New Development in CA Financed By Hard Money Lenders
Category : Hard Money Loans
Even with banks loosening up lending on residential properties, hard money lenders, also called “bridge” lenders, are funding the majority of new development loans. Bank loans for investment properties and new development projects are still very hard to come by. Some banks won’t even consider new development loans, whether residential or commercial, while other banks take a lot of time to underwrite these deals with no intention of ever lending on them. Although many developers were able to obtain bank financing prior to 2007, they now turn to hard money lenders to finance their development projects. Bridge financing, also called hard money or private money financing, is a source of non-bank loans. Bridge lenders have taken a leading role in financing new development projects since the real estate meltdown.
For example, low inventory of new construction office space in California has increased demand and has spurred developers in San Diego, California to start new construction projects. But it’s not the local banks that are financing these new commercial development projects. Instead, it’s bridge lenders or Hard Money lenders.