A hard money loan is a form of loan that is usually backed by a physical property, also known as a hard asset. An example of a hard asset is real estate. Hard money loans are also referred to as “short-term bridge loans” and are offered by private companies or individuals. Traditional banks do not offer hard money loans. As a real estate investor, hard money loans can serve as a source of finances for several projects and tasks. When it comes to real estate investing, timing is key which means that an asset available in the market today may be unavailable tomorrow. Hence, hard money loan might be a perfect option to venture into, as they are usually offered on more flexible terms as compared to conventional loans.
Hard money loans are perfect for house flipping projects and short-term projects that demand a quick turnaround. This form of loan places less priority on the credit score of the borrower and instead focuses on the equity in the asset and hence has less rigid approval procedures. It is, therefore, possible to negotiate certain components of the contract, such as your repayment schedule, additional charges, and fees such as the origination levy.
As a real estate investor, you might find yourself asking the question, “when do I know when it’s the right time to apply for hard money loan in Los Angeles?. Hard money loans are useful when your aim is to secure real estate, flip it and sell it off for a nice profit. To secure a hard money loan, the lenders would need to appraise the property placed as collateral, and then the loan can be approved within days. This means less importance is placed on the financial standing of the borrower and more on the subject property.
Timing is everything in the real estate market and getting a means of quick financing would always prove useful.
In Need of Hard Money Loans in Los Angeles?
To learn more about how to finance your next real estate venture, please contact the leading hard money lender in Los Angeles, PB Financial Group, at 877.700.3707 to schedule a consultation or visit www.CalHardMoney.com. 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