If you are seeking capital to fund a real estate venture, such as a fix-and-flip project, you may be on the fence on whether to apply for a private money loan. You may be hesitant about going outside “traditional” financing venues such as large banks and credit unions. However, there are an array of benefits associated with private money loans that you should consider when determining whether it makes sense to pursue this type of funding. Here is an overview of just a few benefits associated with private money loans:
- Quick Response–In stark contrast to large banks, you may be able to get approved for a private money loan in a matter of days, as opposed to waiting weeks or months to get a decision.
- More Than Your Credit Score – If you have mediocre credit, do not fret. Private money lenders typically use a holistic analysis when reviewing a loan application, and routinely place more weight on the specific details of your real estate project, as opposed to your credit score.
- Easier Qualification– If you own and operate a small business that is primarily cash-based, you may encounter difficulties qualifying for a traditional loan since your balance sheet may not reflect your true strength. Conversely, when you apply for a private money loan, the lender will look beyond the balance sheet and review all aspects of your financial health to decide whether it makes sense to move forward.
- Administering an Estate – Private money loans can be used for more than fix-and-flip projects. For example, if you inherited property where successor trustees or beneficiaries need access to liquid funds for distribution to beneficiaries, along with covering legal expenses, and the costs of fixing up the property, a private money loan can be a big help.
- Consolidate Loans – If you need to refinance and pay down first, second, and/or third lien position loans on a property that are close to being due, a private money loan can be a life saver. The consolidation option is available for both owner-occupied and non-owner occupied residential and commercial properties in California.
- Funding for Undeveloped Land – Obtaining a loan to purchase a piece of undeveloped land can be quite daunting due to a myriad of rules and regulations. If you pursue a traditional loan through a bank, it could take months or years to actually secure the necessary funding. You could potentially expedite the approval process with a private money loan. For more details visit here.
- Funding for Other Types of Properties – If you are interested in purchasing another type of property, like a mobile home, a church, a restaurant, a gas station, etc. you will likely find the loan review and decision process much easier if you pursue a hard money loan in Los Angeles.
Have Questions? Contact PB Financial Group Today
As you can see, there are many incentives benefits associated with working with a hard money lender in Los Angeles. To learn if you are a viable candidate for a private money loan, contact PB Financial Group today at 877.700.3707 or visit www.CalHardMoney.com for further information.
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