Loan approval is based on the equity in your LosAngeles based property and the purpose of the loan. Credit and real estate history are not part of our process.
Typical origination fees start at around 1.25% of the gross loan amount. Origination fees are based on a combination of the following, property quality, property type, location, loan term, loan amount, loan to value and credit.
Our lowest loan value is $50,000, but we specialize in loans up to $10 million dollars. Speak with one of our representatives about your situation.
We work with residential and commercial properties located in LosAngeles, funding 1st and 2nd mortgages. Receive a loan based on the equity in a property and the purpose for the loan.
A hard money loan is similar to a conventional home mortgage. The borrower is provided with a loan and real estate serves as the collateral. The key difference is that Los Angeles hard money loans are funded by private investors instead of institutional lenders such as banks and credit unions.
Unlike institutional lenders, hard money lenders do not focus on income history or credit scores. Los Angeles hard money lenders are primarily concerned with the property’s value and borrower’s the equity in the property. The emphasis on value and equity allows for fast and flexible funding that banks aren’t able to compete with.
Los Angeles hard money lenders typically require a down payment of at least 25-30%. This amount of down payment is higher than what banks and credit unions typically require. The trade off is that hard money lenders have fewer requirements for loan approval. They can also overlook poor credit or other issues on a borrower’s record such as bankruptcies, foreclosures, loan modifications and short sales.
Hard money lending is only for short-term use. The borrower must have an exit strategy in mind when they are applying for the loan. In Los Angeles, hard money loans of up to 3-4 years are often available to borrowers. Common exit strategies include refinancing with a conventional loan or selling the property.
Hard money lending companies have higher interest rates than conventional bank lenders. Los Angeles hard money loan interest rates typically range from 8-12% for a 1st (senior loan). Hard money 2nd loans can range from 11-14% interest as there is a greater amount of risk assumed by the lender in 2nd position. The specific rate will vary based on many variables such as the lender, borrower, property and loan to value requested. While hard money interest rates are higher than conventional loans, the flexible lending criteria and fast funding is worth the higher cost.
Real estate investors in need of quick financing to secure a limited-time opportunity are often the biggest beneficiaries of fast hard money loans. Since hard money loans for real estate are only offered for short terms, the higher interest rates often aren’t a significant cost over the course of the real estate investment.
The hard money loan application process with AJE CAPITAL is fast and easy. The applicant must first complete and return a brief hard money loan application. Once the completed application is received by AJE CAPITAL , they will review and then notify the applicant whether or not their request has been approved. The approval process is often completed the same day the completed application is received.
Once the loan request is approved, AJE CAPITAL is able to fund the loan in as few as 3-5 days for investment property. Loans for owner occupied property generally take 2.5 weeks due to current federal regulations that all hard and private money lenders in Los Angeles must follow.
Hard money lenders in Los Angeles are mainly asset-based lenders. When considering loan approval, AJE CAPITAL is most concerned with the current value of the property used as collateral as well as the amount of equity the borrower has in the property. Issues on a borrower’s record such as poor credit scores, short sales, bankruptcies, foreclosures, and loan modifications can be overlooked by hard money lenders (private money lenders). But the borrower must have a considerable down payment to put towards a purchase or equity within existing real estate to borrow against.
Once the Los Angeles hard money loan has been approved, AJE CAPITAL quickly begins the loan process and works closely with the borrower until the loan has been funded. AJE CAPITAL prepares all the needed loan documents and disclosures and answers any and all questions from the borrower along the way.
When escrow is ready to receive funds from the lender, AJE CAPITAL will have the funds wired to escrow in order to close the deal.