Tag Archives: hard money lender california

What Hard Money Lenders Arizona Are Looking For

Understanding what hard money lenders Arizona require to fund a loan will make your application process fast and easy so you can move forward with your real estate investment deal.

Most people feel a great deal of apprehension when they are requesting a loan. There are mountains of paperwork as well as many lofty qualifications that must be met. And even after attempting to meet all of the criteria, many potential borrowers are turned down. But knowing what hard money lenders Arizona require to fund a loan request can turn a difficult situation into a very successful investment deal.

Unlike traditional loans which are based on your creditworthiness and ability to repay the loan, hard money loans are based on the value of the real estate being used to secure the loan. This collateral is really the deciding factor on loan approval and the amount of the loan. So credit issues or no credit will not eliminate your chances of securing a hard money loan.

You also need to understand that hard money lenders Arizona are in business to make money. So even though they are not imposing the credit qualifications that a traditional lender would use, the hard money lender Arizona is going to protect his or her investment. This is done by only funding a loan that is between 65% and 75% of the value of the collateral property. This ensures that if the borrower defaults on the loan, the lender is still able to sell the collateral property to recover the full balance on the loan.

Hard Money Down Payments

Because hard money lenders offer less than the full purchase price of a property, buyers need to furnish the remaining funds in the form of a rather substantial down payment. This actually is a second form of security for the lender as buyers have their own funds tied up in the deal and will work even more diligently to make the deal a success and repay their hard money loan. Lenders look at the borrower having “skin in the game” as a great source of motivation.

A Good Option When Used Correctly

Hard money loans are a good option for many borrowers as long as they understand the process of the loan and how to use the money correctly. Paying a higher interest rate on a short term hard money loan can often be the difference between closing a deal and losing out to someone else who is already funded. Then circling back to a traditional lender to refinance at a lower rate and a longer term is the smart move. But this entire process hinges on borrowers knowing how a hard money loan works and being prepared to work within the terms of this type of loan.

Being prepared to provide the large down payment and being willing to use the full value of the property as collateral on the hard money loan are two steps that each borrower much take to benefit from a hard money loan.

 

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Private Hard Money Lender
Arizona Office:  (623) 582-4444
dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

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Hard Money Lenders—California Dreams Come True

If you are like most first-time borrowers, you may have asked yourself, why California has so many hard money lenders? California lenders of hard money are so popular, if you will because they understand the vital role they play in making people’s business and real estate dreams come true—plain and simple.

Once you embark on your general lender search, you may be surprised to find so many hard money lenders. California, in particular, has a wealth of hard money lenders. California being the place where dreams often come true, however, does not have a lot to do with the large quantity of lenders. The real reason you see so many lenders who offer hard money financing is because these lenders are in high-demand.

Arizona-Home-Loan-Team-Matt-and-Judy-Callahan-150x150Hard money lenders are in high demand because traditional lending institutions in recent years have become more and more regulated, which means they have become more likely to turn borrowers away. Nonetheless, this does not mean traditional lending institutions are impermeable rather it means they are extremely selective in who they approve. Thus, many small business owners, startups, first-time flippers and so on have felt like they are fresh out of luck when it comes to financing their dreams.

Consequently, the hard money market saw a real opportunity to help countless people move forward with their ventures. Moreover, with so many niches and flexible options, these particular lenders have been able to hone in on their specific skills and strengths. Of course, at this point, you may be wondering. What exactly are those specific skills or roles that make lenders of hard money so vital? Well, let us go over the general role of these lenders as well as lenders in general.

Lenders Are There When You Need Them

Lenders often handle a variety of important component of the lending process. For instance, lenders are often the individuals who are creating your loan packages and ensuring that the right documentation is included. Moreover, lenders assist in the title ordering as well as other processes such as verifying payoff, appraisals, providing disclosures. Your lender should also take the time to help you find the best hard money financing program and walk you through all the details. In addition to all these roles, your lender can also help you with the underwriting process, finding investors, matching you with the right investor, finding the reputable loan servicers along with loan-doc creation and managing the closing. Thus, as you can see, your lender has his or her work cut out for them and it does not stop there. As briefly, suggested, your lender can also help you in specific areas that pertinent to your particular industry and venture or project.

The Real Deal

Ultimately, your lender should be the real deal. In other words, you should be able to expect these things, especially if you are working with a seasoned California lender who offers hard money financing. If you are not working with a California lender that does not mean you are at a disadvantage. Remember, at the end of the day, you need to find a lender that is right for you.

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
Dennis@level4funding.com
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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Hard Money Lenders—California Underwriting Guidelines

You may be asking yourself what are the benefits to working with hard money lenders? California underwriting guidelines, in short, is one of the main benefits to working with lenders who offer hard money financing.


MagazinesThe underwriting process for any lender is a vital part of securing financing, which even more so true for hard money lenders. California lenders of hard money, in fact, have been so focused on what borrowers have to offer that for a quite some time the underwriting portion of the program was either overlooked or at best sub par.

The reason that the underwriting process has been essentially overlooked in most cases is because the potential value of collateral often overshadowed a borrower’s ability to meet repayment terms. Of course, this is not necessarily the borrower’s fault nor is it exclusively the lender’s lack of foresight rather it is the reality of the real estate market. Hard money financing is often thought of as a borrower’s, investor’s or builder’s saving grace for hard to finance projects and ventures.

Therefore, when both borrower and lender see the light at the end of the tunnel, some important details tend to be overlooked. So, at this point, you may be wondering, what exactly does this all mean when it comes to hard money lenders? California lenders, much like other lenders, have underwriting guidelines that need to be met regardless of the underlying situation. Thus, lenders of hard money also need to meet these regulations or guidelines. The good news is that there is a viable solution to this problem that ensures that everyone’s best interests are kept in mind.

How to Meet Underwriting Guidelines
The clear and obvious solution to this issue that lenders of hard money financing appear to have is simply put—outsourcing. Much like any other business or industry, outsourcing vital components of a larger process can ensure quality and so much more. In this particular instance, outsourcing can be used for a variety of underwriting components. For example, a lender of hard money can choose to outsource the loan package creation, document retrieval, document review, ordering appraisals, appraisal review, closing coordination, final document creation and so on. With that being said, it is still important to highlight the fact that there are some guidelines that simply should not be outsourced such the building of a lender –borrower relationships. For instance, both you as the borrower and your lender need to have a clear sense of one another; this means understanding each other’s character, business or credit history, etc. It is also important for the lender to have a firsthand understanding of your stake in the deal.


Going Beyond Regulations
Lastly, your lender should also make it a point to personally ensure that your collateral is adequate and easy to sell, all the while making sure that you have the ability to meet your repayment terms. If by chance, you feel as though your lender is more focused on your collateral, you may want to take a step back and ask if this is the right lender for you. Ultimately, you want a lender that can help you securing hard money financing and provide you will achievable loan terms as well as a seamless underwriting process.


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
Dennis@level4funding.com
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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Hard Money Lenders—California Draw Request Basics

If this is your first time around working with hard money financing, you may not be too clear on what is allowed by hard money lenders. California lenders, for instance, do allow you to be paid for repairs if you complete the necessary paperwork.


531040381When using hard money financing, you may have a few questions here and there, which is perfectly normal. One question, in particular, that most borrower or builders have is, can they be paid for repairs? Well, the short answer is yes. Generally, most lenders will allow this if you fill out what is known as a draw request.

A draw request, in essence, is a form that details the completed repair work. It is your job to ensure it is properly filled out and that any necessary copies are given to sub-contractors as well as submit the original form to your hard money lenders. California lenders will allow for payment or rather disbursement of funds after the work is properly inspected. It is important to note that payment is typically never in advance, as most lenders want to ensure the quality of the repair work first.

So now that you know that you can submit a draw request to hard money lenders, California especially, let us go over the draw request basics. For starters, some lenders will make this caveat a part of the loan itself. In other words, a select few lenders will allow for a 10% upfront disbursement during the loan closing. This small percentage is so that you can get started on the necessary repairs with proper funding. However, after this initial payment or disbursement, the rest of the repair work payments are traditionally paid to the contractors upon completion of the work.

Draw Request Expectations
If your lender does allow for the initial 10% when the loan closes, then moving forward it is important to know how to submit additional draw requests. For instance, it is highly recommended that you submit around four draw request each in 25% increments. Each draw request should include a detailed description of the work completed, the necessary amount needed, as well as any additional instructions for accessing the property for inspection. This will allow you to pay for completed work as it occurs and ensure that the entirely of the repair work that passes inspection is paid for. Moreover, you should submit all invoices and receipt for all work you or your contractors complete. It is important that these documents match or are in the neighborhood of the original bid. After all of this, you will have to complete a lien release and indicate where you want the funds to be disbursed. The draw request process from start to finish generally takes five to ten business days.

Final Advice
Ultimately, these draw requests will help you complete your rehab or construction project in a timely and seamless fashion. Thus, it is important to stay organized, keep all pertinent receipts, and plan ahead for the actual date of disbursement so that you do not experience any hiccups along the way.


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
Dennis@level4funding.com
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.


 Free Report The 8 Things You Must Do To Be A Successful Home Flipper






          

Hard Money Lenders—California is Calling

If you are like most, you probably think that all lenders are alike; well, you might want to think again, when it comes to hard money lenders. California is no stranger to these particular kinds of lenders and is the best place to really note the distinction between private money and hard money lenders.
iStock_000004311792_FullClearly, when dealing with private money, you are for the most part dealing with private money lenders and not necessarily hard money lenders. California based lenders, however, make it a point to make a clear distinction between these two kinds of financing. For instance, private money is generally obtained through close personal working relationships and is used for investment properties and ventures. Thus, California lenders who offer private money tend to be more flexible with repayment options and more tailored to a specific group of borrowers.
On the other hand, hard money is almost always obtained via hard money lenders. California lenders of hard money look at the actual property being purchased and essentially determine if there is enough value for them to loan you funds. Moreover, these particular lenders tend to cut through the red tape in comparison to private money lenders and traditional lending institutions. The reasoning being that, again, these particular lenders (hard money) are more focused on the property value and in reality, the approval is just the beginning for these kinds of lenders.
This means that hard money lenders take things a step further and typically manage many of the processes necessary to get your loan closed. For example, it is not shocking to see your lender create your loan package, order the necessary forms such as your title and appraisal report. Hard money lenders will also generally verify payoffs and/or restatements advise you on the best loan program as well as provide all your disclosures. Furthermore, your lender will likely handle underwriting responsibilities, investor matching, decide on a loan servicers for your loan and create/manage pertinent documents (loan docs, loan settlement and/or closing). Of course, this is just a quick overview of everything your hard money lender can do for you. So, let us discuss a more in-depth explanation of one of the main services—the loan package.
Beyond Approval
Creating your loan package is no minor tasks. In other words, your lender will spend some time making sure that you have everything you need to secure an investor. It is important to let your lender take the lead on your loan package for several reasons. The main reason being that a tailor-made package that knows the market and is well documented/organized is what will attract quality investors. In your loan package, you will have a credit report, financial statements, statement of information, tax returns, proof of relevant liabilities and assets—just to name a few.
A Win- Win Solution
Ultimately, all of the above is what sets hard money lenders apart from the pack. Moreover, an reputable and highly experience lender of hard money will make sure the entire process from start to finish is as seamless as possible, which gets you one step closer to making your real estate dreams a reality.

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
Dennis@level4funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

 You TubeFace Book Active Rain Linked In 

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.


 Free Report The 8 Things You Must Do To Be A Successful Home Flipper