Well, you must have heard the phrase “All that glitters is not gold; same is the case with private money lenders in California. These lenders do vouch to get you money at a faster pace. However, it is advised to make an informed decision after weighing the pros and cons.
The corporate fraternity is prone to vulnerabilities that might affect your business. Such circumstances are unavoidable and need to be dealt with precision. However, if you are a nascent business in its initial phase, then the probability is high that you might not have an ample capital at your disposal.
For such situations, here are a few things that can help you make an informed decision.
Assess the situation
The private money lenders in California are a viable option for immediate capital that might sound attractive. However, knowing what you are getting into before opting for the loan seems a safer bet.
It needs to be cleared that no private money lender in California will give you a long-term loan. That is not how it works.
In most cases, the timespan to payback stretches to 18-months. Thus, within a short passage of time, you will be expected to make the refund. Moreover, since the loan is short-term, the interest rate will be high and expected payment will be hefty.
As appealing as getting your loan within a few days sounds, in contrast to a few weeks; the payback can be a major setback if not planned smartly. Thus, make sure to evaluate if you will be able to make timely payments before signing the deal.
Look at the greater good
In certain cases, private money lenders in California might seem like the best possible option. However, if the intensity of the situation is not high then making an objective decision that takes the pros and cons into consideration is a smarter way to go about things.
In scenarios where such loans will help you generate a steady revenue stream, private money lenders in California is the right choice. On the contrary, if the cash flow will not blossom, then an alternative revenue stream is a safer option.
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.