Hard money lender Los Angeles offer privately funded financing for specific types of real estate purchases. These loans are only available for secured assets but occasionally can be used to solve possible problems such as foreclosure or bankruptcy. This type of financing is ideal for anyone who wants to buy and quickly sell a home without the restrictions of a traditional bank loan. If you are considering applying for a hard money loan, here are four pieces of information you should include.
1. Property value. Typically a home that is being sold is worth more than its selling price. These are often homes which are in foreclosure or have been defaulted on in other ways. Based on the homes in the area, you should have a good assessment of the true value of the property.
2. Income potential. The main thing that lenders want to know is what the income potential is for that property. Whether you’re planning on reselling it or renting it, you should have an idea of not only what kind of income or sale price it could generate but also how quickly it could happen.
3. Plan for remodeling and selling/promoting. A borrower with the plan is always more appealing to a lender. Be sure to have an expanded idea of what you plan to do in terms of remodeling, the costs associated with that, in the approach you will take this selling or renting the property. For example, if you are turning a property into a rental unit then lenders will want to know how you plan on finding good tenants and making sure that they stay in place so that the prophet continues to flow.
4. Neighborhood assessment. Lastly you want to be sure that you bring a neighborhood assessment with you. This should be a breakdown of the crime data, school information, and the pros and cons of an area. When you meet with lender you want to be sure to sell them on the idea of that specific property in that location with enough conviction that they believe it will also be successful.