Why Orange County Real Estate Investors use Hard Money Lenders

Orange County real estate

Advanced Funding Solutions is a private money lender catering to real estate investors who flip properties for quick profits and individuals who cannot obtain traditional financing through banks because of past credit issues. The funds for hard money loans usually come from private money lenders looking to earn higher investment yields on their money than traditional investments such as CDs or stocks.

Hard money lenders finance deals for real estate investors in the short-term, from a few months to a year. Therefore, real estate investors use private money loans to finance deals quickly and turn the properties over for a profit sooner than they could by financing deals through traditional banks. Since larger, well-known banks do not traditionally offer short-term loans for real estate deals, hard money lenders serve a specific need for real estate investors.

Financing Real Estate Deals with Hard Money Loans
Advanced Funding Solutions is a premium private money lender in Orange County; therefore, real estate investors will gain more capital to finance the deal than they would with other hard money lenders in Orange County. Investors can finance deals for 100 percent of the purchase price for six months, complete repairs within that time frame, and increase the value of the properties by as much as 30 percent of the purchase price while only paying interest for six months. Sometimes hard money lenders finance more than the purchase price of the property so investors can complete repairs with little or no out of pocket cost. The after repair value, known as the ARV, is how much the property is worth once the repairs are complete, and real estate flippers often times receive up to 70 or 80 percent ARV financing on the properties before repairs are complete.

Loan Types Offered by Advanced Funding Solutions
AFS offers several types of loans for real estate investors and consumers with less than stellar credit. There are loan programs for consumers with bad credit who wish to buy single family residences or condominiums. Loan programs exist for consumers who wish to extract equity from existing properties, and AFS offers fix and flip loans designed for real estate investors who purchase homes as investment properties and rehab the properties so they can immediately put the properties back on the market.