Whenever there seems to be a lot of something or little of something in a given location, there is typically a reason. For example, there are a lot of hard money lenders in California, and there is a reason for this.

There is usually a method to the madness—whatever the madness happens to be. If there seems to be a lot of boys named “Peyton” in the area, if that area is Indianapolis ask a football fan why that is. Are lots of kids on your basketball team named Michael or Jordan? Well—the reason for that isn’t too hard to figure out either (especially for a Chicago Bulls fan).

The same concept applies to things other than baby names. For instance, you will likely find more snowmobile dealers in Maine than you would in Texas. You will probably find more people owning jet skis in San Diego than you would in Alaska.

But why does there seem to be so many hard money lenders in California?

Method To The Madness

More often than not, there is a reason for everything, and there is a reason there are a lot of hard money lenders calling California home.

Even though the area has been settled for well over a century, people still think about ‘going west’ to live the American Dream. With the state being so big and populous, that means there are lots of people looking to live the dream, and in this day and age, many of them have crappy credit.

So they need hard money lenders in California to service those people.

Over the years, the state has developed a heck of a tradition for private borrowing and investing. It’s going to happen in any place as big and populous as California is.

Non-Judicial Foreclosure State vs. Judicial Foreclosure State

One of the big reasons there are so many hard money lenders in California is the fact that California is a non-judicial foreclosure state. What this means is that if a property needs to be foreclosed on it is easier for a lender to gain control of a property and be repaid. That is, as long as the property is not owner-occupied.

In states where there is a judicial foreclosure process, it can be a lot tougher for a lender to gain control of assets since the process can be very long and complicated. Anytime action can be taken without having to go to court it is not going to take as long.

That also means that if you are a borrower in California, you better keep up on your payment or know when your lender begins the foreclosure process. Since it goes a lot faster, if you want to have a chance to stop it, it helps to know when the process has started.

In some non-judicial foreclosure states, the borrower is still able to pay what he or she owes after the property is sold at auction and retain the property.

Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
https://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.