The Best Way To Get California Hard Money Loans

California Hard Money Loans

The Best Way To Get California Hard Money Loans

When it comes to investing in commercial real estate, it is important to get the funding you need quickly. This is more true now more than ever with the rising price of real estate. The ability to get a quick loan when you find a great deal is essential. California hard money loans are a great way to fund your commercial real estate project. Our lending professionals can help you get the ball rolling. This way, you can start working on your commercial real estate project as soon as possible. 

Save up enough money for a down payment 

When you are trying to get a hard money loan it is important that you have a down payment. With this type of loan, the lender will be incurring more risk than normal. You will be much more successful in obtaining a commercial loan when you have a substantial down payment. The extra time it takes to save for a down payment can determine the outcome of your loan approval. 

Make sure you have enough money for fees for California hard money loans 

Fees like closing costs, property insurance, and underwriting will come into play when you are getting a hard money loan. It is important that you take this into account when you are planning on obtaining a hard money loan. Our lending professionals will be able to determine the fees that might apply to your current situation. When you plan for these fees you won’t be surprised by the extra price bump when the loan is finalized.

Research the different hard money lenders out there 

It is always important to look around when you are trying to find the right hard money lender. Going with your first option is not always the best bet. We will help you find the very best rates and ultimately save you money in the long run. Countless satisfied clients have found success in their commercial real estate projects with us. We will work with you to find the right type of hard money loan for your project.

Operate under the protection of an LLC 

Many hard money lenders will only lend to those who are operating under a special purpose LLC. This is due to the volatility of real estate investing. Operating under a special purpose LLC will allow you to take risky moves without having to incur all of the risks. Also, most hard money lenders only will issue business purpose loans. From a legal standpoint it is not advised to get a commercial loan as an individual. It is inexpensive to get yourself into a special purpose LLC when you are operating as an individual in real estate investing. In reality you will only have to spend a few hundred dollars in order to start operating as a special purpose  LLC. 

Have a solid repayment plan 

When securing a hard money loan, it is important that you have a solid repayment plan in place or the ability to refinance once the loan term matures. Typically the loan will be interest only and balloon in 12-18 months. On some occasions you will be able to extend the loan terms to 24 months. The likelihood of getting a longer loan term increases if you are able to provide a solid repayment plan. 

Create a great Profit and Loss Statement

One thing that is essential when you are working with a hard money lender is the ability to debt service or the future ability to pay. The lender cannot justify approving a risky loan if you cannot provide a sufficient plan for repayment. This is why a proof of income is essential for the lender to know that you are able to repay the loan.

Meet with a hard money lender to apply

A face to face meeting with the lender is a great way to secure your hard money loan. Many times, finding a local lender is best as it allows you to build a strong working relationship with them. This can expedite the process and may give you the opportunity to get a longer loan term. A great way to start is by setting up an appointment over the phone for a consultation to learn what’s right for you.

Consult with an attorney about the terms of your loan 

When you are working with a California hard money loan, make sure you’re not in the dark about your loan. It is a great idea to consult with an attorney before you sign any papers as you want to protect yourself and your assets. Having an attorney look over the loan can pinpoint any loopholes. California hard money loans aren’t something that should feel overwhelming.

Our lending professionals will help you manage any loan amount you get approved for. We want to walk you through the process of getting a hard money loan the right way. We will set up a plan that works for your unique situation. Whether you need to build a smaller house or a vacation getaway. So don’t delay and give us a call today. We would love to talk with you to help achieve your goals and help you realize your vision. 

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