When it comes to hard money loans, some people mistakenly believe that this form of funding is only for fix-and-flip real estate investors. This is incorrect. In fact, it is possible to secure a hard money loan in Los Angeles to purchase commercial real estate property.
Why would a commercial real estate investor decide to take out a hard money loan? Well, let’s discuss some of the key benefits associated with using a hard money loan in this sector of the larger real estate marketplace.
Hard Money Loan Offers Greater Flexibility
You may be surprised to learn that most hard money lenders are not subject to standard underwriting protocols. As a result, hard money lenders in Los Angeles don’t have to conform to stringent government regulations and can offer customized loans foran array of real estate investors.
The greater flexibility not only benefits the hard money lender, but the applicant as well since you have more room to negotiate the terms of a loan and potentially modify the repayment schedules or the loan’s duration.
One of the largest perks associated with using a hard money loan for a commercial real estate purchase is the fact that the lender has the ability to approve you for as much as the commercial property is worth. Basically, this means the value of the property determines the hard money loan amount, not an arbitrary credit score or bank statement. This is due to the fact that a hard money loan is different from traditional loans, where you need to prequalify for a specific loan amount and then look for properties based on pre-approval.
Hard money loans routinely come in handy in the commercial property sector when traditional financing simply falls short and cannot help. For example, there may be an instance where the commercial property requires plumbing or electrical repairs, and you need a loan to cover the cost. Most traditional banks don’t offer loans for such expenses.In contrast, hard money lenders routinely offer financing to commercial real estate owners and investors, including repair loans.
Interested in Applying for a Hard Money Loan in Los Angeles? Contact PB Financial Group Today
If you are looking to secure non-traditional financing for your real estate project, contact the highly reputable and experienced hard money lenders at PB Financial Group. 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