Private Money Lenders—California Q & A

Nine times out of ten, looking for financing for your next venture or your next home involves researching private money lenders. California based lenders of private money tend to be everywhere you turn; thus, you may not know what questions to ask before moving forward so let us change that for everyone involved.

By now, you are probably past the cursory stage of researching and narrowing down your choice private money lenders. California, moreover, has some of the most reputable lenders of private money, so you more than likely have settled on a few from that particular state. If by chance, you choose a local lender instead that is perfectly fine too. What matter most now is that you find a lender that meets your qualifications and vice versa.

1page_img3-bigAs a borrower, your questions will definitely differ from those of an investor looking to work with private money lenders. California based lenders, much like other lenders, understand that they must be able to cater to both groups. Thus, let us go over what you need to ask as a borrower first and then go over what you need as a potential investor.

For starters, as a borrower, you need to ask yourself, what is your number one must-have when choosing a lender? The answer should be simple—rate and reputation. The rate and reputation of your lender are really the foundations of any working lending relationships. Thus, you need to find a lender that offers a fair rate that works for your particular project and you need a lender you can trust to be on your side. This means looking for transparency and flexibility. Your next question, as borrower, should be, is time truly of the essence here? If the answer is yes then you need to find a lender that can work at the speed your situation requires. Lastly, before moving forward with any particular lender, you should ask yourself, if your lender is truly reliable. Hopefully, the answer is that they are reliable so you can proceed with your venture confidently.

Things to Consider as an Investor

Your number one question, as an investor, should always be, are you getting your money back? Hopefully, you can trust they people that you are working with to honor the terms of the loan agreement. If you do feel you are working with trustworthy individuals, your next question should be, what exactly is in it for you? Sure, this may sound a little cold and to the point, but remember this is a business transaction at the end of the day regardless of who an investor is in relation to the borrower. As an investor, you should also ensure that your investment is secure and that you know all your risks upfront. Your third and final question should be, how realistic is your plan? The answer from your potential borrower should not only involve a detailed plan, it should also help you to see the vision with fail safes.


Ultimately, both a borrower and investor need to feel confident in their business transaction. Thus, you should never be afraid to ask these questions.

Happy senior business man making his notes at workDennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender

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.

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