Hard Money Loans & Lenders in San Diego, CA
Need a hard money loan in San Diego? Are you a real estate investor with a project that must be completed but not enough cash on hand to do the job right? A hard money loan can be an excellent and unexpected answer that will give you the resources you require faster than you might have ever thought possible.
WHY CALIFORNIA HARD MONEY DIRECT IS YOUR BEST CHOICE
In recent years, much attention has been directed toward so-called alternative financing that has at long last taken the power away from the banks and credit unions that once had a virtual monopoly on the industry. Nowadays, banks are just one avenue that you can travel as you attempt to get the funding you need. For various reasons, banks do not always provide the best vehicles for all types of borrowers in need of money. That’s where California Hard Money Direct comes in. There are numerous lending choices in San Diego and in California in general, but don’t let their glossy publicity and empty promises fool you. With our proven track record of integrity and reliability, we continue to provide fast cash at prices you can afford.
HOW DOES A HARD MONEY LOAN WORK?
If you want to understand the specifics about hard money loans, cast aside everything you have believed up until now about borrowing money. You won’t be walking in the door of a stodgy bank or filling out seemingly endless documents about your borrowing and credit history or your current income, information that banks use to assess your worthiness to be granted a loan. The approval process will not drag on for weeks while the institution’s bureaucrats pore over your paperwork. The terms of the loan won’t necessarily be fixed in stone nor will the loan last up to 30 years.
Now that we know what a hard money loan is not, let’s talk about what it actually is. First of all, your money will be provided by private investors instead of a bank, meaning that there is no middle man to complicate things. Of course, the lender will still want to be confident that the loan will be repaid. However, it is the value of your property that will be considered. Should you default, this property will be taken from you and used to satisfy the loan. Because your property value is the highest concern, there will be less emphasis on you as a borrower. While you might still be asked to provide information about your income and credit history, these certainly are not the lender’s top priorities. Instead of waiting weeks for approval, you will probably find out in minutes. You will still need to conduct a closing on your property, but it will happen much more quickly, giving you cash in hand right when you need it. Hard money loans are short-term. Most last 12 months or so, but they can extend to as long as five years. Each month, you pay on the interest at rates that are higher than those for a soft money loan. When the term is up, you must pay off the entire principal. The amount you will be approved to receive will depend on the value of the collateral property.
WHY HARD MONEY LOANS ARE THE PREFERRED FINANCING OPTION
Banks like to work with people who have time to wait for an answer to their loan request. The ideal candidate should have a good credit score, an uneventful borrowing history free of short sales, bankruptcies and foreclosures and plenty of supporting documentation. Many borrowers simply don’t fit nicely into these pigeonholes for any number of reasons, including the following:
• They have a poor credit history and low score.
• They need money quickly in order to fix and flip a property fast.
• The property improvements they need to make must happen as quickly as possible in situations such as resuming doing business after a disaster or preparing a property for seasonal sales.
• Although they have property assets with significant equity, they lack business experience or some other factor the banks require when approving someone to receive a loan.
If you believe that you would either not be seen as a good investment risk by the banks or that you need cash more quickly than they can provide it, you should explore hard money loans for your own needs.
HOW TO EARN APPROVAL FOR A CALIFORNIA HARD MONEY LOAN
Although obtaining acceptance to receive a hard money loan is much easier than getting money from a traditional financial institution, you still need to demonstrate that your request makes sense and is a good risk. The more valuable and attractive your collateral property is, the more likely your loan will be granted. The lender will ask you to provide the following information as evidence:
• Documentation showing the property’s current appraised value and your equity in that property;
• The title;
• Documentation showing how you plan to refurbish or improve the property as well as the associated costs;
• Clear estimate of the projected value of the property after it has been improved;
• Proof of inspection and insurance;
• Information about your credit history and income.
California Hard Money Direct can be your one-stop source for the fast and reliable cash you need. What’s more, our private lenders have your success at heart. Together, we will negotiate flexible and affordable payment terms that you can live with throughout the duration of the loan. Find out if you are approved in minutes, and you can begin your project in record time.