Whether a conventional bank loan isn’t available to you, or whether a bank is simply not willing to loan you money because of your credit history, San Diego Hard Money can prove to be extremely useful in many instances. For example, some banks will refuse to help you simply because there may be an issue with the property or collateral.

Or maybe you are unable to provide adequate documentation according to the banks standards. Maybe you have the need for a bridge loan, have specific investment projects, or need money quickly. These all may be reasons you would obtain private financing.

10. Bank is unwilling to accept your property as collateral

In many cases banks refuse to accept certain buildings as a form of collateral. This could of course be because it’s been rated as being below average by an appraiser, but having said that, they are often reluctant to accept buildings which are designed specifically for a certain purpose such as old age homes and even some resorts.

9. Many people can still make use of San Diego Hard Money irrespective of whether or not they have a poor credit rating.

Unlike banks, private money lenders tend to focus primarily on collateral, rather than credit history.

Of course, this is not a rule which is set in stone but this does seem to be the way it usually works.

8. The bank needs more documentation

People who earn their income by means of investments, or even those who are self employed are often not able to provide all the documents which banks require in order to qualify for a loan.

On the other hand, many Hard Money lenders in San Diego will more often than not be willing to accept bank statements and income tax returns as evidence of a person’s ability to repay a loan.

7. Loans for renovation purposes

If for example you’re currently in the process of wanting to repair or renovate a property, San Diego Hard Money lenders will usually make funds available to you.

However, San Diego hard money lenders and investors do insist that the borrower also make a contribution, if only to establish a certain amount of involvement on the borrower’s part.

6. Building on vacant land

San Diego Hard Money is often used in such situations. Providing the borrower is capable of providing proof of ownership, as well as a breakdown of projected construction costs, building permit/s and etcetera, a loan will in most cases be granted.

5. You need to cash out equity on an existing property so that you can make a cash offer on another piece of real estate.

In the majority of cases, San Diego hard money financing is useful to secure cash out on both residential properties and commercial properties. In most cases closing time is between seven to fourteen days from the time a full package is received.

4. You own numerous properties that area currently financed but would like to purchase more.

In many cases, banks often have limits in places as to the number of loans an investor can have at any given time, and in this case, an investor’s best choice is to apply for private money financing.

Unlike banks, private lenders will usually make funds available, providing of course that the borrower is able to show they have the ability to make repayments.

3. You lack sufficient funds to meet escrow time requirements for acquiring additional property.

Unlike banks, where loan applications can take ages to process, private lenders are for the most part able to make decisions in a fraction of the time banks take.

2. You need a bridge loan.

Of course, the reasons for requiring a bridge loan vary from one person to the next. For example, you may require some financial muscle in order to secure a lucrative real estate offer, or you may be encountering some financial difficulties with an existing business.

1. When time is limited.

When time is short, maybe you need a loan quickly. With San Diego hard money loans you often can complete a transaction within 7-14 business days. This reason alone may be the most important.