For many of our clients, hard money loans are a way to get into a property for which they cannot qualify for conventional financing. There are many reasons buyers may be turned down by conventional lenders, and those reasons expand greatly when the purchase is for an investment property. That was the case on this recent San Jose hard money loan we closed for the purchase of an investment condo.
Our client on this transaction had a conventional loan lined up, but was not certain they would approve it. We were asked to be his backup plan in case his conventional financing fell through. We’re happy to work in this manner as we know our loans are no one’s first choice – they are much more expensive than conventional financing. This buyer was a repeat client of ours, so we had much of the paperwork we needed.
We put the rest of the file together, identified an end investor and waited. About two weeks prior to the closing date the conventional lender denied our clients conventional loan. We stepped in, updated appraisals and ordered docs. We were able to help our client close on this purchase very quickly, and at great terms for hard money. The realtor gave us the closing date and we were able to meet that date and close as promised.
The condo was a great buy for our client. The rental market in the area is great and a conventional loan should be able to take out our hard money loan in the next 1-2 years once there is a history of rental income from this property.
We are able to help with many different scenarios to finance real estate located in California. We offer fix and flip loans, land loans, commercial loans and loans for speciality properties. We are located in the San Francisco Bay Area and love local properties. For more information, or to learn how we can help you with your local financing needs, visit our San Jose hard money loans page.