Top 10 Reasons to Use San Diego Private Money
Articles - Mortgage
You may want to use San Diego Hard Money because a conventional loan through a bank is not available to you. A bank may not loan you the money for various reasons. They may have issue with the collateral or property; they may have concerns about your credit history.
by MorganA.Scott


You may want to use San Diego Hard Money because a conventional loan through a bank is not available to you. A bank may not loan you the money for various reasons. They may have issue with the collateral or property; they may have concerns about your credit history.

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. The bank won't accept the property as collateral

There are essentially a number of reasons as to why a bank may not be willing to accept a property as a source of collateral. In particular, if a property has been designed for a specific purpose, banks are often reluctant to accept them. For example, these could include buildings such as care centers for the elderly, health and spa resorts or any other building where an appraiser has rated as being below average.

9. Poor credit history

Often times, you can you use San Diego Hard Money even though you have a troubled 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

Many self employed individuals and investors have complex tax and financial records. Frequently banks will require tax returns of the individual and any corporate entity associated with the borrower's earnings.

Hard money lenders on the other hand, will often be willing to accept income tax returns or even bank statements, in order to determine whether or not your income is sufficient for being able to make repayments.

7. Loans for the purpose of Rehabilitating Distressed Properties

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.

In most cases, if the borrower can contribute a certain percentage of the money required, San Diego private lenders will agree to take on this type of situation.

6. You are wanting to build on raw land; you own the land but you need money for construction

Construction loans are a common use for San Diego private financing. However, in order to qualify, the owner of the land will be required to show proof of ownership, building permits, draw schedule, construction cost break down and etcetera. Providing they can meet these requirements, then in all likelihood they will be granted financing.

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 this type of situation, private money is available for securing cash out on commercial and residential properties with typical closing time being from one to two weeks after a completed package is submitted.

4. You already have too many properties financed and would like to acquire more.

Many investors are limited by banks on how many loans they can have open at one time. In this example a private source of funding may be perfect.

As long as the investor can show the ability to repay future obligations with current debts they will have opportunity through private channels.

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

Private money is a good solution for acquisition of any property where time is of the essence. Because most transactions can be completed quickly, private money is often a first choice for difficult purchases.

2. You require 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.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Finally! The whole unbiased truth about San Diego Private Money exposed. You owe it to yourself to get the facts today by visiting Scottway Capital Hard Money and San Diego Private Money.