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A hard money loan is offered to individuals or businesses that want to purchase real estate property. Because it’s asset-based, the borrower will receive money against the value of the property they want to invest in. Unlike the traditional loan options, there’s no lengthy paperwork, and you don’t have to wait for the loan to get approved.

If you need quick funds to invest in real estate, California hard money direct is a sure bet. They boast of many years of trusted service and offer competitive pricing.

How hard money loan works

Technically speaking, a hard money loan is s form of mortgage where the borrower is given money to buy a property and repay within a specified amount of time. But much like the conventional loans, you start by filling in the application forms. This involves giving the relevant data about the property like the purchase price or the repair costs. When you include all the relevant details, you will speed up the progress.

Because hard money loans are more relational than regular loans, it takes time to establish a long-term relationship. Of course, the process will get smoother if you have an established relationship with existing brokers. But first, the lender has to do an appraisal of the property. That way, he or she can know the value of the property and how much they can give to you.

Are there any costs associated with a hard money loan?

For most hard money loans, the interest rates range between 12-18%. You’ll also pay underwriting, inspection, and payoff fees. The loan should be repaid within one year. If you go beyond this term, you have to pay a renewal fee. So, if you’re repairing a property, you may want to pay the loan within the agreed period.

Also, the borrower must pay hard money loan points. They are calculated on percentage points (2-10%) based on the borrower’s unique situation. The points are paid when the loan is initiated and serve as origination fees.

Why choose California hard money direct

The lender offers loans to help you finance almost any type of property under the sun. Because you use the property as collateral, once approved, you’re good to go.

While other lenders will make you jump through all kinds of hoops, California Hard Direct doesn’t beat corners. They know the ins and outs of the real estate industry, so you can be sure you’ll get a fair deal. Your loan is approved or rejected based on the value of the property.

California hard money direct has a proprietary loan tracking system that allows you to monitor the progress of your loan application.