Hard Money Loans & Lenders in San Bernardino, CA
Need a hard money loan in San Bernardino? Not so long ago, you needed proof of a good income and a great credit score and history. Thanks to the upsurge in hard money loans through reliable companies like California Hard Money Direct, real estate improvement is an option for you even if you have a strike or two against you.
WHY CALIFORNIA HARD MONEY DIRECT IS THE BEST CHOICE
Improving and selling properties in San Bernardino is extremely lucrative these days, and it is therefore no surprise that competition is fierce among the companies fighting for all that money. Inevitably, there are unscrupulous parties who engage in sketchy practices, and it’s up to you as a borrower to perform your due diligence to be sure you are not snared into their net. California Hard Money direct is a company that has a proven history of successful lending. Our credentials are beyond reproach, and we are experts at what we do. In most cases, you will receive approval for your hard money loan within minutes at terms you can afford. If the banks have turned you down, we can set you up with the cash you need.
HOW DOES A HARD MONEY LOAN WORK?
Let’s start by stating what a hard money loan is not. It does not come from a traditional lender such as a bank. Weeks and even months of reviewing your credit and income history do not need to go by before you receive word about the loan. Your loan is not long-term, and it is not based on who you are as a borrower. In essence, what we have described is the traditional soft money loan that comes from a bank or credit union.
Instead, hard money loans come from private investors, which can enable you to have flexibility when negotiating the terms of the loan. To see if you are a good candidate, you can fill out a pre-approval form online. If it’s a good fit for you, the lender will ask you for additional details when they contact you. Just as in a traditional loan, your lender will want to be assured that you can and will make your payments. However, your appraised property value is the collateral the lender uses. Should you default, your property will be handed over to the lender, no questions asked. Because this is considered to be alternative financing and you fall into a higher-risk category as a borrower, the interest rates you pay will be higher. Generally, hard money loans are short-term, ranging anywhere from a year to a maximum of five years in duration. You are expected to submit monthly interest payments, with a large balloon payment on the principal at the end of the loan.
WHY HARD MONEY LOANS ARE THE PREFERRED FINANCING OPTION
Considering the higher interest rate and final balloon payment, you might be asking who would benefit from a hard money loan and why they would choose it over a traditional one. To answer these questions, ask yourself if you relate to any of these scenarios:
• You have a poor or insufficient income history or a low credit score;
• You have been turned down for a loan by a traditional bank, but you have property assets;
• You need cash fast because you want to quickly fix and resell a piece of property, paying back the loan within a year;
• As a real estate investor who is bidding on a hotly contested piece of property, having cash in hand for a quick closing puts you ahead of your competitors.
If you recognize yourself in any of these vignettes, obtaining a hard money loan is probably the best and only viable way to get the fast, reliable money you need.
HOW TO EARN APPROVAL FOR A CALIFORNIA HARD MONEY LOAN
Compared to the process of applying for a traditional loan from a credit union or bank, getting approved for a hard money loan is a walk in the park. Most of the lender’s attention will be focused on your collateral property: its current and future value and your plans for it. Nevertheless, you should still be prepared to present document about your personal financial and credit histories. Additional required documentation will usually include the following:
• Title to the property;
• Documentation of the appraised value of the property;
• Estimate of how much it will cost to make repairs and refurbishments;
• Breakdown of the estimated value of the property after you have made improvements;
• Proof of insurance.
Let your property go to work for you to get you the money you need to improve it. California Hard Money Direct will be a reliable partner you can trust from pre-approval until you submit your last payment.