San Diego Hard Money

Often times San Diego hard money loans are from private investors. However, they can also be from private institutions and entities.

You may have wondered if private money is the right solution for you. There are many variables that make up this answer. First, you should always try conventional sources of money first. These would include national banks, regional banks and credit unions. These channels will offer the most competitive pricing and terms to your average borrower.

If a normal bank will not finance your transaction then you may be eligible for private money options. In order to take advantage of these loans there must be equity in the transaction considered, an ability to repay and the willingness to pay 2 to 3 times the amount in interest rate and fees.

At this point you may be wondering why anyone would want utilize San Diego hard money. The reality is that there is a time and place where this type of loan makes sense. Some of these reasons could include:

You need a Bridge Loan

You're an investor who needs cash to buy property

You need to rehab a property to sell

You are in a short escrow and need to purchase quickly

You need to access the equity in your property for financial purposes

You need to extend a bridge loan

You have many properties and a bank will not finance any more

You have a unique property and a bank will not lend on it

You have troubled credit but a strong equity position and the ability to repay

You need temporary cash flow for a business

Like most things in life, there are advantages and disadvantages of private money. Hard money is typically expensive and has shorter terms than most bank loans. However, the speed and flexibility in which these loans can be done is extremely valuable. It can be a useful tool for some borrowers' California real estate loan needs.

Really, hard money is really not that hard. In fact the time in which it takes to complete a private money transaction is typically much faster than a traditional bank loan. The difficult part about hard money loans is the fee and terms associated. It definitely is not the best solution for everyone, but it can be a perfect solution for some.

Scottway Capital is a leader in providing Hard Money solutions.

We work with a handful of investors, individuals and private companies, who are willing to lend their money in the right situation. You may still have options even though financing through normal banks cannot be achieved!

Our investors are willing to lend on residential and commercial properties. They have funds available for people who are acquiring a property or refinancing an existing loan.

We have investors who are willing to lend their California private money in San Diego, Orange, Los Angeles and Riverside Counties. On occasion, we are able to fulfill loan requests in other counties throughout CA. When in doubt, please contact us! We are willing to discuss with you your individual requests.

We are located in Downtown San Diego. Please don't hesitate to call about your hard money needs at (619) 209 - 3544.

The primary criteria for approving a loan with conventional terms, like the ones banks make, is on the borrower's documentation of their income and the overall health of their history as reported by the big three credit bureaus.

Although both aspects of the loan application are considered when doing a San Diego hard money loan, more emphasis is placed on the underlying piece of real estate that is pledged as collateral.

The equity in a piece of real estate is put forth as collateral using a document known as a Trust Deed. This is the most common instrument in San Diego, as well as most of California. Other instruments are available and they may vary depending on what part of the country you live in.

The biggest distinction between conventional loans and hard money loans is the equity position required as collateral by the lender. In hard/private money loans equity position of the borrower may be as high as 15-40%.