Hard Money Loans & Lenders in Orange County, CA
Need a hard money loan in Orange County? In an era when real estate is as hot as the Southern California sun, investors often find themselves requiring fast cash. Banks and credit unions are now only one source for funds. It’s time to see if obtaining a hard money loan is the right move for you.
WHY CALIFORNIA HARD MONEY DIRECT IS YOUR BEST CHOICE
Hard money loans are an alternative financing option that can be a great help to large numbers of people in need of cash. That being said, there is more room for unscrupulous lenders in this freer private lending atmosphere. That’s why it is crucial that you put your trust in a company such as California Hard Money Direct. Our track record of reliability and integrity speaks for itself. Because we work directly with private investors and not through stodgy financial institutions such as banks, there is no intermediary standing between you and the dollars you need. Approval is fast, often within minutes, and our rates are the envy of the industry. If your loan makes sense, we will fund it regardless of whether you are securing the loan with residential or commercial property or land.
HOW DOES A HARD MONEY LOAN WORK?
In the traditional soft money loan process, you approach a bank or credit union with a request for a loan. In order to prove that you pose a low risk and are likely to pay the money back on time, the financial institution will ask you to provide extensive documentation that shows your borrowing history, income, credit score and status. Over the ensuing weeks, the bank’s officials carefully scrutinize every detail of what you provided and eventually get back to you with an answer. If your loan is approved, it can extend up to 30 years with fixed payment terms on interest and principal throughout the duration.
By contrast, you can usually apply for pre-approval of a hard money loan online. The lender is not a financial institution; instead, it is a consortium of private investors who are often experts in real estate themselves. They are equally motivated to ensure that you will repay the loan, but they don’t use past history or income to judge your worthiness. It is the appraised value of your property that receives the heaviest weight since this is used as collateral to secure the loan. If you have sufficient equity in the property, you will be approved for the loan, a decision that usually only takes minutes to make. The loan is short-term, ranging from one to five years, and you make monthly payments on the interest. At the end, you are expected to submit a large balloon payment to cover the principal.
WHY HARD MONEY LOANS ARE THE PREFERRED FINANCING OPTION
For people who have time to spare and an excellent borrowing and credit history, it might make sense to go the soft money route since loan terms are longer and payments are less. However, there are many types of borrowers for whom hard money loans are preferable. See if you fit into any of the following categories:
• You are new to real estate investing and/or have a poor or insufficient income or borrowing history.
• You are in a bidding war for a sought-after property, and having fast cash will give you an edge over your competitors.
• You want to make immediate or time-sensitive improvements or repairs on a property. Perhaps it sustained damage, or maybe you want to beautify it in preparation for seasonal sales.
• You want to buy, renovate and sell a piece of property quickly for a profit that you can use to pay off the loan.
If you fit into any of these classifications, the speed and flexibility of a hard money loan might be exactly what you need to get your project off the ground.
HOW TO EARN APPROVAL FOR A CALIFORNIA HARD MONEY LOAN
As you have probably inferred, the approval process that you need to go through to be approved for a hard money loan in Orange County is much less rigorous than you would endure with soft money lending from a bank. Because the hard money lender is primarily focused on the property that will serve as collateral, your main job is to demonstrate its value, show what you plan to do to improve it and estimate the profits that you will realize as a result. To that end, you will be required to provide the following information:
• The title of the property;
• Documentation that shows the property’s appraised value;
• Proof of recent property inspection;
• Estimate of how much it will cost to repair or renovate the property;
• Your best guess and a breakdown of the enhanced value upon completion of the improvements.
Don’t be surprised if you are also asked to provide documentation of your income and credit history even though it will not be your lender’s primary consideration.
If you have been turned down for a loan by the banks and need fast cash from a reliable lender at terms you can afford, look no further than California Hard Money Direct. Get in touch with us now, receive an answer in minutes and embark on your dream project today.