Do you need an infusion of capital for your next project? Do you need fast, reliable financing? If so, you’re likely looking for hard money lenders in California. The experts at Fidelity Funding have this important information for you if you’re looking for a hard money loan.
What Are Hard Money Loans?
A hard money loan can be a great benefit to those who are trying to secure loan financing. Through a hard money loan, the funds the borrower receives are secured by real property. In many cases, these loans are appropriate for projects that may last a few years or a few months. They are also very beneficial to those who plan to “flip” properties.
What Are Hard Money Loans Used For?
Hard money loans are perfect for a wide variety of projects, particularly the “flipping” of houses or properties. They are also perfect for:
- Cashout
- Loans for construction
- Fix and flips
- Foreclosure Bailout
Remember, because hard loans can be secured quickly, they allow the borrower to take advantage of real estate opportunities.
What Are The Benefits of a Hard Money Loan?
There are several benefits of a hard money loan. We’ve outlined a few of them below:
Your Credit Score Is Not as Important
A hard money loan is the perfect solution for those whose credit may be less than perfect. Why? Because the property is used to secure the loan.
You Can Get a Loan Fast
Loans typically close within five business days. However, at Fidelity Funding, it can close within as little as three business days. However, to ensure that these loans close in a timely fashion, you should have all your documentation organized and completed. Fidelity Funding can walk you through the process.
It Allows You to Take Advantage of Market Opportunities
Do you realize that California has an incredible opportunity for flipping houses? It’s true. This is due to the high value placed upon single-family houses.
What does this mean for the borrowers? It means you can find deals, secure a hard money loan, complete the rehab, and then sell to make a profit. Hard money loans make it easier.
Hard Money Loans are Funded by Private Lenders
This streamlines the process when compared to securing loans from private lenders such as banks or credit unions. You may have heard hard money loans described as “private lenders.”
Hard Money Loans Help Those Who Cannot Get Traditional Funding
Again, this is due to the fact that property is used to secure a hard money loan. The value of the collateral offered is more important than financial issues such as debt to income ratio or credit scores.
Hard Money Loans Are More Flexible
Traditional lenders use a standardized underwriting process. However, with hard money lenders, each individual deal based upon the specific situation.
You Might Be Able to Borrow From an Individual
This, of course, will depend upon your particular situation, but in some cases, you may be borrowing from an individual who’s willing to make the loan. This can be advantageous because many corporations or large banking institutions can have very strict policies.
Some Things You Should Know Before Applying for a Hard Money Loan
So you’ve read some of the many advantages of a hard money loan, and you’re ready to get started? Excellent. Before you begin, there are some things you should know to ensure you are prepared.
Have a Good Idea of What the Property Is Worth
Remember that many hard money lenders will only lend as much as the property is worth.
Have a Clear Plan Outlined
It’s very important for you to demonstrate that you’ve done your due diligence. If you plan to flip a property, be very clear about your plans, how you will rehabilitate it, and when you’ll be paying back the loan.
Make Sure You Know Their Specialty
It’s not unusual for hard money lenders to focus on one specific kind of property. For example, some may do residential, while others focus on land loans. Still, others may specialize in a variety of loans. It’s important to know, upfront, which type of loan they specialize in. It’s vital to get this information before you start the process.
Be Aware of Using Owner-Occupied Properties
Typically hard money lenders do not lend to any owner-occupied rental properties. But even here there are exceptions–it just requires a lot of extra paperwork because it deals with extensive rules and regulations.
Know the Requirements to Get a Hard Money Loan
While we mentioned that these are often easier to get than traditional loans, it’s still important to know your requirements. The main key is to make sure you have an accurate account of the amount of equity you have invested in the property. This is important because this property will be used as collateral to secure the loan.
Borrower Requirements for Hard Money Loans
As discussed earlier, hard money lenders are primarily concerned with the amount of equity the borrower has invested in the property that will be used as collateral. They are less concerned with the borrower’s credit rating. Issues on a borrower’s record, such as a foreclosure or short sale, can be overlooked if the borrower has the capital to pay the interest on the loan.
How To Find a Reputable Hard Money Lender
There are several indicators of whether or not a hard money lender is reputable. You may want to ask these questions: Do they have a legitimate website? Are they in good standing with investors?
You should also take a careful look at what properties this lender has done in the past.
We believe if you take a close look at Fidelity Funding, you’ll see why we are a reputable lender and the best choice for hard money loans.
See Why Fidelity Funding is the Best of the Hard Money Lenders in California
While it typically takes five to seven days to complete deals, Fidelity Funding can accomplish this in as little as three days. One of the ways they can do this is, if the price on the home is correct, they do not do appraisals. This is because appraisals can take several days and slow the process. Contact us and start the application process today.
Fidelity Funding | Hard Money Loans
Email: info@fidelityfundingcorp.com
Phone: (877) 300-3007
Website: https://www.fidelityfundingcorp.com
