Why do property owners want to use hard money to get a rehab loan to improve their property?
There are numerous reasons:
- Traditional lenders may not be willing to loan money for a rehab project. For example, if a homeowner wants to buy a fixer-upper, many traditional loaners such as banks will be reluctant to grant a mortgage on a home in disrepair. In this situation, a hard money lender can provide a rehab loan (which could also act as a bridge loan). Repairs and improvements can be made using the rehab loan.
- Traditional lenders limit the funds that are available. This means that investors have to wait until they finish a project to get more funding, and may have to pass up potentially money-making deals. By obtaining a commercial hard money loan in San Diego, owners can jump on deals as they become available, allowing them to expand their business and become more profitable.
- Traditional loans are slow. Another advantage private loans have over traditional loans is that they have a quick turn-around time. Frequently, the approval process takes about12-72 hours, and the loans can be closed in 7-14 days.
- Traditional loans are inflexible. There are multiple reasons why a traditional loan may not be approved, from the inability to verify income to poor credit history. Because hard money lenders use the equity in the property to help investors obtain the loan they can be more flexible in qualifying more rehab projects.
A commercial loan from a trusted and reputable hard money lender allows owners to renovate, repair, or improve a piece of property in one convenient loan. PB Financial Group is a leading hard money lender in San Diego, and our goal is to provide you with the ability to quickly obtain the funds needed to move your business forward. For further information about how we can help you, please visit www.CalHardMoney.com or contact us at 323.935.5555.
PB Financial NMLS #357614/DRE #01522495