When a borrower wanted to purchase a property on North Hayes Ave. in Oxnard, California, he was unhappy that traditional lenders would not work with him. Due to already owning multiple financed properties, conventional, FHA and even non-qualifying (non-QM) lenders were unwilling to offer him another loan. On top of that, it was unclear if any mortgage companies other than private lenders would offer a loan on the property because it needed a significant amount of repairs. 

Before going to Hard Money West, he had asked multiple mortgage brokers for help securing the property. Unfortunately, they told him it wasn’t possible to purchase the home in his situation and that he should wait to find something else in the future. As a result, this investor was going to miss out on a profitable investment in a strong real estate market.

Hard Money West was able to help him purchase the property with a hard money loan. It turned out that the investment was still profitable, even with the higher interest rate of a hard money loan. As is often the case, this property was being offered at a discount because traditional lenders were refusing to finance it. The huge majority of borrowers were unable to get a loan for the property and there are far less all cash buyers in most markets. For this reason, the investor was the only buyer making an offer on the property in a market in which most homes were and still are receiving anywhere from a dozen to over 30 offers.

The total monthly payment turned out to be around $3,000 and the investor was able to rent out the units on the property for over $5,500. In most cases, an investor would be lucky to profit even $1,000 on a single family investment home in the hot California market. North Hayes supported a profit over $2,500 per month because a hard money loan was used to secure a property that other borrowers were unable to obtain using only traditional methods.

The investor was able to hold the property for 18 months and perform repairs to improve the condition of the property. Not only did having the time to make improvements allow him to increase rents on the property, but also to get an appraisal that traditional lenders would accept. At that point he went back to the brokers at Hard Money West who were able to help him refinance into a conventional loan with a lower interest rate. He was able to secure a profitable investment that would have not been possible without help from a senior broker at Hard Money West. On top of that, he actually profited while holding the property until he could find another loan option that offered a lower interest rate.

Hard Money West helps clients achieve their real estate goals with strategies that other brokers either don’t know about or aren’t willing to help with. We know that the way to build a strong business is to give the best possible service to all of our clients!

Please contact us anytime if you need help from professionals who handle hundreds of loans per year. We’re always available to help you find the right mortgage strategy to make your real estate dreams a reality.

Hard Money Case Study
Hard Money Case Study

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