When someone is looking for a hard money loan, one of the most common questions asked is, “Will my specific real estate purchase qualify or attract the interest of a strong lender?” This is an important and valid question that deserves a detailed answer.

To be clear, a hard money loan can be guaranteed for virtually any real estate transaction. For example, you could obtain a loan for the purchase of a single-family home, multi-family residential property, commercial property, etc. However, it is worth noting that the vast majority of hard money loans in Los Angeles and elsewhere are issued as mortgages for the purchase of residential property.

Fix and flip

One of the most popular real estate transactions financed through hard money loans is repair and exchange projects. Loans are typically used to purchase residential property with the specific goal of updating the home and then putting it back on the market for a profit.

Unique properties will present challenges

It can be difficult to find a reputable lender who is willing and able to provide a loan for other types of property, such as:

• Purchase of land;

• Industrial property (eg steelworks);

• Churches;

• Restaurants

A good rule of thumb is that the more exclusive the property, the harder it is to find a reputable and respected lender who is willing to provide a loan for the purchase. Why? Because most lenders are generally interested in providing support on properties that will sell more easily. This helps ensure that the lender recovers its funds sooner rather than later, even if the borrower suddenly decides to withdraw from the project or cannot meet the loan payments.

Hard money loans for the sale of real estate

Although it is more difficult to find a reputable lender for more exclusive real estate transactions, it is worth noting that if you have identified a property in the market that is sold through a real estate sale, you could obtain a loan in Los Angeles and elsewhere. other places. with fewer hurdles compared to, say, buying a restaurant. This is because some hard money lenders may also make loans while an estate is going through the probate process. This is an important service as, in many cases, surviving heirs may need to borrow funds to settle outstanding debts and obligations that have been attached to the estate of a deceased loved one. Hard money lenders can provide a loan secured by real estate that is in the process of probate. It is important to note the fact that this type of assistance is not generally offered by traditional lenders such as a credit union or a bank.

Want to apply for a big money loan in Los Angeles or any major city in Southern California? You have options, and you need to take action sooner rather than later.