private money lender

Saving to invest in the real estate industry will take you ages. Fortunately, California has reputable private money lenders who can easily make your homeownership dream a reality.

Unlike conventional banks, private lenders have a unique way of dealing with their customers. Is your credit history taking a toll on your home investment dream? Read on to understand what makes a private money lender a reliable source of money.

Quick Approval

One of the standout benefits of a hard money lender is their speedy approval. Unlike banks, with private money lender, you will not wait for weeks to get your funds processed. Within 7-8 days, these loans will have reflected in your account.

Hard money lenders have revolutionized how the financial sector works. You don’t have to wait for months before getting a substantial response. As long as the collateral provided meets the minimal liquidation value requirements, your requested funds will be released in record time.

Securing even the simplest of loans from financial institutions is a complex process. These institutions have a long list of requirements that can take ages to obtain. Relying on these institutions means that another smart investor will take every investment opportunity you spot.

No Added Fees

When you borrow money from banks, there will be reams of paperwork that you will be required to sign. Reading through these pages is a daunting task, and you may not realize the additional fees included in these pages.

Whether you have read these papers or not is nothing to do with the bank. As long as you have agreed on the terms and conditions, the hidden fees that you had no idea about will apply. On the flip side, any reliable private money lender will disclose all the fees that apply before you sign the documents.

Minimal Penalties

Predicting what the future holds for the various projects being implemented is difficult. Sometimes, investments are all about taking risks with the hope that things will fall in place. In some scenarios, projects mature and become profitable before the agreed repayment period is reached.

In typical cases, banks will make the repayment period a bit longer to increase their interests. However, a genuine private money lender will encourage you to clear the loan within the shortest time possible.

Credit Scores Do Not Count Here

For hard money lenders in California, credit scores are not as significant as the value of your property. Additionally, you are free to use an existing property as collateral to obtain funds for your next project.

In cases where you are longing for a house makeover, the value of your renovated property will also be factored in. Instead of your credit history, hard money lenders rely on your equity within the property.

Gives Room for Negotiations

Investing in real estate is not only about the strategic positioning of the property but also the price. Whenever a property is advertised, the initial price is low because there are few interested parties. With time, more investors show up, and the value of the property goes up.

Private money lenders are here to ensure that you seize the opportunity as soon as possible. Their fast approval rates mean that you will be in a better position to negotiate the property. Additionally, the fast processing of hard money loans allows you obtain the property when the price is still low.

Alternative Source of Financing

Convectional financial institutions have set limits on the furthest they can go as far as funding your project is concerned. However, private money lenders are always willing to make a deal as long as you meet their minimum requirements. These lenders give you room to negotiate to get a favorable deal.

Final Word

Real-estate is a funds-intensive sector that requires alternative forms of financing. Besides quick approval, minimal penalties, and the fact that you can get a loan with a low credit score, hard money loans have flexible terms that are consumer-friendly. If you are looking for a reliable private money lender in California, contact us today.