It's not uncommon for insiders in the mortgage industry to point to coin lenders as a last resort. While this may be true as many borrowers seeking credit from coin lenders do so as a last resort, there are many instances where coin lenders can be sought from traditional banking institutions. You can also contact a hard money lender in Los Angeles via wilshirequinn.com/los-angeles-hard-money-lender/.
.Let's look at some scenarios where a hard money lender may be the first port of call rather than the last resort.
Commercial Real Estate Development: Let's say a real estate developer has invested $10 million in a development deal and initially plans to sell the units in January, and will then begin recouping their dollar investment in the project. As with many such ventures, delays can delay the start date of sales or the project can go over budget, putting the developer in a negative position.
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Investors In Re-Development: Another example of a hard money scenario is a renovation investor who needs a loan to renovate a run-down abandoned house. Most banks will take out these loans because they can't ensure that the tenant can immediately sell the unit for a profit — especially without paying rent from the current tenant to pay off the mortgage.
Borrowers In Conservation: The final hard money scenario involved someone under a ban. Once homeowners default on their payments, most lenders will either stop lending them or restructure their current loans.