hard money loans

1. What's a Hard Money Loan & How do they Work? what is a hard money loan A hard money loans is a short-term mortgage for investment properties. They could finance the purchase or renovation of a property. Hard money loans can be obtained faster than conventional mortgages and the qualifications are more flexible, also. hard money loans are short-term financing options which provide investors flexibility and speed when investing in real estate. Investors generally like hard money loans when they want fast pre-qualification, a fast time to funding, few borrower qualifications, interest-only obligations, a short loan duration, and / or when they should fund a rehab. All hard money lenders will do loans at 1st position, while fewer will do 2nd standing due to the greater risk for the lender. A borrower can find a hard money loans on just about any type of property including single-family residential, multi-family residential, commercial property, land, and industrial. Some hard money lenders may specialize in one particular property type such as residential and not be able to do property loans, only because they have zero experience in this region. Most cash lenders have a particular niche of loan they're most comfortable with. Ask them upfront which kind of loans they're willing and ready to do. Many hard money lenders will not give on owner-occupied residential properties as a result of additional rules and regulations (thanks Dodd-Frank!) But there are individuals who are ready to wade through the paper work with the borrower. California hard money lenders provide financing solutions to borrowers who demand fast capital for their real estate jobs and who wouldn't normally qualify for a loan from conventional lenders. Average hard money borrowers consist of enterprising "fix and flippers" who proliferated the real

2. estate investment scene after the 2008 housing crisis and who have maintained a mainstream presence during the continuing investment possibility available in California. The market for hard money loans in California is among the largest in the nation, as California represents the biggest and most active single family residential real estate marketplace in the U.S. with over 15 million housing units in the state. In addition, California property has become the most valuable real estate market in the country with the greatest median home costs in an average of $500,000, approximately twice the national average. The inherent high worth of single family houses in California has created lucrative home "flipping" opportunities for hard money loans in California borrowers who are able to find deals, complete the rehabilitation required on these prices, and then reap gains upon selling these rehabbed assets at attractive rates. The profitability of such projects are driven by short holding periods that can't be slowed by extended searches for funding. The faster the borrower may find financing for his job, the quicker he can "fix and flip" the advantage. California hard money lenders serve this role and act as important lubricants for decreasing deal friction and, even more importantly, for supplying liquidity in this real estate industry. A poll of hard cash borrowers would undoubtedly indicate the significance of hard cash loans in fast completing lucrative "fix and flip" transactions.