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Hard Money Real Estate Lenders Pick Up The Financial Pieces Of Our Crumbled Market.
California bridge lenders such as Mager Capital attest to be a very efficacious substitute for financing in today's afflicted market. With the existence of dogmatic assets at an all time low, hard money loans are seemly ever so preferred amongst the general populace. For decades, hard money was used principally for investors who needed quick cash to realize a substantial gain on a real estate transaction or for those borrowers who had credit issues, hence not allowing them from qualifying conventionally. Not anymore! Hard money has now migrated to the front of the real estate area.
Hard money lending has been all over for almost a century, but has in no way been in such high desire as we are currently witnessing in today's economy. For decades hard money rates were 12% to 20%, but due to healthy capitalized portfolio lenders springing into the market, we have seen a decrease in rates & fees. A great number of lenders noticed that there was a void between conventional and old hard money rates where we currently see numerous private lenders positioning themselves. With the recently founded opposition we notice rates starting at 8.5%, which was unheard of in earlier years.
Alas, we have found that with most portfolio lenders, there is a prominent disparity between the desired loan total and the loan amount offered by the lender. If a higher loan to value is a must we suggest using investor pools such as Mager Capital. Their rates start at the same low 8.5% like some portfolio lenders, but raise with risk and loan to value. With a properly executed supply of investors, a lender has the option to appropriate investors with a more aggressive desire for an increased return and thus allows for a greater loan to value when needed. The interest rate increase is minimal and you basically have two types of lenders beneath one roof instead of getting a "Take it or leave it", low ball offer.
We know that choosing a "well rounded" hard money lender can prove to be confusing and that is why we are giving this testimonial. We hope this article has been beneficial and look for more in the near future.
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