Myth 1: Hard Money loans are often predatory and come from dishonest lenders.
Nothing could be further from the truth.
We have been doing hard money loans in California since 1988. We have done thousands of loans and rescued hundreds of real estate agents and Brokers who had Buyers with difficulty getting a loan elsewhere. We wouldn’t have lasted 29 years if we were doing anything dishonest or predatory. Myth Busted!
Myth 2: Don’t only the desperate seek out Hard Money, like a last resort type of loan?
Not at all. Hard money is commonly used by people who have perfect credit or lots of income or equity, because it is very easy to qualify for and quick to close. Further, banks will not lend on problem properties. Hard money is available for that as well. Myth Busted!
Myth 3: Hard money costs are too expensive and have high rates.
Borrowers use hard money as it fulfills a tremendous purpose in real estate buying these days. People wouldn’t be using hard money if it was too expensive or the rates were too high.
When you look at a hard money loan and #1. Discover it is the only loan you can get and #2. It accomplishes the purpose of why you needed a loan in the first place, then it is a good loan! So…Myth Busted!
Myth 4: There are no hard money loans for owner occupied properties.
This is false. We are always going to be do owner occupied loans as they are an important part in lending in today’s market. Myth Busted!
Call us at 707-523-2099 with any questions or mortgage scenarios you might have. We are happy to help!