{"id":112,"date":"2014-10-30T17:23:45","date_gmt":"2014-10-30T17:23:45","guid":{"rendered":"https:\/\/blog.calhardmoney.com\/?p=112"},"modified":"2023-06-29T12:19:20","modified_gmt":"2023-06-29T12:19:20","slug":"understanding-hard-money-drawbacks","status":"publish","type":"post","link":"https:\/\/www.calhardmoney.com\/blog\/understanding-hard-money-drawbacks\/","title":{"rendered":"Understanding Hard Money Drawbacks"},"content":{"rendered":"<p>PB Financial Group is one of the leading hard money lenders in Los Angeles and all of California. We\u2019ve helped countless clients find the investment capital they need to make major changes to their business or harness new opportunities. However, hard money isn\u2019t the perfect solution for all situations. PB Financial Group believes in full transparency when working with clients, and thus has compiled a quick list of things to consider before selecting a hard money loan:<\/p>\n<h2 style=\"font-size: 14px; font-family: Droid Serif,arial,serif;\"><strong>Interest Rates<\/strong><\/h2>\n<p>Interest rates on a hard money loan are generally higher than those on a traditional loan. However, loan terms are also shorter, which means overall interest costs might not necessarily be higher over the long-term. It\u2019s important to consider the full term of the loan when calculating total interest.<\/p>\n<h2 style=\"font-size: 14px; font-family: Droid Serif,arial,serif;\"><strong>Loan to Value<\/strong><\/h2>\n<p>Because a hard money loan is secured by your assets, it\u2019s possible the loan-to-value ratio will be lower than you\u2019re expecting. This is a core mechanic of the loan; if you\u2019re unable to repay the loan the company that furnished it will need to sell the asset. Thus, the total amount is sometimes limited by realistic resale value.<\/p>\n<h2 style=\"font-size: 14px; font-family: Droid Serif,arial,serif;\"><strong>Loan Flexibility<\/strong><\/h2>\n<p>Hard money lenders will want to know that you have a vision and a goal for your loan. Before they offer an investment, they\u2019ll want to see that you\u2019re ready for the responsibility. <a href=\"https:\/\/www.calhardmoney.com\/commercial.php\"><strong>Commercial hard money lenders in Los Angeles<\/strong><\/a> expect you to be ready to accept the loan immediately and proceed forward without delay.<\/p>\n<p>Overall, hard money loans should be considered another option in financing your business and building your success. Like traditional loans, they\u2019re not a one-stop solution for all situations. It\u2019s best to sit down with a provider of hard money loans to determine if what they\u2019re offering is what you need. PB Financial Group is happy to field any questions you may have. For more information or schedule a consultation please visit <a href=\"https:\/\/www.calhardmoney.com\/\"><strong>www.calhardmoney.com<\/strong><\/a> or contact us at <strong><a href=\"callto:323.935.5555\">323.935.5555<\/a><\/strong>.<\/p>\n<p><strong data-rich-text-format-boundary=\"true\">PB Financial NMLS #357614\/DRE #01522495<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PB Financial Group is one of the leading hard money lenders in Los Angeles and all of California. We\u2019ve helped countless clients find the investment capital they need to make&#8230;<\/p>\n","protected":false},"author":2,"featured_media":171,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[3],"tags":[56,8,57,55],"class_list":["post-112","post","type-post","status-publish","format-standard","has-post-thumbnail","category-blog","tag-commercial-hard-money-lenders","tag-hard-money-lenders","tag-pros-and-cons-of-hard-money-loans","tag-understanding-hard-money-drawbacks"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Understanding Hard Money Drawbacks<\/title>\n<meta name=\"description\" content=\"PB Financial Group is one of the leading hard money lenders in Los Angeles and all of California. Read the following information about hard money drawbacks.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.calhardmoney.com\/blog\/understanding-hard-money-drawbacks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Understanding Hard Money Drawbacks\" \/>\n<meta property=\"og:description\" content=\"PB Financial Group is one of the leading hard money lenders in Los Angeles and all of California. 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