Obtaining capital quickly to purchase real estate or expand your business can be accomplished through a hard money loan. This type of loan consists in a private lender providing funds to an investor. Private loans are streamlined and uncomplicated so that funds can quickly get to the investor. Hard money lenders provide the convenience of approving and closing a loan as soon as 7-14 business days.
The details of a private loan transaction are put in a promissory note and secured by a deed of trust. A promissory note is a document in which one party promises to pay a debt to another. Unlike a deed or mortgage, a promissory note is not secured or recorded. It is the document that provides the loan details, such as the payment amounts, due dates, and interest rate.
In contrast, traditional loans consist in complex approval and closing processes. These lenders require documentation of income, tax returns, bank statements . . . on and on. Then comes the complicated closing procedures, which puts borrowers are at the mercy of traditional lenders, and if they do not comply, they do not get the loan.
Both a mortgage and a deed of trust are recorded in the county in which the property is located to evidence that the property is being used as collateral for the debt. Once recorded, these documents provide public notice that a lien has been placed upon the named property. While there are two parties involved in a mortgage, there are three in a trust deed. A mortgage only involves a borrower and the mortgage company, which is generally a bank. While a trust deed also has a borrower (trustee) and a lender (beneficiary), it also includes a third party: the title or escrow company. This third-party company holds the title to the property. Private lenders utilize deeds of trust to streamline the loan process.
If you are seeking a convenient and efficient way to obtain funds for your business, then contact PB Financial Group, a leading hard money lender in Los Angeles, Orange County and San Diego and Sacramento. Our goal is to provide you with the financial assistance necessary so you can continue on the path of success. For more information or to fill out an online application please visit www.CalHardMoney.com or contact us at 323.935.5555.
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