Real estate
investing has grown by leaps and bounds over the years. Gone are the days when
you had to hope you could qualify for traditional bank loans or had to have the
right amount of money to purchase properties for cash in order to make the most
out of your real estate investments. Today, there are many options that allow
more individuals to create a secure financial future through real estate
investing. For instance, hard money lending can be a great way to get the
funding you need to purchase properties and either rent them out or flip them
for a profit.
A
Growing Real Estate Investment Trend
In recent years,
the trend toward investing in real estate has rapidly expanded. These
investments are no longer only undertaken by those who have experience in the
real estate market or who wish to have a passive form of income. More
individuals are choosing these forms of investments as a way to help pad their
financial future, particularly as they move toward retirement, and as a good
source of income that has promises of positive returns. However, the increase
in the number of people interested in real estate investment has created a
greater need for funding options. Banks and other traditional mortgage lenders
often have stringent requirements that need to be met, especially when it comes
to investment property. These requirements can make it difficult for the
average person to qualify for the loans they need to invest. In addition, these
loans can take a long time to be approved, which can cause investors to either
miss out on a property they’re interested in or delay their income potential.
When these individuals turn to private hard money lenders in California, there
are fewer requirements and the process is fast and relatively easy. This means
investors can get started more quickly and increase their profits and property
turnaround.
Flipping
Is a Hot Trend
While there are
still many people who are interested in buying either single or multi-family properties
with the intent of renting those properties out for a steady source of income,
there are more individuals who are looking for a different way to invest in
real estate. The house flipping business is one of the fastest growing forms of
real estate investing. During this process, individuals purchase homes that
either require a lot of work to get them into a good condition or can benefit
from some renovations to enhance the value. They then make changes to the home,
upgrading features and fixing problems, so they can turn around and sell the
home for a higher price, creating a profit. However, this type of investing can
be difficult when you use traditional lending avenues. This is because a bank
or other traditional mortgage lender is much more likely to only cover the cost
of purchasing the home, which can leave flippers looking for ways to fund the
renovations they want to do to increase the value of the home. This isn’t
usually a problem with California hard money lenders. These lenders are looking
for good investment opportunities and often see the true value potential of a
home. This means they are more likely to also foot the bill for the
renovations, so they can have a share of the profits when the property does
sell for a higher price.
Don’t
Go Into It Alone
Even with the
availability of California hard money lenders, it can be daunting to try to
find one to work with by yourself. Just like not all financial institutions are
built the same, not all hard money lenders in California go into the business
with honest intentions or even a realistic view of what is possible. This can
make it difficult to determine who you can trust and how you can get the money
you need with the least amount of risk possible. The good news is you don’t
have to go through this process entirely on your own. When you work with a
company like Barrett Financial Group, you can rest assured you have someone in
your corner who also has your best interests at heart. These professionals can
help you weed through the daunting list of hard money lenders in California and
determine which ones would be the best option to work by your side to realize
your dreams of lucrative real estate investing.
Tools
and Resources For Your Success
Working with a
lender who is more hands-off can seem like a dream come true for those who are
just starting out in the real estate investment world. Unfortunately, this can
be a serious mistake, especially if you aren’t familiar with real estate
investing or even hard money lending in general. In fact, in this business,
having a lender who offers the tools and resources you need to succeed
increases your chances of successful real estate transactions, regardless of
whether you’re purchasing property to rent out or you want to flip the property
and sell it for a profit. In fact, there are several key things you should look
for as you shop around for California hard money lenders, such as:
- A focus that
aligns with your overall goals for your real estate investing
- A high level
of responsiveness
- Reasonable
fees and interest rates that help keep your real estate investing within
your budget
- The right
types of loans
In addition, it’s
best to work with hard money lenders in California who are ready to answer
questions and help you find the resources you need, so you can be successful
and make money for both of you. The right support can go a long way toward
ensuring you make money on your investments. When you get involved with the
hard money lending sector, it’s not just about you and your profits. The
lenders also want to see you make the highest profit possible to increase their
share in the revenue. This is why they should be willing and even eager to help
you any way they can.
Fast
Turnarounds
Especially if
you’re interested in the house flipping aspect of real estate investing, you
understand how critical a fast turnaround can be when it comes to real estate.
Every month you aren’t able to sell a home is another mortgage payment that
needs to be made or more fees you must pay. However, it’s not just about being able
to sell the home fast, so you can repay the loan or move on to the next
property. You want to work with hard money lenders in California who make the
process of getting approved for a loan as fast and easy as possible. With the
help of a company like Barrett Financial Group, you should be able to easily
apply for the funding you need for your next project and get your approval as
quickly as possible, often in as little as 24 hours. When you do get an offer
from a company, you need to be able to easily understand the terms so there are
no surprises when it comes time to make a payment or to pay off the loan in
full.
Check
Rates and Ratings
Finally, before
you settle on any California hard money lenders, it’s essential to check a few
more things. For instance, the rate a hard money lender charges is essential.
While these rates can typically be a little higher than traditional loans,
there is slightly more risk involved and there is often less money available.
However, the rates shouldn’t be incredibly high either. In addition to the
rates they offer, it’s also essential to check into the ratings of the lender
you choose to work with. Even hard money lenders in California are likely to
have a reputation with the Better Business Bureau, as well as reviews left on
various sites. This information will help you make the most informed decision
and help you get the most out of your real estate investments.
If you’re
interested in real estate investments and are looking for California hard money
lenders with a positive reputation for helping their investors get the most for
their money, Barrett Financial Group can provide the solutions necessary to
help you purchase the best properties to get more bang for your buck. Contact
us today to discuss your goals and find out how we can help you achieve great
things!
3 Things To Look For In California Hard Money Lenders
BlogWhat do you think of when you hear the words “hard money loan?” Do you envision shady characters conducting business in dark alleys and charging exorbitant interest rates? While a few bad apples have cast a shadow on some hard money lenders, if you do your due diligence, you shouldn’t have to worry about being taken advantage of. And believe it or not, there are reputable hard money lenders out there.
The Basics of a Hard Money Loan
A hard money loan is a short-term loan backed up by real estate. Generally, they are funded by private investors instead of banks. Terms are typically 12 months but can be extended to 5 years. Monthly payments consist of some principal and interest with a balloon payment at the end. The amount of hard money given is dependent on the value of the property. Most hard money lenders are concerned with the property’s value rather than the borrower’s credit. When a bank says “no,” a hard money lender says “yes.” Hard money loans come in handy when banks are not an option or the loan is needed for just a short time. They are ideal for land loans, flips and when a buyer has credit issues or when the borrower needs to act quickly. Hard money loans only take a day or two for approval compared to the typical 45-day wait with a bank.
3 Things to Investigate
When you’re looking at different California hard money lenders, there are three things to keep in mind.
First, take a look at the interest rates and points of the loan. The good news is that hard money lenders the El Dorado state of California tend have lower rates than in other regions in the nation. And that’s because there are so many of them in California. California hard money lenders have to duke it out with each other in order to get your business.
One thing to note is that hard money lenders do take on more risk than banks. Hence, there will be higher interest and points compared to a bank. The interest rate should range between 10 to 15 % and points should range from 2 to 4%. These ranges depend on the loan to ratio value.
This is why the second thing you need to do is take a good look at the hard money loan to ratio value (LTV). “The loan amount is determined by the ratio of loan amount divided by the property’s value.” You can expect a hard money lender to lend up to 75% of the property’s value. California hard money loans will be based on the value of the property after improvements. But then, you can expect the interest rate to be higher.
Knowing what the hard money lender requires for the loan is the third factor that you need to look at. As mentioned previously, most hard money lenders are not that concerned about the borrower’s credit. If you have the capital to pay the interest on the loan, previously problems such as foreclosure may be overlooked. The hard money lender will also want to know your plan for the property, so be prepared to have one in place. The plan should outline how you intend to pay off the loan.
Hard Money Loans for New Construction in California
BlogHow to Use Fix and Flip and Rehab Loans In California
BlogMany people have likely seen or at least heard of reality television shows that follow the journey of real estate investors who purchase a property that requires some tender loving care and carefully transform it into something they can sell for a significant amount more than what they spent on it. This is also called flipping a property.
Mistakes to Avoid When Flipping Houses in California
BlogOne of the latest trends in real estate investing is flipping houses. More people are buying homes that are selling for a low price to make renovations and changes that can boost the value of the home, quickly turning the home around for a profit. Unfortunately, it is possible to do house flipping incorrectly, which can end up costing you more money than you make.
Choosing The Best California Lender for Your Commercial Real Estate Project
BlogInvesting in commercial real estate is a different experience than investing in residential real estate. However, just like any other type of real estate investing, it’s essential to find the right lenders to get you the funding you need. While traditional loans are always an option, they aren’t the easiest for all individuals to obtain, and they can take a much longer amount of time to be approved.
Top Reasons that Savvy Commercial Real Estate Investors Use Hard Money Loans
BlogInvesting in commercial real estate can be a daunting process, especially if you have never done anything like it before. Even if you have previously dabbled in residential real estate investing, the commercial side of things can be quite different.
California Hard Money Lenders: Invested In Our Investors
BlogReal estate investing has grown by leaps and bounds over the years. Gone are the days when you had to hope you could qualify for traditional bank loans or had to have the right amount of money to purchase properties for cash in order to make the most out of your real estate investments. Today, there are many options that allow more individuals to create a secure financial future through real estate investing. For instance, hard money lending can be a great way to get the funding you need to purchase properties and either rent them out or flip them for a profit.
A Growing Real Estate Investment Trend
In recent years, the trend toward investing in real estate has rapidly expanded. These investments are no longer only undertaken by those who have experience in the real estate market or who wish to have a passive form of income. More individuals are choosing these forms of investments as a way to help pad their financial future, particularly as they move toward retirement, and as a good source of income that has promises of positive returns. However, the increase in the number of people interested in real estate investment has created a greater need for funding options. Banks and other traditional mortgage lenders often have stringent requirements that need to be met, especially when it comes to investment property. These requirements can make it difficult for the average person to qualify for the loans they need to invest. In addition, these loans can take a long time to be approved, which can cause investors to either miss out on a property they’re interested in or delay their income potential. When these individuals turn to private hard money lenders in California, there are fewer requirements and the process is fast and relatively easy. This means investors can get started more quickly and increase their profits and property turnaround.
Flipping Is a Hot Trend
While there are still many people who are interested in buying either single or multi-family properties with the intent of renting those properties out for a steady source of income, there are more individuals who are looking for a different way to invest in real estate. The house flipping business is one of the fastest growing forms of real estate investing. During this process, individuals purchase homes that either require a lot of work to get them into a good condition or can benefit from some renovations to enhance the value. They then make changes to the home, upgrading features and fixing problems, so they can turn around and sell the home for a higher price, creating a profit. However, this type of investing can be difficult when you use traditional lending avenues. This is because a bank or other traditional mortgage lender is much more likely to only cover the cost of purchasing the home, which can leave flippers looking for ways to fund the renovations they want to do to increase the value of the home. This isn’t usually a problem with California hard money lenders. These lenders are looking for good investment opportunities and often see the true value potential of a home. This means they are more likely to also foot the bill for the renovations, so they can have a share of the profits when the property does sell for a higher price.
Don’t Go Into It Alone
Even with the availability of California hard money lenders, it can be daunting to try to find one to work with by yourself. Just like not all financial institutions are built the same, not all hard money lenders in California go into the business with honest intentions or even a realistic view of what is possible. This can make it difficult to determine who you can trust and how you can get the money you need with the least amount of risk possible. The good news is you don’t have to go through this process entirely on your own. When you work with a company like Barrett Financial Group, you can rest assured you have someone in your corner who also has your best interests at heart. These professionals can help you weed through the daunting list of hard money lenders in California and determine which ones would be the best option to work by your side to realize your dreams of lucrative real estate investing.
Tools and Resources For Your Success
Working with a lender who is more hands-off can seem like a dream come true for those who are just starting out in the real estate investment world. Unfortunately, this can be a serious mistake, especially if you aren’t familiar with real estate investing or even hard money lending in general. In fact, in this business, having a lender who offers the tools and resources you need to succeed increases your chances of successful real estate transactions, regardless of whether you’re purchasing property to rent out or you want to flip the property and sell it for a profit. In fact, there are several key things you should look for as you shop around for California hard money lenders, such as:
In addition, it’s best to work with hard money lenders in California who are ready to answer questions and help you find the resources you need, so you can be successful and make money for both of you. The right support can go a long way toward ensuring you make money on your investments. When you get involved with the hard money lending sector, it’s not just about you and your profits. The lenders also want to see you make the highest profit possible to increase their share in the revenue. This is why they should be willing and even eager to help you any way they can.
Fast Turnarounds
Especially if you’re interested in the house flipping aspect of real estate investing, you understand how critical a fast turnaround can be when it comes to real estate. Every month you aren’t able to sell a home is another mortgage payment that needs to be made or more fees you must pay. However, it’s not just about being able to sell the home fast, so you can repay the loan or move on to the next property. You want to work with hard money lenders in California who make the process of getting approved for a loan as fast and easy as possible. With the help of a company like Barrett Financial Group, you should be able to easily apply for the funding you need for your next project and get your approval as quickly as possible, often in as little as 24 hours. When you do get an offer from a company, you need to be able to easily understand the terms so there are no surprises when it comes time to make a payment or to pay off the loan in full.
Check Rates and Ratings
Finally, before you settle on any California hard money lenders, it’s essential to check a few more things. For instance, the rate a hard money lender charges is essential. While these rates can typically be a little higher than traditional loans, there is slightly more risk involved and there is often less money available. However, the rates shouldn’t be incredibly high either. In addition to the rates they offer, it’s also essential to check into the ratings of the lender you choose to work with. Even hard money lenders in California are likely to have a reputation with the Better Business Bureau, as well as reviews left on various sites. This information will help you make the most informed decision and help you get the most out of your real estate investments.
If you’re interested in real estate investments and are looking for California hard money lenders with a positive reputation for helping their investors get the most for their money, Barrett Financial Group can provide the solutions necessary to help you purchase the best properties to get more bang for your buck. Contact us today to discuss your goals and find out how we can help you achieve great things!
Selecting A Hard Money Lender Based On Business and Investment Needs
BlogHard money loans offer a range of benefits for businesses and investors, including fewer limitations, better negotiation power, flexibility, faster approval time and more. However, not all hard money lenders in California are the same, and some will offer you a greater advantage than others. For this reason, it is important to compare your options carefully before selecting any lender. Below is some information to help you understand what makes a good hard money lender, as well as how to choose the right lender for your specific needs.
Hard Money Loans In CA: Lending Alternatives Investors Should Know Inside And Out
BlogTypical Interest Rates for Hard Money Loans in California
BlogHard money lenders in California are the source for financing solutions for those who cannot qualify for a traditional lender. The market for hard money lenders in California is big. That’s because the state has a very active single family real estate market. California has one of the highest median home values priced at an average of $500,000. Hard money lenders in California provide lucrative home flipping opportunities for investors. In a nutshell, they provide a quick fix and flip transaction.