If you are looking for ways to finance a real estate project and are on the fence about applying for a hard money loan, take a moment to consider the various benefits that typically come with establishing a relationship with hard money lenders in Los Angeles.
Benefit No. 1 – Less administrative Burden on Applicant
If you apply for a loan through a traditional bank, expect a stack of documents and financial forms that need to be completed before the bank will even begin reviewing your application. In contrast, a hard money loan involves much less paperwork and a straightforward application process. This enables you to invest more time in looking for additional business opportunities and real estate ventures.
Benefit No. 2 –Hard Money Loans Get Funded Quickly
Applying for a loan through a traditional bank can be an ordeal that lasts in excess of 45 days from start to finish. Not so with a hard money loan. Once you are approved, it is possible to have the loan funded in a matter of days.
Benefit No. 3 – Less Emphasis on Income or Credit History
If you apply for a loan through a traditional banking institution, expect your credit and income history to be placed under a microscope and scrutinized. As a result, if your credit score is average or poor, there is a good chance the bank will deny your loan application. The same risk arises if you lack consistent income.
In contrast to traditional banks, reputable hard money lenders in Los Angeles are equity-based lenders that prioritize the value of the real estate that will be utilized to secure the hard money loan. This means you can still qualify for a hard money loan, even if you have a less-than-stellar credit.
Benefit No. 4–Hard MoneyLoan is Still an Option, Even if You Have Other Conventional Loans
Many traditional banking institutions have rules in place that limit a real estate investor to only four financed properties. Is there any compelling rationale for this rule? Not really. It is arbitrary and appears designed to limit the risk to the large bank. Fortunately, you have other options and hard money lenders do not subject investors to these types of arbitrary limitations.In fact, having multiple properties could be benefits when working with a hard money lender since it presents an opportunity to cross-collateralize properties and transfer equity from one property to another.
Work with a Lender Who Can Use Common Sense and Creativity
If you apply for a loan through a traditional bank, expect to encounter a set of inflexible and byzantine rules and regulations. Even worse, if you inadvertently fail to comply with one or more of these rules, you can expect your loan application to be swiftly denied. In contrast, hard money lenders in Los Angeles such as the experts at PB Financial Group, enjoy greater flexibility and can work with investors to make sure that the hard money loan is beneficial for all parties involved.
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 1700 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. To schedule a consultation or for further information please contact PB Financial Group at 877.700.3707 or visit www.CalHardMoney.com to learn more.
PB Financial NMLS #357614/DRE #01522495