Santa Monica Hard Money Lenders
Delancey Street is a premier, and trustworthy, hard money lender. We fund hard money loans nationwide, and can help you get the financial assistance you need with your next residential, or commercial, property. We understand that many traditional lenders are probably rejecting your request – we’re here to help. We fund hard money loans fast. If we can’t help you – we’ll refer you to someone who can.
Finding a loan via a traditional lender can be a real pain, especially if you have a very poor credit history. With a very low credit score, it could take you weeks or months to be approved for mortgage. It doesn’t matter how urgent your need is – you’ll still have to wait. Hard money lenders, on the other hand, think about the collateral you are giving up as opposed to your ability to pay the loan back. If you neglect to pay back the hard money lent to you, the lender can seize the collateral and sell it to regain their initial investment.
Hard money is are most suitable and valuable to investors who want to renovate or improve a property property prior to selling it at a higher cost. Real estate investors generate an ROI and repay the borrowed cash within a short period of time. Hard money loans, like any other financial instrument, have their advantages and disadvantages.
How fast it takes to get funding
Santa Monica Hard money lenders aren’t worried about your credit rating. Hard money lenders are only concerned about the asset and will process your loan quickly if your collateral justifies the loan. It is important to note that hard money lenders are not always interested in taking possession of your property. They are fast because they spend less time checking your income, bank statement, along with other details. They only care about the potential value of your property. This is important to remember, because if the assessment of the property doesn’t justify the loan – then the lender won’t give you the loan. If you intend on selling the property after acquiring it, then the Santa Monica hard money lender will want to know the after repair value as well.
Unlike the traditional loans, hard money loans agreements and provisions are flexible. Rather than dealing with a large corporation, you will be talking to an individual who is prepared to assist you, and sculpt the loan to your individual needs.
When it comes to hard money loans, the lender is more concentrated about your collateral. Typically, hard money lenders will give you a loan up to a % value of the property. For example, it’s common for hard money lenders to offer a loan up to 60-70% of the value of the property. In the event you have other financial assets to place as collateral, the lender will also consider their value before approving the loan. Most lenders do not even look at your credit rating.
In terms of loan-to-value ratios, hard money lenders keep them to the minimum, with the maximum being between 50 and 70 percent. They do this to give themselves a better chance of getting their money back if they are forced to liquidate your property.
You can apply and get a hard money loan in a matter of days. This is great, especially for borrowers who need a loan – fast. Hard money lenders don’t run credit checks, and don’t have stringent guidelines unlike traditional lenders.
Unlike the conventional loans that require longer to be paid, hard money loans are a a short term term lending instrument. This means that you will need to pay back the loan in the shortest period possible – otherwise, you risk the lender taking your property. If you do not meet this requirement, the lending institution will take the property and sell it to try and get back his/her money.
In contrast to the traditional loans, hard money loans are more expensive. In addition to the loan origination, you’ll also pay closing and servicing expenses. If you take a hard money loan a loan, it may cost you 10 percent more than it might have on the standard loans. Obviously, hard money loans are much convenient.
The rate of interest for repaying the hard money loan can be high because the lenders are taking a risk by giving you the loan. The interest rates usually range between 9 and 14 percent.
Requirement of Equity
Before giving you a hard money loan, lenders ask that you provide a down payment of around 25-30 percent. This is supposed to function as an incentive to motivate you to stick to the agreement. It reduces the exposure the hard money lender has. For example, if market conditions deteriorate – the lender is still protected.
If you are sure you need a hard money loan, we encourage you to contact us. We work fast, and try to give you an immediate answer on whether or not we’re interested in funding your request.