Hard Money Loan is becoming more and more popular these days. And, there are plenty of good reasons for it. In this post, you will learn what hard money loan is all about, why it’s rising in popularity, and where you can get one.
Hard Money Loan – What Is It?
To explain it as simple as possible, a hard money loan is a type of loan secured by a real asset or property. Real assets or properties are often given the term “hard.” Thus, it paves the way for the term hard money loan.
Why Is It Becoming More Popular?
There are plenty of reasons why a hard money loan is quickly becoming the go-to loan for short term needs. Below are only a few of the significant reasons why.
Perhaps the most significant reason why hard money loans California is getting popular is it provides quick funding. In a lot of cases, the approval and the loan funding just takes place in a single day.
Generally, the lender will take into consideration the collateral, down payment, and equity (if applicable). Other factors, such as cash reserves of the borrower and possible exit strategy for the collateral is taken into consideration. Just as long everything is within the range of “reasonable,” you can expect to have your loan granted.
A hard money loan incurs fewer requirements for the borrower. This is especially true if you compare it to traditional banks. Aside from the long list of requirements, the banks are notorious for rejecting more loans than they approve. Thankfully, you have a higher chance of being approved with a hard money loan. On top of that, the fewer number of requirements also equates to higher chances of loan approval.
Hard money loan is flexible as the lenders are more flexible with what you can do with the borrowed money. A good example of this is being a fixer-upper. For such, you only need the money to fix the property so you can sell it at the earliest. In such cases, you only need to take a loan that’s usually two years or less. Banks are not a fan of this as they are more interested in loans that will involve long periods of time.
Now that you know what hard money loan is all about and the many advantages it offers, the next logical question is – “where can I get one?.” For that, California Hard Money Direct (https://californiahardmoneydirect.net/) is your best bet. While there are plenty of other hard money lenders, California Hard Money Direct has been serving the public for years, and they are a company known for speedy approvals and top-notch customer service. In fact, you should contact them right now to know more about hard money loans.