Getting a hard money loan in San Diego is an ideal way to buy a property, make renovations, or fix and flip a house. For those who are used to getting loans solely from conventional lenders, the world of direct lending can open new doors to investment, but there is some information to know before securing a hard money loan in San Diego.
What is a Hard Money Loan?
When you get hard money loans in San Diego, you are getting a short-term loan that is secured by real estate. Hard money lenders look at the value of the subject property, and/or its potential value after renovation, and base the hard money loan on that. Your credit score and other conventional factors in lending do not affect whether or not you can get a loan from hard money lenders in San Diego, making it a faster process than going through a bank or other conventional lender.
Finding Hard Money Loans in San Diego
The first thing you need to do to secure a hard money loan is to ensure that you have identified a good San Diego hard money lender.
Look for a hard money lender that meets your individual needs. That could mean questioning whether or not they can roll costs into the loan, if they will fund auction purchases, and what documentation and information they require before lending. You will need a hard money lender that can provide the right type of loan for your property, whether it is residential, commercial, industrial, or multi-family residential, so be sure to inquire about what type of properties they cover.
Your hard money lender in San Diego should have an excellent reputation — after all, you are entering into a financial partnership with them! Look for reviews and testimonials, and consider asking friends and family who have gone through the lending process in the past. A company with years of experience is also more likely to have the process down to an art.
You should also consider how long it takes to close on the loan. Ideally, you should be able to secure the funding within a week. Lantzman Lending, for example, has an average closing time of five to seven days, but can close in as little as three days in some situations. In real estate transactions, time is money!
A hard money lender should be flexible and forthright, providing you all the info you need to get your loan secured and your property project underway successfully.
Applying for Hard Money Loans in San Diego
Work with your hard money lender to find out what documentation is required to secure your loan. Typically, the most important aspect is the subject property, so you will need the details of that, including its location, its property type, value, and your plans for it in the future.
Consult with your hard money lender as soon as possible, to make the process go smoothly and quickly.