Loading
Concord's investor market runs on speed. Older housing stock near downtown and Todos Santos means flip opportunities pop up weekly. Hard money loans fund these deals in days, not months.
Most Concord investors use hard money for properties needing heavy rehab. Traditional lenders won't touch a house with foundation issues or no kitchen. Asset-based lenders only care about after-repair value.
Hard money lenders look at two numbers: purchase price and after-repair value. They typically lend 65-75% of ARV. Your credit score matters less than your exit strategy and equity cushion.
You need skin in the game. Most deals require 25-35% down. Lenders want to see detailed rehab budgets and realistic timelines. First-time flippers get extra scrutiny on contractor references.
We work with 30+ hard money lenders who fund Contra Costa deals. Rates range from 8-14% depending on loan-to-value and property condition. Points run 2-5 upfront.
Local lenders close faster but charge more. National shops offer better rates but slower underwriting. We match borrowers to lenders based on timeline needs and deal structure.
Concord flippers make money on properties everyone else walks away from. The 1960s-era homes near Clayton Road need full gut jobs. Hard money gets you in the door before competing cash offers arrive.
Biggest mistake: underestimating rehab costs. Add 20% buffer to your contractor's estimate. Lenders will reassess if you blow through your draw schedule. Second biggest: weak comps for ARV.
DSCR loans work better for rental holds. If you're buying to lease, not flip, the lower rate saves thousands over 12 months. Hard money only makes sense when speed or property condition blocks conventional financing.
Bridge loans offer similar speed with slightly better rates if the property is habitable. Construction loans give longer terms for ground-up builds. We run numbers on all three options for most investor clients.
Concord permits move faster than other Contra Costa cities. Plan 4-6 weeks for major rehab approvals. Downtown overlay district has design review requirements that add time and cost.
Exit values depend heavily on school boundaries. Properties near Ayers Elementary or Concord High sell 10-15% faster. Lenders know this and price ARV assumptions accordingly.
We close hard money deals in 5-10 days with complete documentation. Rush closings in 3-5 days cost extra points but happen regularly for competitive situations.
Expect to bring 25-35% of the purchase price. Lenders cap loans at 65-75% of after-repair value, so your down payment covers the gap plus closing costs.
Yes. Hard money approval focuses on property value and equity, not credit scores. Expect higher rates below 600 FICO, but deals still close regularly.
Rates vary by borrower profile and market conditions but typically run 8-14%. Lower loan-to-value ratios and strong exit strategies earn better pricing.
Most lenders hold back rehab funds and release them in draws as work completes. Total financing usually covers 65-75% of ARV, including purchase and renovation costs.
You either sell the rehabbed property or refinance into a DSCR or conventional loan. Plan your exit 30-60 days before term expiration to avoid extension fees.
Hard Money Loans in Concord