We help real estate investors get hard money/private money loans for their next project. Money and finances should never be the obstacle that stops you from succeeding. We regularly help entrepreneurs, real estate investors, and businesses of all sizes challenge the status quo. We take risks on the go-getters, and do’ers – who have an opportunity and need a partner.
At Delancey Street, we invest in people and their ideas – not abstract concepts like credit scores, or other financial metrics. Tell us about your idea, let’s discuss your opportunity – and how we can help you capitalize on it. For years, our team members have been helping people capitalize on opportunities using hard money loans, private loans, reverse mergers, other financial vehicles.
We fund loans up to 80-90% LTV. We look at the value of your property, and your overall business plan when deciding whether to fund you.
We realize deals can disappear if you don't have fast funding. We promise to treat you like a partner, and work fast to help you get funding.
We're a growth focused private money lender. That means we work fast to fund your deal, and there's no limits on what we can do for you.
Residential refinance in Los Angeles, with a loan amount of $830k, at 75% LTV. We were able to help the investor get a loan at 8.99% with a balloon payment after 18 months.
Delancey Street funded a new residential purchase in California, for $1.2 million with 82% LTV. We helped the developer with a loan at 11% with a balloon payment in 9 months.
On the other hand, we denounce with righteous indignation and dislike men who are so beguiled and demoralized by the charms of pleasure of the moment, so blinded by desire.
Getting a loan via a standard lender can be a huge pain, particularly once you have a poor credit history. With a very low credit score, it might take you weeks or even months to be qualified for mortgage. In most cases, having a low credit score stops you from getting approved at all. Due to the more stringent requirements after the mortgage meltdown of 2008 – lenders are more strict now.
It does not matter that you need the money to get a new house. Hard money lenders, on the other hand, consider the collateral you’re giving up rather than your financial capability to pay the loan back. Hard money loans are often meant to help companies with funding or purchase other investment properties. If you neglect to pay back the money given to you, the company who lent you the money will seize the collateral and sell it to receive their initial loan.
Hard money loans are suitable and valuable to investors that want to renovate or develop a property property prior to flipping it at a higher cost. Real estate investors use the profit and pay back the borrowed money in a brief period of time.
Hard money loans, like any other financial instrument, have its benefits and disadvantages. The content on this page discusses a few of the advantages and disadvantages of hard money loans.
Hard money lenders aren’t concerned about your credit score. Hard money lenders are only worried about the collateral and will process your loan fast if your collateral justifies the loan. It is very important to note that hard money lenders aren’t necessarily interested in taking ownership of your house. They are quickly because they spend less time verifying your income, bank statement, along with other details. They only worry about the potential value of your property.
Contrary to the standard loans, hard money loans agreements and terms are flexible. Instead of dealing with a large corporation, you will be speaking to an individual who is willing to assist you design the best repayment plan. They don’t follow adhere to set standardized procedures when setting up your loan repayment schedule.
In regards to borrowing a hard money loan, the creditor is more focused on security. If you want to invest in real estate, the lender will give you a loan value as much as the home. In case you have other financial assets to place as collateral, the lender will also consider its value before approving the loan.
In case you have any difficulties with your credit history, then it will not be that important. Some lenders don’t even consider 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 so to give themselves a better chance of getting their money back if they have to sell the property after your inability to repay the loan.
It is possible to apply and receive a hard money loan in a matter of weeks. This is valuable, especially to borrowers looking to purchase mortgages. The investor will not wait too long to acquire the cash he or she wants to pay a hot potential deal. Conventional loans involve a much longer procedure and require the time to be approved.
Unlike the conventional loans that require longer to be compensated, hard money loans are made as a short term lending instrument. This usually means that you need to pay back the loan in the shortest time possible before the lenders repossess your house. If you do not meet this requirement, the lender will take the property to the market to attempt to return their cash.
In contrast to the traditional loans, hard money loans are costlier. In addition to the loan origination, you will also cover closing and servicing expenses. Should you take a hard money loan on a mortgage, it can cost you 10% more than it might have on the standard loans. Needless to say, hard money loans are considerably convenient.
The rate of interest for repaying the hard money loan is also high because the lenders are facing greater risks when lending you the loan. The interest rates usually range between 9 and 14 percent.
Requirement of Equity
Before giving you a hard money loan, lenders require you to give a deposit of around 25-30 percent. This can be supposed to function as an incentive to motivate you to stick to the arrangement. This is because they try as far as possible to help keep you thinking about paying their money back. Additionally, it assists the creditor to tie you to the contract even once you realize you are making a loss.
Before committing to a hard money loan, you must first assess all of the available lenders, their prices, and conditions. You should also think about the benefits and drawbacks of hard money loans before applying for one.
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