As a direct hard money lender and private money broker in California, North Coast Financial has multiple sources of capital to fund your hard money loan request. Private money sources allow for faster and more flexible funding options than traditional means of capital such as banks, credit unions and other institutional lenders.
North Coast Financial can approve and fund a hard money loan for investment property within 5 days. A similar loan from a institutional lender can take 30-45 days or more. Owner occupied hard money loans are subject to the current federal regulations which push the funding timeline to a minimum of 2 weeks in most situations.
We provide private, short-term California direct hard money loans for real estate investors for various real estate transactions such as fix and flip/rehab loans, trustee sale refinances, distressed property loans (REO loans, short sale loans, foreclosure loans), hard money business loans, real estate auctions that allow financing, private party transactions, probate, estate and trust loans, residential construction loans, cash out and refinance loans, subprime loans, reverse mortgage refinance loans, bridge loans and other hard money loans with California real estate as collateral.
North Coast Financial are primarily residential hard money lenders, but also fund commercial hard money loans. Hard money loan amounts available from North Coast Financial range from $20,000 on the low end to jumbo hard money mortgage loans in the millions of dollars. North Coast Financial is one of the few residential hard money mortgage lenders in California able to consider lending on owner occupied hard money loans (both consumer hard money loans and business purpose hard money loans). Hard money 2nd mortgages and trust deeds are also available in situations where the property owner has significant equity.
California Hard Money Loans for Real Estate Investors & Property Owners
North Coast Financial provides direct hard money loans for real estate investors throughout Southern California, Central California and Northern California. We specialize in San Diego County including La Jolla, Del Mar, Carmel Valley, Solana Beach, Encinitas, Pacific Beach, Mission Beach, Ocean Beach, Point Loma, Mission Valley, Downtown San Diego, Chula Vista, National City, Imperial Beach, El Cajon, La Mesa, Lakeside, Lemon Grove, Santee, Alpine, Oceanside, Carlsbad, Vista, San Marcos, Escondido, Rancho Bernardo, Rancho Santa Fe, Rancho Penasquitos, Miramar, Mira Mesa, Clairemont, University City, Kearny Mesa, Sorrento Valley, City Heights, Hillcrest and Julian.
We provide hard money loans secured by real estate in the counties of Los Angeles, Orange County, Riverside, San Bernardino, Ventura, Imperial, San Francisco and the Bay Area and Sacramento as well as many other areas and counties in the State of California. Choose to work with one of the best hard money lenders in California.
Banks are Strict – Hard Money Lenders are Flexible
Banks and other institutional lenders typically have rigid lending criteria which results in many borrowers having their loan requests denied. Income history and credit are generally the main criteria the banks focus on. Issues such as bad credit, and recent foreclosures, bankruptcies, loan modifications or short sales can be red flags to a bank. California hard money lenders are able to overlook issues on a borrower’s record as long as the borrower has a significant down payment and sufficient income to make the monthly loan payments and other real estate holding costs such as taxes, insurance and maintenance.
Banks often are not able to lend to entities such as estates and trusts. California hard money lenders with experience lending to these types of entities are able to make the loan directly to the entity and then have an individual assume the loan or provide a personal guarantee.
Filling out a mountain of paperwork and providing countless documents are often common prerequisites for obtaining a real estate loan from a bank. Because California hard money lenders are primarily asset-based, they focus on the value of the property and the borrower’s equity (down payment) in the property. This allows for quick loan approvals and funding. Hard money lender applications are far more concise and the documentation required for the loan is substantially less.
Hard Money Lenders Are a Better Option Than Friends and Family
When a real estate investor needs funds for the purchase of an investment property, the first thought might be to borrow money from family and friends. Adding a business relationship to an existing family or friend relationship can cause friction and hard feelings for many years to come if the results of the real estate venture are not as expected. It should be pointed out that family and friends are not exempt from the increasingly regulated lending industry.
Using an experienced and qualified direct hard money lender for a loan will exempt that loan from usury laws. This is much safer than trying to guess what documents and disclosures are required by state and federal laws. Even if someone wants to use a family member or friend as a lender, the services of a licensed hard money broker should be utilized to avoid numerous legal problems.
Hard Money Lenders Are Less Expensive Than A Partner
When considering the alternatives for funding a real estate purchase, buyers may consider turning to a financial partner. While a partnership may work out well for the buyer, there are many pitfalls that can creep into any partnership, not to mention that the buyer may be giving up some decision making control. In addition, it is not uncommon for a financial partner to require payment of up to 50% of the profits when the real estate is sold. A better course of action usually would be to obtain financing from an experienced hard money direct lender and to retain 100% of the profits from the sale of the investment property.
Private Money Lenders – Private Mortgage Lenders – Private Money Loans
The terms private money lenders (private mortgage lenders) and hard money lenders are essentially synonymous as they both provide real estate investors and property owners with private money loans that are secured by real estate. With private money lenders, the source of the funds are private investors as opposed to institutional lenders such as banks or credit unions.
Private money lenders may commonly refer to individual investors who invest their personal capital in trust deeds (loans against real estate). Hard money lenders are frequently thought of as lending firms who find borrowers in need of a private money loan, draft all the disclosures and documents and then fund the hard money mortgage. Regardless of the terminology used to describe the lender, the end result is the same. The private money lender may only lend to business colleagues, friends and family while the hard money lender will be open to lending to any borrower that meets their lending requirements. Hard money lenders often also consider themselves private money lenders and use the two terms interchangeably.