In general, California has a real estate market that remains, even in difficult times, more in demand than any other location on the west coast, and more so than most of the United States. This is especially true in Los Angeles, where real estate costs are, accordingly, quite high.
As a real estate developer seeking hard money lending California laws and regulations are largely on your side. There are a few things that you should expect from a majority of deals in this state, starting with:
- Higher Loan Amounts – Unlike many other states in the country, it is possible to get up to 85% of the purchase price of your property loaned to you in return for the place as collateral. In many other states, it is not possible to get more than 65%.
- No Appraisals – While not all hard money lenders will put up cash without an appraisal, there are professionals who know the market so well that they can afford, in certain areas and cases, to offer loans without making you wait for an appraisal. Taking this step out of the equation could mean that you get your cash in 48 hours, or even less!
- Coastal Lots Offer More – You can get a much higher LTV rate with coastal lots than with desert land. This is due to the general increase in attention and demand related to coastal structures, especially in a place like California, where everybody dreams of a property on the coast.
If you are developing real estate in the area and have the chance to get a piece of coastal land, you can negotiate some very good deals and, with a bit of help from hard money lending California experts, turn a very nice profit for yourself in the end.