For hard money lenders California represents a highly desirable and very active market, exactly the same it does for real estate investors statewide. The main difference is that these lenders make their living off of providing funds for those investors who want to complete real estate renovations or other tasks and need extra cash to do so.
If you are an investor, whether in commercial real estate or in the home flipping segment of the real estate industry, you may find yourself in the position of needing a quick loan in order to complete the project in question. This can happen for any number of reasons, but nearly always in a way that was not expected or foreseen from the project’s beginnings.
At this point, an investor can either choose to take a conventional loan, drop the project entirely or scope out one of the many hard money lenders California is home to in the hopes of getting enough capital to finish the project and see a profit at the end.
What Hard Money Lenders Will Do For Your Project
Since conventional loans take too much time and dropping the project is usually out of the question, the remaining option is to seek a hard money loan, also called a bridge loan, that will allow development of the property to finish on schedule. Here is what this type of loan would imply:
• Interest Rate Difference – You can expect that, being a short-term loan, the hard money loan will carry a higher interest rate than a conventional one. This is not a problem, however, since the lower rate otherwise offered would also come with a 30-year commitment to a property you probably do not plan on owning in even 30 days.
• Cash-In-Hand Faster – One of the primary benefits of the hard money loan is that they are much faster to organize and pay out than conventional ones. This means that the hard money lenders California brings to the bargaining table can offer you a quick loan with minimal credit requirements, using the value of the property as collateral.