All real estate investing can be scary, but especially when talking about “hard money loans”.  In reality, hard money loans are fairly common when it comes to real estate investing.  By definition, hard money or privately funded loans, are just that: loans given by individuals instead of by a bank or traditional lending institution.  Despite that simple explanation, there are still lots of myths about hard money loans.  Let’s exam and dispel some of these here:

  1. Only the Desperate Seek Out Hard Money Loans:  Most of the people who seek out hard money loans are smart business people who need a very quick close not possible with larger institutions, have bad credit, recent bankruptcy or they have difficulty proving income.
  2. Hard Money Lenders Are All Loan Sharks: These lenders are business people just like their clients and are fully aware that fairness and good business sense means you get return business.  Sun Pacific Mortgage has been in business for over 33 years, it’s owned and operated by a family of very dedicated business professionals with hundreds of repeat Borrowers and weekly referred Borrowers.
  3. Hard Money Loans Are More Expensive Than Traditional Ones:  If time is money, than to get money in less than a week so you can acquire a property for a profit is essential.  If a traditional lender can’t get you the funds in time to salvage the deal, then it is simply not a valid option.
  4. Hard Money Loans Have Draconian Rules:  Generally speaking, hard money loans have different restrictions put on them than consumer loans.  Lenders and borrowers are encouraged to negotiate until they reach mutually acceptable terms.  All governmental regulations regarding hard money loans are strictly adhered to by Sun Pacific Mortgage.

Click here to learn more about our company.

Best, Ken – Another Guy in the White Hat
Hard Money Lead Loan Originator at Family owned and operated Sun Pacific Mortgage & Real Estate, serving all of California since 1988!  707-523-2099
CA DRE License #01858042 and NMLS #1221130

Note:  Get our financing despite bad credit, difficult to prove income, property a fixer, etc.!  We finance Jumbo loans, Bridge and short-term loans, Owner Occupied purchases and refinances, investment purchases and commercial.

The content of this blog contains general advice only and does not consider individual financial circumstances, desired loan amounts or existing real estate or lending transactions. This information is intended for licensed Real Estate Agents and licensed Lenders/Mortgage Brokers and is posted on our company website and specific blog sites with the express purpose of reaching such licensed individuals.

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