California Private Money
Welcome to the world of San Diego Hard Money! So what is hard money? To start, hard
money and private money are one and the same. This subject, more than any other
in the Real Estate lending industry, is often confused and misunderstood. We
hope to clarify your doubts regarding the subject.
Traditionally, lenders typically make their lending decisions on the following factors (often
referred to as the three Cs); 1.Credit 2.Capacity 3.Collateral.
Their risk based evaluation can be summarized in the following.
Borrower’s history to repay their outstanding debt obligations. This aspect is often
measured and evaluated by a person’s FICO score. In addition to their credit
history, lenders also evaluate a person’s capacity to repay the loan. This is
measured by a person’s monthly income in relation to their monthly expense.
Finally, a lender will look at a borrower’s collateral. In case that borrower
fails to honor their promise to repay, what will the lender have as security
for the repayment of their loan.
So what happens when a person, for various personal reasons has damaged credit,
can they still get a loan?
Fortunately there are investors/lenders that will arrange financing based on the collateral
of the property and a borrower’s ability to repay the loan. This is what we
refer to as San Diego Hard Money. This means that if you have damaged credit or
you need a loan in unusual circumstances you may be able to still qualify for a
loan!
For More Information – Call (619) 209-3544
What To Expect
Because our investors are willing to lend their money in unusual circumstances
they are at a higher risk for the money they loan. As a result, conventional
financing through a regular bank will yield better opportunity for an
individual borrower. A bank will be able to offer a lower interest rate than
our private money investors.
We are often asked, “Why would I need a private loan when a bank will give me better
rates?” The simple answer is that when you need a loan and your credit history
is lacking, a bank many not choose to lend to you, and we may be able to help
meet your loan needs!
Three things to expect when applying for a private loan:
1. Higher Interest Rates
2.
Higher upfront fees
3. Shorter Terms
Our private investors underwrite based on the collateral of the loan, in the
current market they will lend up to 65% of the value. This is only a guideline
for San Diego Hard Money. Guidelines may be greater or lesser depending on the
transaction.
For example, your property is worth $100,000 and you want to get a loan based on
your property value. Our private investors will loan up to $65,000. If there is
existing loans that are attached to the property we will take that into
consideration when defining the new loan amount.
Back to example of the property for $100,000, if you had an existing loan on that
property for a balance of $35,000, our investors would only issue a loan for
$30,000.
In this example:
$35,000 for an existing loan
+
$30,000 of the new loan
=
$65,000 total or 65% of the value.
Contact us today and we will give you a no cost quote + lender review based on your
specific situation!
For More Information – Call (619) 209-3544
San Diego Hard Money Programs Residential & Commercial Loans
Available
Debt Consolidation – Payoff of debt, interim financing
Cash in Hand – Acessing your property’s equity
Purchase Loans – REO properties included
Construction – Custom Home & Spec Building
Locations
We have investors who are willing to lend their California private money in San Diego,
Orange, Los Angeles and Riverside Counties. On occasion, we are able to fulfill
loan requests in other counties throughout CA. When in doubt, please contact
us! We are willing to discuss with you your individual requests.
Brokers Welcome
Please contact us today for information on working with us. Do you have loans that you
are unable to fund because conventional banks are declining them for credit? If
you do, please call us today! We are looking for business partners in the
broker community.
For More Information – Call (619) 209-3544