hard money: Combining Seller Carry Financing & Hard Money Loans in California
- 01/21/21 12:55 PM
We work with many unique situations when dealing with hard money loans in California. One unique situation involves seller carry financing in conjunction with a hard money loan. While many conventional lenders will not work with this situation, we have funding available to help take advantage of the higher leverage point this combination can bring.
For investors looking to purchase distressed properties, leverage is often the key. Utilizing hard money funding can help with this leverage. This is especially true in fix and flip funding scenarios. In these situations, we can put loans together based on the ARV, or after repair value … (0 comments)
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hard money: The New Face of Hard Money
- 05/21/20 02:38 PM
Hopefully as you read this you are staying safe and healthy. The Covid pandemic has turned many aspects of our lives upside down. Real estate financing has not been immune to the crisis, and today's alternative loan options look much different than they did only a few months ago. Much has changed, but financing is still available!
One of the first major changes we saw was the loss of most of the Non-QM market. This is the market that was filling the subprime market of the past. Most of these loans are simply not available today, with lenders suspending operations indefinitely. These were … (0 comments)
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hard money: Cash Out Hard Money Second Position Loans
- 08/01/19 04:31 PM
Cash out hard money second position loans are often overlooked as an option for investors. Many times clients are structuring their financing needs without knowing what is possible. Taking advantage of these types of products can be quite beneficial - especially for investors who hold many properties.
These hard money seconds are typically short term solutions to bridge a gap for an immediate financing need. The real benefit to them is the ability to retain a long term loan that may be with a bank and at an attractive rate, while accessing equity quickly. When people think about seconds, typically they only … (0 comments)
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hard money: 80% LTV Hard Money Loans in California
- 07/23/18 12:07 PM
For investors looking for higher leverage, we have some new programs available on our hard money products. Our 80% LTV hard money loans in California offer some of the highest private money leverage available for both purchases and refinances.
These products offer true 80% LTV hard money loans for refinance. Cash out is available, and the process is swift and uncomplicated. Depending on whether title is held under an LLC, Corporation or personally, there are some credit requirements as well as experience requirements. For investors with some experience, the credit requirements are loosened. For investors with good credit, experience requirements are loosened.
For … (1 comments)
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hard money: Buying a Profitable Fix and Flip Property With Hard Money
- 01/05/15 04:49 AM
Dealing with hard money fix and flip loans has allowed me to see a number of transactions, both successful and unsuccessful. To buy a profitable fix and flip property with hard money takes more leg work than it does for those able to purchase with cash. Today we are going to look at three of the biggest pitfalls I see when new investors are getting into fix and flip transactions. Avoid these pitfalls and your chances of being profitable on your fix and flip will be much better!
The first issue I see is an over estimation of the as completed … (2 comments)
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hard money: Hard Money Rehab Loans in California
- 12/01/14 01:46 AM
I am subscribed to an industry newsletter and was looking through it the other day when a stat jumped out at me. According to this story approximately 60% of home purchases in the past few years have been foreclosure, short sale or other distressed situations in which the property is sold in less then its best condition. This means there are a lot of properties that need work being sold. When investors purchase these types of properties, often times they do so with a hard money rehab loan.
Specializing in hard money rehab loans in California, we are able to assist … (2 comments)
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hard money: A Walk Through The California Hard Money Loan Process
- 10/30/14 03:48 AM
Working as a California hard money loan specialist I deal with a lot of different and unique loan requests. In addition, the clients we work with are just as different and varied. A number of clients are working with hard money loans for the first time. While you can visit our website to learn about California hard money loans, I wanted to put something together that walks people through the process.
The first step in the process is the actual nuts and bolts of the transaction. We need to determine if the loan request fits with what we are able to obtain … (0 comments)
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hard money: California Luxury Home Fix and Flip Loans
- 06/04/14 02:53 AM
Recently we've witnessed a shift in the fix and flip loan requests we are receiving. For a number of years, while the market recovered, the majority of our rehab loans here in California were for entry level or step up homes. With the housing market recovering, however, we are now funding a lot more California luxury home fix and flip loans.
There are a number of reasons for this shift. One big reason is it is becoming increasingly difficult to get entry level homes under contract at a purchase price that makes rehabbing the property profitable. This is not to say that … (0 comments)
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hard money: Creative Fix and Flip Financing Options
- 10/08/13 09:58 AM
I work with many real estate investors, many of which are doing fix and flip transactions. Fix and flip transactions are short term deals with a property in need of repairs being acquired under market value, being rehabbed to bring it into compliance for conventional lending and to bring some curb appeal to the property and then being sold to an end consumer for market price.
With these types of transactions, many investors are looking to leverage their existing capital in order to be able to do more than one project at a time. For these types of situations, it is … (0 comments)
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hard money: Eminent Domain as a Solution to Housing Woes?
- 08/07/13 04:41 AM
Recently Richmond announced they would be seeking to purchase loans for underwater borrowers at 80% of the market value of the home. They have sent letters to various lenders, and have partnered with a private equity firm to help finance these purchases, restructure the loans and help their troubled homeowners. While this sounds like a great idea, the root of the issue is that they are using the threat of seizure via eminent domain if the lenders do not sell these loans for a discount.
While the big banks, and the mortgage industry in general, have been the black sheep of … (0 comments)
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hard money: Accredited Investors and California Hard Money Lending
- 07/15/13 05:19 AM
As a real estate professional that specializes in California hard money lending, I work with many different sources of funding. One thing most of the loans that we assist with have in common, however, is that at the end of the day there are private individuals doing the funding. This is beneficial to our clients as it avoids many of the underwriting requirements of the big banks (which have become increasingly stringent).
With a new vote by the SEC, this pool of money available is poised to potentially grow. For eighty years there has been heavy regulation on how these private … (0 comments)
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hard money: Resale Value Considerations For Fix and Flip Investors
- 05/17/13 04:14 AM
With the real estate market heating up, there is suddenly a lot of competition between real estate investors to get the right property under contract for the right price. With that in mind, today we are going to look at some important points with regards to resale value that can be easily overlooked.
Perhaps the most important point to consider when looking for a property that will have a great resale value is the location. Location is key with regards to real estate, and a few guidelines can go a long way. Of course the neighborhood makes a big difference, but … (0 comments)
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hard money: Equity Partners and Hard Money for Real Estate Fix & Flip Investors
- 04/24/13 03:50 AM
For many real estate investors capital is the limiting factor on what, where and how many properties they can purchase. There are a number of ways to leverage the capital available in order to maximize your purchasing power, but two of the most common are through the use of equity partners and/or hard money loans.
Equity partners are people or groups who will partner with an investor on a project, bringing the cash needed to the table in exchange for equity participation and/or a flat or annualized rate of return. Most equity partners are going to want some kind of participation. … (0 comments)
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hard money: Three Reasons To Consider Using a Hard Money Lender
- 11/06/12 06:36 AM
With bank rates down at historic lows, many people may question the need to use a hard money lender for your financing. I specialize in hard money loans in California and am going to look at five common reasons people have for using a hard money lender in today’s market.
One of the more common reasons these days to use a hard money loan rather than traditional financing is time. There are many transactions where time is of the essence, but conventional financing can take 30, 45, even 60 or more days right now. In some cases there is a particular … (0 comments)
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hard money: CA Hard Money Loans – Overview and Guidelines
- 10/24/12 03:52 AM
I specialize in CA hard money loans. In talking with potential clients every day, there is a misperception about hard money these days. In this post I am going to look at hard money loan guidelines for today, and give a quick overview on why things have changed.
It was not long ago that hard money loans were quick, easy and aggressive. 80% financing with hard money was not uncommon. No documentation was the rule rather than the exception, and appraisals were taken at face value. Then the market crashed and things changed.
Many investors lost a lot of money when … (0 comments)
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hard money: Real Estate Investors to the Rescue
- 10/01/12 09:25 AM
I do a lot of hard money financing for real estate investors in California and came across this great info-graphic today that I thought I would share. It has some interesting facts contained within and is worth a quick look. Of course if you fit the investor mold and are looking for California hard money lending for your investments, please give me a call and we can discuss how I may be able to help!
Infographic Courtesy of: BiggerPockets.com AND Memphis Invest … (0 comments)
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hard money: Hard Money Loan Requirements – Loan to Value Ratio
- 09/04/12 07:43 AM
Obtaining a hard money loan is not as cumbersome with regards to requirements as obtaining a loan from a bank. The common misperception, however, is that there are no requirements when getting a hard money loan. In this post we will look at the main requirement that most hard money lenders consider when deciding to make a loan or not.
The first requirement any hard money lender will look at, and perhaps the most important one, is the loan to value ratio. The higher that ratio is, the more risk there is involved with making the loan. The equity in a … (2 comments)
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hard money: CA Purchase Rehab Loans
- 08/14/12 07:24 AM
With rehab transactions there is often times a need for specialized financing, especially in the California real estate market. Ca purchase rehab loans are a special type of loan tailored to fit the needs of the short term real estate investor.
Typically speaking, a purchase rehab loan is going to finance both the purchase and the cost of the rehab needed in order to improve the property to the point where it can be sold to an end user for a profit. This can include simple curb appeal and cosmetic improvements to additions and everything in between. Many times, with the … (1 comments)
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hard money: California Real Estate Investors Target Short Sale Bargains
- 08/06/12 05:05 AM
Many of my clients are real estate investors, short term flippers who use our California hard money loans for rehab financing. Over the past 12 months, competition among real estate investors has heated up with regards to REO properties. One avenue a number of investors seem to be turning to is targeting short sales as a larger portion of their business.
Short sale properties for real estate investors are not as attractive as the bank owned properties are. Typically the time from offer to closing is longer, sometimes much longer, than it is on a straight bank owned property. With … (0 comments)
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hard money: How to Get a Hard Money Loan
- 07/05/12 04:32 AM
With many qualified borrowers still getting turned down by the banks, more and more people are looking into how to get a hard money loan for their real estate transaction. The steps to getting a hard money loan are not difficult, and today we are going to look at the most common questions a lender has when underwriting a hard money loan request.
There are three basic questions that are going to be asked. What is the purpose of the loan, what is the collateral for the loan and how do you intend to pay off the loan. These are the … (0 comments)
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We work with many unique situations when dealing with hard money loans in California. One unique situation involves seller carry financing in conjunction with a hard money loan. While many conventional lenders will not work with this situation, we have funding available to help take advantage of the higher leverage point this combination can bring.
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