Monthly Archives: October 2016

Hard Money Loans – The Best Financing Options for Investors and Borrowers with Bad Credit

By coincidence, if you have bad credit or low credit score, there is no chance to get traditional home loans for you. In this situation, only hard money loans can help you to purchase a home. A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real estate property. Hard money loans do have an important role in the real estate market. When traditional financing options are not available, utilizing a short-term hard money loan can help achieve a borrower’s end goal. This type of loan is often used by real estate investors to quickly acquire the capital needed to purchase, refinance or renovate a property. Hard money loan is also intended for interim use while borrowers rebuild or establish a credit history. Sometimes, Investors use this type of financing to buy properties that are not in marketable condition because this type of realty does not qualify for conventional financing through banks. The advantage of having a hard money loan is you are assured that the lenders have funds promptly available for you. That means you do not have to wait for approvals from investors and this makes the process fast compared to the traditional lending. Hard money is also unique for its relatively relaxed underwriting standards, quick turnarounds, and for considering the value and equity of a property rather than the creditworthiness of the borrower in the underwriting process. So, you don’t need to have perfect credit to get a hard money loan, but you do need to have a good exit strategy and you should have the ability to bring some of your own money to finance your project. Another advantage of a hard money loan is faster to approve and are usually approved within a few days. You usually have the ability to borrow up to 70% of the property’s value. Conclusion: A hard money loan is the best option for the real estate investor because there is more weight placed on what you offer as “collateral” than on your credit score, checking account balance or other income requirements that more traditional lending institutions use to determine denial or approval of your loans. The advantages of easy access, convenient requirements, and rapid processing allow you to make your dreams of real estate a reality. Magna Capital Group is a reputable hard money lender in California. We understand the complexity and details of all kinds projects. We are fast, creative and reliable consultants with the experience and lending sources to keep your project momentum moving forward. We offer hard money loan for all kinds of residential and commercial projects. We provide the best loan programs to meet your financial goals. If you feel that a hard money loan is right for you or if you have any additional questions, Call (323) 655- 6888 or Email at info@magnaloans.com.


Hard Money Loans – The Best Financing Option for Flipping Houses

Category : Hard Money Loans

A lot of people dream of getting into the business of fixing and flipping homes, but money is the number one issue for them. You need capital to purchase homes and do the renovations before you can sell them for a profit. Fixing and flipping houses costs a lot of money. In addition to buying the home, you will need to pay for repairs, contractor fees, listing and broker fees, and more.

Hard money loans have lots of worth for fixing & flipping homes. Hard money lending is the principal form of financing that new house flippers use. Hard money loans are ideal for novice home flippers because they care more about the property and its potential value than about the borrower’s experience or financial qualifications. In general, hard money loans are the easiest to qualify for because no prior experience is necessary.

Hard money loans are usually for 1 to 24 months. The reason why the term is so short is because the process of buying a house, renovating it, and selling it typically takes less than 12 months. The loan is paid back with the proceeds from the sale of the home. Until the home is sold, you pay only monthly interest payments. Hard money loans are easily available between 8-16% interest rate and up to 65% of the ARV (after repair value) of the house can be financed by hard money lender. You need to make enough profit from the sale of the home after paying for renovations, interest and fees, closing costs, etc. Ideally, the loan should cover the full purchase of the price of the home, and you should have some funds left over for the renovation.

Bottom Line

You can use hard money loans for house flipping business. It’s one of the best, fastest and easiest financing option for fixing and flipping homes.

There are many hard money lenders, but Magna Capital Group, Inc has unique presence among all of them. We understand that sometimes circumstances can make it difficult to qualify for a bank loan. Our  fix & flip loans provide you with the fast funding and loan terms that you need to help you reach your goals.

If you want to get pre-qualified for a fix and flip loan right now, we recommend you to visit www.magnaloans.com or call (323) 655-6888.


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    Although Magna Enterprises, LLC and Magna Capital Group, Inc. are referred to throughout the text of this website as Magna Group of companies, they are not affiliates, parent or subsidiary companies as both companies are separate and distinct entities. Any questions or issues regarding this disclaimer should be addressed in writing c/o Shawn Molem.