Real estate investors who need to obtain funding for one or more rental properties quickly and don’t have the time to deal with bank financing can benefit from using a hard money loan also known as a bridge loan. Timing is absolutely crucial when it comes to real estate investing. Working with a direct hard money lender helps savvy investors buy rental properties in a very short period of time, typically within 7-9 days whereas with a traditional lender it can take months for a rental property loan to close ( but note that it can also be declined). Furthermore, investors prefer financing rental properties with hard money lenders because they are asset-based, so they are concerned with the value of the rental property relative to the investor’s equity in the property.
When evaluating hard money lenders for rental properties, it’s in your best interest to pay attention to the interest rates, loan terms, lien position, loan to value ( LTV) length of the loan, and loan fees. It’s worth noting that interest rates vary based on the condition and location of the property, the experience of the borrower, and LTV among others. Loan rates are typically in the range of 8.8%- 9.9% for 1st mortgages and 9.5%-11.5% for 2nds. A top-rated and experienced direct hard money lender like California Hard Money Direct provides hard money loans for rental properties with same-day preapproval and competitive rates while helping investors to capitalize on equity they have in one or more properties using cash-out refinance rental loans.
Good deals close very fast, and savvy investors choose to turn to direct hard money lenders to lock the property up in their name and save themselves the stress of wasting precious time with a traditional lender ( bank or credit union) that may turn them down. Keep in mind that a down payment of a minimum of 25%-30% is required if you can’t pull cash out of your other investment properties and that a hard money loan is only a short-term solution ( 12-48 months with longer terms, up to 60 months available).
If you’re a California real estate investor and you’re interested in closing the deal as quickly as possible, do not hesitate to get in touch with the reputable and trusted direct hard money lender California Hard Money Direct via the online contact form or by phone at 1 (310) 853-8411 to learn more about hard money loans for rental properties and receive an instant preapproval.