Hard Money Loans: Why You Need Them?

1
Hard Money Loans Why You Need Them?
2
You must have heard of hard money loans if you
are a real estate investor or are considering
being one! These loans are excellent financial
tools for financing real estate initiatives. Real
estate investors frequently employ hard money
loans to purchase homes to resell. They use them
to purchase homes or other types of properties to
renovate and resell. You, as a borrower, can not
only use this money to fund your real estate
ventures, but can get it much faster than you
could with a traditional loan. A hard money loan
has several important advantages, including a
short approval time.
3
Quick Approval
Traditional banks are often required to comply
with stringent conditions that borrowers must
complete before they may release any form of a
loan. It takes months to process and release your
funds. Because of the risks involved, banks often
do not offer these types of loans. Hence people
like to rely on leading San Francisco hard money
lenders and get the required funds quickly. The
hard money lenders in San Francisco dont
typically require a lengthy underwriting process,
allowing borrowers to obtain funds in as little
as five days. Real estate investors benefit
greatly from the rapid turnaround time. Sometimes
it makes a huge difference when it comes to
closing a deal.
Credit History Contemplations
San Francisco hard money lenders offer more
flexibility with the loan terms without too many
regulations attached. They are more concerned
with the properties current and/or after repair
value (ARV). The hard money lenders in San
Francisco dont focus on borrowers credit
history and income as traditional mortgage
lenders require. To acquire a hard money loan,
you dont need a great credit score either. San
Francisco hard money lenders need to know the
propertys current and/or after-repair value
(ARV) and based on that they can typically extend
terms for business or investment purpose lending.
Hard money loans are not backed by your credit.
Instead, the debt is secured by the collateral,
which is the property, rather than your
creditworthiness.
4
Flexible Loan Terms
It doesnt matter how bad your creditworthiness
is if you have property or assets to offer as
collateral for your loan. San Francisco hard
money lenders are not bound by the same rules as
traditional lenders. They are more flexible when
negotiating the terms of your hard money loan.
But you should be aware of the fact that the
trade off with hard money loans is the rates and
costs they are typically higher than
traditional mortgage loan rates. They are
typically interest only loans, however, meaning
your monthly cash flow on a higher rate is not
necessarily lower than it would be with a lower
rate, fully amortized loan.
Apply for a Hard Money Loan Today
Hard money loans are excellent financial tools
that can be used for several purposes. You can
utilize the funds to renovate an existing
property or to start a new project. Whether you
need money to get started investing in real
estate or to upgrade an existing home, youll
want to work with a trustworthy lender. All
California Lending is a leading hard money lender
in San Francisco. They have local knowledge and
experience to provide you with the loan you
require for your real estate investment
portfolio. Contact them right away if you are
ready to begin the process of obtaining your hard
money real estate loans. Their team is ready to
address any concerns or questions you may have
concerning the application process.