Office Information

ScottWay Capital - Phone: (619) 209-3544
Broker Of Record - Morgan A. Scott
California BRE #01777939
1106 2nd Street Suite 823 Encinitas, CA 92024

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

 

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