Are you looking for a hard money loan in Los Angeles? Los Angeles hard money loans are becoming an increasingly popular way to borrow money. Yet, many borrowers are confused about what appears to be a new way of boring money.
Let us help you out by giving you a quick insight into the history of hard money loans.
The First Hard Money Loan
Although it is not clear when the first hard money loan took place, it will help you to know that this kind of finance has been around for some time. The first hard money loans probably took place back in the 1950’s.
That being said, there is some indication that the industry existed “unofficially” before that date.
During the boom and bust years in 1970’s and 1980’s, the hard money loan industry ended up in a state of turmoil. However, thanks to new regulations, it is once again a thriving industry in the United States and Canada.
Is Hard Money Lending Legal?
Yes, hard money lending is perfectly legal. You still have to sign a contract with a lender and pay the money back to an agreed schedule. If you don’t pay the money back, you risk legal action and losing your investment.
Traditionally, hard money lending is a great way for property investors to access cash. The money you can borrow will not help you to build a casino resort in Las Vegas, but you can certainly finance the purchase of a property for investment.
Benefits Of Hard Money Loans
Getting access to cash using banks and other lenders, is a long slow process. When you are a property investor, having access to quick cash is essential.
Most of the time, you will not have the time to wait for a traditional loan to go through when you want to buy an investment property. By the time you have been cleared for finance, the property will probably have been snapped up by another investor.
Lending amounts are also more generous in the hard money industry. You are much more likely to be able to borrow more money when you use hard money loans. Another reason why savvy investors use hard money loans, is because they know they can pay the money back using flexible repayment schedules.
When you are ready to find out more or take the next step, all you have to do is to get in touch with your local hard money loan company. Don’t worry, they are very professional and helpful. It is a great way of doing business.