As one of the leading hard money lenders in Los Angeles and throughout California, PB Financial Group encounters a wide range of clients and customers. Some have worked with hard money in the past and are familiar with what differentiates a hard money lender from a traditional lender. Others, however, are new to the world of hard money loans and have plenty of questions about how they work and how we approach closing one.
It is with those new curious clients in mind that we’ve worked up this quick list of common hard money loan myths:
Hard Money Loans are Expensive
There is a common misconception regarding hard money loans that revolves around their interests rates being astronomically higher than those of a traditional lender’s. While it is true that interest rates on hard money loans are generally higher than those on traditional loans, hard money loans are also usually designed for short-term financing rather than long-term financing. This means that the total amount of interest and fees paid on a hard money loan is often similar to interest and fees paid on a traditional loan.
Hard Money Loans are for People with No Other Options
Thanks to inaccurate portrayals in television and films, inexperienced clients sometimes expect that hard money lenders are shady loan sharks looking to capitalize on misfortune. This perception is far from the truth. Hard money lenders in California like PB Financial Group are owned and operated by exceptionally successful businesspeople with a deep understanding of how and where to invest money effectively. Our clients trust us for our business acumen and our sharp financial thinking — not because we’re their only option.
Hard money loans are faster, more flexible, and more efficient than loans from traditional banking institutions. But they’re not the perfect fit for every financial situation. If you’re curious about whether working with a hard money lender in Los Angeles is the right path for you, please contact PB Financial Group via www.CALHardMoney.com or 323.935.5555.
PB Financial NMLS #357614/DRE #01522495
