A Hard Luck Hard Money Story

Post Category : Lending


I know a guy who inherited the home he grew up in when he was in his late 20s. He rented it out and purchased a separate home for himself and his new bride.

The old family homestead continued to appreciate in value and eventually he knew it would be smart to sell it and leverage the cash to buy a greater number of properties. He did this successfully and started to see his little portfolio of residential real estate grow.

However, he still remembers a conversation he had over the phone with his representative at one of the major conventional lenders. They held the mortgages for four properties and weren’t going to loan him anything for a fifth.

He knew there were good deals out there with decent cash flow positions and a lot of potential for appreciation. But apparently the lender didn’t see it that way.

It’s a common story.

The hard money loan solution

At Evoque Lending, we’re able to help many real estate investors when they find themselves in this position. In fact, up and down California right now, there are a lot of situations where the cash flow numbers work quite well for residential real estate investors.

We have been helping investors add Los Angeles real estate, Orange County real estate and San Francisco area real estate to their portfolios for over 15 years. We have a wealth of experience in this area and have seen many investors dramatically improve their positions by using the service we provide. In Los Angeles, hard money lenders understand the value of the relationships they build over the years with real estate investors.

I know that is certainly true at Evoque Lending and it’s reflected in our commitment to world-class customer service. If you’re a seasoned real estate investor, you probably know much of this already, but let me go over some of the fundamentals of the way we handle hard money loans for California properties.

We have two basic requirements for lending:

– Sufficient equity in the property (typically 40 percent), and
– Ability and willingness to make payments.

The advantage of local control

Because we’re a locally based California hard money lender, we don’t have to make our clients jump through all kinds of hoops before we can get them approved and their loans funded. In fact, we generally give our clients the answer they need within 24 hours and often get their hard money loans funded in a week to 10 days.

Real estate investors find this speed and level of service especially satisfying if they have been used to working with banks and conventional lenders who are famous for creating delays. The speed at which we’re able to approve and fund hard money loans in Los Angeles and throughout California is exactly what’s required to operate successfully in our current real estate market.

So as you survey your real estate portfolio, is it time to expand? If there are opportunities you would like to take advantage of, give me a call or drop me an email so we can see if a California hard money loan would help you out. It would be a privilege to introduce you to the services we offer at Evoque Lending.