How to Choose a Hard Money Lender
Hard money loans are issued by private lenders and individuals whose main lending criteria is the amount of equity in the property. Banks and traditional lending institutions do not offer this form of short-term financing.
Hard money loans can be used to purchase investment properties, pull cash out for business purposes, or to make repairs to a property. Hard money loans are known for quick approvals, shorter loan terms, and higher interest rates. Hard money loans also offer real estate investors a tool to access funds quickly.
How Does the Hard Money Process Work?
Hard money loans can be a good option for real estate investors that don’t have time to wait on a traditional lender to approve their loan. Since most hard money lenders are most concerned with the equity in the subject property or project, the lending process can be finalized in a matter of days, not months like traditional lenders.
When applying for a hard money loan, you start by filling out a loan application and giving the lender a short summary of your goals. For example, most hard money lenders will want to know the address of the property, the use of funds, your time frame to close, and the amount of funds you’re requesting.
If your loan request involves the rehab or construction of a property, the lender will need a basic summary of your construction plan, including your construction costs, construction timeline, and how much of your own funds you intend to put into the project. This information will help the lender determine whether to fund your project.
How to Find a Reputable Hard Money Lender
Let’s go over some important factors when choosing a hard money lender:
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Reputation
A hard money lender that has a long track record of funding loans is extremely important. Try to avoid lenders that have not been in business for a long period of time.
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Ability to Fund Quickly
If a lender takes too long to issue a loan, you might miss out on a specific opportunity. Always ask a prospective lender at the beginning of the loan process approximately how long it will take to fund your loan.
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Direct Lenders vs. Loan Brokers
Knowing the difference between a loan broker and a direct lender is extremely important. A loan broker does not make the final decision whether to fund your loan and does not have the actual funds to issue a loan, a direct lender does. Dealing directly with the capital source can save time and money.
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Oversight
Every reputable hard money lender should be licensed and bonded. Ask your lender what their lending credentials are before you begin the loan process.
Real Estate Loans in California and Nationwide
Working with a reputable hard money lender could be a great resource for borrowers looking to secure capital quickly. At Wilshire Quinn, our dedicated lending team can pre-approve your loan in 24 hours or less.
Contact our lending team today to go through your lending scenario and determine if we can be a resource for you. Contact us at 619-872-6000 or by email at loans@wilshirequinn.com.
- Funding typically in 5-7 business days
Loan Amounts from $200,000 to $20,000,000
- Interest Rates from 8% to 10.5%
Loan Term: 3 – 24 months
Commercial & Residential (non-owner occupied) Real Estate
- Purchase, Refinance, Cash-out Refinance, Rehab, Blanket Loans
Foreign National Loans Available
About Wilshire Quinn
Wilshire Quinn is a San Diego hard money lender focused on short term bridge loans, secured by first trust deeds. The company is based in San Diego, CA with offices in Los Angeles and San Francisco. Wilshire Quinn typically funds loans for their customers in 5-7 days. Their successful track record is closely linked to their ability to make immediate lending decisions based on their highly disciplined underwriting approach. The company funds a variety of loans such as: refinance, purchase, blanket, rehab loans, 1031 exchange, partnership buyouts, and more. They originate hard money loans ranging from $200,000 – $20,000,000. Wilshire Quinn works with commercial and residential buyers nationwide.
Recently Funded Hard Money Loan Transactions
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