Hard Money 24/7

California (CA) is the most populous state; it is also the third largest state by land area. For a real estate investor, the available options financing are numerous. A lot of banks and mortgage lenders, both small and large, finance California real estate. Hard money lenders in California are a integral part of the financial landscape. They fill the financing gaps in real estate lending overlooked or ignored by traditional lending sources. The guidelines that drive the hard money lending are numerous and quite varied. Through this article, we shine some light on getting a hard money mortgage loan from a California hard money lender.

Overview of California Hard Money Loans

Banks and lenders underwrite their loans based on specific and rigid criteria set by the agencies and investors they work with. They mostly follow standardized procedures that are quite inflexible. Due to this RE investors looking for flexibility in getting their financing for commercial or residential real estate projects are usually left out. To fulfill this under-served market, private hard money lenders pool their finances to provide hard money loans in California.

Most of the hard money mortgage loan lenders are willing to closely work with investors and understand the complexity of their projects. They set the loan guidelines and terms to address unconventional loan scenarios  investors bring to them. A lot of projects would never get done if not for the alternate source of financing in the form of hard money lending. To compensate for their risk and earn a return, most of the California hard money lenders like other lenders nationwide charge higher interest rates. They also may charge pre-payment penalties and points. The length of the loan term is also quite short, usually ranging from three to six months. Longer loan terms can be negotiated depending on the lender’s flexibility and accommodation.

Most of the classifications presented below are usually blurred as private money lenders usually consider all forms of real estate as collateral for loans.

Residential Hard Money Loans in California

If the property on which the loan is sought is residential, then it is better to approach California residential hard money lenders. Residential properties are basically single-family homes, town homes, and condos, two-unit, three-unit and four-unit multi-family homes. Anything with less than four units is typically treated as residential real estate. Some lenders only deal with such properties as they offer good protection for recovering the amount they lent in case of payment default by investor.

Home owners in foreclosure due to non-payment of their mortgage can also approach residential hard money lenders to help them get out of foreclosure, provided they have enough equity to offset the risk involved for the private hard money lender.

When credit history is sketchy or dismal, many traditional lenders turn down a borrower for a loan irrespective of the equity in the property on which loan is sought. This scenario is quite common especially after the extinction of aggressive sub-prime lending. But bad credit hard money loans are usually always available for home owners in this scenario.

Commercial Hard Money Loans in California

Commercial properties comprise of apartment buildings, office buildings, retail facilities like malls, strip malls, medical buildings, hotels and motels. Industrial structures, warehouses are also part of this real estate group. Commercial loan underwriting is more complex and stringent. The income generated on the property is the main criteria driving the lending. California hard money lenders can provide a variety of hard money loans to help investors meet their funding requirements.

Bridge loans are a popular form of financing provided by hard money lenders. The funds lent through bridge loans are usually for a very short duration of time. They are used to meet any funding gap before a more permanent loan can be secured by the commercial property investor.

California Construction and Rehab Lenders

When construction is involved either on a raw land or expansion of an existing facility, construction hard money loans can be quite useful. The borrower gets the funds based on the work to be undertaken. They funds are released at regular intervals to suit the work to be performed. Residential and commercial investors use construction and rehab hard money loans quite frequently in the course of their business. To succeed as a flipper doing fixer-upper properties, these type of short-term hard money loans are quite necessary.

When an investor buys an REO property or property in foreclosure through a short-sale construction work and TLC work is usually involved. These loans help investor successfully complete the necessary work.

California Hard Money Lender Directory

A detailed list of hard money lenders in CA along with their lender profiles can be found on our site. There are lenders who serve the following major cities and their surrounding areas. National hard money lenders can also help you with financing when local lenders fail to meet your investment funding needs. These private money investors nationwide can be found through California hard money brokers specializing in your specific niche.

• Los Angeles
• San Diego
• San Jose
• San Francisco
• Fresno
• Sacramento
• Long Beach
• Oakland
• Santa Ana
• Anaheim
• Bakersfield