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Considering California Hard Money Lenders?


California hard money lenders are providing an important bridge for many property owners or investors, as they are picking up the slack left by the refusal to lend money on the part of the banking industry. With the economy in a constant state of flux, it is important that lending continues, as it ensures that currency continues to circulate, bolstering the economy and providing assistance for those attempting to avoid foreclosure. Knowing when to research the hard money loan California marketplace is the key to assessing your situation, finding the right lender, and giving yourself the best opportunity at fully meeting the obligations of the loan agreement.

Common Purposes for Hard Money Loans

There are several reasons that borrowers pursue hard money lenders, as they can provide funding when all other options are not delivering the desired results. Whether you are interested in purchasing an investment property or simply want to renovate an existing property, the funding can help avoid loss. After all, investment properties are great when they are in great condition and currently being rented. However, if work is needed and there is no money left for renovations, losses can pile up quickly!

Another common purpose for one of these secured loans involves bridging the gap between property purchases and sales. This is why the industry will sometimes refer to hard money options as “bridge loans”. For example, let’s assume that you own a piece of real estate, but are interested in purchasing another. However, you cannot make the second purchase until the first piece of real estate sells. Due to the investment nature of property, by the time your current property sells, the property that you are pursuing may be sold to someone else. You can obtain a bridge loan to purchase the new property and give yourself time to sell the current one! The equity you have in the property currently owned can be leveraged to finance your new venture.

Fewer Lending Restrictions

Hard money lenders in California are giving property investors and homeowners options that may not be available to them otherwise. Those with poor credit ratings, foreclosures, and even bankruptcies can still find the funding necessary to purchase or renovate property. The interest rates seen on these loans reflects the risk being taken by the lender, and the property itself acts as collateral.

The process is streamlined, as hard money lenders understand the nature of the industry – borrowers need money immediately! By offering up loans that are generally 65-70% of the property’s value, the loan can often be facilitated in about half the time of a standard bank loan. When foreclosure is imminent, time isn’t on the homeowner’s side, which adds another important element to the increasing popularity of the option.

Those searching for economic relief in a turbulent economy are learning that hard money lenders in California can provide the necessary time to get affairs in order for a purchase or sale. Investing requires risk, and when properly managed, these loans can be the key to proper finance management!


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