Hard Money Loans in Los Angeles
I wanted to write a short guide on how to find hard money lenders to purchase real estate in Los Angeles, California. As a principal in HM Capital - a Los Angeles based company specializes in hard money, we have a unique perspective on what can help you choose the right lender:
1. Choose a local lender - today there are more private lenders than ever. Real estate investors with extra cash and private equity entered this field in the past 5 years, all ready to dispense capital for deal makers. Your best bet is to find someone local, who knows Los Angeles inside and out. A local lender can better understand why your property is special - and give you the extra capital you need to complete the project
2. Choose a lender that specializes in your property type - if you need a loan for a fix and flip - find a lender that focuses on that type of loan. They will be able to better underwrite the deal and more likely to approve you. Most lenders do all kinds of deals - but have particular knowledge with one or two type of real estate.
3. Don't sign an upfront contract or fees - some lenders and real estate brokers will ask you to sign an exclusive contract or pay some upfront underwriting costs. That never makes sense, because they never guarantee you will secure a loan. Unless you have some guarantee and you are at the finish line, never pay anything. Signing an exclusive contract limits your options.