An ideal California hard money lender can arrange hard money loans, private money loans, bridge loans, land loans for commercial property investments, home and residential property, apartment buildings, shopping centers, industrial property investments, casinos, hotels, general-use property or buildings, unique properties, and these are just a few of the options! California hard money loans can finalize within three days, though the average time can be around two to four weeks, –look for lenders with a good reputation as far as time it takes them to close. Some direct money lenders are also private money brokers, who make complex lending programs a specialty, –seek these companies out! They can anywhere from $100,000 in loans, to $100,000,00, with fast and easy documentation.
The ideal California hard money lender is versatile; able to finance single family homes, commercial property, home building and construction projects, raw land and developer lots, among many other kinds of land, both improved and unimproved. Most hard money and private money loans are interest only loans. The preferred hard money lender will primarily focus on the collateral and fundamental value of real estate; they use a practical, business sense of imagination, and are able to move quickly.
It’s important that the lenders policies are blunt, and comprehensible. There should preferably be no credit or finance history requirements listed, and the lenders should also be able to offer around 65-to-70% loan to value, depending on the area of California you’re in. Once again, versatility is key; lenders should be able to lend in first, second, or third position, as long as structure and dollar amount meet their loan to value policies.
Preferably, your lender, or choice among other lenders, should also work with brokers. This enables them to find and close on great deals that other firms might not be able to find themselves. Be sure to find and read all the details on hard money co-broker and referral programs, however; it’s always important to make sure a lender isn’t too good to be true. Learning to “read the fine print” is one of the most important pieces of financial advice you’ll ever pick up.
Some California hard money lenders will also research and watch select commercial hard money transactions that take place across the country. Larger lending companies offer loans to customers outside California. Look for companies like these!