There are many different reasons why one might have the need to use one of the hard money lenders Orange County. Whether it is to take advantage of a great real estate deal that needs to close immediately or to purchase a distressed property that needs a bit of fix up, many investors find it beneficial to use this type of funding. There are numerous companies available to choose from.
Normally with this type of funding, the borrower's credit is not an issue. The main concern is that there is equity in the real property. The lender wants to ensure there is enough equity left in case they end up with a borrower default, and need to sell quickly.
Generally they look to have a minimum of thirty-five percent equity available in the real estate. Of course there are some lenders that require no less than fifty percent equity where others are much more liberal stating they will require no more than twenty percent. This is quite a large range so it depends on what the borrower is trying to use the funds for and how long they will need to use the funds.
Most companies have flexible terms, however most require a twelve month term with options for extensions. If you find a longer term available, the rate is normally less than the short terms. A borrower should bear in mind that the interest rates on these monies are expensive and run between ten and eighteen percent which is the reason it is called hard money.
Some provide the investor with funds not only to acquire the property but to fix it as well. This type of program is referred to as a rehab loan. They are tailored for the investor that regularly purchases property specifically to fix them up and sell.
This type of loan is very similar to the other loan and is generally offered by the same lender. The rates and terms offered are normally the same as a straight loan. To explore all the programs available, one should contact one of the hard money lenders Orange County for information.
Normally with this type of funding, the borrower's credit is not an issue. The main concern is that there is equity in the real property. The lender wants to ensure there is enough equity left in case they end up with a borrower default, and need to sell quickly.
Generally they look to have a minimum of thirty-five percent equity available in the real estate. Of course there are some lenders that require no less than fifty percent equity where others are much more liberal stating they will require no more than twenty percent. This is quite a large range so it depends on what the borrower is trying to use the funds for and how long they will need to use the funds.
Most companies have flexible terms, however most require a twelve month term with options for extensions. If you find a longer term available, the rate is normally less than the short terms. A borrower should bear in mind that the interest rates on these monies are expensive and run between ten and eighteen percent which is the reason it is called hard money.
Some provide the investor with funds not only to acquire the property but to fix it as well. This type of program is referred to as a rehab loan. They are tailored for the investor that regularly purchases property specifically to fix them up and sell.
This type of loan is very similar to the other loan and is generally offered by the same lender. The rates and terms offered are normally the same as a straight loan. To explore all the programs available, one should contact one of the hard money lenders Orange County for information.
About the Author:
Gage Collmeyer loves writing about the real estate industry. If you are searching for California hard money lenders, or to know more about where to find hard money lenders Orange County, please check out the Cervenka & Lukes Capital Partners website today.
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