Setabay Private Hard Money Lender

Tuesday, October 4, 2016

Four Things To Consider Before Calling Your California Private Money Lender

When you are looking to snatch up a property before someone else comes along, you need to act quickly, but before you call your California Private Money lender, there are four things about the property you may want to consider.

One of the toughest things an investor has to do is keep from getting too excited about a property. It can be real easy to see something, for whatever reason fall in love with it, and then lose all sense of objectivity when evaluating it as an investment. There is nothing worse than revisiting it days or weeks later with fresh eyes and seeing everything you didn’t before.

So before you jump the gun, call your California Private Money lender and commit yourself to expensive loan, there are certain things you may want to consider first.

Before You Call Your California Private Money Lender…

One of the great things about a private money lender is the ability to get a loan fast tracked and the money in hand needed to secure a property. However, before you get the ball rolling, make sure you take four things into consideration:

Property Location: You’ve heard it before—location! Location! Location! A good location can save the worst of properties. People don’t want to buy the city dump, but if the dump has a prime spot in the local mall or a great view of the ocean, that may be enough for an investor. The investor will in turn be more than happy to fix up the property and sell or rent it for a small fortune.

Property Condition: Location has a lot to do with the value of a property, but if it is in deplorable condition, it may still be difficult to sell. At the same time, beware taking on a project that is a clear fixer upper. Once you start working on it, there is no telling what you may find. Be aware of just how bad the condition may be so you don’t find yourself biting off more than you can chew.

Price: Of course you want to take a look at the price! Everyone knows that, but the question is why? If it appears to be too high, do they know something you don’t? There must be a reason why the price is what it is. If it is too low, you have to wonder why they don’t want more. Do they just want to get rid of it? Is there a drainage, electrical, or some other kind of issue brewing? If it will cost a lot to rehab the property, is that factored in to the price tag?

After Rehab Value: This will more than likely be why you call your California Private Money Lender. What can you sell the property for after you fix it up? Will it be worth paying what they are asking for it and the rehab expenses? Or do you need to negotiate a lower price? Can you make enough money off the rehabbed property to make it worth buying?

Your Private Money Checklist

Decisions involving investments are often pretty hard to make. You don’t want to rush into anything, but at the same time, you don’t want to wait too long and lose an opportunity. So if you are an investor or someone looking into it, you should keep a checklist in mind to help you make objective decisions on things.

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.

Monday, October 3, 2016

Things To Consider When Applying For A California Private Money Loan

Whether you are working with a private money lender in Texas or a California Private Money Lender, there will be things that you will want to consider before committing to anything.

Any financing option is going to come with certain clauses, regulations, and/or requirements that a borrower should familiarize themselves with before pursuing the option. For instance, when someone in Los Angeles hunts down a California Private Money Lender so he can get his reality show off the ground, he will need to be prepared for certain things.

Since it is a private money loan, the interest rate will be a lot higher. It is the tradeoff you have to accept to get the money sooner rather than later and because of less than desirable credit. It’s the cost that everyone expects when they apply for a private money loan.

But it isn’t the only cost.

Beware The Cost Of Working With A California Private Money Lender

Like private money lenders everywhere, there will be cost borrowers will have to handle when they apply for a California Private Money loan. Those costs can be categorized as up-front, interim, and renewal:

Up-Front: when you apply for a private money loan you will have to deal with certain costs as part of the application process. Points are basically compensation to the lender for just getting the ball rolling. A borrower may also have to pay a referral fee to whoever pointed them in the right direction. Since the loan documents are typically not cut and dry, the processing, document prep, and other fees may be a little higher as well.

Interim: throughout the life of the loan there will be certain costs a borrower will have to pay along the way like interest, amortization, late fees, and taxes and insurance costs. Should a borrower become delinquent, the lender can advance against the loan to cover the costs of appraisals, unpaid taxes, foreclosure fees or legal fees.

Renewal Costs: it is not unusual for a California Private Money loan to include a massive balloon payment at the end of the loan’s term. If the borrower can’t pay it they may request a renewal. In doing so, they will likely have to give up more points up front as well as cover closing costs and any expenses related to document preparation.

The Truth About Private Money

There is money to be made in financing, which is why so many companies exist for the sole purpose of providing people with the financing option of their dreams. While it all may seem magnanimous at the time, the cold, hard truth is the lender doesn’t care about the borrower or his/her dreams. They know you can’t get a loan elsewhere and have no choice but to turn to them.

So what do they do? They do like any good business person would—they take advantage of the borrower’s necessity and charge accordingly.

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.

Friday, September 30, 2016

Beware The Pitfalls Of Working With A California Private Money Lender

The finance world has lots of options these days, but with each one there comes a certain amount of risk. There are certain risks you should be prepared to deal with or accept when working with a California Private Money Lender.

Traveling overseas by plane is a lot like trying to work with traditional financing options. The process is doable and one you can get through, but it is going to take forever and could be very uncomfortable in the process (unless you are in first class and keep getting your champagne glass filled).

Traditional financing options typically do take a long time from the beginning of the application process to final approval. For some, the wait is reason enough to look for other options.

But for some, the wait is just the beginning of the frustration. They learn the hard way that when you apply for a loan there is no guarantee you’ll get it. After taking months to go through the process to just get rejected can be the most frustrating experience possible.

The possibility is another reason why many will forgo traditional routes and just seek out a California Private Money lender instead. Like private money lenders across the country, they are quicker and more likely to approve someone—no matter how questionable their credit history is.

However, with the ease and speed of a private money lender comes risk.

Beware The California Private Money Lender That Seems To Good To Be True

When you decide to go with any private money lender there are certain things you have to be prepared to deal with. For instance, since they do tend to work with people that cannot get approved for loans through traditional channels they will charge higher interest rates. It’s their way of being compensated for taking a chance.

At the same time, the lender will do everything they can to mitigate that risk by requiring a borrower to provide sufficient collateral and possibly even a deed to the property in the lender’s name or insurance in their name. Either could then be used to recoup their losses should a borrower default on the loan

The Trade Off With Private Money Lenders

Whether you are using a California Private Money lender or one in another state the benefits are easy to see—a borrower gets the money they want sooner rather than later. However, at the same time it is going to cost them much more (due to a higher interest rate) and they stand to lose everything should they have to default on the loan.

Then again, chances are the property they would have a deed to would be the same one a traditional lender would want to secure a loan. So essentially, a borrower is paying higher interest rates to get money sooner.

Is it worth it? Only the borrower can say for sure—and probably not until they pay back the loan or default on it.

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.

Thursday, September 29, 2016

Is Going To A California Hard Money Lender The Right Decision For You?

There are a lot of options for people when it comes to financing these days, but not every option is right for everyone. There are two where it would be smart to look up your nearest California Hard Money lender.

At one point in time, if you wanted to get a loan so you could open your own business, the one and only option was your local bank. Now, there are several options available to potential entrepreneurs depending on what your need is.

Commercial banks are a popular option as are mortgage banks and brokers. Credit unions have gotten into the action as well, and there are now many finance companies looking to make loans along with online lenders.

Each type of lender has its pros and cons just like every loan option has them. In many cases, there are two factors that are more important than others. For those in the Golden State, depending on how these two factors apply to you, a California Hard Money lender may be the right option for you.

When A California Hard Money Lender Is The Best Option

When it comes to business-related loans, there are usually two factors that impact every borrower—time and their credit score. They may need the money sooner rather than later and can’t wait. They could also be one of the many that have made a poor decision or two in regards to their credit.

Taking too much time to close on a loan can cost an investor a good deal. While they wait for the bank to give their approval, they may lose out to someone who has the money or approval on hand. Should there be several competing bids for a property, having the money on hand for a quick close can be the factor that has pushes the seller to go with you over others.

Probably the primary reason a borrower goes with a California Hard Money lender over the local bank is their credit score. Traditional lenders, like banks, are not known for being too forgiving when it comes to poor credit scores. They prefer to get involved with deals that appear less risky. They don’t want to risk a loan defaulting by approving someone with a history of not paying their bills.

It may not necessarily be that they don’t want to approve your application, but are restricted by guidelines and regulations. What makes this frustrating is that the cut off between getting approved and denied can be as simple as having a 625 credit score or a 575. While the 50-point gap looks small to us, it can be cavernous to a lender.

A hard money lender will look at your credit score, but will be more interested in how much equity you have in whatever property is securing the loan. They will also take the same consideration in regards to your income history (i.e. someone starting a new job can get denied by traditional lenders even though they make a healthy salary).

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, September 28, 2016

Three Situations When A California Hard Money Lender Could Give You A Helping Hand

Going with a California Hard Money lender may not always be the best option to take, but there are certain situations where they can be exactly what you need.

One of the hardest things about starting a new business in the Golden State has to be securing whatever financing you need to get your project off the ground and running. In the beginning, you are going to need as much as you can get but don’t want to take too much if doing so can be avoided—you will have to pay it back with interest after all!

However, one of the sad truths about business ownership is that there is always going to be something that will come up that will require you to spend more money on than you have to deal with. You can’t ignore it; it has to be addressed.

When you need money in a pinch, traditional loans are typically not going to be approved fast enough for business operations not to be hampered—which makes it nice to have California Hard Money lenders available.

When Should You Call Your California Hard Money Lender Before Your Bank

Hard money loans are typically paid back sooner with terms of a few months to a few years. Since credit scores are not weighed too heavily, interest rates tend to be higher along with whatever fees may be required. However, with how they are structured and processed, for certain situations they are the best option for a borrower to take:

Renovations/Flipping a property: It is not unusual for a property to be for sale at a low price because of the state the property is in. But an astute investor can see past the dirt, grime, and disrepair and visualize how the diamond in the rough will look once its cleaned up and a few fixes are made. However, while your bank loan allowed you to buy the property, you don’t have enough to make the necessary upgrades.

Hard money lenders, unlike most traditional ones, will look past the immediate appearance and see the diamond you see. Since the approval process is quicker, you will not have to sit on the property for long before getting to work.

Construction: traditional lenders like to see for properties to be ready and not require much work, but sometimes construction is necessary for a property’s value to be realized. Traditional lenders will not necessarily say no, but they will have a number of hoops for borrowers to jump through. Miss one, and you could very well be out of luck. Traditional lenders may also only be willing to finance part of a project, requiring you to come up with the rest.

While the same hoops are important to California Hard Money lenders, they are not as important. They are more apt to look for compensating factors that can make a developer look more appealing.

Time-Sensitive Property Purchases: one of the most frustrating things to a real estate investor has to be finding a tremendous deal on a great property and losing it because you had to wait on your bank to close on your loan. A traditional loan backed by Fannie Mae will take at least 120 days before it can be refinanced. A hard money loan can be just the thing to help you secure the property without having to wait 120 days.

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.

Friday, September 23, 2016

Benefits of Working With A California Hard Money Lender

People do have options these days when it comes to their money lending needs so when it comes to a California Hard Money lender, why should you go with them.

In a perfect world, we would all be so rich we would not need to take a loan of any kind out to conduct business. However, the world is far from perfect, so it is good that California Hard Money lenders exist to help bridge the gap between our business dreams and reality.

When it comes to taking out a loan, there are several options available to someone in need these days. There are banks, of course, as well as private lenders, etc., but there are some that can be easier to work with than others.

There are certainly benefits for people in the Golden State to work with a California Hard Money lender.

Expectations When You Work With A Hard Money Lender

When you work with a California Hard Money lender there are certain aspects of the loan and the process involved in getting it that make this option more appealing than many of the traditional routes:

Application Process: when you go to the bank for a loan, it can take a long time to just fill out all of the paperwork not to mention how long you’ll have to wait for an approval or a rejection. The process with a hard money loan is often easier and more straight forward and have fewer hoop for you to jump through than many other types of loans.

Guidelines: the guidelines for hard money loans are often a lot less restrictive than other financing options. They are often more creative and be constructed to be more beneficial to the lender and the borrower.

Options: when it comes to financing options, borrowers will have more options with hard money lenders than with traditional financing routes. Access to the money is easier and applications are often approved relatively fast as well.

Quick Closing: is there anything more annoying than knowing you’ve been approved or will be and then it still takes forever to close the deal? With hard money lenders, this will not be an issue. This can be especially helpful if you need the money to cover an expense sooner rather than later.

The Biggest Benefit To Using A Hard Money Lender

Whether you are looking for a California Hard Money lender or one in another state, the biggest benefit to them is pretty universal. Unlike traditional loans that often rely on your credit score for approval, hard money loans are not restricted by your credit score. Hard money lenders are more concerned with the present and the property than the mistakes you may have made in the past.

This is not to say that they will approve anyone, but even if your credit score is terrible, you can still get approved. You will, however, be expected to provide a property of sufficient value to secure the loan.

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.

Thursday, September 22, 2016

Dreams Can Come True With The Right Loan From A California Hard Money Lender

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 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

Tuesday, October 4, 2016

Four Things To Consider Before Calling Your California Private Money Lender

When you are looking to snatch up a property before someone else comes along, you need to act quickly, but before you call your California Private Money lender, there are four things about the property you may want to consider.

Before You Call Your California Private Money Lender…

Your Private Money Checklist

Monday, October 3, 2016

Things To Consider When Applying For A California Private Money Loan

Whether you are working with a private money lender in Texas or a California Private Money Lender, there will be things that you will want to consider before committing to anything.

Beware The Cost Of Working With A California Private Money Lender

The Truth About Private Money

Friday, September 30, 2016

Beware The Pitfalls Of Working With A California Private Money Lender

The finance world has lots of options these days, but with each one there comes a certain amount of risk. There are certain risks you should be prepared to deal with or accept when working with a California Private Money Lender.

Beware The California Private Money Lender That Seems To Good To Be True

The Trade Off With Private Money Lenders

Thursday, September 29, 2016

Is Going To A California Hard Money Lender The Right Decision For You?

There are a lot of options for people when it comes to financing these days, but not every option is right for everyone. There are two where it would be smart to look up your nearest California Hard Money lender.

When A California Hard Money Lender Is The Best Option

Wednesday, September 28, 2016

Three Situations When A California Hard Money Lender Could Give You A Helping Hand

Going with a California Hard Money lender may not always be the best option to take, but there are certain situations where they can be exactly what you need.

When Should You Call Your California Hard Money Lender Before Your Bank

Friday, September 23, 2016

Benefits of Working With A California Hard Money Lender

People do have options these days when it comes to their money lending needs so when it comes to a California Hard Money lender, why should you go with them.

Expectations When You Work With A Hard Money Lender

The Biggest Benefit To Using A Hard Money Lender

Thursday, September 22, 2016

Dreams Can Come True With The Right Loan From A California Hard Money Lender

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.

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