Glendale, CA Hard Money Lenders

What are the Top Benefits of Hard Money Loans?

The short-term financing solution comes with several advantages. However, here are the top three benefits of why applying for a hard money loan is the best choice.

Fast and Easy

When you contact your local bank for a loan, the process can be quite painstaking and time-consuming, even if you have excellent credit. Not only will you have to be extremely patient, but you may also face rejection at the last minute, making you lose a potential deal. Borrowers may have to wait for at least two months to receive a traditional loan. However, if you apply for a hard money loan, you will have to wait for just three to five days or a maximum of two weeks.

Flexible

Don’t expect any flexibility when applying for a traditional bank loan. That’s because banks have strict policies and restrictive guidelines, leaving room for no or little flexibility. Although every hard money lending company has specific rules and regulations, most companies provide extremely flexible loan solutions.

For instance, if you don’t have a good credit score, a hard money lending company will not reject your application on this basis. That’s because hard money lenders decide after evaluating your collateral.

Financing Options for Unconventional Projects

Banks consider certain factors when approving a real estate investment loan. For instance, most banks do not finance fix and flip loans. That’s not the case with hard money lending companies. Not only do hard money lenders provide quick and reliable funding solutions for your fix and flip projects, but they also offer short-term loans. Now that’s something no bank likes to do, especially for real estate projects.

In simple words, hard money lenders will fund your financial needs when banks and conventional financial institutions are likely to reject your loan application.

Get in touch with RTI Bridge Loans in Glendale, CA, and dial (562) 857-2285 for your questions and concerns.

Disadvantages of Hard Money Loans

Like all other loan types, hard money loans also have a few disadvantages. Here are some of these.

High-interest Rates

You must pay higher interest rates because these loans are very short-term. While you will have to pay a rate between 9 and 15% most of the time, you can expect interest rates on the lower side in cities like Glendale, CA.

High Down Payments

Hard money lenders don’t consider previous bankruptcies, foreclosures, or poor credit history when lending a loan. That’s because they require a reasonably high down payment or solid equity in your property. You can expect to pay a down payment of around 25-30% if you want to get a hard money loan.

Last Resort Option

For some investors, hard-money loans are often the last option when they can’t seem to acquire a loan. If you have a low credit history or need quick capital, a hard money loan may be the only option you can choose.

Real Estate Market in Glendale, CA

In Los Angeles County, Glendale is one of the most popular places in California to live and work. That’s because the city offers excellent employment opportunities, amenities, and facilities, including top-notch educational institutes and state-of-the-art hospitals. Residents also enjoy high-end restaurants, parks, coffee shops, bars, and other recreational areas. Moving to Glendale, CA, means you have access to highly-rated public schools. Glendale offers a safe and secure environment for all visitors and locals because it has a strong focus on community development and involvement.

Glendale retains its small-town vibe while guaranteeing big-city amenities to offer the best of both urban and small-town living. Residents have multiple and convenient ways to commute to Los Angeles, Pasadena, Hollywood, Burbank, and the San Fernando Valley.

Contact us today!

If you want to buy your dream home in Glendale, CA, or want to flip a property for profits, let us finance your dream project. We are the best option for borrowers who can’t meet traditional financial institution loans or traditional banks’ qualifications. Get in touch with RTI Bridge Loans today and dial (562) 857-2285 to learn more.