Hard money lenders offer alternative financing secured by real estate. We specialize in equity based lending in California, and can help secure hard money loans for most property types
The main qualifying factor for our hard money programs is the loan to value ratio. Documentation is typically uncomplicated and we can lend to most legal entities, including.
The first step is determining the value of the subject property, either as is or an ARV. This is the main underwriting criteria for our hard money loans and will determine our maximum loan
Our loan to value ratios typically cap out between 60-65% of the value of a property, although we do have some programs that will go as high as 80-90% on short term purchases. Rates on our hard money loans can vary, but typically range from between 9% and 12.5%. Most of our loans are interest only loans, but we can also offer amortized loans so that you are paying both principal and interest should you desire. While the main criteria for our loans is based on the value of the property rather than credit, we do require a credit report in our file. With good credit we can potentially be a little more aggressive on the loan to value and/or the terms we are able to offer. With poor credit, we may be a little more conservative. Typically speaking, however, a credit score is not going to impact what we can do much – if at all.
If you prefer, a 5-minute phone call is usually all it takes for us to let you know if we can potentially help.
We facilitate rehab loans in California. We can help get you approved for up to 100% of the acquisition cost, capping out at 60-65% of the after repair value for the work to be done. Typically the after repair value is determined through comps, site visits and/or appraisals.
On our residential lending we can typically go to a maximum loan to value of 65%, although some areas may cap out lower and some areas and situations may allow us to go as high as 75% loan to value. We can help finance single family residences, condos, town homes, duplexes and other 1-4 unit residential property within California.
To qualify for a hard money commercial loan with us, the loan to value is the largest factor, but we do like to see financials for the property. Typically we like to see 2 years of financials, but that is a guideline, not a hard and fast rule. Give us a call and we can discuss your scenario today. We do not require a minimum debt coverage, and many of our clients come to us for a hard money loan on their commercial property because the debt coverage is less than what their bank would prefer.
We are able to offer hard money land loans for most locations throughout California. We can help finance both entitled and unentitled land. Our loans are equity based, and typically will range from 30-50% of the value of the property. We are able to offer hard money land loans for most locations throughout California. We can help finance both entitled and unentitled land. Our loans are equity based, and typically will range from 30-50% of the value of the property.
Hard money loans are expensive. If there is bank financing on a property already, chances are that our loan is going to cost more, sometimes a lot more. Whenever possible we like to save our clients money, and that means offering solutions to minimize the amount of hard money financing they need to take on. It makes no sense to pay off a loan with a rate of 4% to take a new loan with a rate of 10%!
California hard money loans are our specialty. We can help provide financing for both Northern and Southern California properties of all types. We only do hard money loans in California, and have the resources to get your project funded fast.
For our CA borrowers we can work with stated income situations, although we do want to know that there is the ability to repay and/or a strong exit strategy. We are in the business of helping our clients, not making loans that will end up needing foreclosure help.
