Real estate investing is a risky business in California. You will eventually need to be able to access private hard money lenders. This is because if you buy a property solely for the purpose of reselling it and making quick cash, a bank can sometimes become too complicated. Hard money is almost like having your own money.
Banks will require that you provide plenty of information to prove your creditworthiness, employment history, and assets. It takes cash deals typically two weeks to close, while conventional loans take 30 days to close. You can call a California Hard Money Lender at Wilshire Quinn Capital to get a hard money loan.
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There are three main reasons why you might need a private lender of hard money.
1. Most people in the world have experienced a time when they couldn't pay their bills on schedule or had too much credit, which caused their score to drop. This is not an issue with these types of loans. If your credit scores are not high, the lender may adjust the interest rate at the top end.
2. Many investors are self-employed and don't receive any paychecks. It is difficult to prove how much you earn each month because of this. A 1099 is the only way to prove income. It only shows how much you earned in the past year.
3. Bank-owned properties usually require you to pay them cash, as the property is often offered at a lower price than market value. To even be considered for their offer, they will require proof of funds.