When is a hard money loan necessary in Woodland Hills, CA?
Living in Woodland Hills means you can accidentally bump into your favorite actor or director at any moment. If you love the outdoors, the Santa Monica Mountains National Recreation Area offers fun activities for the whole family, like hiking and camping.
The neighborhood in Woodland is also famous for the best schools, a thriving business community, plenty of food choices, and endless entertainment options.
Unsurprisingly, you are investing in commercial and investment properties in Woodland Hills, CA. It’s a vibrant and exciting community and one of the best neighborhoods in Los Angeles.
If you are looking for an experienced and trusted lender to help finance your new project quickly.
As a seasoned lender in Woodland Hills, Nuline Funding is your best choice.
We’ll examine why hard money loans are a financial tool you can use to take advantage of profitable opportunities in the Woodland real estate market and why this can be a good option for you.
What are hard money loans?
For newbie investors, you may wonder what a hard money loan is and how it differs from traditional loans.
A hard money loan is a short-term, high-interest loan commonly used to finance real estate investments.
Unlike traditional loans, where you need to prove income and creditworthiness, hard money loan approval is based on the value of the property used as collateral.
If a commercial or industrial property in Woodland has caught your eye and you need quick financing, a hard money loan in Woodland Hills is worth a second look.
What are the instances when you need to consider a hard money loan?
We share some of the top reasons investors prefer hard money loans instead of traditional loans.
If you are a house flipper, time is essential to make the most money from your fixer-upper. Buying a low-cost home, making repairs and renovations which boost value, and flipping for profit happens in a short period, usually less than a year.
Flippers prefer fast forms of financing compared to the traditional mortgage terms of 15 to 30 years.
In this instance, a hard money loan is your best option.
Buying Investment Property
Not all investors qualify for traditional financing, and a hard money loan can be helpful if you think an investment property is worth buying.
A hard money loan is also a good option if your credit history is not that good or you need more money than a traditional lender will provide.
Buying Commercial Property
A business owner may also look at hard money loans to fund a commercial property if they get disapproved applying for a traditional mortgage.
This strategy can also be helpful for buying properties that don’t qualify for conventional financing.
Commercial properties also cost more than residential units, and financing through traditional loans may not be enough due to loan limits.
What are the advantages of getting a hard money loan?
Traditional loans can take weeks and months to get approved, which is not ideal when you need to move quickly on a real estate investment opportunity.
Hard money loans can be approved and released in a matter of days. This loan product gives investors the speed and flexibility they need to jump on profitable deals.
Less attention on credit scores
If you have a low credit score, your chances of getting approved for a conventional loan are low. With a hard money loan, credit scores are less of a factor since your loan is secured by the property you’re buying.
You can qualify for a hard money loan despite low credit scores or even if you have a history of foreclosure or bankruptcy.
Flexible loan terms
Investors have to face tons of red tape and strict loan terms, which can be frustrating, especially if you need funding fast.
Hard money loans offer more flexible terms and packages that meet your specific needs. You can negotiate for no prepayment penalties, longer loan terms, and interest-only payments.
It can be used to finance unique properties
There are properties that don’t meet traditional lending standards but are a good investment. These include fixxer uppers or a commercial property that don’t qualify with conventional loan guidelines.
With a hard money loan, you can finance any type of property as long as there is enough value as collateral.
A hard money broker in Woodland Hills can help you quickly finance your commercial or industrial investment. Call or message our loan experts to help you get started.
Apply for a hard money loan with Nuline Funding
Hard money loans can be a valuable tool for investors looking for real estate investing opportunities in Woodland Hills, CA.
If you want speed, flexibility, and the ability to finance unique properties, ask about our hard money loan options today.
We can help you start the application process and get fast approval.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.