The following are the most common types of Hard Money Loans that are offered in the San Francisco Bay Area:

·      Rehab or Renovation Loan - In most cases, a rehab loan can be used to make improvements on the property and also to purchase the property. This may allow the purchaser the ability to get a loan for more than the current value of the structure. With Hard Money Loans the lender usually would like to see at least 30% of the acquisition price being put down on a purchase.

·    Bridge Loan- Interim financing is offered by Private Money Lenders for an individual or business until permanent or a new form of financing can be obtained. Money from the new funding source is generally used to "take out" (i.e. to pay back) the bridge loan, as well as other funding needs.

·      Spec Construction Loan- Contractors, builders and developers who are building a home without a guaranteed sale or take out loan upon completion are said to be building on “Spec”, which is short for “Speculation.”If you are searching for a Hard Money Loan in the San Francisco Bay Area keep these key factors in mind

If you are searching for a Hard Money Loan in the San Francisco Bay Area keep these key factors in mind.

1.   Do I have skin in the game (Money, collateral, etc…)

2.   How will the loan be repaid?

3.   Is my project in a desirable location?

4.   What is the “true value” of the property if it had to be sold in 30 days or less?

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Many private money lenders and hard money lenders are looking to finance within California. The San Francisco Bay Area offers tremendous real estate opportunities and private money loans are readily available.

Private lenders in Northern California are looking for projects with a well thought out exit plan and they also always want some of their own money in a deal. Hard Money Loans usually range from a two-month term and may be written for two or three years. Real estate investors often utilize Hard Money Loans for investing in San Francisco Bay Area real estate.  Many investors find themselves in a never-ending battle of moving money around, with much of their net worth trapped in their real estate holdings. Hard Money Loans offer a very fast approval process with far less red tape compared to institutional lenders. Private Money Lenders base the majority of underwriting decisions on the collateral they are lending against, and they are typically not credit score driven.

I hope this took some of the mystery out of Hard Money Loans in the San Francisco Bay Area. If you have any additional questions please contact me or for more information please visit  www.sunriselendinggroup.com 

Call Beau direct 925.566.8426