Mistakes to Avoid While Submitting A Hard Money Loan In Los Angeles
                     Mistakes to Avoid While 
Submitting A Hard Money 
Loan In Los Angeles
www.acalending.com
The best thing about hard 
money is that you can obtain 
funding quickly. This lets you 
stay competitive in the real 
estate market when making 
offers. However, if you 
discover yourself committing 
mistakes in the submission 
process, you may end up 
without the financing you 
need & missing out on 
profitable properties.
Let’s go through some of the 
most widely made mistakes 
while submitting 
hard money loans in Los A
ngeles
 and what can you do to stop 
them from happening to you.
Not getting pre-approved:
It is astounding how many folks will sign an agreement without getting pre-approved for 
the loan. Prior to making offers on a property, take your time to meet a trusted hard 
money lender in Los Angeles. As soon as you get pre-qualified, you can shop with 
confidence. In fact, some lenders will send you a pre-qualification letter to show that you 
are a serious buyer.
No idea about how much to borrow:
Private loans don’t work the same way as bank loans. With bank loans, you may make a 
small payment every month that counts toward your interest & the money owed back. With 
private loans, your monthly payments are interest only and the full amount is due at the 
end of the settled terms. This is called a balloon payment.
You may be wondering why does this make a difference? Well, if you borrow more than 
you require, you will need to pay that back and pay more in interest. If you do not borrow 
enough you may not be able to complete the project and it could put the brakes on 
renovations, causing delays. Prior to settling on how much to borrow, get precise 
estimates from your contractor for the work you intend to do.
Not working with a reliable hard money lender:
Sadly, there’re so many loan scams operated by unethical lenders. Picking the wrong 
hard money lender can be a nightmare. In fact, it can ruin your fix and flip project. 
Safeguard yourself by doing your research on the right private lender.
For instance, how long the lender has been in business? Do they have reviews from 
other borrowers? What’s their process for accepting loan applications & approving 
capital?
Hard money loans in Los Angeles have helped many people with their real estate 
transactions. If you want to take advantage of these kinds of financing options, feel free 
to get in touch with All California Lending.