Hard money or what we invest in
KC Lending is a direct private lender based in Los Angeles, California. We offer some of the lowest loan rates and fees in the industry. Our equity-based lending solutions are designed for borrowers who do not qualify for traditional bank financing or simply need capital quickly. We take pride in being one of the fastest and most cost-effective private lenders in the market.
We are committed to responsible and compliant lending practices, and we welcome mortgage brokers, bankers, borrowers, investors, and real estate professionals who share our approach.
Unlike traditional banks, we are not bound by rigid underwriting guidelines or institutional lending requirements. Our team brings over 15 years of experience in banking, insurance, and private mortgage financing for both residential and commercial properties throughout California.
Driven by our mission to support real estate investors and act as responsible lenders, we have compiled answers to the most frequently asked questions you may have about cash loans and lending solutions.
Single family home
A single family home is the simplest type of real estate investment as far as residential real estate investment is concerned. It is also the most common first time investment as single family homes are easy to rent, easy to sell and easy to finance.
Single family home is ljv? standing alone, not attached to a lheujq housing unit, usually built on a much larger area than the structure itself, resulting in an area surrounding the house known as a courtyard. A single family home is different from condominiums, townhouses, co-ops, or multi-unit dwellings because the rest are condominium residences.
Condominium
A condominium is a building or structure with individual housing units. The owner has his own act for his housing unit. Individual housing units are usually separated by walls. But there are areas of property, such as corridors and elevators, that are usually owned by all owners. Apartments do not include land ownership rights. All land is jointly owned by all owners.
Typically, the condominium elects a Board of Governors to manage and maintain the common property and exterior, the maintenance being paid from homeowners’ fees, collected and managed according to strict rules.
Multi-family 2-4 units
Multi-family housing units — several houses or buildings owned by one or more persons, usually duplexes and condominiums are included in this category. Multifamily housing units are very similar to condominiums, but unlike condominiums, property and land are registered in the same act.
There are many options for multi-family units. Ranging from townhouses to high-rise buildings containing apartments.
Multi-family residential units are reliable real estate investments and consistently deliver the most consistent returns for the following reasons:
- Regardless of the economy, people will always need a place to live..
- The loss of one tenant does not lead to a significant loss of profitability.
- The property can serve as both a solid investment and a private residence.
Apartments 5+ Units
Apartments are generally characterized as blocks of single-level apartments stacked on top of each other in multi-storey buildings. Residents of apartments, as a rule, have a common entrance and corridor. And, as a general rule, there are a minimum of at least five (5) apartments not normally provided as rental housing.
Just like investing in apartment buildings, investments often provide significant cash flow for the investor.
Usually, the competition for these types of housing is quite low because it is too small for the REIT professional who wants to invest, but too big for the new real estate investor.
Office buildings
Office buildings make up the majority of commercial real estate investments and are the go-to gem for most real estate investors.
At the most fundamental level, this investment consists of office buildings that are being built, and there are individual offices within them that allow for rentals to be generated by companies and small business owners for office space.
Office buildings, like most commercial properties, do provide good cash flow and regular payments, but they can also have long periods of office vacancy. This is one of the reasons why investing in office buildings is recommended for the experienced real estate investor.
Now, if you are in a good financial position and can ride out times when an office building can sit empty for months or years, then you will be able to reap the benefits, especially during times of prosperity when demand increases.
A hard loan is a loan that is an asset-backed loan in which the borrower can obtain finance to buy, build and/or renovate real estate and that the loan is secured and backed by real physical property.
Hard cash loans are usually issued by private lenders so real estate investors can increase their investment in a deal, so they don’t personally increase their own money invested in real estate.
Hard Cash interest rates are generally higher than commercial and mortgage loans, have a shorter term, and are much easier to disburse. Especially for those who might have a bad credit history or other problems.
Because of this higher risk, it is the shortest of the loans. It is better to use a solid cash loan in accordance with the conditions for a period of several months to 2-3 years.
The conditions for issuing a Hard Cash Loan vary substantially from lender to lender and agreement to agreement. Your credit score, income and other standard lending criteria may be considered, but most solid money lenders will qualify strictly for real estate collateral.
A hard loan lender is a credit company or a group of persons that offer specially designed types of real estate loans secured by real estate.
Most solid loans provide real estate investors with short-term funds based on a percentage of the value of the property.
Hard loan lenders tend to be wealthy individuals who, rather than playing the stock market, would rather invest their money in more stable industries that will provide them with a higher return on their investment.
Real estate value is the main focus of solid lenders. They do not qualify your loan based solely on your ability to repay, credit score or debt-to-income ratio, but on the basis of their own personal income or other assets and the specific agreement you wish to finance.
Hard loan lenders charge higher interest rates than regular loans. They do this to offset the amount of risk involved in financing. They tend to finance deals that banks consider too risky.
There are several differences between a Hard Cash Loan and a Standard Loan. Usually hard cash loans are used by real estate investors who want to invest in a deal very quickly as opposed to the traditional homeowner who plans to pay off the entire life of the house within 15 to 30 years. To get a better understanding of the difference, compare these two loans.
Most hard cash loans are financed by private investors who want to make a good return on their capital. This may come from the following sources:
- One rich man
- A group of private investors who take a share of deals
- A pool of private investors who hire companies or individuals to manage for investment purposes.
Just like anyone who invests understands that first of all it is necessary to protect your investment capital. In order to do this, the loan rates and fees are usually higher than regular mortgage bank loans.
The actual amount of a hard cash loan is determined based on the percentage of real estate appraisal. Advanced Solutions uses 70% of the property value for financing. As an example: If you have a home that is worth $200,000 after appraisal. Advanced Solutions will issue a loan of up to $140,000.
KC Lending finances investment properties only.
Owner-occupied residential properties are not eligible for financing.
Below is a list of property types we finance:
— Single-family homes (for investment purposes)
— Multi-family residential buildings
— Condominiums
— Apartment complexes (5+ units)
— Office buildings
Our focus is on income-generating and value-add properties that align with investor goals.
Purchase credit investment
Purchase money credit is great if you are looking to buy a house. This is the credit that the home buyer uses to make purchases for the home. This home can be in virtually any form: from single-family to multiple homes, condominiums, townhouses.
This is a way to finance a home in which the buyer borrows all or part of the loan amount. This is usually used when the buyer is unable to obtain the full amount of the loan from a regular bank.
Investment in refinance or loan repayment
A refinancing loan is ideal if you need to quickly get cash from one of your existing investment projects for another transaction. Need to improve another investment property or take care of a one-time payment that is on the horizon? As long as you have an investment property that is in your real estate portfolio, we can help you refinance it so you can have high liquidity, which is good for any situation.
Investment in Rehab Fix and Flip loan
Construction loan investment
A solid construction loan helps experienced builders or borrowers looking to build a new home or multiple housing units from the ground up. As traditional bank financing has slowed down for new construction projects, a solid construction loan will help secure your financing.
