Hard money funds are big source of capital for real estate investors. Hard Money lenders are private companies dealing in a special type of loan called hard money 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 are sometimes called short term loans or bridge loan because these loans do not fulfill your long term business needs. Since these loans are given by private companies or individuals and they do not have such a huge amount so they only fulfill short term needs of borrowers.
Hard money loans have some advantages to conventional lenders. Hard money lending in California is just as popular as it is in most other states in the USA, specifically with real estate traders. You may wonder why credit seekers would likely select private hard money lenders over conventional financial associations. You might have heard or read that private funders charge extra or that they are considered a last option for mortgage.
The truth is that California hard money lenders offer many services that the banks cannot or will not. They approve more loans, in a timelier manner. They understand the needs of the investor, since most of them have invested in real estate. Many of them still do. Some of them are even considered specialists, a good choice for the rehabber or reseller. The fees that they charge are reasonable, for the most part, but to get the best deal, you should shop around.
Lenders can also fund projects that conventional banks cannot. If your real estate investing takes you to the realm of dry cleaners, gas stations, or even assisted living facilities (one of the hottest growing real estate markets in the US), conventional banks are not likely to be able to fund your project. Hard money loans can, once again, be a deal saver.
You will find that California hard moneylenders are competitive. They want your business, so they advertise. One of the best ways to choose a provider is to simply evaluate their website. Look for the ones that detail their approval process, repayment plans and additional services. The more up-front they are about what they have to offer, the more likely it is that you have found a reliable legitimate source of funds.
At last I would say finding the right hard money lenders in California is a challenging and time consuming process. But after a little research one must find the right one. Hard money lending is a best option for real estate investors. It has many positive aspects as compared to conventional bank loans.