Hard Money Loans & Lenders in Los Angeles, CA
Need a hard money loan in Los Angeles? CaliforniaHardMoneyDirect is your best source if you require a fast, reliable hard money loan today.
WHY CALIFORNIA HARD MONEY DIRECT IS THE BEST
When you are on the market for money fast, you need a lender with a proven track record, someone you can trust. California Hard Money Direct is a direct money lender; that means you won’t have to go through an intermediary to get the funds you need. Instead of taking days or weeks, we can approve your application in minutes. Because our loans are based on your assets, you can be considered even if you have a poor credit history. Furthermore, we don’t require you to provide income verification. In short, we will give you a loan if it makes sense.
HOW DOES A HARD MONEY LOAN WORK?
A hard money loan is a short-term loan that is funded by private investors instead of traditional lenders such as banks or credit unions. The duration of the loan is generally around 12 months, but some can extend for up to five years. You are expected to make monthly payments on the interest and perhaps a small amount of the principal. When the term is up, you will be required to provide a balloon payment for the remainder of what you owe in interest and principal.
The amount you can receive in a hard money loan depends on the value of the property you are using as collateral. If you have enough equity in what you are offering, you can be approved for this type of loan even if you have recently experienced a foreclosure or a short sale and been denied funding by a traditional lender. Virtually any type of property can be used in a hard money loan, including single- and multi-family residential, commercial, industrial and undeveloped land. Hard money loans are ideal for real estate investors who want to acquire a property for flipping or one that has many bidders since the funds are made available so much more quickly than those of competitors using traditional financing methods.
WHY HARD MONEY LOANS ARE THE PREFERRED FINANCING OPTION
Hard money loans are the best bet for you if getting your money from a bank or credit union is not an option. This may be the case if your credit is poor or if you have recently been involved in a short sale or a foreclosure. In addition, these types of loans are preferable if you are in a time crunch and want to be able to close quickly on a property. Although the interest rates might be off-putting at first, hard money loans are a legitimate, fast and effective way to get the funding you need to move forward with your next deal.
HOW TO EARN APPROVAL FOR A CALIFORNIA HARD MONEY LOAN
Your first step is to figure out your loan to value ratio (LTV). To calculate this, subtract your equity amount from the total appraised or market value of the property. Then divide this number by the total value of the property to get a percentage. With this number in hand, take some time to think about and document what you plan to do with the money. Even though hard money loans don’t come from banks, the private investors who fund them still want to know that their money will be repaid in a timely fashion. The better able you are to show that they will be making a good investment, the more likely it is that you will be approved for the loan.
If you are approved for a hard money loan in Los Angeles or another part of California, you will have made a promise to pay it back in full, plus interest. If you fail to do so, you could lose your personal assets or be taken to court. For this reason, take a preemptive step and ensure your personal guarantee on the loan.
As long as you don’t have a record of bankruptcies or previous loan defaults, the lender is more interested in your ability to repay the loan on time and the value of the property. Even so, the lender might still want to see your credit score as just one piece of the equation. Information you will be asked to provide includes the following:
• Documentation showing the value of the real estate property;
• Estimates of what it will cost to repair or rehabilitate the property;
• Estimates on the value of the property after repairs;
• Property title
• Proof of insurance.
In addition, you will be asked to have the property inspected and appraised and to give the lender permission to access your credit score and other personal information.
Choose California Hard Money Direct for all of your hard money lending needs. We have the integrity and affordable, fast terms that make us your best lending vehicle.