Tips for Finding a Hard Money Lender in San Diego

While it may not seem smart for a lender to loan money to a sinking company or person desperate for cash, it happens very often in the world of hard money lenders. Hard money lenders are so helpful because they understand that there are certain times when everyone needs a little financial assistance. Any person can find themselves in a poor situation and in need of cash in a hurry.
People in those situations often turn to hard money lenders and this often a life saver in serious scenarios. However, desperation for money shouldn’t lead anyone into a financial trap. That’s why the following tips have been gathered to help you locate a hard money lender in San Diego.
There’s always risk. The hard money lenders San Diego themselves are putting a lot of money on the line and it’s important that you realize you aren’t the only one taking a risk. You need to increase the lender’s confidence in your ability to repay your hard money loan, despite your current situation. You’ll have an opportunity to do this when you are speaking with the hard money lender. Be sure to list your experience, resources, and other similar deals in the past that went well. Let them know you are honest, trustworthy, and fully capable of repaying your hard money loan in due time.
Exit strategy. No hard money lender wants to lose out on repayment and then find themselves stuck with an empty, useless property instead of money. As tough as it might be, you’ll need to show the lender why your property is worth taking the risk. Let them know your plan and emphasize the full potential of the property you are placing on the line. If you can’t convince them that it’s worth taking a chance, then there’s no guarantee you’ll get the loan that you are looking for. Just because you see a good future for your business doesn’t mean the lender will see the same value in the property. Be prepared for tough negotiations and bring as much evidence with you as possible. Interest rates.Unfortunately, in the world of hard money lenders there is no such thing as low interest rates. 90 percent of the time you are going to find a commercial hard money lender offering interest rates between 11 and 17 percent. It’s in your best interest to avoid loans at a rate above 20 percent because there is probably something better out there on the market. Make sure you do the math and know exactly how much you’ll be repaying over time.
Ask yourself if the loan is worth that number and if not, then try for a lower rate or shop elsewhere. It’s not likely you’ll find a rate better than 10 percent. Shop around. One of the worst things you can do is get desperate and settle for the first loan that you find. You have enough time to search around and review different San Diego hard money lenders. You might be surprised by the large variety in interest rates, premiums, and loan amounts.