PB Financial Group is one of the leading hard money lenders in Los Angeles and all of California. We’ve helped countless clients find the investment capital they need to make major changes to their business or harness new opportunities. However, hard money isn’t the perfect solution for all situations. PB Financial Group believes in full transparency when working with clients, and thus has compiled a quick list of things to consider before selecting a hard money loan:
Interest rates on a hard money loan are generally higher than those on a traditional loan. However, loan terms are also shorter, which means overall interest costs might not necessarily be higher over the long-term. It’s important to consider the full term of the loan when calculating total interest.
Loan to Value
Because a hard money loan is secured by your assets, it’s possible the loan-to-value ratio will be lower than you’re expecting. This is a core mechanic of the loan; if you’re unable to repay the loan the company that furnished it will need to sell the asset. Thus, the total amount is sometimes limited by realistic resale value.
Hard money lenders will want to know that you have a vision and a goal for your loan. Before they offer an investment, they’ll want to see that you’re ready for the responsibility. Commercial hard money lenders in Los Angeles expect you to be ready to accept the loan immediately and proceed forward without delay.
Overall, hard money loans should be considered another option in financing your business and building your success. Like traditional loans, they’re not a one-stop solution for all situations. It’s best to sit down with a provider of hard money loans to determine if what they’re offering is what you need. PB Financial Group is happy to field any questions you may have. For more information or schedule a consultation please visit www.calhardmoney.com or contact us at 323.935.5555.
PB Financial NMLS #357614/DRE #01522495