Hard Money Loans For Those Of You in Los Angeles Who Need It

This is an incredibly exciting time to buy in Los Angeles. Established neighborhoods are steadily increasing in value and emerging areas are finding their footing. Homeowners are seeing prices ascend to levels unseen before the crash of 2008. And the developer’s shovel is in constant motion. But the unfortunate side effect is that prices are now beyond the reach of most buyers.

Fringe neighborhoods of yester-year such as Echo Park, East Hollywood, Koreatown, West Adams, downtown and others have now become some of the hottest markets in town. High-rise condominiums and spectacular towers spike the city while construction is going on everywhere.

Downtown, they’re building the Wilshire Tower, tallest building west of the Mississippi which will offer about 400,000 square feet of office space. Over on 820 S. Olive St. by Vancouver, construction engineers are rearing a 50-story tower that is said to be the tallest residential project yet. A few miles away, in the South Park district, Chinese developer Greenland USA is erecting his $1 billion mixed-use project which includes a 54-story condominium tower. Other high-rise residential projects include Beijing-based developer Oceanwide’s $1 billion mixed-use Fig Central, and another project by Onni Group at 1200 S. Flower St.

Visit Miracle Mile and you’ll see Rick Caruso’s megalith of a 19-story residential tower that will salute Beverly Hills, while in Century City you’ll shade your eyes from a $300 million, 39-story skyscraper that was designed by Miami developer Crescent Heights. Finally, end your visit with the Townscape Partner’s 8150 Crescent Heights that is created by none else than the uber-famous architect, Frank Gehry.

Reasons for the Boom

Analysts suggest that this construction boom is rooted in various issues. Firstly, unemployment is improving so people are spending more. Secondly, in recent years, downtown LA has become more vibrant attracting more opportunities in construction. Then again, over the last 15 years, demographics have changed with a younger population moving downtown. And, finally (although not exclusively), foreign investment is impelling construction with outsiders, largely from Korea, China, Canada and Germany, investing in the area.

And then there’s the metro (Expo Line Phase 2) which is due to be completed next year and is projected to have 64,000 boarding passengers by 2030. The project enhances Los Angeles – or at least downtown Los Angeles, because it relieves congestion and improves traffic.

Regardless. Downtown, according to insiders, has over 60 percent of properties that are owned by the top seven landlords and they have the ability to control rental rates. All over, most rates are above market price, and many other property prices, throughout the city, are intimidating if not exorbitant. So if you live in Los Angeles and don’t have the money but want to buy – you can get a loan. But fewer banks acquiesce. Particularly if your credit is poor.

Unfortunately, it’s not only office prices – or prices of Class A spaces – that are soaring. MarketWatch reports that home prices are way beyond the reach of most buyers.

Writes real-estate analyst Edward Fitz in MarketWatch, October 2015:

The median sales price of single-family homes in the second quarter in greater Los Angeles (the Westside, Downtown and Northeast) reached a record high of $1,371,500, and for condominiums it hit $675,000, making the across-the-board price for homes a gasp-inducing $938,000.

These sky-rocketing costs make it less easy for you to have the kind of home that you wish.

Early October of this year, the California Association of Realtors (CAR) distributed a report that mentioned tyrannical prices, housing shortage, and imminent interest rates that may worsen the situation.

Says Leslie Appleton-Young, CAR’s association’s vice president and chief economist:

“People want real estate, but nobody wants to overpay for it. The feeling right now is that things have gotten a little out of hand” – which is why people who have been unable to land loans from the banks may have no alternative but to flock to hard money lenders. It is a hard money lending market!

The Short Of It Is This…

People who want to invest – or simply buy themselves a home to live in – may have a hard time shelling out the money. Banks and credit unions dissuade them since many banks have acquired bad real estate loans because of loose lending practices of recent years. Banks have set strict criteria and they scrutinize your credit background all the more closely. Properties also usually need work which makes banks or credit unions even more reluctant to loan. For this reason, real estate investors have limited financing options. But hard money lenders – who look at the assets not the credit – can serve as alternatives.

In short, if you are considering borrowing, you may want to give hard money lenders a look because they are faster than banks and credit unions and less concerned about your credit. There are no appraisals or other costs and no shenanigans from loan committees or from underwriting processes. All you will have to provide is verification of your honesty.

And your ability to get a speedy loan, incidentally, hikes your advantage when it comes to buying. Given the wildness of today’s Los Angles market, you may well find yourself bidding in a competing environment. Other investors may have to go with the slow conventional financing, but you – with your ready-at-hand money – are more likely to get a seller’s attention and to set your offer apart from the rest of the buyers.

True, the high interest prices may dissuade you but given the alternative of being unable to land the standard loan, you may well find hard money loans worth the risk.

What do you think?

How to Seek Farm Finance

Obtaining a private or governmental loan for your farm is not that difficult as you may be thinking. You have to do a little survey to find out the institutions which offer such loans. Of course, internet will make your task easier. The question is where on internet you can get the information about the farm finance. There are various places where you will get the basic information about how to apply, locate and submit an application for a government loan. You can start your search by first going to the government’s agricultural department site, where you can get the basic information on the farm finance and loan programs. You can also check the various links given below the page to get even more information.

If you get the loan programs that you can suitably apply for, the next question will be what to do next. Again do a pretty good research (not less than 30 to 40 hours per institution) for the organization you select. Know them well, about their terms and conditions, what they offer, the minimum loan amount, rate of interest etc. Knowing about them will make your decision clearer about whom you should approach.

Then ensure that you are following the guidelines for submitting the application for the farm finance up to the smallest one, or otherwise you will not be granted one. For instance, if they tell you to submit the application first and then the proposal, do so. If they tell to submit a letter of intent first, and then the application, do that too.

Before, during or after the initial loan request process, make an application that will appeal to the financial institute about your farm or agricultural supplies business. Do not use college-like words; always be personal and professional at the same time. For example, if you need loan for irrigation, make the financial institution aware of that precisely about when and how much that system will be finished. Keep in mind that the amount of loan should not be more than the maximum amount the organization is offering. Because that will also may count to rejection of your proposal. Also do not forget to mention the size of your farm in the loan application. Because the lenders will want to ensure if the money they are lending is perfect for the land or not.

Be honest and humble in explaining your need for the loan in question. For example you do not want a loan for a million bucks, just to buy a tractor or more of livestock. The lenders will be interested to know if the money they will be lending will be used for proper purpose or not. In short, just be sensible to ask for, as per what are your real needs.

Real Estate Investing with Hard Money Loans

Most seasoned real estate investors face situations where they require more money than what the traditional lenders will lend, and here is where real estate investing with hard money loans given by the specialized lenders is useful.

The hard money lenders are actually private money lenders who provide money for a short term. These loans carry a strict repayment schedule. It is given the name as hard money on account of its strict nature. The rates of interest of such loans are also higher than the market rates, and the fees charged upfront, range between 4 to 10 points.

The money lenders of hard money give the investors the access to the capital that is asset based, wherein the loan amount is secured by way of a collateral security. The rate of interest ranges between 14 to 18 percent annually and the term of the loan is normally six to twelve months.

Along with the property as collateral security, the hard money lender requires can require credit reports and well as documented experience in previous deals you have done. The lenders indulge in inspecting the property and making appraisals, before approving the loans.

The lenders of hard money study the intent of the investment on part of the investors, the strategy of exit that is adopted, the information of the property that is provided such as the residential or commercial nature of the property and also check the credit ratio of the concerned borrower. The financial strengths of the borrowers play a vital role in securing the loan.

The fees that are charged are dependent on the risk factors and the quality of the real estate deal. The plans of using the money set by the investors are also carefully studied by the hard money lenders. Hence, it is recommended that the borrowers provide a proper business plan for securing the hard money loans. They need to convince the lenders about the low risk nature of the concerned investments.

The conditions and the terms of approving real estate investing with hard money loans, vary for different lenders. The investors have to find the perfect lenders suitable for them, and ensure that they keep a good relationship with them.

Such types of loans are useful for procuring or purchasing properties. They are also useful for the buyers having low finances, against those that are required for the project, but have good fixed incomes.

Some of the lenders of hard money have choices regarding the type of the real estate investments, such as rehabbing houses, purchasing houses and the options of lease purchasing.

It is easy to lose a potential deal for lack of finances and hence, maintaining proper relations with the hard money lenders is a priority for the investors. The support of such money lenders is very important for the investors if they want to complete the real estate project in a proper manner. Good relations with lenders are a blessing in disguise for the investors.