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Hard money lenders these days are
filling a growing niche as institutional financing continues to tighten
up. When dealing with hard money lenders, the most essential
element of underwriting is the equity in your property.
Credit, these days, is not a deciding
factor when working with this type of financing. With that being
said, it does play a part. Excellent credit can allow for more
aggressive lending, slightly better rates and/or other flexibility in
the loan terms. On the other hand, poor credit, recent
foreclosures, bankruptcies or other similar issues may not deny a
borrower financing, but it could mean less flexibility, slightly lower
loan to value or slightly higher costs.
Regardless of how great your credit is,
you can still expect to pay much higher interest than you would through
a loan financed by a bank. The reason is that hard money lenders
are typically individuals looking for a return on their money. The
reason they lend their money is to earn this return, and usually they
are not willing to take substantially less of a return, regardless of
the quality of borrower. Of course, there are always exceptions
when dealing with individuals!
Most hard money lenders guidelines
allow for up to 60% maximum loan to value on improved property, and up
to 40% maximum loan to value on land as determined by an appraisal in
today's market. If the deal makes sense and is a benefit to all
parties involved, however, there is always room for exceptions.
Our specialty is
hard money loans in California
secured by improved real estate, although we will also look
at land and other projects provided there is enough equity and the deal
makes sense. Dealing directly with the hard money lenders, we can help secure a loan on
most property types. This includes commercial, residential,
multi-family and other property types. We also can get very
aggressive with regards to rehab and construction completion lending.
These are specialized programs which you can learn more about at our
rehab loans page.
For more information about our
California hard money loans, or to talk about a particular scenario,
please contact us. We will be in touch with you within 24 business hours,
and you can rest assured that we will not sell or distribute your
personal information.
Due to the nature of the hard money
lending world, we do not provide rate sheets. With hard money
lenders, each deal is underwritten individually and priced accordingly.
If you have a hard money
scenario, please feel free to email us a summary.
We work directly with hard money lenders in California, and can help
secure a loan on most property types located in the state.
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