Hard Money Loans & Lenders in San Francisco, CA
Need a hard money loan in San Francisco? Whether you’re flipping property or need to make major improvements, California Hard Money Direct is your one-stop solution.
WHY CALIFORNIA HARD MONEY DIRECT IS THE BEST
Nontraditional lenders are a dime a dozen, so how do you know which one to choose? When you do your due diligence as a borrower, you will learn that we have a long track record of success and integrity. If your application has been refused by a traditional bank or credit union because of poor credit history, low income or past short sales or foreclosures, we’re here to give you a fast and affordable solution that will enable you to accomplish your goals. With banks, you might need to wait days or weeks to learn if you are approved; with us, you might even find out the same day. Furthermore, there is no middle man to complicate the loan process. We are a direct lender who knows that when you succeed, we do, too.
HOW DOES A HARD MONEY LOAN WORK?
Hard money loans are ideal for borrowers who want to fix and flip a property, take on a construction or renovation project or buy and develop land. Virtually any kind of property can be purchased with these funds, including single- and multiple-family residential, commercial and land as long as the property is not currently being occupied by the owner.
The term “hard money loans” refers to any loan that is secured by an asset. Most of these are real estate-related; therefore, the asset is the property itself, which is used as collateral in the event that the loan is not paid in a timely fashion. Hard money loans, with property as security and terms of anywhere from 12 months to five years, are much different from traditional loans from banks where no collateral is put down and the term for repayment is much longer.
Because the term is shorter and the loan represents a greater risk, interest rates are higher. Interest payments are made on a monthly basis, and you are required to pay off any remaining interest as well as the principal at the end of the loan. Due to the value of the property collateral you have put down, your lender will not be as concerned about your income or your credit score. That being said, you might still be asked by the lender for permission to obtain your credit score and other financial information.
WHY HARD MONEY LOANS ARE THE PREFERRED FINANCING OPTION
Traditional financial institutions perform an important service for people who have sufficient time to wait for approval and can boast a strong credit score and a respectable income history. The problem is that not everyone falls into these categories but are still excellent candidates for a loan. Hard money loans focus more on the value of your collateral than your past history, and they are approved very quickly in comparison to standard loans. If you’re flipping a property that you want to sell sooner rather than later, you need cash now to make the necessary improvements. Or maybe you are in a raging bidding war with several competitors over a piece of land. You may win out in the end if you can show cash up front faster than your rivals. Because hard money loans are backed by private investors and not banks, you may also find a degree of additional flexibility that suits real estate transactions in today’s competitive marketplace.
HOW TO EARN APPROVAL FOR A CALIFORNIA HARD MONEY LOAN
The amount of red tape you will need to fight through in order to get a hard money loan is markedly less than what you would endure from traditional institutions. Nevertheless, be prepared to furnish the following:
• Documentation showing the value of the property;
• Property title;
• Documented estimates of what it will cost to repair or rehabilitate the property;
• Estimation of the value of the property after you have improved it;
• Proof of insurance to be produced at closing;
• Permission to run a credit check.
The real estate market in San Francisco is currently very liquid, leading to high levels of competition among lenders. As a borrower, it is crucial that you choose a company with the integrity and strong reputation to back its promises. At California Hard Money Direct, we specialize in providing our valued customers with the cash they need quickly and at rates they can afford. Let us help you clinch your next real estate deal today.