Real estate investment can be a profitable way to increase your wealth, and it’s a good way to diversify your portfolio. Do you have trouble getting a loan because of bad credit? You’re not the only one. Many people have credit issues at times, and it can be hard to find a lender who will cooperate with you. The bright side is there are some alternative options that you can look into. Below are a handful of options if you need a loan to expand your real estate business in Los Angeles but can’t get approved because of bad credit.
One option to consider if you’re struggling to get approved for a loan is hard money loans from a private money lender. These lenders are typically private investors. They specialize in providing loans to individuals and businesses that are considered to be high-risk borrowers. Compared to conventional lenders, they usually have higher interest rates. However, they are more willing to work with individuals with poor credit. We are private hard-money lenders in Los Angeles. We are often financing for your real estate investments. We usually have a shorter repayment period than traditional loans. Unlike other private money lenders, we can typically lend up to 65 to 75% of the property’s value.
Another option to consider is a secured loan. This type of loan requires you to put up collateral, such as your car or a piece of property, to secure the loan. Because the lender has the collateral as security, they are more likely to approve the loan even if you have poor credit. However, if you’re unable to make the loan payments, you could lose the collateral that you put up. A secured loan is a more appropriate option if you need the loan for reasons not related to real estate, such as consolidating debt.
A third option and relatively new option is a peer-to-peer loan. These loans are made by individuals or groups of individuals, rather than by traditional financial institutions. They are often available through online platforms that connect borrowers and lenders. Because the lenders are individuals, they may be more willing to work with borrowers who have poor credit. However, interest rates can be high, and there is typically no guarantee that you will be able to get a loan.
A hard money loan could be a solution if you don’t want to pay a large sum of money in advance to buy real estate. Ready to secure your hard money loan? Contact us today to explore your options. We can help you find the right funding strategy for your needs and goals. Let’s connect soon to start the conversation.