San Fernando Valley Fix & Flip Loans
Highly popular in this area, Fix and Flip Loans are a loan type that enables investors to purchase a property, renovate it, and sell it for a high profit. When the property is sold, the loan is paid off. Given the short loan term (roughly one year), enough time is given to the investor to fully renovate the property and put it up on the San Fernando Valley real estate market – and the profit will be nothing short of incredible with how expensive it is to rent and buy in the area! RTI Bridge Loans has over 40 years of experience in financing Fix and Flip Loan projects, call today, and get started on renovating a property today!
So, What Exactly Are Hard Money Loans?
You may be wondering by now if hard money lenders are legit and what they even are to begin with. If you are having trouble with traditional bank loans or don’t want to wait the months it takes to acquire one (or maybe you have a blemished credit score), then a hard money loan may be a great option for you. Hard Money Loans are a quick way to borrow money without using traditional mortgage lenders. Hard money lenders or companies lend you money based on the property you want to purchase, normally referred to as the collateral.
There are many types of hard money loans including bridge loans, fix and flip loans, private money loans, commercial property loans, and more. They are short-term, usually lasting about a year, with higher interest rates than traditional bank loans. The same rules generally apply to each type of loan, but the reasons for using each one are different. Plus, unlike traditional bank loans, you don’t have to jump through a million hoops to get one. Contact RTI Bridge Loans today for more information on loan types and which one will fit your needs the best.
The Top Advantages Of Hard Money Loans
As we mentioned earlier, there are plenty of benefits to Hard Money Loans, including fast funding, fewer hoops to jump through, short-term financing, and much more. But, let’s take a look at the top 3 reasons why people opt for hard money loans compared to traditional bank loans.
They Are Fast:
If you decide to use a traditional bank loan, you not only have to have excellent credit and a good reason, but you also have to be extremely patient (we’re talking at least 2 months of waiting for your funds). Hard money loans are different. Here at RTI, funding takes as little as 3-5 days (2 weeks max), and you’ll have your money ready to finance a new property.
They Are Flexible:
Traditional bank loans are not flexible whatsoever and have very restrictive guidelines, whereas hard money loans don’t. Though every Hard Money Lending company has their own set of regulations and rules, as we mentioned earlier, there are not many hoops you need to jump through. If you don’t have a perfect credit score, that’s okay – hard money lenders look at your collateral and make their decision based on that.
Hard Money Lenders Provide Financing For Projects That Would Be Turned Down At Banks:
Banks look for certain things when they allow you to borrow, and they will more than likely turn down many financing projects that a hard money lender wouldn’t – including Fix and Flip Loans (a bank probably wouldn’t even consider financing one of these projects). Also, banks don’t like short-term loans, whereas hard money lenders only do short-term loans. Basically, Hard Money Lenders will provide you with financing needs that financial institutions would instantly turn down.
Contact RTI Bridge Loans in San Fernando Valley at (562) 857-2285 for any questions or concerns you may have regarding the limitations of hard money loans.
