The Loan Solution Blog » Borrowers

How do you qualify for a Hard Money Loan in L.A.

colleen — Mon, 04 Oct 2010 23:21:00 +0000

So, how do you qualify for a hard money loan?Truth be told, you don’t. The property is or should be 99% of the underwriting criteria. Investors lend on property that has plenty of a protective equity left after funding the loan.

Asking for 100% financing ,for say an REO purchase money loan ,is something to ask your uncle. Investors look a profit and risk, the same as a buyer does.You offer 12% 2 pts so you can buy and flip a property in say 60 days and make 25% 30%..profit.That leaves the lending investor a whopping 2%, and he put up all the money and takes all the risk. That is why that concept doesn’t work. Also, future value after rehab, would be taking the risk that the work may not be done. So As-is value is looked at much closer.

Investors like to be 55-60% of value. If you can’t come in with all the cash balance needed their are other ways.

If you own another property with equity that could be borrowed in conjunction with the purchase, a blanket loan, also a seller carry back. However, the investor has to feel comfortable you have enough “skin in the game” so if the going gets tough you don’t walk away and leave him the problem.

Hope that helps someone.

Colleen Bigler

Loan Solution Inc.

661-251-9075

Finding The Right Hard Money Lender in California

colleen — Tue, 22 Jun 2010 06:22:30 +0000

Finding Hard Money Lenders in California has its challenges. A time saving key would be to ask the question, are you a direct hard money lender? If not, you are working with a broker who may or may not know a sufficient amount of Hard Money Lenders to shop your loan to. You need that variety of individual investors, to have a successful close, and to find the right hard money lender in Calif. You may also be adding costs by paying more than one broker.

If it is taking more than 3-4 days to get a commitment, you are most likely barking up the wrong money tree.If they are more interested in your credit and income documents, verses your property, you may not be at the right place either.

A private investor, will drive the property within a few days if interested, and it usually is a sophisticated hard money lender, knowledgeable in real estate values. A private money lender is represented by a Broker, who handles the loan process for him. Appraisals are usually not required in this market by our investors. You certainly do not need to pay up front fees, except if an appraisal is requested. Hope that helps.
Any questions Call Colleen 661-251-9075 or to apply on line go to California Hard Money

Originally posted on activerain.com/blogs/colleenls

Hard Money Bridge Loans Fast and Simple

admin — Thu, 11 Sep 2008 20:25:37 +0000

If you have equity in your commercial building we have simple, fast process to get you the cash you need with our hard money bridge loans. These are short term hard money, private investor funds. For quick purchase money or if your property is listed,to buy you time to sell, the hard money bridge loan is the answer. New construction take-out hard money bridge loans available. We will take 1st or 2nd position. Minimum $200 to 5M. Our hard money underwriting for these short term loans is up to 65% Loan to Value.

If your escrow is out of time and you have 35% or more downpayment we can save your purchase. If your purchase money loan is taking too long, our hard money bridge loan can fill the gap of time.

Our hard money bridge loans also apply to SFR. Say your a builder and need to pay-off your construction loan. You can get a hard money bridge loan, to buy you time to sell.

A lot of banks are not lending on spec homes, new commercial buildings, we have private money investors that will. Southern Calif. is where our private investors are located and our specialty for lending. No fico. Common sense and Equity. One person loan committee, the hard money investor direct.

Hard Money Bridge Loans

admin — Thu, 11 Sep 2008 20:19:52 +0000

We have some aggressive private investors willing to fund short term hard money loan scenarios that other hard money lenders won’t. We are providing funding to pay off construction loans,and give the borrower/builder time to sell. Commercial or Residential. No O/O.These hard money bridge loans are for projects that have up to 65% equity after our loan is placed. We can take 1st or 2nd position. Loan amount not to exceed 5M. Minimum depends on private investor and hard money loan scenario. We can also save your purchase money loan, that is out of time, but still only up to 65% LTV. Large downpayment would be required. Another scenario would be a loan matured but borrower needs time to clean up credit issues before he can refinance. Just call and I can discuss with you if we can help with your hard money scenarios.

Colleen Bigler