Orange County Hard Money Lenders exist to provide typically underserved markets in the real estate market. The markets range from potential homebuyers who are having a difficult time getting residential loans from a traditional institute. Although, given the number of players in the private money loan world, underserved is probably not be the right word to be used.
ORANGE COUNTY HARD MONEY LENDERS DON’T MISS THE HOUSING CRISIS EFFECT
Orange County Hard Money Lenders can still feel the effect when the housing crisis bottomed out in 2008, large institutional investors used the crisis as an opportunity to grab foreclosed homes at a bargain price. Now, let’s move forward to 2015 and these large investment firms still have a significant amount of homes in inventory as both rental properties and distressed properties ready for rehabilitation and prospective sale.
The only logical progression for these large financial firms was to get into the private money lending market to finance home flippers and other similar property investors.
Orange County Hard Money Lenders say that the entry of these larger firms into the market put an enormous amount of pressure on local private loan companies, who are competing with larger national groups that have way deeper pockets and access to economic capital.
ORANGE COUNTY HARD MONEY LOANS FAVORITE BORROWER MARKET
Orange County Hard Money Lenders know that you as a borrower, the increased supply of Orange County Hard Money Lenders works to your advantage. The competition will drive prices down in any market, and Orange County Hard Money Loans is no different. The interest rates will still be higher than traditional bank loans, they have to be to reflect the increased risk for the Orange County Hard Money Lender. The downward pressure caused by an increased number of lenders has caused a compelling drop in interest rates.
CONSTRUCTION UNABLE TO KEEP UP WITH DEMAND
Orange County Hard Money Lenders will guide potential first-time homeowners throughout the whole process, as of late it has been a perfect time for competitive interest rates. Home flippers will find a great time to buy if a property is available to improve. The current supply of homes in California is running short, a study shows that it’s below 3 months inventory, at least below the 6 months of a balanced market. The Californian market is in dire need of affordable housing, and new home construction pace is not keeping up within the affordable housing nook.
Orange County Hard Money Lenders say that the California Association of Realtors show that families with average income can’t afford a home in 25 of 32 California counties, and the premise is backed. Californians earning the median income in around $60,200, those making this income can afford less than a third of the available homes that are available to purchase. Orange County Hard Money Lenders can provide a potential pipeline to solve this problem by increasing home inventory through renovating by financing home flippers, an available lower interest rate can speed up the process.
WHAT TO EXPECT WITH A GOOD ORANGE COUNTY HARD MONEY LENDER
Orange County Hard Money Lenders identify themselves in this highly competitive market. The best way is through great service and other assets. Orange County Hard Money Lenders have years of experience and are familiar with the implications of the local real estate market. Normally, they’ll be more willing to work with you and find a creative solution for you.
Orange County Hard Money Lenders know that a major banking institute will also able to apply national standards to a localized market. A better route would be to go with an Orange County Hard Money Lender that is experienced in the local private money lending market. Orange County Hard Money Lenders are in a better position to assess risk and may be able to extend a larger loan and accept a higher LTV.
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