Generally when we hear the name “Hard Money Lender” we get a bit skeptical. The question then comes up, what is a hard money loan? In laymen’s terms, it is the loan given to the borrower, and the borrower’s property is confiscated by the lender for a short period amount of time. In addition, the lender is typically a private investor or a company.
Here are ten essential tips from our Los Angeles Hard Money Lenders about how to choose a trustworthy and professional hard money lender.
Make Sure That Your Los Angeles Hard Money Lender Has A License
The best Los Angeles Hard Money Lenders are those who have a license issued by their state’s Department of Housing and Real Estate. Prior to hiring a Los Angeles Hard Money Lender, make sure you check their license thoroughly. Furthermore, make certain that there are no complaints against the lender’s license.
Restrain Your Search In The Area
Our Los Angeles Hard Money Loan Specialist say searching for hard money lenders close by is best. It is easy for them to investigate and have a look at the property and lend you the money in person. There will be less chance of fraud if you confine your research nearby.
Compare & Contrast Local Los Angeles Hard Money Lenders
Don’t just blindly trust one Los Angeles Hard Money Lender. Make sure you compare the terms and financial rates to other hard money lenders in Los Angeles, Riverside, and Orange County, CA.
Inflict On Transparency
Every type of person involved in the lending process needs to have access to the loan data during the processing period. This generally means you need to be really careful while selecting the right Los Angeles Hard Money Lender.
** Be on the look out for the Los Angeles Hard Money Lenders who publicize fake advertisement that is actually not available in the real world.
Make Your Needs A Priority
Don’t rush in getting the hard money loan. Our Los Angeles Hard Money Lenders recommend you thoroughly research your needs prior to taking the step. When applying for a Hard Money Loan, make sure you give the right address, find out the transactions closing dates, purchase the price of the property and also figure out the renovation cost. After you have completed all this, you can have a professional money lender at your disposal.
Clearly Understand The Ratios
Every Los Angeles Hard Money Lender has a variety of loan-to-value terms. Unlike the banks, lenders use the value of the property as the current price of the property. Lenders prefer asset value over the loan to value ratio. Hard money lenders loan up to 70% while the bank’s’ loan up to 80%.
Try To Negotiate An Interest Rate With Your Los Angeles Hard Money Lender
Feel free to negotiate the rates with the Los Angeles Hard Money Lender. Confirm the rates which you think you can pay seamlessly later. The interest rates generally start at 10% and go above 15%.
Take Advantage Of Quick and Simple Approval Processes
The actual process of hard money lending happens almost instantly. This is the key reason why a handful of individuals prefer hard money lending rather than taking a loan from a conventional bank.
How’s Their Reputation As A Los Angeles Hard Money Lender?
Our Los Angeles Hard Money Lenders suggest you make sure the reputation of the lender you are consulting has an exceptional reputation in the market. Speak with individuals who have been in touch with the same lender to help get rid of any uneasiness.
Funds Availability Of The Los Angeles Hard Money Lender
Obviously, you don’t want to wait for long period to get what you deserve. As a result, make sure you refer to the right Los Angeles Hard Money Lender who has enough funds to give you the loan.
These are a few tips you need to know if you are looking for a hard money lender. I hope it helps you out.