Setabay Private Hard Money Lender: hard money lender

Showing posts with label hard money lender. Show all posts

Monday, March 20, 2017

How to protect yourself from getting scammed by hard money lenders in California

A sucker is born every minute. This is a hard pill to swallow for some people, but it is true and many lenders will use a person’s lack of knowledge to their advantage. Which is why we at Level 4 Funding want to make sure you are covered when dealing with hard money lenders in California.

In the state of California, there are hundreds of hard money lenders that you can go to for your loan needs. Before you ink any deal, you want to make sure that you do all your research. You have to become a detective when searching for a potential lender. Scour thousands of reviews from past clients if need be. Find everything you can about the lender and the firm they represent.

If they have open cases on with the Better Business Bureau make sure you bring it up when you meet with the lender. If the firm is not recognized by the BBB, which is not uncommon for many firms, you can try sites like California Real Estate Fraud are great places to start. If you cannot find enough information on sites like this, try contacting past clients personal via email. Some hard money lenders in California will post fake reviews on their company website to keep up the appearance of a legitimate business.

What if you are already sitting in the lender’s office already?

Simple, keep your composure and listen for certain clues that will tip you off to impropriety. It could be as small as the lender being too eager to give you a loan before hearing what you plan on doing with the property.

One of the biggest things that trip people up are the fees associated with the loan they are applying for. Take bridge loans, for example, most hard money lenders in California will charge you a fee anywhere from $2,500 to $15,000. Yes, it is a lot but you need to make sure you are committed to the project.

That being said, if the lender asks for a fee higher than that you should not go through with the deal. If the loan you are looking to borrow is less than the fee something is most likely off with the lender.

REO fraud is popular with some hard money lenders in California

An REO property, or a real estate owned property, is sold by the lender. Many people fall prey to this scam due to a lack of research. What usually happens is the lender sells the property for a relatively low price to a secondary buyer then sells the property at a ridiculously high price. If you do not look into the past buyers and prices you could fall victim to this.

Many of the frauds are beginning to eliminate the middleman altogether and just selling the property for a high price. Investors can prevent being taken advantage of if they take the proper precautions when looking for lenders. Peace of mind is worth more than a new property.

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.

Technorati Tags: hard money lender in california,hard money lenders in california

Wednesday, February 8, 2017

The burning answers most residential hard money lenders leave out?

Say you have just taken up residence in Massachusetts and have decided to take on the real estate market. After coming down from your lobster roll high you have realized you know absolutely nothing about real estate. You wife knew this before you finished your explanation of your half-cocked scheme to take over the Cape Cod market.

You remembered that you still have to pay for regular expenses, student loans, car note and daycare tuition for your toddler. Upon calculating all the expenses, you decide to go to your local bank for loan information.

Once they see the type of credit score you are packing they politely decline. After recovering from that hay-maker you decide to be successful the hard money route is the best option for you. But, there are some things you need to know before you take on a residential hard money lender.

When it comes to hard money loans there is some fine print you need to read

While these loans are great in a pinch sometimes they could carry a few negatives. For example, if you have done a little research you probably read that your credit score really does not matter. Most residential hard money lenders will not deny you a loan based solely on your credit score. Often they will grant you a loan based on the amount of collateral you can use.

Although many lenders do this do not start jumping for joy just yet. There are some lenders that will judge how quickly you will be able to pay off your loan by your credit score. That combined with a less than decent amount of collateral, while unlikely, you could be refused a loan.

When working with residential hard money lenders there are many fees

Fees, there will always be fees and expenses when you are taking on real estate. If you are considering a hard money loan certain actions are required to get the loan. For example, to get a hard money loan you need to pay for a title policy, insurance and you need to get the property appraised, as well. After this is done you still have to take potential repairs into consideration.

Speaking of repairs, when you are applying for a hard money loan there is an after-repaired-value that needs to be calculated before you receive your loan. Basically, what this means is once the property is appraised and the potential repairs are assessed, the loan will typically not exceed 70 percent of ARV. If there are more repairs that occur later on in the rehabbing of the property your residential hard money lender will require you to provide the correct documents and estimates before they lend you more money. This is called a “draw request.”

Are residential hard money lenders interested in interest?

Simply put yes, typically hard money loans tend to have higher interest rates. Usually, if you go through a bank you could get a lower rate, but like we said before you have bad credit. You are high risk to the Bank of Massachusetts so you have to pay a little more for your loan. Will it be extremely pricey? It could be, but there is give and take when you are in the real estate business. Some properties will be winners and others will have you in a daze with lobster hanging from your mouth.

In the right conditions, a hard money loan can be a godsend, on the other hand you could end up paying back a lot of money if you choose the wrong Cape Cod. Before you choose your next loan, you need to do extensive research on the company’s policies and the lender, well.

Happy senior business man making his notes at work Dennis 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

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.

Technorati Tags: residental hard money lenders,residential hard money lender

Should you consider a fractional investment as a residential hard money lender?

Entrepreneurship, in general, is an extremely tough and time-consuming profession. Sure, you will always find people that are running businesses, but at what cost? Most of them would live much happier lives if they would delegate a lot of the work they deal with. So, what does this have to do with someone who is a residential hard money lender?

As far as entrepreneurship goes, the real estate market is one of the toughest to grow a successful business. For hard money lenders, there is a very large amount of financial risk that is associated with real estate. Most of the time, yes, you will get your money back. Could there potentially be pushback? Yes, but most of the time you will receive your investment back.

For those bigger deals, however, you may want to take a look into pursuing a fractional investment. Basically, fractional investment is the inclusion of multiple parties that are willing to invest with you. Usually, each party receives an equal amount of ownership in the deed of trust when lending to potential borrowers. If you are just starting your lending career this may be one of the best options that you should consider when you are starting your lending career.

So, what are some of the advantages of fractional investments?

One of the biggest advantages that you immediately get from having fractional partners is the number of people you have on the team. Suppose you have started a firm and thankfully you have taken on a new client, but you have little knowledge on residential hard money lending. In this case, having two or three people that have knowledge in the industry could greatly benefit your business.

With more people that are investing in the same property, it could potentially cut out a lot of competition. When you are starting out you want as many friends as possible and as little enemies as possible. In the real estate business, you are going to encounter tons of people that will try to scalp those great finds. By adding more people to your company’s roster this could give you more money, experience and lower risk.

Those are the advantages, but what are the pitfalls of fractional investment?

With everything good, there is something bad lurking in the background. For the right people, this type of investing is great, but you are liable to run into a few issues if you and your partners are not on the same page. Fractional investing allows lenders to partner on investments; this means each person has an equal amount of stake in the property.

Without the proper amount of communication with your fellow residential hard money lenders, things could go terribly wrong. One of your investors could possibly get cold feet on about a residential property that you had agreed on. If you do not have enough money to fund the changes the property needed you could miss out on a lot of profit.

So as a residential hard money lender do you need fractional investors?

Depending on the market you should consider fractional investing. Will you always get your way? Most likely no, but if you are an inexperienced lender it would help greatly if you had someone that could mentor you for your future clients that you take on. Having more investors does mean having more money that you could put into your project, as well. You should definitely weigh all the options before you commit to fractional investing.

Technorati Tags: residental hard money lenders,residential hard money lender

Friday, January 13, 2017

Trumps Economy Is Going To Take Off! Get Ready Now!

Thing are going to happen..

Something is going on out there. Recently I've opened a new checking account at BofA for a small business venture, but I had one major problem to overcome. Something that I would have never expected. When I got to the bank they said "you will have to stand in line to open an account. " I asked my personal banker 'what's going on'? She said " did not understand what was happening, but since this morning there has been a steady stream of new customers coming into the bank and opening business checking accounts. I have never seen this much activity before".

Based on a recent Bloomberg report, Optimism among America’s small businesses soared in December by the most since 1980 as expectations about the economy’s prospects improved dramatically in the aftermath of the presidential election.

Being in business for 40 Plus years I hear this from my personal business associates. The consensus is that their feeling is '2017 is going to be a good year'. The share of business owners who say now is a good time to expand is three times the average of the current expansion, according to the NFIB’s data. More companies also said they plan to increase investment and keep hiring, which reflects optimism surrounding President-elect Donald Trump’s plans of spurring the economy through deregulation, tax reform and infrastructure spending.

Fifty percent of respondents, the biggest share since March 2002, said they expect better business conditions in the next six months. That was 38 percentage points higher than in November. The net share of firms projecting higher sales jumped by 20 points to 31 percent. Some 29 percent say they will boost capital outlays within six months.

The National Federation of Independent Business’s index jumped 7.4 points last month to 105.8, the highest since the end of 2004, from 98.4. While seven of the 10 components increased in December, 73 percent of the monthly advance was due to more upbeat views about the outlook for sales and the economy, the Washington-based group said. “

Rising confidence adds to the economy’s upward momentum,” Jim O’Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, New York, said in a note. At the same time, the “NFIB membership appears to be disproportionately Republican, so it is possible that the data will start overstating strength, opposite the pattern during the Obama administration.”

The NFIB report was based on a survey of 619 small-business owners through Dec. 28. Small companies represent more than 99 percent of all U.S employers, according to the U.S. Small Business Administration. A small business is defined as an independent enterprise with no more than 500 employees.

“We haven’t seen numbers like this in a long time,” Juanita Duggan, president and chief executive of the NFIB, said in a statement. “Small business is ready for a breakout, and that can only mean very good things for the U.S. economy. Business owners are feeling better about taking risks and making investments.”

So now what do you do? What is your plan for the next 1-2 years? Should you invest in the stock market, hold cash, purchase real estate? Personally, I'm jumping back into the real estate rental market. But I'm being very cautious on what and where I purchase. I'm still licking my wounds from 2008.

Dodd-Frank will be changed. Only 3 new banks have been started since the 2008 crash. I remember when it would have been hundreds! Lending has been stagnant as local and regional banks are handcuffed to lend. What we have is constipation of the money pipeline due in large part to Dodd-Frank.

About 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

Does Our Government Really Hate US? Really?

What's wrong with our economy?

One of the technical terms used when evaluating a healthy economy is a term called velocity of capital. What this means is how fast money is moving around from one person to another, or defined as "The velocity of money is the rate at which money is exchanged from one transaction to another and how much a unit of currency is used in a given period of time. Velocity of money is usually measured as a ratio of GNP to a country's total supply of money.”

As you can see from the above graph the Velocity is on a steady decline. So what causes the drop? My opinion is that there are two main reasons:

People (consumers) have stopped spending money. They are sitting on a boat load of cash and they are in a wait and see mode.
The second reason why there is a decline is that the government has put up road blocks to keep spending money. One of the biggest road blocks enacted are the Dodd-Frank Regulations that are making it extremely difficult for individuals to purchase homes.

When someone purchases a home it's not just the seller and buyer who are happy. There are those downstream of this closing that are going to be happy when the home closes. Typically the listing and selling agents are happy, but there are others who also benefit from this happiness and make a living off of the sale. Sure the buyer is happy, they have their dream home they always wanted, and the seller is happy since the can move to their next home, or maybe get rid of the current home. It's going to be a Happy, Happy, Happy fest. The agents who listed/sold the home can't wait till they receive the final HUD 1 is completed and the title company sends out the checks to the brokers. Most agents keep a list of the transactions in their pipeline and like most agents, their spouse is quizzing them on the transactions. My wife usually says, 'got anything closing this week'? She says this specially during the holiday season. I'm happy to say that yes!. This is going to be a good Christmas. However there are many others who will benefit from this transaction and will have a happy Christmas.

Title company and the title agent are getting something from this transaction, like title insurance & escrow fees.
The loan company, Loan Officers, Loan Brokers, Underwriters, support staff, company sales rep also benefit.
Home Inspectors, and termite inspectors are getting some of the money.
Handyman who will fix the conditional items from the homeb inspection also get a piece of the deal, and don't forget all the hardware stores will get a piece of this pie when the handyman buys a new faucet or other item to be fixed.
Tax payers benefit when home taxes are being paid in full with collections of future taxes.
Insurance companies are writing a new policy.
HOA's are going to receive a transfer fee and maybe impact fees.
Neighbors are going to be happy to see a new neighbor.
Disabled Vets are going to receive all of the stuff the new home owners are going to give away before they move.
Utility companies are going to get a change notice and if the account is past due, they are going to get paid.
Appraisal companies will get their piece of the pie also.

It is amazing when you think of all the people who will touch this transaction to complete the deal at all. BUT what's really startling is how many people will be able to keep their job, put food on the table and survive.

With all of this occurring, we should sell homes all the time, but I'm shocked by the road blocks our government has put in place to stop this from occurring. In an effort to fix the last collapse of the housing industry, the administration has generated a mountain of mind numbing regulations to stop consumers from purchasing a home. It's like passing through gates of hell to get a loan. We have gone too far in the wrong direction to fix the problem. The incoming administration has indicated that they are aware of this problem and is promising to fix the regulations ASAP. Let's get money flowing again!

Dennis 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
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 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.

Wednesday, January 11, 2017

Level 4 Funding LLC Arizona Private Hard Money Lender

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 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.

Setabay Private Hard Money Lender