Deciding to be a part of the business of lending is a big step for anyone, especially private money lenders. California based lenders, in particular, have to deal with a variety of competitors while still learning the ropes, thus it can be helpful to know what values or disciplines will help you stand out as a lender.
Whether you are just getting into the business or looking to work with reputable lenders, a few key components need to present. For starters, if you are California based, then you need to work with locally based private money lenders. California investors and borrowers, actually, benefit more from loans that are within 100 miles of their office or potential property. Thus, in short, this means everyone needs to stay local.
Of course, the thought-process behind staying local is not revolutionary rather it is based on the assumptions that people tend to trust what they know. In addition to working with your neighbors, you need to carve out your niche. Again, this is a two-way street—if you are a soon-to-be lender, you need to find the area of this industry you can invest in while still seeing a sizable return. On the other hand, if you are a borrower, your vision needs to be understood by your potential private money lenders. California lenders, in fact, are some of the more diverse lenders you will come across, thus if you are looking to break into that particular market you will also need to stay focused in your approach.
The best way to stay focused here is to know your strengths as a lender and as a borrower. There is no need to make promises you cannot live up to period. Therefore, stick to your niche, spread the word about your niche and be as transparent as possible while you do it.
Besides the above-mentioned California values, as a lender, you should always remember two key tips. The first tip for success is to remember to refer instead of brokering. It is important to refer when you come across a borrower or potential loan outside of your focus or niche. By choosing to refer, you will save both yourself and your borrower a lot of time. Moreover, if you get in the business of referring you will like see other lenders returning the favor. The second tip for success is to invest in yourself, which should include everything from mentoring, consulting, coaching, seminars and more. Remember, you as well as your business can only grow if you make time to invest in yourself and your goals.
A Win-Win Solution
Ultimately, these values can apply to any and all lenders. The point, here is that becoming an investor, growing and creating a successful private money practice will not happen overnight or by sheer luck. Moreover, working with the right borrowers will take skill as well as drive, which can only happen when you have clear set values that streamline the lending process and create a reputation that demonstrates you mean business.
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.