Sacramento Hard Money Lender

Whether you’re just starting out in the world of real estate investment or you’ve been involved in it for awhile, you know how the real estate market in Sacramento can be: good properties and investments get snapped up fast! But if you’re a contractor, an entrepreneur or just getting your feet wet and you want to make a compelling offer, you’ll find that banks are oftentimes unwilling or unable to help you. Why?

Getting a Loan from a Bank vs. a Hard Money Lender

If you’re looking to fix-and-flip a property, do new construction or otherwise invest in real estate in Sacramento, you’ll still need to go to a bank in order to get a conventional mortgage. However, as the real estate market is constantly shifting and changing, great properties and homes get snapped up almost as quickly as they go up for sale, which means waiting for the bank to move on your application can take weeks, or months.

By then, that amazing piece of property or home is long gone. When you need fast cash to be able to make an enticing offer, a hard money loan in Sacramento is what sets you apart from everyone else. It used to be that only investors and large real estate corporations could afford to make enticing offers, because they had no problem getting fast access to funding.

Hard money lending essentially levels the playing field.

Benefits of a Hard Money Loan in Sacramento

A hard money loan in Sacramento is not without its downsides, but in short, it enables you to be competitive with your offer and get fast access to funding. By having this funding on hand when you make an offer, you’ll be able to stand out among all of the other potential buyers. In a hot real estate market like Sacramento, we cannot overstate the benefits that this can give you.

However, it’s important to know that although a hard money lender won’t look at your credit score, your income or any of the other factors in the same way that a bank would, you’ll still need to repay the loan and get a mortgage if you’re looking to buy a home or property. A hard money loan enables you to get cash up front regardless of those factors, and only looks at the collateral you’ve put up against the loan.

How a Hard Money Loan Works

Hard money lenders (often other real estate investors or others in the financial industry) offer funding in exchange for other collateral. A percentage of the value of this collateral, known as its LTV or Loan to Value ratio, is the money that is loaned to you. Keep in mind that if you do not pay back your hard money loan, the lender can sell the collateral to recoup their loss. Because hard money loans are handled through a private network, the interest rates won’t be quite as favorable as a full mortgage, which is why hard money loans in Sacramento are better suited for short term financing.

What Kind of Home Can I Buy in Sacramento with a Hard Money Loan?

Nearly any type of home can qualify as a purchase with a hard money loan. Residential and commercial property as well as new construction can be financed using a hard money loan. This is what makes it especially attractive to contractors and investors. Again, it’s unlikely that lenders will look at your credit score, your income or other factors that a bank would use in order to approve or deny you for the loan. Primarily their focus is on the collateral that you are putting up.

This means that even if you have bad credit, patchy income, slow credit or no credit at all, you may still qualify for a hard money loan. The only way to know is to find out!

Working with an Extensive Hard Money Lenders Network

Here at Lending Bee, Inc., we’re proud to have decades of experience in the hard money lending world. Our experts have worked with nearly all types of real estate and financial transactions, which makes us uniquely suited to be your hard money lender of choice in Sacramento and surrounding areas. We’re proud to serve Los Angeles, San Francisco and San Diego as well as surrounding areas, so if you’re looking to buy a home or property in these areas, connect with us and let’s talk more about your real estate financial goals.

When you contact us, our hard money lending experts will take the time to understand your situation as well as your unique needs as they relate to purchasing real estate. We’ll then work with our extensive network of hard money lenders to help you find a great loan that could be the difference you need to ensure your offer stands out and that you can close on that great property or home that you’ve been looking at.

We invite you to contact us today to learn more and schedule a convenient time to connect. We’ll take the time to answer any questions you may have about hard money loans in Sacramento as well as pros and cons and the steps needed to get started. Contact us today to learn more and to get started!