Why Do Real Estate Investors Use Hard Money Loans in Santa Clara County?

Posted by Chris Goulart on October 22nd, 2019

When it comes to investing in Santa Clara County real estate, using hard money loans makes perfect sense. They can bring incredible benefits to your negotiations with the seller. However, you need a professional lender for hard money loans in Santa Clara County. If you are still not convinced, please check out this post and know why real estate investors should use Santa Clara County hard money loans.

Hard money loans in Santa Clara County have a few important benefits over others that make them a better choice for real estate investors. Here are some of the best reasons why Santa Clara County real estate investors use hard money loans:

Quicker closing –

Hard money loans allow investors the ability to negotiate the shorter closing timelines with seller. They provide sellers with a proof of funds approval that allows them to know they can have an expedited transaction. Conventional lenders can take around 30-45 days or more to approve and fund.

Limited reliance on credit –

The value of property and experience of a borrower determine the amount of loan and hard money financing terms. This means hard money lenders won’t judge the investors solely on their credit history while considering hard money loans in Santa Clara County. The real estate value will be the main aspect in this circumstance.

Secure more properties –

Santa Clara County hard money loans allow real estate investors to finance multiple properties – there typically is no limit, allowing investors to conservecash on hand to get other projects done. With additional leverage, the investor funds aren’t committed to just one project.

Availability of cash-out refinance –

Most real estate investors can make use of hard money loans to do a cash-out refinance on the properties they own. It offers extra capital to fund all cash property purchases, cover overruns on projects or have cash on hand for down payments on additional properties.

Suggestions and advice by lenders –

A hard money lender can provide expert advice on the real estate project to the borrower. Though the safety of hard money loans is connected directly to the specific property, hard money lenders are veryconcerned about the success of the project.

Flexible solutions –

Hard money lenders are more likely to be flexible than the traditional lenders and can provide solutions to a number of challenges often found during the process of investing in properties.

Custom loan choices –

Hard money lenders can provide real estate investors with loan options that are designed specifically for their requirements. They can make adjustments on Loan-to-Value (LTV), interest rate, and terms on a case-by-case basis.

Strong negotiation ability –

A hard money lender offers the investor strong negotiation ability while competing with other property investors in competitive markets. The speed of closing and personalized service means you have someone willing and able to speak with agents directly about the process and approval upfront.  This helps everyone feel comfortable that the deal will not only get done, but get done quickly.

Fast approval –

A hard money loan can be approved and fund quickly, many times in a matter of days. But the more traditional loans through larger financial institutions can take much longer – 45 days or more in many cases.

Bottom Line –

When it comes to investing in Santa Clara County, having a hard money lender on your side is one additional tool that can help you be successful.  With quick closings, interest only options, creative solutions and more, hard money can bring more to the table than many may think.

Author Information –

This article is written by All California Lending – your source for hard money loans.  They specialize in providing hard money loan programs in Santa Clara County and the surrounding areas.