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:

• An investor finds a home they’d like to purchase for rental purposes
• The home is distressed and in need of major repairs
• A bank won’t lend on a property with significant problems affecting it’s value
• This investor has two options:

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!

Honest and caring Brokers and Agents are important for any Buyer and Seller – for real estate and financial services.

The below noted KCM article reminded me of a first time Home Buyer I worked with, who was from out of town, and they told me that they had decided to go with our company because we were local and seemed personal.

What You Don’t Need To Hear From Your Listing Agent

By The KCM Crew February 9^th, 2016

http://www.keepingcurrentmatters.com/2016/02/09/what-you-dont-need-to-hear-from-your-listing-agent/?utm_source=feedburner&utm_medium=email&utm_campaign=Blog_Promo

I of course thanked them for the compliment and mentioned that we were definitely experienced enough to help as we had just celebrated our 28th anniversary in business.  This particular home buyer was quite frank and said, “Well that’s nice, but to me I honestly picked your company foremost because of how it seems to care for it’s customers, based on all the testimonials I read. The experience is secondary, though also appreciated.”

I must admit that our customer service, being honest and just straight with each Home Buyer, Seller, Investor or other Agent has always been an important part of our family business.  However, it was more a “given” than it was a policy.  I realized after this particular client’s remarks that “caring” should not just be a “given” but a requirement for everyone, including the other affiliates, Brokers, Lenders and Agents we work with, in delivering service to all customers.

To some this might be normal but to many others, I’ve got to say that caring is not the top priority.  Well…it’s time to put the right “hat” on.

Experienced real estate agents know they need to be familiar with the loan products out there for their buyers.

There are really only a few loan programs:

• The government regulated (Fannie Mae/Freddie Mac, FHA, VA)
• In-House loans (credit unions and local banks)
• Alternative financing, also known as “Hard Money”

The biggest advantage to Hard Money is, not only can it be fast, it is treated as a cash offer in most circumstances, thus assisting in strengthening one’s purchase offer.  It can also be used to purchase or refinance a dump-property, bad credit borrower, irregular income borrower, large cash-out borrower, Bridge loans, jumbo loans, etc.

The government regulated loans such as FHA are quite regulated.  More in-house loans are being done by credit unions and banks and can appear stronger in offers, but they still come with tighter loan qualifications.  Hard money has little bureaucracy, deals can be approved and closed in just a few days, there’s no red tape as to qualifications and rates are improving with the hot real estate market.

When you call us, you get the Loan Officer and the Underwriter on the phone in one person.  Within just a few minutes we can tell if it is real estate that we can finance. Our transactions can go very fast because in many instances, we do not need an appraisal.

We invite you to look at our Website www.sunpacmortgage.com to get more insight into what Sun Pacific Mortgage is all about.  We have been in the business for over 28 yeas now and are family owned and operated.

We only do Hard Money and we do it right!

Give us a call at 707-523-2099 and see what we can do for you and your home buyers.