FreeLocalResults.com

These days, with the financial world in turmoil, many people need out of the box financing options.  This is especially true of commercial property owners, investors owning multiple properties, developers and other real estate investors.

To fill this void, many people have turned to private money lending.  Private money is just what it sounds like – private parties making loans.  In this context, these loans must be secured by real estate.

The main component of this type of lending deals with the loan to value of a property.  Low loan to value ratios are expected these days when dealing with private financing options.  50-60% loan to value is pretty typical, so if a property is worth $100,000, you can figure on being able to obtain a private loan on that property of somewhere between $50,000 – $60,000.

There are many types of private financing available.  Commercial loans, bridge loans, fix and flip loans and more.  When dealing with this type of financing, you can expect to pay interest rates in the double digits, and you can also expect to pay points up front for the money.

Most lending of this nature does require an appraisal.  Also required is a credit report, loan application and other documentation that may differ between private firms.  Typically the documentation required is not major.

Finding financing of this nature can be the largest challenge for the average borrower.  Many lenders of this type simply do not advertise, but rely on word of mouth instead.  A few advertise, but not in your local yellow pages or newspaper.

If you have a need for this type of financing, your best bet may be to find yourself a private money broker.  Using a broker could cost you a little more in points, but a broker is going to have access to many different investors, lenders, groups and more.  You could even save some money using a broker, depending on the deal.

More importantly, using a broker will help to ensure your loan gets funded as quickly as possible.  If you try shopping for a loan of this nature with no experience, it can be a daunting task.  Allowing a broker to shop it for you to his or her individual investors and private money groups will cut down on your stress level tremendously!

You can take a look at these resources if you want more information on San Francisco hard money, San Francisco bridge loans or hard money brokers.

Brentwood hard money lenders can be an excellent source to turn to when in need of financing not available from a traditional bank. 

In the current real estate market, hard money has become a viable option to even the most well qualified borrowers.  This is even more true for those looking for any type of construction or construction completion type of loans, or for investment purposes on higher end homes.

Working with a Brentwood hard money lender has a number of advantages.  It is not terribly important to work with someone in close proximity to the property you intend to finance these days, with the internet, fax machines and so forth, location does not make a large impact.  What you should look for, however, is someone who specializes in hard money.

With the change in lending criteria at the large banks, many brokers have decided to expand their offerings to include hard money loans.  This is not always the best direction to go, as a quality hard money specialist has spent years building up resources and investors to help fund a variety of projects.

Due to the unique nature of hard money, you really want to make sure you are working with someone who has the resources to perform for you.  Often times borrowers don’t realize that their broker of choice does not have the expertise to help them until weeks or even months have passed, with no funding!

The best way to avoid this issue is to work with an experienced hard money specialist.  An excellent local Brentwood hard money lender that can help inform you of your options is Chris Goulart.  You can learn more about hard money lenders by visiting him on the web today.