Hard Money Loans & Lenders in Alameda, CA

Need an Alameda hard money loan? Have traditional funding sources like banks and credit unions declined your application? Today there is alternative financing that just might be the answer you’re seeking: our private hard money lenders in Alameda. 

WORKING WITH OUR ALAMEDA HARD MONEY LENDERS

There was a time when the reputation of hard money loans was shady at best. Unscrupulous lenders frequently took advantage of vulnerable borrowers, leading to great financial loss. Fortunately, things have changed. When you choose California Hard Money Direct, you will be partnering with a well-established company whose private investors are motivated to see you succeed. 

That’s because when you are able to borrow the funds you need to make improvements upon or quickly sell a piece of property, you win. And when you win, we win. Our company has years of experience and a solid reputation of reliability and integrity. Within minutes of submitting your application, you will know if you have been approved, and we will work with you every step of the way throughout the term of your loan. Our private lenders understand real estate and will bring their knowledge to bear to provide you with the help you need.

HOW DOES A HARD MONEY LOAN WORK?

You may not be familiar with the concept of hard money loans, which differ significantly from their soft money counterparts. A so-called soft money loan is awarded to you by a financial institution such as a bank or credit union. In order to ensure that you will pay back the loan, the soft money lender requests extensive documentation from you, including records that show your income, credit history and any past bankruptcies, short sales or foreclosures. Your data are closely scrutinized, a process that can take weeks. If you are approved, your loan could last for as long as 30 years, and it will have relatively low payment terms.

By contrast, a hard money loan is considered to be alternative financing. Dispensed by a lender backed by private investors, it does not rely on your past history to determine if you are approved. Instead, the appraised value of your property is the collateral that secures the loan. In the event that you are unable to fully pay it back, the single- or multi-family, commercial or land property would be taken by the lender to cover your costs. Because there is relatively little documentation to go through, a hard money lender can approve your loan application very quickly, usually on the same day. You are required to make monthly interest payments which are traditionally higher than they would be if this were a soft loan. At the end of the loan’s term, you would submit a balloon payment to cover the cost of the principal.

WHY HARD MONEY LOANS ARE THE PREFERRED FINANCING OPTION

People need fast cash for a variety of reasons. Hard money loans are the ideal solution for you if you fall into any of these categories:
• You are a real estate investor who is involved in a fierce bidding war for a piece of property. Having the cash to close the deal quickly would put you at an advantage over your rivals.
• You want to buy a piece of property, fix it and sell it quickly. You don’t plan to live there or keep it for any length of time, and you can use part of your profits to pay off the loan.
• You want to make time-sensitive improvements on a property. Perhaps you are preparing it for seasonal sales, and you don’t have time to wait through a drawn-out loan process.
• You have an insufficient or poor income or bad credit history, and your application has been declined by banks.

For many borrowers, hard money loans are their only remaining option, but not all lenders are scrupulous. That’s why it is crucial that you do your research to find a high-quality lender.

HOW TO EARN APPROVAL FOR AN ALAMEDA HARD MONEY LOAN

If you are planning to get a hard money loan in Alameda, you will be amazed by how fast and easy this process can be. Even though you will not be expected to do reams of paperwork, there are still some specific information that your lender will need to receive in order to prove your suitability. This includes the following:
• Documentation of your property’s appraised value;
• The property’s title from the Alameda county clerk;
• An estimate of how much it will cost to repair or improve the property;
• A written estimate of the post-repair value of the property;
• Proof of insurance;
• Personal financial and credit information.

To speed things up even more, you can complete a pre-approval form online that will give you an idea of what to expect. Then, you will receive word from the lender on the same day about the details of the potential loan and its terms.