What is a hard money loan?

A hard money loan is a way to finance a residential or commercial real estate business endeavor. For many real estate investors and brokers, the opportunity to invest in the perfect property can come at any moment. If your finances are tied up in another project and you need financing to fund your next property purchase quickly, a hard money loan may be the best solution.

Our hard money loans in Santa Rosa, CA are issued by a team of expert private investors to clients who need to buy and secure real property quickly. At Source Capital, we provide hard money loans for up to 65% of the value of the property which you can repay over the span of 36 months, so you can finance your real estate project quickly and easily.

How is a hard money loan different from a traditional loan?

When time and convenience are important variables, real estate buyers turn to hard money lenders in Santa Rosa. It can take several months to get approved for a traditional mortgage offered by a bank or credit unions. 

Traditional lenders and mortgage providers will scrutinize and analyze your credit history, marital status, job history, and much more to determine your credit-worthiness, making it difficult for first-time borrowers to receive real estate financing with a mortgage, FHA loan, or VA loan.

Source Capital hard money loans in Santa Rosa provide a fast and direct alternative loan so you can avoid the hassle of traditional lenders. No need to worry about past bankruptcies or bad credit — you can be approved for a Santa Rosa Hard money loan with no minimum FICO score requirements. Your loan application will be reviewed and approved in as fast as 24 hours so you won’t have to wait on a traditional real estate mortgage.

What is the interest rate on a hard money loan in Santa Rosa?

The average hard money loan in Santa Rosa, CA is $314,844 with an average interest rate of 8.99%. If you’re searching for fast financing with an interest rate that works for you, the hard money lenders at Source Capital are happy to help. 

Our team is comprised of well-established hard money lenders in Northern California and throughout the Golden State. Beyond Santa Rosa, Source Capital has got you covered — from our Hard Money Lenders in Los Angeles, CA to Hard Money Lenders in Sacramento, CA, count on us for all of your lending needs.

What happens if you default on a hard money loan in Santa Rosa, CA?

If you are unable to make payments on your loan and end up defaulting, your hard money lender may have the right to possess the financed property or other assets used as loan collateral, then sell them to recuperate lost funds. 

Defaulting on your Santa Rosa hard money loan may also mean that your lender forecloses the property you purchased with the loan, repossessing it and selling it to resolve the debt. 

Santa Rosa hard money loan property investments

Source Capital is the premier hard money lender in Santa Rosa. We have helped assist in thousands of successful real estate investments all over California. No matter what kind of property investment you wish to make, Santa Rosa hard money loans can be tailored to fit the exact requirements of your commercial or residential property needs. 

Here are some examples of what our direct loans can be used as investment vehicles:

• Commercial Property: Are you looking to purchase a section of real estate property to rent or lease to small businesses? Source Capital can tailor your Santa Rosa hard money loan to purchase an office, retail, multi-family rental, storage facility, hospital, or industrial building.
• Residential: If you’re looking to purchase non-owner occupied property in the 95401 zip code Source Capital can help. Santa Rosa hard money loans can be used for condos, single-family residences, apartments, duplexes, triplexes, or quadruplexes. 
• Fix and Flip: Whether you are a seasoned veteran or just getting started on your first fix and flip project, you can count on Santa Rosa hard money loans to give you the financing needed to close the deal swiftly and smoothly.

When it comes to real estate investments in the Redwood Empire, hard money loans are the easiest way to gain leverage in a negotiation and secure your property. Real estate agents are more likely to sign a deal with a buyer who is backed by hard money rather than a traditional bank loan which could be pulled during escrow.

Popular Santa Rosa Areas

As a real estate investor, it’s your job to do your research to make sure you’re investing in the right neighborhood. Santa Rosa is a beautiful city with several great neighborhoods, but it depends on the type of real estate you’re investing in. Here’s a rundown of some of the most popular parts of Santa Rosa.

Downtown Santa Rosa

As is the case in most cities, Downtown Santa Rosa is the place to be if you want to be right in the center of everything. Downtown Santa Rosa is a walkable area that offers a nice selection of dining, entertainment, and nightlife. Unlike some downtown areas, Downtown Santa Rosa is home to a diverse array of real estate ranging from single-family homes and condos to commercial buildings.

Bennett Valley

Some people prefer a quieter lifestyle away from the city, and that’s exactly what Bennett Valley has to offer. This neighborhood has one of the lowest walkability scores in the Santa Rosa area, which means residents need to be comfortable with driving. However, Bennett Valley is one of the best neighborhoods for families because it’s purely residential.

Junior College

If you’re looking to invest in rental property, the neighborhoods near colleges are always a good place to start your search. Junior College is a neighborhood right near Santa Rosa Junior College, which means it attracts students who are looking to rent a place in the area. There are some apartments in the area, but Junior College is mostly made up of single-family homes.

Monroe

Monroe is another neighborhood where you’ll mostly find single-family homes, but it offers all the amenities residents need in one area. Monroe residents have easy access to parks, shopping centers, and several local restaurants.

How Our Loans Work

When you apply for a conventional loan, it can take weeks or even months to get your loan approved and funded. If you don’t have a good credit score and adequate income, conventional lenders might deny your loan. A Santa Rosa private loan from Source Capital offers an alternative to conventional loans.

Your loan to value (LTV) ratio is one of the things we’re most concerned with. We offer loans with up to 65% LTV, so you may be eligible for a loan if the loan amount doesn’t exceed 65% of the value of the property you’re purchasing.

Once your private loan is approved, we’ll send you a written offer that includes your interest rate and lender fee. If you accept this offer, your loan will be funded in 7 to 10 days. After you have your money, keeping up with your loan is as easy as making monthly payments via mail, phone, or direct deposit.

Our private lenders can work with you to finance a wide range of real estate investment opportunities. Whether you’re investing in a single-family rental home or a large commercial warehouse, our lenders have the knowledge and experience to help you find the best loan for your needs.

What are the terms of a hard money loan in Santa Rosa?

The terms of each loan vary based on the property you wish to invest in. However there are some terms that you can expect on your loan once it’s approved:

• Fixed rates from 8.99%
• No prepayment penalties
• No junk fees
• Lender fees from 2 points
• Loans up to 65% LTV and 2 year terms
• No minimum FICO score

No matter what investment venture you pursue you can trust that our terms are clear and easy to understand. 

How to apply for a Santa Rosa hard money loan

Applying for a Santa Rosa hard money loan is quick and easy. All you need to do is fill out our online application. Once submitted, you can expect an estimate in as little as 24 hours. Don’t worry about your financial history or current credit score; our hard money lending in Santa Rosa is based on the value of the property you wish to invest in and its potential value. 

Why choose Source Capital?

If you’re ready to make a real estate purchase in Santa Rosa, don’t hesitate to contact Source Capital today. We want to help make your real estate dreams come to fruition with an easy application process and advantageous loan terms. Call us today at 888.235.7191 for a free and fair quote to help you get started as soon as possible.