Moe’s B2B World

Whether a conventional bank loan isn’t available to you, or whether a bank is simply not willing to loan you money because of your credit history, San Diego Hard Money can prove to be extremely useful in many instances. For example, some banks will refuse to help you simply because there may be an issue with the property or collateral.

Alternatively, you may simply not be in a position to provide adequate documentation as per the banks requirements. On the other hand, perhaps you looking for a bridge loan in order to continue with other investment projects you have running. Of course, these are just a few reasons why people sometimes require Hard Money financing.

10. Bank is unwilling to accept your property as collateral

In many cases banks refuse to accept certain buildings as a form of collateral. This could of course be because it’s been rated as being below average by an appraiser, but having said that, they are often reluctant to accept buildings which are designed specifically for a certain purpose such as old age homes and even some resorts.

9. Your credit rating falls below their guideline standards

Unlike banks, private money lenders tend to focus primarily on collateral, rather than credit history.

Because private investors and lenders look heavily at the property and the amount of equity available to lien, their primary concern is the collateral and typically their secondary concern is the credit history. This is not an absolute guideline but it often happens this way.

8. The bank needs more documentation

Many self employed individuals and investors have complex tax and financial records. Frequently banks will require tax returns of the individual and any corporate entity associated with the borrower’s earnings.

Hard money lenders on the other hand, will often be willing to accept income tax returns or even bank statements, in order to determine whether or not your income is sufficient for being able to make repayments.

7. Loans for the purpose of Rehabilitating Distressed Properties

Are you working on a project where you need money to acquire and fix up a property? There may be money available for this very purpose.

In most cases, if the borrower can contribute a certain percentage of the money required, San Diego private lenders will agree to take on this type of situation.

6. People who own land but lack finance for the construction of a property

Construction loans are a common use for San Diego private financing. However, in order to qualify, the owner of the land will be required to show proof of ownership, building permits, draw schedule, construction cost break down and etcetera. Providing they can meet these requirements, then in all likelihood they will be granted financing.

5. People who require to cash out their equity on existing property for the purpose of being able to submit a cash offer on new property acquisitions.

San Diego hard money can be used to secure cash out on residential and commercial property. The typical closing time is anywhere from 7-14 days from the time a full package is received.

4. You own numerous properties that area currently financed but would like to purchase more.

In many cases, banks often have limits in places as to the number of loans an investor can have at any given time, and in this case, an investor’s best choice is to apply for private money financing.

As long as the investor can show the ability to repay future obligations with current debts they will have opportunity through private channels.

3. You require financing and you require it quickly, perhaps in order to satisfy the terms of escrow for obtaining an additional property.

Unlike banks, where loan applications can take ages to process, private lenders are for the most part able to make decisions in a fraction of the time banks take.

2. You require a bridge loan

There could be various reasons that you need a bridge loan. Those might include a loan that is getting ready to adjust or balloon, temporary cash flow challenges in a business, or maybe you need to leverage so that you can fulfill some aspect of a real estate project.

1. Time is of the essence

When time is in short supply and financing is required in a hurry, San Diego hard money can usually ensure funds are available to you within seven to fourteen days. Of course, as many will agree, this is often the chief advantage.

This entry was posted on Saturday, May 16th, 2009 at 5:31 am and is filed under Finance.You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.