Ever wondered how some people manage to snag incredible real estate deals that seem out of reach for most of us? Or maybe you’ve heard whispers of “hard money loans” but aren’t quite sure what they are or if they’re right for you? You’re not alone! On a recent episode of “Ask the Expert,” the hosts, Steo and Sofia, tackled these questions head-on with Pouyan Broukhim, owner of PB Financial Group Corp, a leading California hard money lender. We received so many questions about mortgage rates and the state of the market, and Pouyan offered some seriously valuable insights. Let’s unpack what we learned.
PB Financial Group: More Than Just a Mortgage Company
PB Financial Group isn’t your average mortgage brokerage. With 17 years under their belt and thousands of transactions completed, they’ve built a reputation for putting people first. Pouyan emphasizes clear communication and a genuine desire to help clients achieve their “American Dream” of owning real estate. It’s not just about closing a deal; it’s about building lasting relationships and creating wealth that can be passed down through generations. Unlike some companies that focus on a single transaction, PB Financial Group, which is the exclusive mortgage company for California on the Ask The Expert show, aims to be a trusted partner for the long haul.
Why Hard Money? Filling a Crucial Gap
So, why the focus on hard money loans? Pouyan explains that he saw a gap in the market. Not everyone fits neatly into the boxes that traditional banks create. There are A, B, C, and D borrowers, each with unique circumstances and needs. Los Angeles, in particular, is a melting pot of cultures and backgrounds, and a one-size-fits-all approach simply doesn’t work. Hard money lending provides an alternative, offering opportunities to those who might not qualify for conventional financing.
Hard Money vs. Traditional Loans: What’s the Difference?
Think of hard money loans as unconventional financing solutions. They offer a way for individuals from all walks of life to tap into the real estate market and build wealth. While traditional bank loans have strict requirements, hard money lenders can look beyond credit scores and income statements to assess a borrower’s potential. This can be a game-changer for those who need quick access to funds or have unique investment opportunities. Hard money loans empower individuals to acquire property sooner than they might have thought possible, even if they come from different backgrounds.
Who Benefits from Hard Money Loans?
Are you wondering if a hard money loan might be right for you? Here are a few scenarios where they can be a lifesaver:
- Inheriting a property: Need to pay off estate taxes or make repairs?
- Facing a reverse mortgage deadline: Don’t want to be forced to sell the family home?
- Snagging a below-market deal: Found a property worth $500,000 that you can buy for $400,000?
- Tapping into existing equity: Need funds for renovations or other investments?
PB Financial Group prides itself on being a “Make Sense” lender, carefully considering each borrower’s situation and crafting solutions tailored to their specific needs.
Reverse Mortgages: Separating Fact from Fiction
Reverse mortgages often get a bad rap, but Pouyan clarifies that they can be a valuable tool for certain individuals. For elderly homeowners with significant equity and limited income, a reverse mortgage can provide much-needed cash flow and eliminate monthly mortgage payments. Of course, it’s crucial to understand the terms and potential costs involved. A reverse mortgage lets them not have to make mortgage payments.
One common concern is the 90-day deadline to pay off the reverse mortgage after the homeowner’s death. This can put heirs in a difficult position. Hard money loans can offer a solution, providing the time needed to fix up the property and rent it out, preserving the family’s legacy.
Understanding the Approval Process
What does it take to get approved for a hard money loan? Equity is key. Lenders want to see that you have enough skin in the game to protect their investment. They also want to ensure that you’re not headed for foreclosure. A solid exit strategy is essential, whether it’s selling the property or refinancing into a conventional loan. The hard money lender wants to know the borrower has enough equity to protect their interests.
Debunking the “Loan Shark” Myth
Let’s address the elephant in the room: the misconception that hard money lenders are predatory “loan sharks.” Pouyan firmly rejects this stereotype. He emphasizes that foreclosure is always a last resort, only pursued after exhausting all other options and losing communication with the borrower. Communication and understanding the borrower’s plan is a must! PB Financial Group prioritizes clear communication and a willingness to work with borrowers to find solutions.
Navigating the Current Market: Pouyan’s Perspective
Pouyan doesn’t shy away from addressing tough issues. He acknowledges the devastating fires in Altadena and Pacific Palisades and the impact on the community. He also points to the potential impact of factors like homelessness and the upcoming Olympics on the Los Angeles real estate market. While acknowledging some leadership issues in California, Pouyan highlights opportunities arising for investors and those considering relocation, advising thoughtful consideration of personal safety and family needs when making such decisions.
Why Choose PB Financial Group?
With so many lending options out there, why choose PB Financial Group? Here’s what sets them apart:
- Direct Lender: Expect quick decisions, often within 24-48 hours.
- Experience: Benefit from their extensive knowledge of the hard money lending landscape.
- Honesty: Receive straightforward and transparent communication.
- Client-Focused: They’ll explore all options, even if it means you don’t qualify for a loan with them.
- Education: They empower borrowers with the knowledge they need to make informed decisions.
PB Financial Group is known for its strong reputation and dedication to client success. Call us at 877.700.3703 to schedule a consultation or visit www.CalHardMoney.com to learn more.
