Hard Money Purchase Loans in California
Contrary to what one might think, hard money purchase loans are oftentimes utilized by very sophisticated borrowers. Borrowers with high FICO scores and large real estate portfolios. So now the obvious question is, why do they need a hard money lender? The two most common reasons are:
- Speed
- Condition of the property.
If the reason is speed, often it is the rapid pace at which hard money lenders can close loans that makes the difference between getting an accepted offer. In a competitive real estate market, there can be multiple offers. If a borrower informs the seller, they plan on getting a conventional loan they can pretty much count on the fact their offer will not be accepted.
On the other hand, hard money loans are almost as good as a cash offer. If the cash offer comes with undesirable contingencies in the offer, the hard money loan very well may be the offer the seller accepts. If the property is being purchased with the intent of keeping it for a while the borrower can refinance into a lower interest rate conventional loan whenever they see fit.
Hard Money Loan Request
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When the condition of the property is the issue, most often the borrower will simply use a hard money lender to acquire the property, rehab the property and then refinance using a conventional lender once the property is in the condition of bank would find acceptable. If the reason is speed, the borrower may refinance out of our loan even quicker. If they simply needed a hard money lender to close the transaction, keeping our loan at a higher interest rate any longer than need be would not be desirable.
Now let’s talk about the borrowers that don’t have high FICO scores. They might be borrowers that have fallen into difficult situations such as a short sale, a foreclosure, previous bankruptcy or just a FICO score that is so low that the bank will not take them. This will not stop most hard money lenders from moving forward with a loan. We focus our attention on the loan to value instead. Our feeling is typically, “if there’s enough equity, it is unlikely the borrower will walk away from the property.” The goal of the borrower is always to fix whatever issue brought them to us in the first place. Once they fix the problem or problems or enough time has passed, they can refinance with a conventional lender.
There are other more lesser-known reasons as to why borrowers would use a hard money lender. Shockingly, conventional, or traditional lenders will turn a borrower down because they already have too many investment properties in their real estate portfolio. The bank sees them as being too risky of a client. Hard money lenders on the other hand, typically looks at this type of borrower as a sophisticated real estate investor, making them even more attractive as a client. Once they sell enough of their properties, they will most likely qualify for a refinance with the bank. When that time comes, they can simply eliminate our loan and replace it with a bank loan.
Lastly, another very common reason is, banks will virtually never provide traditional financing to a corporation, LLC or trust. On the other hand, this is commonplace for hard money lenders. Many borrowers set up an LLC, or corporation before they approach us for the loan. A lot of real estate investors will put one property in each entity they form. It is not mandatory, but it is something a lot of investors prefer to do. Bottom line, in all the examples given above hard money lenders are able to help close your loan while traditional lenders would more than likely reject you.
Hard Money Purchase Loans in California
At California Hard Money Direct, we can help you purchase properties almost anywhere in California, with fast pre-approvals and impressively low rates.
Hard Money Purchase Loans for California Real Estate
California Hard Money Direct has been named as one of the most trusted lenders in California for many years. We offer extraordinarily competitive rates, speedy approval and funding times and no-nonsense straightforward service. California Hard Money Direct has a well-established track record with the ability to fund a myriad of hard money loan types. Property types including but not limited to purchase loans and many others. Contact California Hard Money Direct to get started on your hard money purchase loan today.
Overall, there are numerous reasons borrowers choose a hard money purchase loan when purchasing a property. We have shown you several examples why people choose hard money over conventional or traditional options. Hard money can be used to provide funding for both residential and commercial purchases.
Sometimes, a hard money purchase loan is called a private money purchase loan. There isn’t a difference between the two. One just sounds a little prettier!
There are many reasons people choose hard money lenders for specific transactions. There are many lenders to choose from in the world of hard money. Our reputation for offering five-star service is one of the main reasons people reach out to us.
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TIME TO FUND LOAN |
As few as 7-9 days if needed |
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LOAN SIZE |
$50,000 – $20 million+ |
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LOAN TERM |
Up to 12-48-month terms available |
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LIEN POSITION |
1st |
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LOAN TO VALUE (LTV) |
Up to 70% of current value of property |
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LOAN APPLICATION APPROVAL TIMELINE |
Same day pre-approval available |
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PROPERTY TYPES |
Single family, multi-family, commercial, industrial |
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PURCHASE LOAN INTEREST RATES & POINTS |
Rates and fees fluctuate with the market. 7.49% to 11% is the current range. Call or email for information on current rates and points. |
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Why More Borrowers Choose California Hard Money Direct for Hard Money Purchase Loans?
Work with a lender that has the knowledge, resources, and experience to get your deals closed quickly. Cut out the middleman and partner with a direct hard money lender. Just read our Google reviews and you will quickly learn why California Hard Money Direct has so many clients repeatedly using our services for all their hard money needs.
Same day pre-approvals. Most loans can be funded within 7-9 days.
Partner with a direct lender and you will quickly learn how fast things move along when you cut out the middleman. Pre-approvals within hours and closed loans within 7-to-9 days is always our goal. Once your loan is in our processing department you can track it 24 seven with our proprietary online loan tracking system.
Our hard money interest rates are considered amongst the most competitive in our industry. Call now and compare for yourself. Contact us today for current rates and fees.
Recently Funded Hard Money Purchase Loans in California
Read what other borrowers have to say about working with our California hard money purchase loan lenders
Francis Ezewiro
I sincerely enjoy the high level of commitment and passion Judy brings to the table during the loan process. From the first day we spoke on the phone through the day the loan was financed, Judy was with me. She responded to any questions I had thoroughly and promptly. If need arises, I would use Judy again. Also, I would highly recommend Judy to anyone that seriously needs funding for investments and flips.
Paul Moresi
Judy is the type of person who follows through and moves FAST. She was also very sweet and a pleasure to work with. I would recommend California Hard Money Direct for anyone in need a quick loan to finish a project. They were a great resource for me.
Lisa Sanchez
Thank you Judy for all of your help. Judy is an amazing broker, she is very helpful throughout the process. She is quick and is very Organized. Judy knows her stuff…. and will not drag you along the process… Its either she can do it or not. … I will continue to come back, Thank you Judy.
