If you are interested in working with a hard money lender in Los Angeles, whether it is to obtain a standard hard money loan, or secure a deed of trust, it is in your best interest have a general understanding of the rules and regulations that govern these types of real estate loans and deeds.
A hard money lender in Los Angeles is generally regulated at the state level via the Department of Real Estate. Some of the key regulations for real estate lending include the following:
- At least one person associated with hard money loan process is required to have a valid Real Estate Broker License.
- Additional licensing requirements may be required on a state-by-state basis.
- Cross-state transactions fall under the jurisdiction of both states involved and are subject to each state’s respective requirements.
It is also important to note that securities licenses are typically not required for hard money lending unless a loan is classified as a securities offering due to the loan being shared with more than one investor.
In addition to hard money loans, another popular sub-field of real estate lending is the trust deed industry.
A trust deed is considered to be a legal agreement made during the closing of a property. It is a type of secured real estate transaction used in some states to supplant a traditional mortgage. The agreement is between the buyer who is responsible for the repayment of the loan and the third party (i.e. the trustee), who holds the property’s legal title until the loan gets paid in full.
As you can see, the regulatory environment when working with a hard money lender in Los Angeles can be quite difficult to navigate. Hence, it is important to engage in a level of due diligence and work with a reputable hard money lender that has the substantial experience to support and guidance you in the right direction. PB Financial Group is a premier direct hard money, private money, and bridge lender, who has been providing quick funding since 2006 and have funded over 2700 hard money/private money loans.Our objective is to work to satisfy your financing needs on important real estate projects throughout California in an efficient and effective manner.
PB Financial NMLS #357614/DRE #01522495