A hard money loan is asset-based financing that comes from private individuals or companies rather than the more traditional institutions and conventional lending sources such as banks. Borrowers in need of immediate cash and borrowers with credit concerns may find hard money to be an excellent option for their needs. LoanSuperStore.com offers hard money loans for non-owner occupied and investment properties throughout the greater Los Angeles/Southern California area. This includes Orange County, San Diego County, Ventura and Santa Barbara counties as well.
Traditional lenders will assess the credit worthiness of a borrower when deciding whether to offer a loan and at what terms. Hard money lenders, on the other hand look at the strength and value of the real estate being purchased or owned by the borrower. Credit concerns are less of an issue when it comes to hard money loans. By offering loans based on real estate value rather than credit worthiness, private financing is very flexible. This flexibility allows for fast closing in time-sensitive situations and gives borrowers access to financing for a variety of properties that might not receive consideration from traditional lending sources. At LoanSuperStore.com, Inc. we can close most hard money loans in just 10 to 20 days.
Hard money loans are often used by real estate investors. Two common investment strategies that often take advantage of hard money loans are fix and flip and buy and hold strategies.
Fix and Flip
Fixing and flipping properties is a very common type of real estate investment. This type of investor requires short-term financing to purchase a distressed property and quickly make necessary renovations and repairs. Once fixed, the newly renovated property will be sold for profit. Fix and flip investors will often have multiple projects going at the same time, meaning there is a continuous need for capital. Conventional financing is typically not available to fix and flip investors which makes hard money financing an attractive option.
Buy and Hold
Buying and holding properties is an investment strategy similar to that of fixing and flipping. The difference is that rather than reselling the property after is has been renovated, buy and hold investors will hold onto the properties to generate long-term rental income. Although these investment strategies are similar in nature, buy and hold investors require financing over a longer period of time because the property is not being sold immediately after repair. We can frequently arrange long term financing at very attractive bank/insurance company rates when the property has been stabilized.
Bridge loans an integral part of the hard money market. As the name suggests, these loans serve as a “bridge” between periods of financing. Bridge loans are short-term loans that can be closed very quickly. Quick closing and immediate access to cash allows the borrower to capitalize on an investment opportunity until more long-term financing can be obtained.
LoanSuperStore.com, Inc. offers hard money loans to borrowers and investors in need of financing for a multitude of real estate projects and investments. No matter what your investment strategy or need for hard money financing is, we offer fast closings at great rates and terms, providing you with FAST access to the funding you need. For more information on hard money financing throughout Southern California including Los Angeles, Santa Barbara, Orange and Ventura Counties, as well as the Inland Empire contact Stanley Goodfriend at LoanSuperStore.com, Inc. today.