Hard Money Lenders in California
California Hard Money Lenders
SD Equity Partners is your go-to for fast and efficient financing to complete your real estate transaction. We specialize in helping investors who are passionate about purchasing and flipping old homes to look as good as new. It is our passion to redevelop San Diego’s neighborhoods by providing you the opportunity to reinvigorate old properties and get them looking like new for potential buyers. Our goal is to collaborate with investors to restore and renovate homes in order to boost their property value and make profit with a high return. The process of buying an old home, renovating it, and then selling it again has a myriad of names, including home rehab and house-flipping. Fix and flip lending is a rising trend among investors looking to make a large profit in a highly engaging venture. Those who wish to make a significant return off their investments by securing the financial resources to restore and renovate older properties will find a San Diego hard money partner in SD Equity Partners. We at SD Equity Partners are your trusted source for flexible funding that will allow you to follow your home renovation dreams for years to come.
What is Home Rehabbing?
Home rehab, or house-flipping, is the process in which an investor buys a home or property for a price under the current market value. This person or group then restores the property and renovates it so much so that the standard value rises even higher than its original purchase price. After the property has been renovated, the investor can then turn around and sell the property at a much higher price, and thus a profit is made.
This investment has become popular over recent years due to limited space to build new homes, and also the high amount of older homes that need up-to-date renovations. Investors who are willing to roll up their sleeves and get down to work both by themselves or with a contractor will find this business venture worthwhile. However, first-time investors may have difficulty grasping some of the details of the rehabbing process, especially the financial details. Hard money lenders in California are equipped with the capital and experience necessary to make a first-time house flip successful. SD Equity Partners has a team of trained professionals that can talk you through every step of the financing process. We are property experts in the San Diego area, and can consult with you on your plans to rehabilitate a home in a particular area or at a certain cost.
Benefits of a Hard Money Loan
Conventional property owners often seek mortgage loans to fit their financial needs. However, acquiring a mortgage is not usually the wisest decision in the case of rehabbing a home, and traditional lenders are less apt to loan money to novice home flippers. For most, getting a traditional mortgage loan is not a viable option. In these situations, flippers must look for alternative funding methods. Hard money lenders in California offer many advantages that uniquely benefit those who flip houses. Here are some of the advantages below:
Hard money lenders in California are usually able to approve loan requests in a much shorter timeline when compared to traditional lenders. Mortgage loans can take over three months to approve; meanwhile the investor is wasting time waiting around and missing out on lucrative opportunities. Hard money loans can—and often are—approved quickly and efficiently. Depending on the lender and the reason for loaning, the approval process will generally take no more than a few weeks, a few days, or even within a day in some cases. Despite having higher interest rates, a hard money loan maintains its appeal because it allows real estate investors to jump on a great deal to draw before the competition. A hard money loan is an excellent choice for those looking to make an investment immediately in order to beat the competition of other buyers. In many real estate transactions, time is of the essence; hard money loans can give you a time-intensive advantage.
- Better for Bankruptcies
In addition, contrary to mortgages, hard money loans are also designed to help those that have less than stellar credit. If you have a history of bankruptcy or foreclosures, a hard money loan in California is designed to help you get you and your project off the ground in order to help you reach success. If you want to start a home-rehab endeavor but you are still raising your credit, a hard money loan from SD Equity Partners will help you get started. If you are interested in applying for one of our hard money loan options, whether it be a rehab or bridge loan, consult SD Equity Partners so that we may negotiate an interest rate and pay period that suits you.
Different Types of Hard Money Loans
At SD Equity Partners, we want to work with you to make sure your home investment is a success. That is why we provide different loans that are tailored to meet your financial needs. As mentioned before, traditional lenders will turn the process into a long and tedious affair, which can last as long as three months or more. However, we offer options that can help you attain your goals, such as:
- Rehab Loans
A rehab loan is an ideal option for a buyer who wants to move quickly and purchase a property. The process to get approved for a rehab loan is usually under a few weeks, as opposed to months. The terms of this loan differ from that of other loans. Generally, the value of a hard money rehab loan is determined based on the current value of the property or what the after repair value (ARV) is estimated to be. This figure is created through something called the loan-to-value ratio. In most cases, the ratio will average about 65 percent of the value of the property.
SD Equity Partners offers rehab loans to those who desire a quick and efficient way to finance their purchase and get started on renovating the home immediately to make a profit.
- Bridge Loans
A bridge loan is designed to do as its name suggests, linking the gap between two transactions. For example, many people who apply for a bridge loan will likely use the loan to finance the interim time period between selling one home and buying another to cover costs. In the fluctuating housing market, a bridge loan guarantees that the buyer or seller can live comfortably without extending him or herself to their financial limits.
There are two different kinds of bridge loans, and each is designed for different investments. A commercial bridge loan, for example, is a loan designed exclusively for residential purchases. In most cases, a residential bridge loan will be used as a down payment on a new home while the borrower still lives in his or her original residence. Commercial bridge loans, on the other hand, are designed for a broader range of purposes that are not designated just to residences. Commercial bridge loans are generally used by companies to help buy or sell a property. This is similar to a residential bridge loan, except that commercial bridge loans will be used by the company to also cover business expenses. A bridge loan lender will finance up to 80 percent for real estate. Commercial properties garner about 65 percent, but individual loan amounts will vary depending on the situation.
Ideal Situations to Obtain a Hard Money Loan in California
Hard money lenders in California offer a variety of benefits, but private money loans may not be applicable for every situation. Before applying for a hard money loan in California, it is essential to know exactly what the investment will be for and how you will pay it off. Many people forego a hard money loan if they are buying their primary residence, have great credit, good income reports, and no poor history such as short sale or foreclosure. In this circumstance, it is likely worth waiting through the long approval process that will take up to three months to complete. However, if you want to purchase something quickly or you have less than stellar credit, then a hard money loan is likely your best bet. Reach out to SD Equity Partners now and our professionals will consult with you to determine the strategy that best suits your needs.
Borrower Requirements for Hard Money Lending in California
As mentioned above, hard money lenders in California are less concerned with the credit history of an individual. Instead, hard money lenders are more concerned with the amount of equity the borrower has invested in the property that will be used as collateral. Foreclosures, short sales, and outstanding debt can easily be overlooked if the borrower has substantial capital to pay off the interest of the loan.
Do not be afraid to reach out to SD Equity Partners to discuss the property you wish to purchase and your intended plan to pay off the loan in time. Suggest how you plan on renovating the property. Be mindful to perform thorough research beforehand on all matters of home renovation, so that you can clearly communicate how you would like to flip the home to maximize profits and pay back what you owe. Talk to SD Equity Partners today about your financial needs, and we will discuss with you your options to finance your next home rehab venture with California hard money lending.
Why You Should Invest in Real Estate
After the housing bubble burst in 2008, unemployment rose to its highest in years, and homeownership plummeted. Nearly ten years later, the economy has slowly trudged on in its recovery. Slowly but surely, home sales are rising, due to tighter loan restrictions and cautious creditors. Employment has risen steadily as well, so greater numbers of people are seeking to buy. The millennial generation, once touted as the generation that would never buy a home, is now slowly settling down into marriage and having children, as the oldest members of the millennial generation reach their mid-thirties. This is now the hot time to buy. Investors seeking financial gains are best suited to buying real estate, which is, despite its follies, one of the steadiest investments on the market. These are a few reasons to act now on a rehab property:
– Rates are Low
While loan rates rise and fall depending on the market, rates have still maintained a low number, which means you will be able to secure a loan quickly. This can even be said of hard money loans, because even though their rates are historically higher, they will compete against other hard moneylenders for lower rates.
– Home Prices are Rising, but are Still Low
As the housing market reaches recovery and more people buy homes, home prices will also inevitably rise. That is why, if you have considered buying for some time, now is the time to jump in and invest. Stay on the cutting edge of the housing market by purchasing a home far below its market value and transforming it into beautiful property that new home owners will be eager to buy.
– Wages are Rising
Not only are jobs becoming more attainable, but the wages are rising as well. In the coming years, more millennials will have paid off their student loans, and their higher wages will make it faster and more efficient to do so. By the time they are financially ready to settle down, have your rehab home ready to shine out among the rest.
Why You Should Invest in San Diego
There are many reasons people from all over the world flock to San Diego. From sandy beaches to the temperature climate, the diversity of culture and cuisine to its relatively subtle traffic, this city stands to remain a popular area for decades to come. Now that foreclosures are declining, interest rates are still relatively low, and more people are buying homes, it is slowly becoming a seller’s market once again. Below are some of the reasons San Diego should be at the top of your list for real estate investment.
A Rising Population. San Diego is a densely populated city and boasts over 3.2 million residents. Even though San Diego has an expensive housing market, more residents make his or her home here. Securing a property now will allow you to reap a higher profit in the future
Higher Property Values. It is no secret that southern California has had nothing but rising property values for many decades. However, while other areas still experience some of the hardship of the economic downturn, property values in San Diego are still on the rise. Smart investors know that purchasing valuable real estate in San Diego now will only put the value in your favor in the years to come.
Rising Rent. Now is definitely a more difficult time to rent in San Diego. Many who choose to live in the city are students, recent graduates, or even young families and are finding it more and more difficult to rent in San Diego. On the other hand, owning a rental property puts the landlord in an excellent position to make more profit. With the vacancy rate at less than four percent, it is now a landlord’s market. As a result, rent has risen dramatically over the years as well. This has pushed many older millennials and baby boomers to settle into homes, as the cost of owning a home is cheaper than renting long-term.
As population increases, property values rise, and high rental prices drive people from their apartments and into homes, the real estate market will only rise in San Diego and other California cities. There has never been a better time than now to invest in a rehab home in San Diego, and transform it into great profits.
SD Equity Partners is in the business of providing investors with the financing they need to turn an old home into a beautiful remodeled masterpiece. We want our investors to reap large returns on the purchase of their properties in San Diego and throughout the state of California, by providing investors the funds they need to turn an old home into a modern family-friendly place to live. Our primary desire is to work with investors who seek to earn a high return on his or her funds.
Therefore, if you partner with us, you will have the advantage of benefiting from large returns without the stress of managing the rehab process yourself. The professionals at SD Equity Partners are here to mitigate all risks to make the experience smooth. Our function is to serve you by finding all of the most financially viable ways to maximize profits. Over the years, we have created a streamlined process to get valuable funding into your investment fast. We like to work with companies who have a passion for rehabbing single family residential real estate. Our purpose is to save you time and wasted money in the process so that you can protect your investment. Together, we can make you a large return on your investment, and redevelop the neighborhoods of America’s Finest City.