Land Loans In Los Angeles
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Benefits of Hard Money Land Loans
If you are purchasing a block of land, we recommend getting pre-approved for everything other than taking out a conventional bank loan. Chances are slim that the bank will approve an application for raw land, but please do not be alarmed! We do not let that get in the way. Land loan lender will help with the smooth operation of every step involved in the process.
The Problem with Banks and Investing in Land
A raw piece of land is, in many respects, riskier than property with an existing structure. It hasn't been improved or even zoned and therefore is useless as far as income potential goes. If you get approved for a loan for land, it will be at a higher rate and with a lower LTV. That's just the way the banking industry has set up rules to protect themselves - not you.
If you need to be in a position where you can borrow money quickly and have that money tailored to suit your needs, then hard money is the way to go. The lenders for hard money land loans are willing to work with unique requests and offer rates as close as they can get to prime.
What You Need to Know About Los Angeles Hard Money Land Loans
First and foremost, before land is purchased, make sure there is a workable plan for it. That will mean considering zoning issues, improvements, and surveying of the property. You'd want to know what utilities are in place and if you will need to place sewer or another type of utility. You also want the property professionally surveyed so you can know where lines and access points are.
When purchasing land in Los Angeles, you require quick funding and must, therefore, have a plan that shows how you are going to increase the value of the property. Rather than tying up all your resources in the property to retire the hard money land loan, you ought to have a finer strategy.
Types of Land Transactions That We Work With
- Urban Land in Metropolitan Areas
- 50% or Less of the Acquisition Cost
- Raw or Entitled Land
- Hillside Construction Land
- Real Estate Development by Experienced Contractors
- Business Purpose Only
Expanding Your Investment Options
Hard money loans offer not just tactical options on a per-project level but also facilitate a broader strategic approach to real estate investing in Los Angeles. In this type of financing, investors open up a wider range of properties and projects that may not fit the strict criteria required by conventional lenders. Properties that need great renovation or those that are located in underdeveloped areas may be high-risk scenarios for the bank. These properties may be of great appeal to hard money lenders because of the high value increase they can get following improvements.
Quick purchase and renovation of such properties can sometimes transform the face of entire neighborhoods and spur economic development. Hard money loans mean investors are often leading the way in gentrification or revitalization efforts in projects that breathe new life into declining areas. Hard money loans provide that opportunity for more investors to be involved in such ventures, thereby aiding economic diversity and growth of the Los Angeles area.
Increasing Efficiency in Markets
Flexibility and speed are other added advantages of hard money loans that raise the overall efficiency of the Los Angeles real estate market. By allowing for quick financing, hard money loans reduce downtown between property purchases and the start of development or renovation projects. This efficiency boost is essential in keeping a fluid market where properties change hands quickly and new projects start with all due haste. Hard money loans also stabilize markets by providing liquidity when conventional financing dries up or during times of economic downturn, hence keeping the real estate market liquid and progressive.
Innovation and Entrepreneurship
Hard money loans promote innovation and entrepreneurship in the real estate industry simply by lowering entry barriers for new investors and developers. Access to increased financing means that projects can be done by smaller or newer developers who otherwise wouldn't have the ability to carry them out. This democratization of finance, in effect, leads to a more competitive and diverse marketplace-fueling innovation within construction techniques, management, and sustainable development. While the entrepreneurs create new ideas and ways of working in the marketplace, the entire sector evolves, characterized by resource efficiency and better solutions in housing.
Obtain the Land Loan Money You Need Fast and Safe
If you are having a tough time getting your loan through traditional means, hard money land loans may be what is needed for you. Rather than deal with reams of paperwork and get denied because of things like your credit history or bankruptcy, a private money loan may work better for you!
In hard money loans, what you will be able to borrow is based on the collateral that you will be putting up. Private money lenders will pay less attention to your credit score but more to the value of the collateral.
Hard money lending for land is a great option for so many different real estate deal types. Many times, pre-approval and funding can be given in as little as 15 days or less. Sometimes same-day pre-approval is possible. This would give the opportunity to move forward with your plans regarding the land and bring your vision to life.
If you're considering hard money land loans, we recommend you consult with an experienced hard money real estate investment team. That said, we invite you to contact us to explore your options and our program details. We can provide competitive interests and low origination fees, so there's no reason not to get started today. The processing for approval is also very quick, which should be expected with any last-minute financing requirements. Give us a call today at (855) 858-0853 or get instant quote now.
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