Hard Money Real Estate Lenders Pluck Up The Financial Puzzle Pieces Of Our Cracked Market.
California bridge lenders such as Mager Capital attest to be a very efficacious option for financing in today's troubled market. With the availability of conventional assets at an all time low, hard money loans are becoming ever so desired amongst the general populace. For decades, hard money was put into use fundamentally for investors who needed fast cash to achieve a substantial benefit on a real estate deal or for those borrowers who had credit issues, thus preventing them from qualifying conventionally. Not anymore! Hard money has now moved to the front line of the real estate area.
Hard money lending has been around for almost a century, but has never been in such eminent desire as we are currently experiencing in today's economy. For decades hard money rates were 12% to 20%, but due to well capitalized portfolio lenders springing into the market, we have seen a decline in rates & fees. Numerous lenders noticed that there was a void between conventional and old hard money rates where we presently see countless private lenders putting themselves. With the recently founded competition we discover rates starting at 8.5%, which was unheard of in previous years.
Alas, we have learned that with most portfolio lenders, there is a prominent difference between the desired loan total and the loan amount proposed by the lender. If a higher loan to value is a necessity we suggest using investor pools such as Mager Capital. Their rates start at the same low 8.5% comparable to some portfolio lenders, but rise with risk and loan to value. With a properly executed supply of investors, a lender has the ability to appropriate investors with a more aggressive appetite for an increased return and thereby allows for a higher loan to value when desired. The interest rate increase is marginal and you basically get two types of lenders beneath one roof instead of getting a "Take it or leave it", low ball offer.
We know that identifying a "well rounded" hard money lender can prove to be confusing and that is why we are providing this testimonial. We hope this article has been helpful and look for more in the near future.
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