Hard Money Lending California

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Hard Money Lending

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What is Hard Money Lending?

• Traditional loans place a great deal of emphasis
  on a borrowers ability to repay a loan by
  looking at the borrowers income, credit, and
  assets. Hard money loans, on the other hand, work
  differently from traditional loans in that they
  are more focused on evaluating a borrowers
  collateral rather than focusing on a borrowers
  personal income or credit.

Since this is the case, it takes less time to
secure a loan via hard money lending than it does
to through the more traditional means.
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Who Uses Fast Money Lending?

• When a borrower is in need of a loan and
  traditional means of obtaining a loan are not
  available to that borrower, a hard money loan is
  an attractive viable option that can help the
  borrower in achieving their goal.

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How Does Fast Money Lending Work?

• Collateral can range from residential,
  multi-family, commercial, or raw land properties.
  Basically, nearly any property that is being used
  in order to secure a loan is considered to be
  collateral. Typically hard money lenders keep
  their loan-to-value ratios fairly low.

By keeping the loan-to-value ratio between
50-70, lenders will have confidence that if
things do not work out, they will be able to sell
a property within a reasonable amount of time in
order to recoup the money from the original hard
money loan.
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When To Use?

• Hard money loans typically work as short-term
  loans, usually with terms that range from one to
  five years. As this is the case, interest rates
  are typically higher than that of traditional
  loans, however, if a borrower is working with a
  good lender then the terms and conditions will be
  agreeable from both sides of the fence.

The idea of putting up collateral may sound
intimidating for some however, its important
for the borrower to understand that an asset
secures the loan so that everybody involved in
the transaction is safe.
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The Benefits?

• In most cases credit will have little or no
  affect on approval of a loan.
• With hard money loans a lender does not need to
  verify other assets besides the property or
  properties that will secure the loan.

• A major advantage that a hard money loan presents
  is the ability to borrow funds for renovation
  expenses.
• Hard money loans can come into fruition much
  quicker than conventional loans.

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FAQs on Hard Money Lending

• What is the typical Loan-to-Value that Hard Money
  Lenders seek?
• For the most part, most Hard Money Lenders do not
  want to go beyond 70 of the after-repaired-value
  on a property.

How much does my credit score matter? A
borrowers credit score will matter to an extent,
however, more than anything hard money lenders
are mainly concerned with the value of the
property involved. Other factors of main focus
will include how much repairs may cost, and how
much a borrow is paying for the property.
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FAQs on Hard Money Lending
Can I apply a hard money loan to a commercial
property or apartment buildings? Yes, though it
works on a case by case basis, commercial
properties and apartment buildings are eligible
for hard money lending.
Do hard money lenders require any sort of an
appraisal? Hard money lenders will indeed
require an as-is appraisal prior to any work
being done as well as an as-repaired appraisal
once the work has been completed.
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In Closing

• If you are in need of a quick and forgiving loan,
  then a hard money loan is perfect for you. The
  process is fast and smooth and will cause little
  stress for the potential borrower. Where as more
  traditional loans can take anywhere between one
  to three months before a loan is approved. There
  are situations that require that the process move
  at a faster rate and for that you should consider
  hard money lending as a viable outlet to achieve
  your goals.

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Contact Us

• Vantex Capital Group differs from most private
  money lenders in that we have a vast number of
  resources to provide the funds you need for your
  particular situation.  We have funds available
  for ALL types of real estate loans if the deal
  makes sense.  
• At Vantex Capital Group, we pride ourselves on
  excellent customer service. We strive to make the
  hard money mortgage process a pleasurable
  experience for you. We are always available to
  answer any questions or address any concerns you
  may have throughout the entire process.

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