Reason Why a Borrower Or Property Owner Needs Private Money Lenders Assistance?

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Reason Why a Borrower Or Property Owner Needs
Private Money Lenders Assistance?
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Hard money loans are secured loans based on
assets. A private loan also known as a hard money
loan used when a traditional bank loan wont
work. It is funded by private money lenders which
is useful to all types of property investors. It
is commonly acquired by investors such as
developers or house flippers.
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Why would a person need private money lenders
assistance? Are you a developer or house flipper
or self-employed, have past loan defaults, or
have another unique situation? You might not be
able to get a standard bank loan. Many borrowers
will not fit perfectly into the bankers
guidelines and strict approval procedures. The
role of private money lenders in Orange County
comes in handy in such a situation. The ability
to borrow money quickly and efficiently is a
common motivation for using a private money
lender in Orange County. They are fast and
efficient to offer private money loans for unique
real estate situations. Orange County private
money lenders provide upfront financing for your
properties with a specific payback period. They
can especially help those who face challenges in
real estate transactions.
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Conventional lenders are still funding loans.
Their focus is primarily on extremely clean paper
transactions. When a transaction falls outside
that box, however, it can be a nightmare scenario
to obtain funding. In this scenario, private hard
money lenders offer a solution. Credit issues
may occur due to the downturn situation in the
economy. These days many borrowers face minor
credit issues. They might have lost tenants or
permanent income sources. It will result in
reduced cash flow which ultimately led to a late
payment on their debts, house loans, or other
items. These issues can mean loan denial through
traditional funding sources.
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The conventional bank loan process is lengthy and
can take around 60 to 90 days or even more.
Borrowers are required to produce considerable
backup information on income, tax returns,
appraisals, and face much more scrutiny. If you
need fast funding then private money lenders in
Orange County offer you the ability to close the
deal as quickly as five to seven days. It is
considerably faster than traditional loans.
Under-performing assets are one of the reasons
for which the developers or house flippers or
property owners opt for private money lenders in
Orange County. Many properties are not performing
to their full potential during the economic
downturn. Rental history may be spotty, rents may
have been reduced for existing tenants,
moratoriums in place may have meant months with
no income, commercial properties may have
vacancies. All of these issues can impact debt to
income and debt coverage ratios in turn
impacting the ability to obtain a more
traditional bank loan. Private hard money loans
can overlook these issues.
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Private money lenders in Orange County are
cheaper than taking on a partner. Their bridge
money lending is a convenient alternative for a
small business or individual as opposed to giving
up equity in a partnership. The ease of getting
the funds makes it more preferable among people
that need fast, creative funding. It is much
cheaper than credit cards, personal loans or,
again, partnerships. One can say it is a flexible
yet inexpensive tool when borrowers fall out of
traditional bank lending criteria. Above are
just a few of the many reasons why traditional
loans fail. Fortunately, All California Lending
is here to help. They are the leading private
money lenders in Orange County who have the
in-depth lending experience to find creative
solutions for lending scenarios similar to yours.
All California Lending specializes in helping
borrowers with their unique scenarios to fund
their transactions. Contact them at 877 462 3422
to discuss your specific scenario today!