The real estate market here in California has seen a nice run over the past couple of years. Prices have been appreciating after a sustained downturn in real estate prices. This appreciation has created equity for many real estate investors that can be used to acquire additional properties. Using funds in this manner is called leveraging, and our CA hard money loans are one way to tap that equity.
While real estate prices have been increasing, bank lending has continued to tighten up. This is especially true for loans to investors and self employed individuals. While many investors now have equity that they did not have a few years ago, they also may not be able to tap into this equity as easily as they could back in the early 2000's. We specialize in helping these types of people access their equity for further real estate investment or other business purposes.
In addition to appreciation, the real estate market has also loosened up hard money loans. Loan to value ratios are increasing in response to the improving markets. An investor looking to tap into their equity a few years ago may have been capped at 60% of the value of that property. Today, due to the stabilized real estate markets and perceived lower risk of another decline in real property, these loan to values are 65%, 70%, even 75% in some situations. This means investors are able to tap into more equity than in the past to increase their real estate holdings.
With the real estate markets still hot and the spring buying season coming around the corner now may be a good time to consider the advantages of leveraging your equity. Feel free to contact me directly, I'm always happy to discuss the various options I can provide. For more information on California hard money loans please visit our website All California Lending.