Some financial experts predict that the Los Angeles real estate market — after a year of roaring sales — could experience a downturn in 2021 and beyond.
With low mortgage rates, however, you may find it an opportune time to purchase new residential property or add to your commercial investment portfolio.
If your goal is to build rental income, it's a good idea to finance your plans through the select group of hard money lenders California investors have learned to trust.
Successful investors — both personal and corporate — have established positive relationships with seasoned lenders experienced in meeting funding needs quickly and with no surprises.
Quick Navigation
Building Strategic Relationships During a Market Downturn
The skilled hard money lenders in Los Angeles (learn more) real estate buyers rely on helped build their client base by offering streamlined loan applications.
This can lead to a speedy closing. Purchasing property during a downturn requires buyers to perform the needed due diligence without encumbrances.
A lender who can facilitate a smooth funding transaction could be a key factor in freeing up time and serving as a valued strategic partner.
Changing Homes To Accommodate Telecommute Upgrades
Companies shifting toward work-from-home operations may consider laying off or furloughing employees who can’t adapt to new telecommuting systems.
Working remotely, however, may require alterations to an existing property to accommodate technology upgrades or other home office needs.
Employees with young children, for example, may find it necessary to create a separate area in a home that can filter out loud sounds that could intrude on a phone call or virtual meeting.
For many new remote workers, it could signal the need to move to a new home.
Bridge Loans Can Overcome Hurdles
For those individuals who are unable to modify a home to meet the demands of working remotely, it’s not improbable that it may prove difficult to remain employed.
Many of them, however, may need to first sell their current home to afford a down payment on a new one.
This hurdle can be easily overcome through the services of residential bridge loan lenders. A bridge loan conveniently taps into a current home's equity value to act as a “bridge” that provides money to purchase a new property.
It can help realize a move before a currently owned house lands a buyer. When the house sells, the proceeds can then be used to pay off a bridge loan's balance.
Virtual Transactions May Be the Norm
Real estate trends appear to indicate more buyers and sellers will be transacting virtually. A virtual transaction can remove the need for a realtor because buyers and sellers can list, review and buy properties online.
As contactless interactions become more of the norm, a working knowledge of online buying and selling methods provides an advantage in the real estate market.
An experienced lender can walk you through the steps in securing the necessary funding electronically.
Reduced Paperwork and Faster Loan Approvals Aid Investors
Conventional lenders may not provide real estate investors with the timely financial services that can make or break a deal.
Reputable and experienced hard money lenders, however, can fund an investment transaction in as few as three days.
Their rates also tend to be lower due to the higher competition among the hard money lenders Los Angeles investors have learned to depend upon.