, do even a cursory consider trust deed investing and you’ll discover that almost all private or hard money financing is funded by means of a trust deed investor, in any case as of late. So, what does all of this suggest for you, the potential borrower? Correctly, there’s further good news and some harmful data. Let’s start with the good news, for starters, an influx of trust deed investing means further financing clearly or considerably further loan approvals.

The damaging data is that although your future hard-to-finance commercial provides and enterprise ventures are matter to a model new type of monetary establishment. In numerous phrases, trust deed consumers are the model new people to please. What this means in your bottom-line is that within the occasion you fail to satisfy your commitments as a borrower, your trust deed investor can, mainly, foreclosures in your property to have the ability to recoup their losses. This may look like customary enterprise, nonetheless the reality is that within the occasion you obtained financing by the use of a non-trust deed investor you may incur curiosity and related penalties. So, now that you just notice what these guys are all about, why not uncover out who you could be really dealing with?

Trust Deeds—The Precise Deal

As regards to trust deed investing, not merely anyone could possibly be an investor. In actuality, there are clear pointers as to who can spend money on trust deeds. Nonetheless, it is nonetheless important to note that the file should not be overly distinctive. Thus, you may quickly examine that private individuals, firms, foundations, pension plans, LLCs and additional could make investments. Nonetheless, these folks that using retirement funds are typically restricted inside the amount they will present. Equally, the regulation requires that no single trust deed could possibly be better than 10% of that exact individual’s or entity’s internet value. In spite of everything, this yet another provision that has the investor’s best curiosity at coronary coronary heart, nonetheless it is nonetheless important information to know.

Stay away from the Pitfalls

In the long run, that’s solely a small fraction of the main points about there about trust deeds and trust deed investing. As a consequence of this truth, it is extraordinarily useful that you just do your private evaluation and better than solely a cursory consider of private hard money financing. With that being talked about, within the occasion you need some assist with discovering further information, you could always start with the California Division of Precise Property (DRE). There you will discover entire paperwork defending just about every potential question you could contemplate in relation to this particular avenue.

Regarding the author: Dennis has been working within the true property enterprise in some functionality for the ultimate 40 years. He purchased his first property when he was merely 18 years outdated. He quickly realized in regards to the great funding alternate options provided by trust deed investing and hard money loans. His wish to help others make money in precise property investing led him to give attention to numerous funding for precise property consumers who might need trouble getting a traditional monetary establishment loan. Dennis is obsessed with numerous funding sources and sharing his information with others to help make their wishes come true.

Dennis has been married to his unbelievable partner for 42 years. They’ve 2 beautiful daughters 5 great grandchildren. Dennis has been an Arizona resident for the earlier 40 years.

Pitfalls That Will Cause A California Private Hard Money Lender To Reject You

October 7, 2016Uncategorizedcalifornia hard money, california hard money loan, california private hard money lender, california private moneybigdaddydennis

California Private Hard Money Lenders are a preferred form of financing for many because of the relative ease and quickness in which loans are approved. However, just because it is easier, doesn’t mean it’s a sure thing.

Your loan application has been rejected by four banks. You are starting to think you might as well hit up the local loan shark, but the thought of having your legs broken for missing a payment doesn’t appeal to you. So instead, you decide to give your local California Private Hard Money Lender a try.

You’ve been told it is much easier to get approved and it will not take anywhere near as long to get a decision on your application as it did with the bank. However, while getting approval from a private hard money lender is easier and faster, there are still ways it can be messed up.

Three Ways To Get Your California Private Hard Money Lender To Reject You

You thought a private hard money lender was supposed to approve anyone, but you forgot about one thing—they are still a business. Like any other business, they want to make money. To do so, they can’t just approve any old application for a loan. They have to draw a line somewhere.

Here are three places many will do just that:

1. Insufficient equity/down payment: A California Private Hard Money Lender is expecting to take on some risk with any loan, but doesn’t want to take all the risk. The borrower will need to have a substantial amount of equity in another property in order to secure the loan. If they don’t, they will need to be able to make a sizable down payment instead. If the borrower can’t do either the lender will probably reject the application.

2. Insufficient income: Private hard money lenders will not be as stringent about what they require, but they still need to believe that the loan is going to be repaid; or at the least, that you can make the monthly payments right now. If you can’t show enough income to make the payment now, chances are you will not have it later and your loan will be denied. No one wants to get on board a sinking ship.

3. Exit strategy: the loan you will get from your California Private Hard Money Lender will be a short term one that will probably have a balloon payment at the end. Most people will not have sufficient cash on hand to pay off the balloon payment so before approving your initial loan, the lender will want to know your exit strategy (how you will handle it). Are you going to sell the property, sell a different one, or refinance with a new hard money loan or maybe even a conventional one? If they don’t see that you’ve thought ahead chances are good you will not get approved.

What To Do After You’ve Been Rejected

One of the many good things about a private hard money lender, is that you will get your rejection notice relatively quick. So once you find out why they said no, you can go about correcting the error.

If you can’t afford a larger down payment or don’t have enough equity in anything, you may have to reconsider your plans. If you already have an operating business that isn’t making enough income, you may need to see where you can cut cost and increase it. As for an exit strategy—be prepared; it’s as simple as that.

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 Evaluate If A California Private Hard Money Lender Is For You

October 6, 2016Uncategorizedcalifornia hard money, california hard money loan, california private hard money lender, california private moneybigdaddydennis

Before you apply for financing through a California Private Hard Money Lender it is important to consider the advantages and disadvantages of doing so.

Back in the old days, when it came to financing options you had the bank down the road, the bank your friend uses, the one your cousin twice removed works at, and the bank that your Mom and Dad have used since you were a kid. Nowadays, those options are still viable, but there are many more open to wannabee investors and entrepreneurs—especially those with bad credit.

So when all you had to do before was decide which bank you wanted to try, now you have several options to consider. For those with a troubled credit history, the banks are no going to be too kind, but private lenders—such as California Private Hard Money Lenders—will be more forgiving.

But before you get the ball rolling it would be a good idea to evaluate the advantages and disadvantages to working with a California Private Hard Money Lender.

Advantages

There are three primary advantages to working with a private hard money lender:

1. Speed: traditional financing options take time and have quite a few hoops to jump through just to be considered. Just because you do successfully navigate the process doesn’t mean you will get approved. Private hard money lenders are more likely to approve your loan and will do so quickly. It is not unheard for the process to begin and money to be in hand within 3-5 days.

2. Fewer requirements: With a traditional loan you will have to provide all sorts of documentation just to be considered for a loan, but when you work with a California Private Hard Money Lender you will not have to jump through nearly as many hoops. Even if you do have some of the issues that would normally cause a bank to reject you, hard money lenders are less likely to do so.

3. Hard money lenders will finance what banks will not: there are some projects that banks will not consider getting behind, no matter what your application looks like. If they perceive there to be too much risk, they will not want to get involved. Private hard money lenders, on the other hand, will finance the projects banks will turn down.

Disadvantages

1. Interest rates: Banks are okay with making a little interest over a long period of time on less-risky opportunities. However, your California Private Hard Money Lender will want to be compensated for taking a chance so they will charge higher interest rates.

2. Shorter terms: As if paying a higher interest rate wasn’t bad enough already, but you will have less time to pay a private hard money loan back than you would a traditional loan. Often times, they will be for anywhere from a few months to a couple years.

3. Down Payments/Equity: While a banks approves a loan according to your credit score and income history (among other things), a private hard money loan is asset secured. While they are willing to take on the risk involved with a loan, they don’t want all the risk. So they will usually require you to put down a substantial down payment or to have sufficient equity in the investment.

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.