Hard Money Loans for Sacramento Real Estate

Hard Money Loans for Sacramento Real Estate

Real estate investment provides an exciting, established means of building wealth and equity. For real estate investors, a strong buyer’s climate means it’s time to look for promising investment properties and purchase them before prices increase in the Sacramento market. Many Sacramento investors looking to take advantage of this favorable market seek private money financing, often known as hard money financing, in order to fund their purchases and realize an excellent return on investment (ROI). Hard money loans provide a wealth of options for Sacramento investors and private buyers who want to purchase properties that traditional financing just can’t buy.

Why Do Sacramento Investors Use Hard Money Loans?

For those who are new to the world of real estate investment in Sacramento, private financing and hard money loans may seem like a mystery. However, hard money loans are widely used by buyers who can’t purchase Sacramento properties with traditional financing. While buyers who have been through foreclosure or bankruptcy sometimes find relief from a good hard money lender, there are many other reasons to take out a hard money loan. Here are 5 great examples of how hard money loans can be used effectively in the Sacramento real estate market:

  • Hard Money Loan Example #1: A Sacramento property that doesn’t meet a bank’s guidelines for traditional financing.
  • Hard Money Loan Example #2: A private buyer who has taken out an FHA loan wants to buy a Sacramento residence to rehab and resell.
  • Hard Money Loan Example #3: A Sacramento investor wants to purchase a non-traditional property such as a church or chicken farm.
  • Hard Money Loan Example #4: A buyer wants to purchase a Sacramento investment property that is difficult to appraise, is owned by a bank or is owned by a real estate company.
  • Hard Money Loan Example #5: An investor wishes to make a fast offer on a house at short sale in Sacramento.

Hard Money Loans for Sacramento Residential Purchases

Sacramento area buyers who want to purchase residential properties often use traditional financing to do so. However, FHA loans and similar products simply don’t fit every buying situation. Hard money, also know as private money loans, can provide financing from private lenders when other banks can’t or won’t. Of course, hard money loans are sometimes utilized by residential buyers who have poor credit scores but strong equity in a Sacramento home.

Fix-and-Flip Hard Money Loans For Sacramento Homes

Fix-and-flip hard money loans are used by residential buyers who want to buy distressed properties in Sacramento, rehab them and then sell them at a profit. Traditional banks are often reluctant to finance these types of purchases because of the condition of the investment property, but this where a good private investor can help. For Sacramento real estate investors, a hard money loan from a local Sacramento private investor can provide financing for both the purchase of a home and repair costs, allowing for a great ROI.

Ground-Up Construction Hard Money LoansFor Sacramento

On occasion, real estate investors want to build unique residential properties in the Sacramento region that don’t qualify for traditional financing, but that same project be considered by a private hard money investor. Hard money loans for ground-up construction in Sacramento are often used in these situations. Some savvy Sacramento real estate investors even use hard money loans to purchase partially completed projects, finish them and sell them at a profit.

Hard Money Loans for Commercial PurchasesIn Sacramento

Commercial real estate investors throughout the Sacramento area use hard money loans to finance their purchases. Because commercial real property is often bought on cash-only offers, it’s essential that Sacramento investors have quick access to financing which is the great advantage of hard money loans. Private lenders who offer hard money loans can generally provide much quicker preapprovals than banks, allowing investors to make timely offers for Sacramento area properties.

Sacramento Commercial Rehab Hard Money Loans

Some Sacramento investors also use hard money loans to take on commercial rehab projects. Much like fix-and-flip hard money loans, commercial rehab loans provide financing for the purchase of Sacramento investment properties that must be rehabbed before they can be sold or used. Investors who have a strong plan for a Sacramento property’s use can realize an excellent ROI when using commercial rehab hard money loans.

Bridge Hard Money LoansFor Sacramento Businesses

From time to time, Sacramento business owners need to find private financing to meet pressing needs. Some entrepreneurs use bridge hard money loans that own their Sacramento properties free and clear while others use hard money loans to purchase inventory or cover operating expenses. These hard money loans can be tailored specifically to the needs of Sacramento small business owners when refinancing a mortgage just isn’t possible.

Sacramento, CA

Sacramento is the capital city of the U.S. state of California and the seat of government of Sacramento County. It is at the confluence of the Sacramento River and the American River in the northern portion of California’s expansive Central Valley. With an estimated 2011 population of 477,892, it is the sixth-largest city in California and the 35th largest city in the United States. Sacramento is the core cultural and economic center of the Sacramento metropolitan area which includes seven counties with an estimated 2009 population of 2,527,123. Its metropolitan area is the fourth largest in California after the Greater Los Angeles Area, San Francisco Bay Area, and the San Diego metropolitan area, as well as the 27th largest in the United States. In 2002, the Civil Rights Project at Harvard University conducted for TIME magazine named Sacramento “America’s Most Diverse City.


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