Friday, 30 March 2012

Effective hard Money Loan Strategies

California Hard Money Loans
Hard money is an excellent source of funding. It is an alternative to traditional bank loans. It is a special type of loan which is backed by the value of property, not by the credit worthiness of the borrower.  Hard Money Loans provide investors access to capital to purchase investment properties. They can fund quickly, typically within 72 hours of receiving the final docs from the Title Company. Whether your deal is a commercial construction project, a high rise acquisition or a residential housing development, it will help you in all situations.

Investors, developers and borrowers prefer hard money lending to complete financial transactions. It will help to save time. Conventional banks give loan but after a long term process. It include large documentation and tired income verification process. The real estate business men do not have time to wait. So they apply for hard money lending. As a borrower, they must know all terms and conditions regarding location of property, value of property, type of loan, marketability and environmental issues. The borrower and lender discuss LTV (loan to value percentage), term of loan, and interest rate before going for final agreement. Since the hard money lender is looking to the property as the ultimate source of repayment, he wants a margin of safety and will loan only a percentage of the property value, typically 50-65%, depending on the lender.

California hard lending moneyWith the increase of demand of capital in real estate business hard money lending becomes more popular among investors. Due to this large number of companies start hard money lending business in different areas of world. Beside this, private individuals also take interest in this business because there is huge profit in this business. The main strategy is to give loan on high interest rate. In USA, mainly in California hard money lending is most popular business. Many real estate investors, developers use loan facility for business needs. Companies serve them with professionalism to complete their requirements. Finding the right hard money lenders in California is a challenging and time consuming process. There are so much firms and companies that offer hard money loans for real estate business. The borrower sometimes confuses to decide the right lender. Due to lack of knowledge and experience about loan terms and conditions the borrower sometimes caught by the wrong lending companies which would ruin their time and money.California Private money loans

At last I would say if investor or borrower want a loan for his business in short time and with minimum documentation then he should apply for hard money loan. It would save his time and money and soon he will in a position to continue his business.

If anyone has query about California Hard Money Lendersdo contact us at

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