Private Hard Money Lending in California

Private hard money lending in California is a popular funding source for real estate investors and business owners. These loans, which are typically provided by private individuals or companies, are secured by real estate and offer a more flexible alternative to traditional bank loans.

One of the main advantages of private hard money lending in California is its flexibility. Hard money lenders in California are often more willing to work with borrowers who have less than perfect credit or who are in unique financial situations. This can make it easier for borrowers to obtain the funding they need, even if they don't qualify for a traditional bank loan. Additionally, private hard money lenders in California are also more likely to consider the value of the collateral (the real estate) and overlook the borrowers credit issues from the past, which can make it easier for borrowers to qualify for a loan.

Another advantage of private hard money lending in California is the speed at which loans can be approved and funded. Traditional bank loans can take weeks or even months to be approved and funded, while private hard money loans can be approved and funded as quickly as in just a few days. This can be especially beneficial for borrowers who need to quickly access cash for a business opportunity or real estate investment.

Another benefit of private hard money lending in California is that the interest rate is often lower than other types of loans, such as credit card loans or personal loans. Hard money loans are secured by real estate, which means that the lender has a lower risk of losing their money. As a result, hard money lenders can offer lower interest rates than unsecured lenders might.

In California, private hard money loans can also be used for a variety of purposes. These loans can be used for everything from buying and rehabbing a property to consolidating debt and making business investments. They can also be a useful tool for borrowers who currently have an existing long term fixed rate loan at advantageous terms.  A private hard money second in California can be a good solution to raise capital without the need to refinance that existing first.  While the rate and cost of a private hard money second is typically higher than a new first, being able to keep an ultra low rate first can offset this added cost.  When looking at this option, consider the blended rate and payment when factoring in your options.

Additionally, private hard money loans in California can also be a good option for borrowers who are looking to purchase a property that is in need of major repairs.  Fix and flip investors use hard money loans to finance these on a regular basis.  Using private hard money loans for rehab properties can be a great tool as financing under these programs will not require repairs to be made prior to the sale - which is not typically the case for more conventional loans.

It's also important to note that private hard money lending in California typically comes with higher interest rates than traditional bank loans. This is because the private lender is taking on a higher level of risk by lending money on transactions that fall outside the more stringent bank guidelines - whether it is credit, lack of income documentation, property condition, vacant commercial units or other aspects of the transaction. As a result, borrowers should expect to pay higher interest rates on a private hard money loan.

Private hard money lending in California can provide a number of benefits for real estate investors and business owners. These loans offer more flexibility than traditional bank loans, can be approved and funded quickly, and can be used for a variety of purposes.  We specialize in these types of loans for most property types throughout California.  For more information or to discuss a scenario, please call or email us today!