Now that you have decided to work with private money lenders in California, it may be helpful to know what you need to do in order to get approved or to have a better understanding of what happens after you choose one lender in particular.
Private money lenders in California are not shy when it comes to the approval process. In other words, private money lenders in California typically will lay out what they need from you and the rest is really up to. Consequently, once you have found a few good private money lenders, the next thing you need to do is find the right loan. Of course, this may sound pretty straightforward, but the reality is that no two lenders are alike. Thus, you need to go over long terms, interest rates and repayment options with a few lenders.
You will be doing yourself a favor by going over everything with a fine-tooth comb because just as no two private lenders are alike, no two private loans are alike. This means you really need to take some time getting to know your potential lenders and take even more time discerning if the terms of your potential loan truly meet your project needs and requirements.
Besides doing everything you can to find the right lender and right loan for you, you have a few other things to consider before you can even begin the approval process. For instance, you should ask yourself if your potential lender does not have a high rate of foreclosures. Sure, it is never any fun to think about what will happen if your project goes south or if you cannot meet your loan payment, but it is a necessary evil. Therefore, let us get back to discussing that high rate of foreclosures if your potential lender has a significant number of foreclosures underneath their belt you should be concerned. Generally, when a lender has a high rate of foreclosures, more than likely your potential lack flexibility or the willingness to work with their borrowers when it comes to loan terms. Thus, if the lender you find seems too good to be true, such out-of-box questions should come to mind.
After you have asked the hard questions (if you like the answers you get), then it is time to start the approval process. As you know, just like any other kind of financing, you need to submit ab application. With private lenders, it helps have an in-depth picture of your financial and credit situation to increase your chances of approval as well as to decrease your wait time. Once you submitted your application, next comes the real waiting game. But, the good news is that private lenders tend to move quickly, therefore you will most likely get an answer in a few days.
Regulations and Eligibility of a California Private Hard Money
Once you qualify, it is time to choose a loan program that meets your needs, order a title report, get an appraisal and set an escrow account with a neutral third party. All the meanwhile, your lender will be reviewing the necessary documentation you provided in order to approve your loan. Upon approval, you can sign closing package and get your loan funded (you will also need to record your documents and eventually make payments.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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.