Hard Money Lenders—California Lender Basics

mark gowlovechThere is all this talk of private money and hard money lenders, California based lenders—the list goes on. However, if you are like most people you are probably a little unsure about the basics, which is perfectly okay because you came to the right the place.

If you are just starting your investment project or commercial venture, then most likely you are looking for a quick and affordable loan. But, before you become all gung ho and commit to the first lender you find, it helps to know the difference between private and hard money lenders. California lenders offer a wide range of private and hard money loan options, thus you need not look far for a reputable and accommodating lender. Instead, all you need to do is figure out which kind of financing is right for you.

Hard money, then, is typically the best option for resales and rehab investments. The reason being that hard money is at its cores is financing for asset-based endeavors. In other words, hard money is for commercial, industrial, residential (single-family and multi-family), and land. Private money, on the other hand, in essence, can be used for any purchase or investment project as a private money lender can be an individual or a company. Thus, you should ask yourself, what exactly you are trying to accomplish with this financing, especially when dealing with hard money lenders. California lenders that offer hard money financing are more than willing to lend a helping hand – pun intended. Therefore, it also helps to know what to look for in a hard money lender—if, in fact, you do decide to go with hard money financing.

With that being said, let us go over a few important things you should look for in a hard money lender. For instance, it almost goes without saying that, you should be looking at lenders that have a clear understanding of your particular business plan. This means doing a search for reputable lenders in your area and then doing some investigating to see if they offer niche programs that are applicable to you.

The Right Helping Hand Money Lenders California

Once you have narrowed your list of lenders, who understand your needs, the next step is to make sure your chosen few operate with a high level of transparency. This means that you, your lender and any other involved party should have access to your loan data, etc. Thus, if you come across a lender that is unwilling to be forthcoming with loan data or details—you should cross them off your list. Besides, a high level of transparency, it is also important to make sure your potential lender is licensed.

Things to Consider

Other things to consider include your hard money needs (project, budget, unforeseen expenses, etc.) and each lender’s loan-to-value ratio/guidelines. Remember, not every hard money lender has the same ratio or guidelines. Moreover, it is imperative that you know what terms you are signing up for. Ultimately, once you have tackled all of these things, you will pretty much be on your way to securing that financing.

Level 4 Funding LLC 
Private Hard Money Lender

Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
http://www.Level4Funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

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