With Interest Rates So Low, Why Use Hard Money?

With interest rates so incredibly low, why would anyone need to use a hard money loan to buy real estate?

The reality is, if you or your clients are looking to buy real estate for investment purposes, chances are you will not be able to use bank financing. First, the banks are still swamped with consumer home loan purchases and refinances. They frankly don’t need the additional business. Second, even if they will make a loan to help your client buy investment property, the banks take too long!  Real estate investors don’t have 45-60 days to close a deal.  The deals go to those who can close quickly – oftentimes in 10 business days.

That’s where hard money comes in.  Hard Money Lenders specialize in helping real estate investors acquire property fast.  At Pacific, we typically fund in 5-10 business days.  Also, hard money lenders have the option to waive things like appraisals and reports on the property, and underwriting guidelines for borrowers are fairly liberal. Most of us are not FICO driven.

There are number of reasons to use hard money to close quickly. In today’s competitive market where inventories are tight and opportunities are fewer, you need a financial partner that understands the unique needs of real estate investors. A good hard money loan broker can be an invaluable relationship in more ways that you might imagine.

At Pacific Private Money, we’re fast, friendly and our pricing is among the best available in the California hard money market. We’ve helped over 300 California real estate investors buy property in the last two years. We can help you or your client get the funding they need with no headaches.