Bakersfield Hard Money Lenders
Delancey Street is a premier and top rated hard money lender in Bakersfield. Our team has handled millions and millions in funding on behalf of real estate investors. If you need a hard money loan for your next residential or investment property – then we can help. We fund hard money loans up to LTV’s of 70-80%, and are comfortable working with both residential and commercial projects.
If you’re buying real estate, you may have heard of hard money loans. It is a topic that is widely discussed within the investment sector, and it is not always understood. Hard money lenders, commonly referred to as HLMs, are usually either private investors or small investment firms or groups who lend money based on the property type you are buying; credit scores are not a considered factor to this type of lending. The property itself is the protection against default by the borrower. Here are some of the common pros and cons of hard money loans.
Pros of Bakersfield hard money loans
Developers and house flippers frequently utilize hard money loans to fund deals because they can often borrow the full amount of the purchase price of the home or property. If you are able to purchase a property and flip it quickly for a huge profit, a Bakersfield hard money loan may be a desirable option. Some real estate investors will use hard money to acquire the property, then they do some major renovations to increase the home’s value. Many of these investors will then acquire a loan from a traditional bank, based on the home’s increased value, and then pay back the hard loan with the bank loan.
Hard money loans are also a great option for those with poor credit or anyone needing to get into a home quickly. You do not have to jump through hoops or cut through a lot of red tape to get the funds you need. In many cases, you can acquire a hard money loan in a matter of days; it can take a month or longer to acquire funds with traditional lenders. Once you pay the origination fees, you can easily acquire a hard money loan without a property appraisal in many cases.
Another advantage of a hard money loan is that you typically do not have to deal with the banks, an underwriting team, processors or loan committees. Since most Bakersfield hard money lenders are individuals or very small groups, the process of acquiring a loan is very fast and straightforward. In some cases, you will need to have additional assets to back up your loan.
Cons of Bakersfield hard money loans
Bakersfield hard money loans are very expensive. The interest rates are astronomical, and many rates and fees are even higher than those of the subprime lending market. You can expect to pay at least double the national average, in terms of costs and fees, for a hard money loan.
There are often a lot of hidden fees when it comes to a hard money loan. Lenders have to include additional clauses and add on more up-front fees to protect themselves from default with these risky loans. Due to the high interest rates and large number of up-front and recurring fees, hard money loans are best suited for professional house flippers and property rehab teams. If you have bad credit and need a hard money loan to get into a home quickly, these loans can be good for the initial purchase. Hard money loans a fantastic way of getting access to capital fast. Many lenders use hard money loans for fix and flip projects. As a real estate developer, a hard money loan is a great way to rapidly expand your portfolio. Because you have access to cash, you can rapidly buy new projects without having to worry about having the cash upfront.
Bottom line: if you want to fix and flip, buy commercial real estate, or simply need extra money – a Bakersfield hard money loan is the way to go. Delancey Street – a premier Bakersfield hard money lender, can give you immediate cash. If you’re a developer, we can finance your entire venture.