Sun Pacific Mortgage & Real Estate | Hard Money Lender | Sonoma County, CA

What Makes a Hard Money Loan a Good Loan?

Hard Money loans are fantastic for short-term usage while investing in real estate. Depending on how it’s structured, a Hard Money loan can be available for as short as 3 months to as long as 5 years or longer. Traditional mortgage lending is often available for 10 years to up to 30 years. The real catch is when attempting to obtain a traditional mortgage on a distressed or vacant property.  It is extremely difficult to qualify and you will have a hard time finding a bank who will loan in this situation. Enter Hard Money.

Here’s a good example:

  1. Get the loan from a family member or friend.
  2. Use a Hard Money loan to buy the property. The Hard Money loan can also be structured to cover the cost of the repair needed.
    • After the property has been fixed up and prepared for rental, the  investor can obtain a traditional mortgage at conventional rates to repay the Hard Money loan.

This is a great example of a short-term Hard Money loan used to purchase a rental property that otherwise would require an all cash offer.

If you have any other questions or are interested in getting a Hard Money loan in Santa Rosa, Sonoma County, North Bay or really anywhere in California, call our office 707-523-2099!