Hard Money Loans in LA – Things You Should Know About

Hard money lenders are individuals or companies that provide short term capital to investors. These loans are called hard money loans or private money loans and are made available against the quick-sale value of a real estate asset owned by the investor.

In Los Angeles, hard money loans are quite popular with new as well as established real estate investors and for obvious reasons. Here’re a few things you should know about private money loans in LA:

  1. The rate of interest on these loans is around 9-13%. Many firms do residential hard money loans and commercial loans.
  2. Depending upon the private money lender you’re dealing with, the amount of documentation you have to provide will vary between private money lenders.
  3. Payment terms as well as interest rates are largely a function of the capital you need, the loan term, real estate market conditions in LA and value of the property against which you wish to secure a private money loan.
  4. Loan terms are generally 6-24 months long, enough for most investors to tide over a financially challenging situation.
  5. Most hard money lenders in LA structure these loans on the basis of loan-to-value (LTV) ratio, type of borrower and minimum possible loan size.

Finally, the rate of interest is less than the interest you pay on credit card payments; if you have been a responsible borrower or have had credit challenges, you can get a hard money loan. http://cahardmoneynow.com/

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