Conventional lenders such as banks will never lend to an investor with a recent foreclosure on his record, in most cases they won’t even lend to poor credit investors, no matter the reason, it’s just how these financial Institute work, and you won’t be able to get funding, at least for a set amount of time. Hard money lenders can fund bad credit investors in many cases as they are much more flexible and consider asset-based hard money loans in California and list the property value and the investor down payment as a major factor in assessing the loan.

When real estate investors considers alternative funding sources to their projects, one such option is to get a funding partner, and while partnering up to fund a real estate property might be a good idea in some cases, there are many things to consider before doing so. The first and most obvious thing to consider is that with a partner you might give up some decision making control. It is also very common that the partner will ask for a payment of 50% of the profit once you sell your property, which is very expensive if you think about it.

Hard money lenders charge interest rates and points for the money they lend. Usually the interest rate is between 8% – 12% and the points range between 2 – 4. Some hard money lenders also charge additional fees such as: processing fee, document fee and others. There are other costs the borrower will need to pay and they are: escrow, title insurance, notary and recording.