California Hard Money Loans is operated by Rockland Commercial, Inc. in Manhattan Beach, CA Los Angeles County, and has extensive experience in placing hard money financing on commercial and residential real estate. We are a residential and commercial california hard money loan and hard money lending specialist that represents a multitude of private individual hard money investors who specialize in funding hard money loans in California. In addition to our expertise in residential and commercial hard money loans, we also service bridge, construction / rehab, and apartment hard money loans.
Hard Money Lending Services - REO Purchase Loans Available!
Hard money loans are real estate collateralized loans based on the sale value of the property against which the loan is made. Hard money lenders generally only lend in 1st position. However, some hard money lenders will subordinate to another 1st lien position loan; these loans are known as second lien position loans.
Hard money lenders are most concerned with Loan-to-Value or LTV ratio and typically lend a maximum of 60-70% of the value of the property. Value is defined as 'today's sales price, the amount a hard money lender could expect to realize from the sale of the loan collateral/property in the event that the borrower defaults and the property would be sold in a 1-4 months' time. This 'value' differs from an MAI appraised value.
Hard Money is a term that is used in the United States and Canada where hard money loans are common. In California hard money developed as an alternative to bank loans. Hard money lending began in the 1950s when the credit industry in the US was under dreastic reformation. (see FDIC: Evaluating the Consumer Revolution).
The hard money industry had some set backs during the real estate crashes of the early 1980s and early 1990s due to lenders overestimating and funding properties at well over market value. Due to this it is typical for hard money lenders to be more conservative in their maximum lending limits, such as a 10% reduction in maximum LTV.
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