Whenever there seems to be a lot of something or little of something in a given location, there is typically a reason. For example, there are a lot of hard money lenders in California, and there is a reason for this.

There is usually a method to the madness—whatever the madness happens to be. If there seems to be a lot of boys named “Peyton” in the area, if that area is Indianapolis ask a football fan why that is. Are lots of kids on your basketball team named Michael or Jordan? Well—the reason for that isn’t too hard to figure out either (especially for a Chicago Bulls fan).

The same concept applies to things other than baby names. For instance, you will likely find more snowmobile dealers in Maine than you would in Texas. You will probably find more people owning jet skis in San Diego than you would in Alaska.

But why does there seem to be so many hard money lenders in California?

Method To The Madness

More often than not, there is a reason for everything, and there is a reason there are a lot of hard money lenders calling California home.

Even though the area has been settled for well over a century, people still think about ‘going west’ to live the American Dream. With the state being so big and populous, that means there are lots of people looking to live the dream, and in this day and age, many of them have crappy credit.

So they need hard money lenders in California to service those people.

Over the years, the state has developed a heck of a tradition for private borrowing and investing. It’s going to happen in any place as big and populous as California is.

Non-Judicial Foreclosure State vs. Judicial Foreclosure State

One of the big reasons there are so many hard money lenders in California is the fact that California is a non-judicial foreclosure state. What this means is that if a property needs to be foreclosed on it is easier for a lender to gain control of a property and be repaid. That is, as long as the property is not owner-occupied.

In states where there is a judicial foreclosure process, it can be a lot tougher for a lender to gain control of assets since the process can be very long and complicated. Anytime action can be taken without having to go to court it is not going to take as long.

That also means that if you are a borrower in California, you better keep up on your payment or know when your lender begins the foreclosure process. Since it goes a lot faster, if you want to have a chance to stop it, it helps to know when the process has started.

In some non-judicial foreclosure states, the borrower is still able to pay what he or she owes after the property is sold at auction and retain the property.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
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.

Hard money lenders California—With all the options available nowadays, it can be hard to realize who is a legitimate lender, and which ones are scams. Some relatively new laws in California are geared towards protecting borrowers.

Hard money lenders California—It has happened way too much in the past. A person with too low of a credit rating wants to follow his dream and open his own business. He can’t get approved for a loan from a traditional lender, so he has to find a hard money lender to approve him.

But there are so many! Who do you trust? Who is legitimate? Is there any way a person can weed out the bad so you can just choose from the good and not have to worry about being a victim of some elaborate scam?

Yes.

How You Can Protect Yourself From Fraudulent Hard Money Lenders in California

There is no way to weed out the bad from the good completely, but there are ways in which you can bend the odds in your favor that the guys you are choosing from are not going to cheat you:

• Federal Licensing: Lenders in California have to be licensed by national and local agencies to conduct business. Licensing is one of the easiest things to check on and something you should always ask about. If they have it—great—but if they don’t or try to give you some excuse as to why they don’t, it may be time to try someone else.

• Law 6500 of Consumer Protection on balloon loans: One of the ways lenders can make hard money loans more appealing is by making the payments smaller. However, when they do, they are also making the balloon payment you will have to make at the end of the loan term that much higher. What this law does is limit balloon payments by not allowing them to mature in less than five years.

• Negative Amortization Bans: One of the negatives involved with hard money loans is the higher interest rate. After all, lenders deserve to be compensated for their risk. But what this refers to is banning interest rates that are so high that they cause undue financial hardship on the borrower (negative amortization).

• Predatory Loans: In the interest of approving a loan application faster (which is a big selling point for hard money lenders) the step involving income verification is sometimes overlooked. Either that or the lender knows the borrower can’t pay back the loan but makes it anyway so they can eventually seize the property used as collateral. Whether it is by accident or on purpose, it is considered predatory lending—which is illegal. Federal law now requires lenders verify the ability to repay a loan before approving a loan.

• Upfront payments: Some hard money lenders in California and elsewhere will require borrowers to make a pretty large payment up front to possibly cover interest and an advance installment fee. Federal law keeps a lender from making it too large (no more than two reasonably sized payments depending on the structure of the loan).

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
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.

When it comes to investing, people often try to go the traditional route first and apply for a loan from the bank, but there are benefits to using a California private hard money loan that can’t be ignored.

For many investors, going with the tried and true route (conventional or traditional loans) is the only way to go. They feel like they know what is going to happen and can trust the process, so it is safe. However, at the same time, there are others that rely on hard money loans and claim that they can get a leg up on the competition by using them.

Can they? What sort of benefits could there be to using a California private hard money loan over a conventional bank loan?

Make More Money Faster With A Private Hard Money Loan

Investors want to make money, and if they can make it sooner rather than later. A California private hard money loan can help them do just that. How?

• The application process is easier and faster which will result in you getting your money faster. That way you can spend more time hunting for the best investment opportunities and less on the loan approval process.

• Conventional bank loans can have issues that will hold up the approval process or cause your application to be declined. Investors can avoid those problems with a private hard money loan.

• You can negotiate a better price for the property since you will be able to close faster than someone awaiting approval for a conventional loan.

• If you have poor credit and inconsistent income history you will have trouble getting approved for a conventional loan, but not a hard money loan since they are equity based.

• Having cash on hand thanks to your California private hard money loan will help you close a deal faster. Sellers like money in hand much more than having to wait for a conventional loan to come through.

• Since hard money loans are equity based, it is easier to get approved for a loan if you have equity in another property. You can then take that money, invest it, and make more money.

• Short sales and foreclosures will not hold you back since hard money loans are equity based.

• Hard money lenders have the freedom to be more creative with terms for a loan and can make them more beneficial to all parties.

• With conventional loans, many lenders will stop at four financed properties, but with a hard money lender, there is no such limitation.

It’s All About Speed

In today’s world, we want everything to come faster. We want our downloads to go quicker, our tax refund checks to arrive sooner, and our fast food to be faster. Many investors will caution people that are looking to make a quick dollar through investing since those investments typically come with a lot of risks.

However, with a California private hard money loan, it is possible to invest in more reliable properties and speed up the process.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
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.

When investors think about applying for a California private hard money loan, they typically worry about the questions they are going to be asked, but there are some that they should be asking lenders.

The process of going into business for yourself or flipping houses is not an easy one to make. There are many things to consider, and the process of getting approved for a loan can be the tricky part—especially if you need to apply for a California private hard money loan.

Maybe you are already getting a traditional mortgage loan, but you need a cash infusion to keep things going, or maybe you need a little more to finish a project off right. Whatever the reason, getting approved is vital to the project, so you worry about what the loaner is going to ask you.

However, while you do need to be prepared for those questions, you should also be prepared to ask the lender a few as well.

Five Questions To Ask Your Private Hard Money Lender

It is not unusual for a person to be so concerned about getting approved that they end up accepting a bad deal from a lender that is not as reputable as you might think. So before signing the papers for you California private hard money loan, consider asking the following questions:

• What is their experience like? The more experienced they are, the more understanding they will probably be. Terms will likely be friendlier as well since the lender will be aware of what it takes to succeed and will do what they can to help.

• What’s their real estate license ID? If they have one—and they should—you can search for them on the state website and find out if there have been any issues with them (i.e. disciplinary action).

• Are they a broker or a lender? If they are a broker, it will take longer to get your loan processed and approved. If they loan finance the loan themselves, the money will come sooner rather than later.

• References? Just like employers like to know how an applicant did at previous jobs, it doesn’t hurt to hear what experiences other borrowers have had.

• Fees? One of the most frustrating parts of the loan approval process can be finding out after the fact that there are fees you have to pay that drive up your cost. Ask about them ahead of time, so you can accurately compare rates and costs of different lenders.

Other Things You Should Inquire About

There are other questions worth asking when applying for a California private hard money loan. You’ll want to know the interest rate and how many points they charge as well as the loan to value ratio.

Chances are you need the money sooner rather than later since you are applying for a private hard money loan, so make sure you ask how long it will take to get approved. You should also ask how long of a term you can get and if there is a prepayment penalty.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
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.

When people need money for an investment, they want to know how to get a California private hard money loan, but they don’t often think about how they’ll get out of it.

In the process of running a business or flipping a house in sunny San Diego or Los Angeles (or another part of California), it is not unusual to need money quickly. Traditional avenues take too long, so it is not uncommon for people in those situations to seek out a California private hard money lender.

However, while they will often go to any length to figure out how to get approved for a private hard money loan, many folks do not think about how they are going to exit the loan. After all, it is borrowed money, and the terms are always relatively short (typically from a year to no more than five years).

Failure to consider what one’s exit strategy is going to be could lead to issues when the loan comes due.

Five Strategies For Exiting A Private Hard Money Loan

Now that you have the money to get your business back on track or the final repairs made to the house you are trying to flip, not only do you need to get to work but you need to think about how you are going to pay the loan off. It is important to have a plan before you need it. Otherwise, the balance of your loan could come due, and you may not be ready to pay it.

The following are five strategies that could help you exit your California private hard money loan with ease when the time comes:

• Sell the property: If you can get the work done before the loan is due, selling the property is the easiest and probably the quickest way to pay off of the loan along with recouping the cost of fixing and flipping the property.

• Refinance with a conventional mortgage loan: If you are going to occupy the property yourself, this is an excellent option. You can take the loan from a short term one to a long term one, and lower the interest rate.

• Refinance with a subprime loan: If you are still having difficulty getting approved for a traditional loan, refinancing with a subprime loan is a good route to take. However, while it may be easier to get approved for one, terms are not always good, and interest rates are higher than traditional loans (but lower than hard money loans).

• Refinance with another hard money loan: If you can’t get a traditional loan or a subprime one, you may be able to refinance your hard money loan. If you’ve missed or been late with payments, it will be hard to get approved. You will likely be charged a fee for extending the loan, but at least you will not have to have the money now.

• Sell another investment: If you can’t get a loan or don’t want to and have another investment property, selling it is a good option.

Know Your Exit Strategy Before Applying

It may seem silly, but it needs to be said. It is not unusual for an investor to be so focused on getting a project done that they didn’t think about how they were going to take care of their California private hard money loan. Most lenders will want to know it before approving you, but if they don’t ask, you should have one in mind already before you sign the loan papers.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
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.

Getting approved for a loan from a California Hard Money lender can seem like a dream come true, but only if it is the right loan for you.

Sitting in a cubicle in a high rise in downtown Los Angeles has to be one of the worst job locations a person could have. Yes, you are in sunny, beautiful Southern California, but you can’t even see it! Yeah, you have to go to work and can’t always enjoy the sun and surf but it sure would be nice if you could at least see it.

You know, and get a reminder of why you work as hard as you do. But until you become the boss, chances are, it isn’t going to happen. So why not become your own boss? Why not go for a loan, open your own establishment, and take the office with a view?

Or better yet—delegate your work to your underlings and catch some waves!

Wait—your credit isn’t even close to being good enough to get a loan from the bank. So your screwed, right?

Not at all! You can get a hard money loan from one of the many California Hard Money lenders and get on track to living the dream. However, before you do that, it may help to know a little bit about your loan options.

Loan Options With California Hard Money Lenders

A hard money loan is a specific type of financing where a borrower reasons funds from a loaner and secures them with some kind of tangible asset, typically real estate. There a few different options when it comes to what type of loan you can get from a hard money lender:

Commercial: when it comes to hard money commercial loans (which are for businesses; not individuals), the duration is typically short term; from three months to a year. They are not usually pursued for major construction projects, but for things like inventory or equipment purchases.

Wholesale: this isn’t a loan you can get from Sam’s Club, but one where the lender works with a broker and not directly with the borrower. They tend to come with lower interest rates and make life easier on lenders. Rather than advertise and pursue borrowers, they can let the broker do all the work.

Flip Loans: you don’t need to take gymnastics to get a flip loan; what the flip refers to is one of the main reasons people get this type of loan—flipping houses. Also referred to as a rehab loan, this type is used to cover repair costs or to improve a property before selling it.

Cash-Out Refinance Loans: this is the kind of loan you get if you also need some quick cash. For example, if you are mortgaging a property and take some cash out on top of the loan, you have a cash-out refinance loan.

Which Option Is The Right One For You?

If your California Hard Money lender can’t tell you which loan option is the right one for you, it may be time to call someone else. The differences should be clear enough to a professional that he or she should be able to point you in the right direction without blinking twice.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
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.

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 Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
http://www.Level4Funding.com
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.