Residential Hard Money Lenders Los Angeles

Often interchanged with a bridge loan, private loans, “non-doc”, a residential hard money loan is basically a non-bankable loan offered on an investment residential property. With hard money loans for LA residential rentals, the property itself serves as the collateral and the closing time is minimal (usually between 3 -13 days depending on the circumstances).

RTI Bridge Loans has got you covered with affordable rates and unmatched customer services for your hard money financing needs. We are a Los Angeles hard money lender committed to offering competitive financing solutions to borrowers who do not qualify for a bank loan or those who require quick capital. As a direct, licensed and insured hard money lender using our own inventory capital, RTI Bridge Loans works with customers from all walks of life and understands even the most complicated financial scenarios. We have no upfront fees and are dedicated to offering you the financing flexibility you need to maximize your residential property’s opportunity.

Residential Property Types

As a premier hard money lender, RTI Bridge Loans boasts the experience and capital to finance various residential property types, from single-family homes to multi-unit properties. Our hard money loans can also get you started if your focus is fix-and-flip projects, whether you are a shrewd property flip-flopper or just setting out in home remodeling. You do not have to be an investor to work with us. We also partner with realtors and hard money loan brokers looking to help their customers obtain private financing.

General Terms and Conditions

RTI Bridge Loans takes pride in offering among the most favorable hard money loan terms in Los Angeles, CA. Understanding the importance of fair terms to our clients, we free you from minimum FICO scores, upfront fees, and ridiculous penalties associated with conventional loans. Still, we offer you a fast process that will get your project started within a few days. Call us today at (562) 857-2285 to experience our difference.

When is a Residential Hard Money Loan Appropriate?

The following are the situations where a residential hard money loan is a good option:

  • Low credit score: unlike a conventional lender, a hard money loan lender is more concerned with your property’s value than your financial background.
  • Foreclosure avoidance: You can use a hard money loan with your property as collateral to avoid losing it.
  • If you do not have the energy and time for the strenuous process of typical lenders
  • When you need quick cash on your residential investment property.
  • If you focus on house flipping
  • If you are looking for complex loans with several collaterals

Mortgage vs. Hard Money Loans for Residential Rentals

Purchasing a residential rental property is an incredible investment, and investors often turn to banks for financing. Mortgage interest rates and down payment vary significantly with the type of banks, whether local or national. In comparison, hard money loans have higher interest rates than traditional loans.

For hard money loans, qualification requirements are considerably lower, and the processing time is way quicker, typically taking up to two weeks. Contrarily, mortgage loans come with more stringent terms and conditions, and it may take months for the funds to be accessible to the borrower. Still, getting a mortgage is not guaranteed. Expect the bank to check everything bank-related, including your credit history and bank statements.

When applying for a mortgage, a bank will require you to put down at least 20% of the property’s value; otherwise, you will need to buy private mortgage insurance. With hard money loans for residential properties, you receive the full amount without paying a deposit.

Private Money Loans vs. Hard Money Loans for Residential Rentals

A private money loan refers to the financing you obtain from close friends and relatives. However, private lenders have limited knowledge about rental property financing and often lend you money based on trust. In contrast, hard money lenders for residential rentals boast the expertise and resources to finance residential properties and require borrowers to do some paperwork.

However, the documentation needed is minimal compared to banks. Furthermore, a hard money lender in Los Angeles could be the best option for a borrower faced with bankruptcy, late payments, bad credit, a recent foreclosure, etc., but has equity in a property.

Advantages of Hard Money Loans for Residential Rentals in Los Angeles

» Faster Process

Applying for a hard money loan for residential rentals in LA takes fewer steps than a bank loan application. The lender will not waste time evaluating your credit history and debts. They are only interested in the value of the property you own, which serves as the loan’s collateral. Expect to receive the funds in a few days or weeks. This is unlike a typical mortgage loan that usually takes a month to several months.

» You Get More Funds

As mentioned earlier, banks often require mortgage borrowers to pay at least a 20% deposit for better loan terms. A down payment below 20% of the property’s value requires borrowers to buy mortgage insurance, which adds several bucks to the monthly payments. In contrast, hard money lenders do not demand a down payment. In fact, some lenders can finance 100% of the property’s purchase price.

» Ideal for Setting Out in Property Investment

Real estate investment beginners may struggle to finance a residential rental property primarily due to the down payment requirement. However, hard money loans allow you to buy properties without paying a deposit first. This can help you build a property investment portfolio without financial constraints. With time, you get the opportunity to secure a credit line with lower interest rates than hard money loans.

The Bottom Line

Hard money loans for Los Angeles residential rentals are beneficial for real investors with financial circumstances that bank underwriters cannot ignore. And those looking to close on a deal in a timeframe that is unrealistic for traditional financing. The application process is seamless and takes a few days.

At RTI Bridge Loans, we remain committed to offering you competitive financial solutions, regardless of your past financial situations. Here, we help you get past financing hiccups and propel you towards your residential property investment goals. Contact us at (562) 857-2285 to receive a free loan quote or learn more about our hard money loans for residential properties in Los Angeles, CA.