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Hard Money Lenders in Los Angeles and the Real Estate Market

Los Angeles remains a very attractive market for those who can afford it. The California Association of Realtors reports that home prices in Los Angeles have increased 6.1 percent this year to date and are projected to show a 6.5 percent gain for all of 2015. Meanwhile, in Los Angeles County, prices are reported to have shot up 5.4 percent so far this year. These figures include detached and attached single family homes and duplexes. Century City Real Estate Report says that some L.A. luxury neighborhoods have already passed the 2007 peak. This situation makes a wonderful market for hard money lenders, since many investors are rearing to buy, but they are leashed by miserable credit ratings and credit histories. Shunned borrowers turn to hard money lenders in their area who hand them the funds based on their collateral.

Here is the Los Angeles real estate data for 2015-2016

The California Association of Realtors projects sales figures of 407,500 single family homes by the end of 2015. This will be an increase of 6.3 percent over the homes sold in 2014. Projections for 2016 are also for a 6.3 percent increase to a predicted 433,000 units next year.

In Los Angeles, some data sources, such as the California Association of Realtors, show that the median sales prices for single family homes and condos shot up 8.1 percent to $950,000 for the 2015 third quarter; a record high for the Greater L.A. area. Regions include Westside, Downtown and coastal cities like Malibu, but omit low-priced areas such as South L.A..

One way to understand real estate price cycles is to look at the building permit numbers. If developers are investing in new properties, as has been happening in the general Los Angeles area, it is a good sign that demand, and prices, are rising or keeping steady. Statistics shows a growth of 2.4 percent in building projects.

Observers are concerned that Los Angeles may be approaching another housing bubble, but William Yu, Economist for the UCLA Anderson School of Business strongly negated this prediction in a recent UCLA Anderson Forecast. Prices have shot (he said) in an already expensive L.A market only because of excessive demand and limited supply. This is no housing bubble but a hugely pricey and unaffordable situation where those with money either do, or would like to, invest. In fact, the market is mostly catering to the very wealthy. Typical reports show that builders and investors are looking to the high-end luxury market where potential profits far exceed the profit that an investor can realize from the average priced home. This kind of high-end residential development needs investors who have the right kinds of funds. Some individuals go to the banks for their loans. Other approach alternate traditional lending institutions.

What about those without money? Or with poor credit who are unable to procure a loan?

This is where hard money lenders come in.

Los Angeles hard money lenders

The Los Angeles money lending directory shows 56 hard money lenders and the listing grows all the time. Experts in the field know that there are many more who are listed in other places or remain unlisted. These (and other) brokers lend their personal funds to residential and commercial borrowers. The hard money lenders ignore the credit history and FICO scores of these borrowers focusing instead on the value of their collateral. If the borrower defaults, the lender sells his property as repayment.

Many investors rush to hard money lenders for their speedy turn-around (typically less than a week) and for the simple and easy procedure (merely a few papers and a handshake). They detest the high interest rates (double to those of the banks) and the low ratio-to-value loans (sometimes as low as 60%-50%). Many borrowers tend to get hard money loans for the immediate short-term future and then repay with bank loans or cover the rest with alternate funding. Hard money loans are expensive so most borrowers try to use them for as short a time as possible.

The Los Angeles hard money brokerage is diverse and vast. You will find lenders dabbling in all sorts of deals and lending to a variety of investors. Lenders also offer varying sums and for varying amounts of time. Since lenders work independently – after all, it is their own funds that we are speaking about – they set their own terms and schedules. If you go that route, make sure your lender is certified by the L.A. regulatory real estate Board and by the National Mortgage Licensing System (NMLS). Also look into his credentials and borrowing history. And best of all: have an attorney review all agreements before signing.

The bottom line is this…

The Los Angeles rising prices and tight inventory have driven more investors to the high-end market. Investors have run out of flips but there is a wider market for the higher-paying population or for wealthy foreigners. This type of inventory drives prices higher and is expected to shoot them higher still over the coming years as there is scanty new construction in the pipeline to meet demand.

For those in LA who want to make the most of this luxury market but lack the funds to do so, employing a hard money lending broker may be a feasible solution. This type of broker ignores the credit history and focuses on the asset. Luxury assets seem to have high potential. If the borrower can show the broker his ability of repaying and convince him of the value of his property, the borrower may be able to find an alternate means of landing a spot in LA’s luxury market.

The California Association of Realtors predicts that home prices will likely “grow steadily” in the end of 2015 into 2016. Many investors in Los Angeles are approaching hard money brokers to fund their immediate needs. How does this solutions sound to you? Feasible?

Realize Your Dream of Luxury Homes in Los Angeles

Los Angeles, also called the City of Angels, is the 2nd largest city in the whole of USA. It is also the entertainment hub of the country being home to Hollywood, the biggest movie industry of the world. More than 10 million people are living in this city where average prices of homes are in excess of $2 million. That tells the story about the attraction that lies in the minds of the people for having a home in Los Angeles. No wonder LA is dubbed as the hub of million dollar homes in USA. Many of these luxury homes are owned by Celebrities from Hollywood and the entertainment industry in general. But Los Angeles is not all about Hollywood though it definitely has the reputation of having some of the most luxurious homes in the country.

Los Angeles is perfect from every angle.

If you are planning to settle down in Los Angeles, it is certainly a very good idea. Los Angeles boasts of average annual temperature of 63 degrees F making it warm and sunny. It is very well connected with all nearby cities and states with highways. It also has its own airport to fly in and out easily whenever required. If you prefer to lead an active lifestyle, Los Angeles is the place to live in. Of course you must be able to afford the lavish lifestyle that matches the luxury homes of the city. If you cannot buy a luxury home right away, you can also exercise the option of renting a luxury home in the city of the stars. There are many real estate agents who can find the property according to your requirements. These luxury homes range from 1000 sq ft condominiums to palatial bungalows depending upon how much you can afford to pay per month.

Be prepared to dish out loads of money

The prices of homes in Los Angeles may appear to be too costly to you if you have been living in some other art of the country. But the thing to remember is that what you are getting in return is not just a home full of luxuries but a lifestyle that is available only to the rich and the famous. It is the quality of life promised with these Los Angeles luxury homes that is more important for those who dream about living in the neighborhood of the Hollywood stars.

Hollywood Hills and Beverly Hills are the outstanding localities

Some of the most luxurious homes in Los Angeles can be seen in Hollywood Hills, the community that houses most of the people associated with the movie and entertainment industry. Another locality where you find luxury homes concentrate is Beverly Hills, the area with the most famous ZIP code in the country. Luxury homes in Hollywood Hills are architectural wonders, full of all modern amenities that you can ever imagine. Not only are the villas and mansions huge and sprawling, they have so large entryway that you can easily park 4-6 cars in your home. Most of these luxury homes in Los Angeles are a unique and beautiful mix of concrete, steel, and glass. One thing that characterizes these luxury homes is that they have really high ceilings that give you feelings of space and grandeur.

Imagine a home where you not only have living room, dining room, several bed rooms, and entertainment areas but also a foyer area where you can receive your guests. Soaking the sun and sipping on your favorite drink in your swimming pool, you can hope to live life king size when you finally buy a luxury home in Los Angeles or take one such home on rent.

Buy Luxury Properties to Invest

So, to become rice and earn money you can make good deals in properties and hold them for long period. It is better to consult with the professional broker and make the best deal in real estate industry. Never make hurry in selling the properties when the properties rates are down. You can save yourself with a great loss. It is better to wait for the right time and sell the properties which make you rich by slow income. Buying the properties and holding the investment is the best way to earn money for you.