Assessing the Landscape of California Hard Money
California hard money has become a hot-button topic in the finance industry. With a sprawling city and millions of real estate transactions occurring each year, there is no doubt that the lack of lending by banks is causing many to seek funding elsewhere. From investors interested in offering up their own capital for lending to property owners seeking funding for renovations or future purchases, the real estate landscape in southern California requires monetary injections to sustain the lending needs of the region. This opens the door to a bustling industry that provides those with capital a high-return investment option, and gives those with a need for capital an option that is currently minute in the banking world.
The Emergence of Realtor Involvement
As the real estate industry continues to attempt a recovery from the last decade, realtors are searching for new ways to facilitate closings. Clients, especially in today’s economy, are struggling to find approval for new mortgage loans, which can make closing a sale a frustrating prospect. After all, realtors that aren’t closing aren’t making any money! This is another area in which California hard money loans are helping to finance new home sales. This trend has seen a sharp increase in the last 12 months and further growth is expected. This will further legitimize the use of these secured loans and likely lead to some small semblance of a real estate recovery.
Commercial and Residential Applications
Commercial and residential buyers alike are finding hard money lenders to be a saving grace. While many will point out that the interest rates are a few points higher than standard bank loans, proponents of the practice will remind you that the risk assumed by the lender is much higher. This necessitates the increased interest rate. Further, the closing time on loans such as these are only a fraction of closing times through standard banks, making them more attractive for investors that must act quickly or homeowners facing foreclosure.
Separating the Good from the Bad
When searching for a hard money lender, California can be a great market with several options. However, there are also groups within the industry that are simply interested in claiming fees and then refusing loans. These companies generally require payments up front for incidental fees such as appraisals, only to refuse the prospective borrower and pocket the loan. How does the situation work? It usually goes something like this:
A prospective borrower contacts a hard money lending group to inquire about the possibility of a loan. The group sounds legitimate enough, as they have a solid website and someone responds quickly to the inquiry. They go over all of the steps necessary to process a potential loan, and then ask for a fee up-front. What the borrower doesn’t know is that this organization has no intention of issuing a loan. Instead, they make their money off of scamming prospective buyers into giving up a bit of money up front, and always refuse to issue the loan.
Taking note of the “sharks” in the industry can help you find the right lender for your particular circumstance!
For those searching for hard money lenders, Los Angeles is one of the top places to find financing! Because of a massive population and a wide variety of property options, there was a glaring need for financing and private loans helped to fill the vacancy left by an increasing frugal banking industry. The loans have allowed thousands of interested real estate investors to get access to capital, turn that loan into substantial profits, and then continue their pursuit of acquiring more properties for their portfolio. The dynamics associated with these lenders can be tricky if you have never utilized them before. Knowing which lenders are actually who they claim to be, having the proper expectations regarding what you can get financed for, and then, of course, understanding the arrangement in terms of collateral and repayment are key components to using these financing opportunities properly!
Separating the GOOD from the BAD
Los Angeles hard money groups have been around for a while, but for many, they remain a mystery. Because real estate has long relied on the large banks and brokerages to finance private ownership, the use of these loans has continued to fly under the radar. However, due to necessity, their use rose, giving birth to an entirely new financing opportunity.
Not all of these lenders are created equally, though. The burden of research falls directly on the borrower, as there are few regulatory bodies to let you know which are telling you the truth, and which are simply in it to snatch a bit of your money before disappearing into the night. Websites, for example, can tell you quite a bit. You can learn about other properties that the group or individual has financed. A common scheme noted in the industry involves the request for up-front “fees” before approving the loan. Then, you are told that the lender will research the property to determine whether or not they are going to lend to you. Of course, you learn that they will not (after a period of time), but the “fee” is non-refundable. Essentially, you have been duped.
Understanding this dynamic can save you quite a bit of frustration!
This does not mean that Los Angeles hard money lenders are fraudulent. In fact, the above situation is a rarity – we only mention it because it exists and should always be kept in mind as you are searching for property financing.
In the search for hard money lenders, Los Angeles is a hotbed! Thousands of investors have plenty of capital and are simply waiting for the right borrower to assist. They will see a substantial return on their investment in your purchasing venture, but the borrower, when properly handling the situation, can also enjoy an incredible return. Property values are on the rise again, and those who own several pieces of property stand to enjoy the surge more than everyone else. Be sure that you are in a position to ride the next real estate wave in Southern California!
California Hard money lenders
Finding Lenders for Bad Credit Home Loans
With the real estate landscape in the state that it is in right now, it is the perfect time to purchase property…if, you, of course, have perfect credit. Otherwise, banks simply won’t offer up the necessary capital to acquire a new home. This is especially frustrating for those interesting in purchasing their first home, as millions of Americans have been pounded by the recession, and have seen their credit ratings plummet. So, does this mean that there is no opportunity for first-time buyers in the modern real estate marketplace? Not exactly. Thousands are turning to lenders for bad credit home loans. While they may not provide the same interest rates that banks are currently offering, these figures do not matter when you consider that banks are lending NOTHING at the moment!
Perfect for First-Time or Bad Credit Applicants
First-time buyers have little to no chance of getting a loan from a bank. Not only have banks significantly reduced the amount of money they are offering for home loans, but when they do lend, it tends to be to individuals with perfect credit. In other words, if you have bad credit or no credit at all, you’ll need to look elsewhere if you are serious about purchasing a home. By leaning on hard money investors and cutting out the proverbial middle-man, these lending institutions are changing the real estate industry with every loan issued.
Capitalizing on Equity
Home equity loans for bad credit are also facilitated through the same lenders. If you currently have equity in your home, and need it to either recovery financially or make home improvements, you can take advantage of these lenders, as they specifically loan money to those with less-than-ideal credit ratings. Buying time may not always be possible, but cashing in your equity can be a very close second!
Credit cards have been the downfall of American consumers for decades. The high interest rates, when combined with irresponsible spending, can really take their toll on the finances of a family. Instead of paying ridiculous monthly payments that barely dent your principle balance, consider taking a second mortgage on your home at a lowered interest rate. Nothing can help you get back on top of your finances quite like these bad credit specialists.
Whether your overall goal involves reducing credit card debt or acquiring your first home, your credit rating can be a detriment to your efforts. Lenders for back credit home loans can be the solution you’ve been searching for! They pick up where banks have left off in terms of lending during tough economic times. The interest rates seen on many of these loans will be higher than those found in the large banking institutions, but ultimately, that is to offset the amount of risk perceived by the lender. If you’ve been turned down for refinancing, don’t give up hope – there are several organizations out there that can help you access the capital you need to get your finances back on track!