There is no shortage of private money lenders in California. The reason that there is no shortage is because private money lenders in California are not afraid to offer investors what they need when they need it.
It is no secret that private money lenders in California have the market cornered. But, if you are new to the world of investing and borrowing, you are probably wondering why? Well, private money lenders, in general, offer three major upsides that definitely outweigh the downsides. Nevertheless, before going over those three major upsides, it is still important to know what the downsides actually are.
For starters, one of the main downsides or drawbacks to working with private money lenders is the substantially higher interest rates. However, this downside should not deter you from working with these particular kinds of lenders. The reality is that you will have to deal with interest rates regardless of the type of financing you choose. When you using private money, it helps to just remember your interest is higher because your need is greater. In other words, you use private money when time is of the essence.
With that being said, private financing lenders, especially in California, typically offer the quickest funding. Besides, besides being the best way to secure quick financing, these lenders’ qualification requirements are more relaxed. Of course, this is not to say that there are less adherence state regulations. Instead, California lenders who offer private money loans are accustomed to approving loans against virtually any properties (no occupancy or low occupancy, etc.). This means that any non-traditional purchases are not off the table with California lenders. Moreover, any previous bad credit problems or history tend do not affect your chances of approval and there is a lot less red tape involved. What’s more, there are still additional benefits that come from choosing to work with California lenders in order to secure private money.
In addition to quick approval time and easy-to-meet qualifications, another major benefit you will see with this particular kind of funding is an opportunity cost. If you are unfamiliar with the phrase, opportunity cost is essentially having the ability to make one’s money go further. This means that not all of your assets are tied up in any specific property when you use private money. Furthermore, California lenders are open to negotiating loan terms when dealing with private money. Therefore, despite the higher interest you still may come out ahead.
A Win-Win Solution
Ultimately, choosing to work with California lenders who offer private money financing is practically a no-brainer. As you can see for yourself, all the benefits clearly outweigh the disadvantages. Nevertheless, if you are still unsure about working with a new California-based lender for your private loan, it always helps to do your research—no two lenders will be the same, of course. Thus, you should do a cursory search in your particular area as well as outside of your location—you will instantly see the difference in what non-California lenders and California lenders offer.
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.comhttp://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.