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Whether a conventional bank loan isn’t available to you, or whether a bank is simply not willing to loan you money because of your credit history, San Diego Hard Money can prove to be extremely useful in many instances. For example, some banks will refuse to help you simply because there may be an issue with the property or collateral.

Or maybe you are unable to provide adequate documentation according to the banks standards. Maybe you have the need for a bridge loan, have specific investment projects, or need money quickly. These all may be reasons you would obtain private financing.

10. Your property is unacceptable to the bank in terms of collateral

There are essentially a number of reasons as to why a bank may not be willing to accept a property as a source of collateral. In particular, if a property has been designed for a specific purpose, banks are often reluctant to accept them. For example, these could include buildings such as care centers for the elderly, health and spa resorts or any other building where an appraiser has rated as being below average.

9. Poor credit history

In many cases, even those who have been unfortunate enough in the past to have had their credit rating affected can still use San Diego Hard Money.

Of course, this is not a rule which is set in stone but this does seem to be the way it usually works.

8. The bank needs more documentation

As so many have discovered in the past, being self employed can make it incredibly difficult to get finance from a bank as you simply may not be able to fulfill the banks requirements with regards to the documentation they require.

On the other hand, many Hard Money lenders in San Diego will more often than not be willing to accept bank statements and income tax returns as evidence of a person’s ability to repay a loan.

7. You need a rehab loan

Are you working on a project where you need money to acquire and fix up a property? There may be money available for this very purpose.

Typically San Diego private money investors and lenders will take on this situation with some money contributed by the borrower. This helps establish a level of involvement by the borrower and satisfies risk concerns of the investor.

6. Building on vacant land

Hard money is often used for construction. If the owner can show an equity position in the land owned and has a complete plan for construction including entitlements, permits, construction cost break down, pro-forma and draw schedule, then they have a strong chance of getting privately financed.

5. You need to make use of existing equity in order to obtain an additional property

San Diego hard money can be used to secure cash out on residential and commercial property. The typical closing time is anywhere from 7-14 days from the time a full package is received.

4. You have financed multiple properties but you wish to acquire additional properties with financing.

In many cases, banks often have limits in places as to the number of loans an investor can have at any given time, and in this case, an investor’s best choice is to apply for private money financing.

As long as the investor can show the ability to repay future obligations with current debts they will have opportunity through private channels.

3. You lack sufficient funds to meet escrow time requirements for acquiring additional property.

San Diego hard money is of course also an ideal solution in situations where time is extremely limited. In fact, private financing is often the best option in such cases.

2. You need a bridge loan.

Of course, the reasons for requiring a bridge loan vary from one person to the next. For example, you may require some financial muscle in order to secure a lucrative real estate offer, or you may be encountering some financial difficulties with an existing business.

1. Limited time

When time is short, maybe you need a loan quickly. With San Diego hard money loans you often can complete a transaction within 7-14 business days. This reason alone may be the most important.

This entry was posted on Wednesday, May 20th, 2009 at 3:00 am and is filed under money. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.