Reason Why a Borrower Or Property Owner Needs Private Money Lenders Assistance?

1. Reason Why a Borrower Or Property Owner Needs Private Money Lenders Assistance?

2. Hard money loans are secured loans based on assets. A private loan also known as a hard money loan used when a traditional bank loan won’t work. It is funded by private money lenders which is useful to all types of property investors. It is commonly acquired by investors such as developers or house flippers.

3. Why would a person need private money lenders assistance? Are you a developer or house flipper or self-employed, have past loan defaults, or have another unique situation? You might not be able to get a standard bank loan. Many borrowers will not fit perfectly into the banker’s guidelines and strict approval procedures. The role of private money lenders in Orange County comes in handy in such a situation. The ability to borrow money quickly and efficiently is a common motivation for using a private money lender in Orange County. They are fast and efficient to offer private money loans for unique real estate situations. Orange County private money lenders provide upfront financing for your properties with a specific payback period. They can especially help those who face challenges in real estate transactions.

4. Conventional lenders are still funding loans. Their focus is primarily on extremely clean paper transactions. When a transaction falls outside that box, however, it can be a nightmare scenario to obtain funding. In this scenario, private hard money lenders offer a solution. Credit issues may occur due to the downturn situation in the economy. These days many borrowers face minor credit issues. They might have lost tenants or permanent income sources. It will result in reduced cash flow which ultimately led to a late payment on their debts, house loans, or other items. These issues can mean loan denial through traditional funding sources.

5. The conventional bank loan process is lengthy and can take around 60 to 90 days or even more. Borrowers are required to produce considerable backup information on income, tax returns, appraisals, and face much more scrutiny. If you need fast funding then private money lenders in Orange County offer you the ability to close the deal as quickly as five to seven days. It is considerably faster than traditional loans. Under-performing assets are one of the reasons for which the developers or house flippers or property owners opt for private money lenders in Orange County. Many properties are not performing to their full potential during the economic downturn. Rental history may be spotty, rents may have been reduced for existing tenants, moratoriums in place may have meant months with no income, commercial properties may have vacancies. All of these issues can impact debt to income and debt coverage ratios – in turn impacting the ability to obtain a more traditional bank loan. Private hard money loans can overlook these issues.

6. Private money lenders in Orange County are cheaper than taking on a partner. Their bridge money lending is a convenient alternative for a small business or individual as opposed to giving up equity in a partnership. The ease of getting the funds makes it more preferable among people that need fast, creative funding. It is much cheaper than credit cards, personal loans or, again, partnerships. One can say it is a flexible yet inexpensive tool when borrowers fall out of traditional bank lending criteria. Above are just a few of the many reasons why traditional loans fail. Fortunately, All California Lending is here to help. They are the leading private money lenders in Orange County who have the in-depth lending experience to find creative solutions for lending scenarios similar to yours. All California Lending specializes in helping borrowers with their unique scenarios to fund their transactions. Contact them at 877 462 3422 to discuss your specific scenario today!