Hard Money Lenders in Los Angeles provide financing for the purchase of fix and flip properties as well as property repairs and upgrades. Also, many hard money lenders in Los Angeles offer new construction loans.
For experienced fix and flip investors in the Los Angeles area, one of the successful growth strategies in their house flipping business plan is the use of hard money loans to leverage their cash on hand—giving them the flexibility to quickly close on multiple distressed properties and complete construction on schedule without maxing out their own capital reserves.
Hard Money Lenders in Los Angeles vs. Conventional Bank Funding
Hard money fix-and-flip and construction loans are fast and flexible. They typically feature 6 to 24 month term lengths and can be approved and funded in as little as 5 to 10 days. A conventional bank loan is typically amortized over 15 to 30 years and takes 30 to 60 days to close.
The conventional bank’s slower funding turnaround includes an extensive borrower application, strict rules about property condition and a microscopic look at the borrower's finances and credit history. If anything at all sets off a red flag, a bank will ask for more documentation, further prolonging the approval process.
Can Hard Money Lenders in Los Angeles Fund Loans Fast?
Not every hard money lender in Los Angeles will have the financial technology or "fintech" to provide fast funding, so it is important to carefully vet prospective fix and flip lenders before you choose one to work with.
Hard money lenders using advanced fintech can fund fix-and-flip loans quickly because all of the parameters that are considered during borrower approval, property valuation and loan funding can be quickly analyzed and automated. A reputable hard money lender should be able to wire funds directly to a borrower's account within 24-48 hours of loan approval.
Also, with hard money financing, the fix-and-flip property serves as collateral on the loan and the requirements to approve and fund the loan are far less complex and strict than a conventional bank's.
Choosing from Hard Money Lenders in Los Angeles for Your Fix-and-Flip Loan
Before partnering with a hard money lender in Los Angeles, write a list of questions and expectations to help you choose the best hard money lender to meet your needs. Here are a few things to consider:
- How many days will it take from application to funding?
- Will you work with one account executive dedicated to your projects?
- What type of fintech supports the lender's processing and how does it benefit the borrower?
- Does the lender offer a bridge loan to "close as cash" that will help you compete with cash buyers?
- Will there be a penalty if you pay the loan off early?
- If you need more time to pay off the loan, is an extension available?
Most important to keep in mind is that anything that delays your project will end up costing you money. A lender’s commitment to prompt customer service is a must. Time you spend waiting to hear back from your lender is time you could spend moving your project toward completion.
Anchor Loans is the Nation’s Number One Fix-and-Flip Lender
Anchor Loans is the nation’s number one private direct lender to fix-and-flip investors, and was the first to fund more than $1 billion in loans in a single year. Anchor remains the industry leader, providing over $1 billion in fix-and-flip financing every year since 2016 — with life-to-date fundings surpassing $8.3 billion (as of July 2020).
At Anchor, your success is our success. Over 85% of our borrowers are repeat customers who rely on our fast, dependable funding to grow their business.
If you’re interested in taking the next step to use construction or house flip loans to scale your house flipping business, Anchor Loans is happy to help. Feel free to contact us with any questions you may have, and we’ll do all that we can to help.