Real estate investors who work with San Diego CA hard money lenders have a number of things to be happy about. First and foremost, there is the fact that California regulations surrounding hard money are some of the most conducive in force in the United States.
Getting a healthy hard money loan secured in your name or in the name of your business in order to complete a home rehab, house flip or any other real estate task is surprisingly easy in San Diego. What you will want to know are the common terms that are necessarily implemented in the process.
Packages Offered By The San Diego CA Hard Money Lenders
The hard money lenders in San Diego often lend their cash to investors in the form of one or several investment packages. These packages are designed to make life easier both for the lender and for the borrower, by providing standardized lending services across the bard.
• House Flipper Lending Package – If you are purchasing a home with the intent of remodeling it and then flipping it on the market for profit, you fall in with a highly active segment of the real estate population in San Diego. You can expect some very attractive terms on your loan, which will generally be given a 1-year repayment period. It is not uncommon to see 12.5% interest at a 65% ARV loan-to-value hard money loan.
• Build-To-Flip Lending Package – If you are attempting to build a home in order to flip it on the market, then you can benefit from slightly modified terms that are of mutual benefit for you and your lender. The repayment term of the loan generally stays the same, at a single year, but the loan-to-value can drop in response to the higher interest rate often insisted on by lenders. This leads to a greater difference in the properties’ original value and the value of the property after work is complete.
Miscellaneous fees associated with these loans include appraisal fees, underwriting fees and attorney fees, usually amounting to less than $1500. San Diego CA hard money lenders are required to pay these fees, and will pass them on to you to cover the costs.