What do you understand by the term “hard money”? This is a short term loan given by private investors to borrowers and secured by a real estate property. It’s a type of financing that comes as a savior to people who needs funds to buy a property but can’t get their mortgage loan approved.
Nowadays, hard money loans have become increasingly popular among property investors due to the many benefits they offer. However, it’s important for investors to understand that they can only enjoy such benefits only when they choose the licensed hard money lenders for their business. Fraudulent private lenders are on the rise today to take advantage of the desperate, unsuspecting borrows who need quick cash. In this article, we have rounded up some top tips to help you select the right hard money lender for your property investment project.
1. Check for Licensing Information
All hard money financiers need to have a valid license from the Housing and Real Estate department, and you should check this before doing business with them. Ask for the copy of their license and examine it carefully to confirm its validity and authenticity. Check with agencies like BBB to find out if there are any complaints that have been raised against the company. If the company is hesitant to give you a copy of their certifications, then this is a red flag. Also, check out the company’s name in reputable sites to find out about their professionalism.
2. Limit your search to local companies
Normally, Los Angeles hard money lenderwill inspect in person the property you’re taking the loan for before approving your loan. So, it’s goo to choose a local hard money lender. While big lenders have branch networks all over, their flexibility is less than that of local lenders. Some even demand to be reimbursed for all their visiting expenses.
3. Do a comparison of several lenders
Compare the financial rates and terms with other money lenders. On average, money lenders charge an interest of 10-15% and usually don’t ask for loan processing fees. Ensure you read carefully the terms and conditions to avoid repayment issues.
So if you are a resident of Los Angeles and looking for money to finance your real estate property, you can benefit from Los Angeles hard money lenders. Just ensure they are licensed, reputable, and with reasonable interest rates. Visit californiahardmoneydirect.com today for quick hard money loan services.