Hard Money 101: What You Need to Know

North Coast Financial is a top hard money lender Los Angeles. Hard money bridge loans are often used to purchase residential and commercial real estate properties, and for many, they are easier to obtain than traditional bank-backed loans. Hard money bridge loans are perfect for investors seeking out their next venture and homeowners who need to move in a hurry.

Hard Money Bridge Loan Basics

Hard money bridge loans are essentially short-term real estate loans. Most of the time, when a real estate investor or private home owner wishes to obtain a new property, they must sell their existing property first, and use the proceeds to purchase a new property. This can take a considerable amount of time.

Hard money loans eliminate the previously mentioned problem by allowing investors and homeowners to tap into the equity of an existing or newly purchased property. A down payment or cash offer is used to purchase a new property, and once the old property is sold, they loan is repaid. This means there is no need to wait around for an existing property to sell or a bank to approve an application.

Benefits of Hard Money Bridge Loans

There are several benefits associated with a hard money bridge loan, including:

• Fast and easy access to funds after the approval of a loan
• Easier approval than commercial banks and credit unions
• No need to wait until an existing property is sold before purchasing a new one
• No “ability to repay” requirement

Once a residential bridge loan application is approved, borrowers can expect to receive their funds within a few days. Commercial borrowers may have to wait two to three weeks due to federal regulations, and the commercial application process may require additional steps and documentation.

Fast and Easy Funding

Hard money loans can offer competitive rates and fast, easy funding. They can even be used to purchase owner-occupied properties. Call North Coast Financial today to speak with a hard money professional.