California Hard Money Lenders Fill Demand for Rehab Loans
With a frenzy of real estate activity in California in recent years, California hard money lenders have had to step up to fill the ever growing demand for real estate financing. Although banks have been readily lending on residential properties for homebuyers, lending on investment properties to investors has all but dried up. The most savvy real estate investors in California simply bypass the traditional route of financing and use non-bank loans to finance their real estate transactions. Non-bank financing is also referred to as private money financing, bridge loans, or “hard money” loans.
With Blackstone now reselling some of the REO inventory it picked up in recent years, California real estate investors are seeking out California hard money lenders to finance these purchases. Many of these properties have been sitting a long time and have a long list of deferred maintenance and repairs. Rather than tackle the rehab of these properties on its own, Blackstone has opted to sell them off to other real estate investors. These real estate investors use California hard money lenders to provide them with rehab loans when a bank wouldn’t touch them. California hard money lenders lend the purchase price and the buyers of the properties will finance the repairs and deferred maintenance.
Real estate investors also like the rapid funding abilities of California hard money lenders, particularly when there is so much competition. The “no frill” style of lending offered by many California hard money lenders makes it easy for real estate investors to purchase and rehab these properties quickly. To see an example of the type of rehab these real estate investors are doing, take a look at the photo of a rehab at the following link, that was completed by a real estate investor who knows how to take the “doghouse” in a neighborhood and really make it sparkle and shine: https://privatemoneyutah.com/rehab-loan-program/