Agni Pratistha

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California Hard Money Lender

The California Realty Market and other Californian-based reports all unanimously point to the same conclusion: The Californian local market is about to become even more unaffordable making it a splendid opportunity – somewhat like an ice-cream parlor for Moneylender Review who can dip into their own pockets for the funds and dole out this ice cream – or loans – to investors who are otherwise unable to get them from regular sources.

California has many hard money lenders – I saw 149 listings on one directory alone – and they dole out all sorts of loans: commercial, residential, business, so-called Social Crowd loans, simple, and so forth. FICO score and credit history are insignificant. If your property promises profit, that is all that the lender is interested in. Show him, or her, that you can repay your loan. Persuade him that your property – even if he has to sell it – will repay him double or triple his investment, and you may find yourself with the needed funds by the end of the day.

The problem is that these unconventional lenders can ask for higher interest rates – after all they’re handing over their own funds. You also get comparatively little scoop for your collateral. But there are advantages that may tilt the spoon in your balance. These include faster scoopings and a simpler procedure – relatively few forms to fill out. The entire process can conclude within the week – compare to the 60+ days of the bank! Getting the hard money loan is almost as fast as a handshake. It’s up to you to decide.

What makes people want to approach hard money lenders in California?

Right now, the local housing is about to become even more unaffordable. A UCLA economic forecast released this week (December 7, 2105) showed that housing in California — already considered unaffordable to many — will become even less affordable over the next two years, with construction unable to keep up with demand. For potential investors, this news is both good and bad. Good in that it means that investors have a ready market to flip and sell to. Bad in that investors somehow need to find the money to buy cheap property, convert it, and sell this property at a profitable price. Many potential borrowers may be unable to afford the cost of buying plunked-down dollar-low realty. They may be less able to afford its inevitable dizzy costs of renovation. Many approach banks or other traditional lending institutions but are increasingly turned down. Even if you have a reasonably trustworthy credit history, banks are too frightened to take the risk. They particularly shy away from prospects of lengthy renovation. If you live in California, this where hard money lenders may be the answer to your prayers. The lender looks at the value of your collateral and, based upon that, may hand you the needed funds. You may want to factor in higher prepayment and interest rates as well as that dismal expectation that you will have to hand this generous lender your property if you default.