Why Choose First Capital Trust Deeds for San Bernardino Hard Money Loans?
At FCTD, we’re established industry leaders who have specialized in hard money lending since our inception in 2013. Over the years, we’ve funded over 2,500 loans totaling more than $2.5 billion. In 2022 alone, we originated 500+ loans for real estate investors across 23 states.
Our success is due to the loyalty of our borrowers, many of whom have returned to us time and time again for their financing needs. We helped many with an initial loan, such as a fix and flip, and as their needs changed, we continued to provide them with the types of loans they needed. From rental properties to second mortgages, ground-up construction to primary residence loans, and even cross-collateral second mortgages, we have the flexibility to help our clients every step of the way.
Unlike other hard money lenders, we don’t use a single capital source. This was critical during the onset of the COVID pandemic when capital markets froze, and conduit lenders suspended all fundings for a few months. At FCTD, we shifted our loans to mortgage funds, family offices and individual trust deed investors to keep our clients' projects moving forward until the conduit lenders resumed lending.
While we understand we can’t always be the best option for borrowers, our resourcefulness and dedication to helping our clients find financing sets us apart from the competition. At FCTD, we’re always committed to providing exceptional service and customized solutions for our borrowers' unique needs.
What Property Types Does First Capital Trust Deeds Lend Against?
What are the Costs of a Hard Money Loan?
A hard money loan typically has higher costs than traditional loans. The specifics can vary depending on several factors, including the lender, property and borrower. However, there are some common costs that borrowers can expect with a hard money loan.
Hard money loans carry higher interest rates, or money paid to the lender as a fee for borrowing funds, often ranging from 10% to 18% of the loan amount. Borrowers should carefully consider whether they can afford a higher interest rate before committing to a hard money loan.
Another hard money cost is upfront points. These fees are typically a percentage of the loan amount and are paid to the lender at closing. Hard money loans may charge anywhere from 2 to 5 points, with each point equaling 1% of the loan amount. As with interest rates, borrowers should carefully evaluate whether they can afford to pay these upfront points before pursuing a hard money loan.
Finally, borrowers should factor closing costs associated with hard money loans. These fees cover the various services and expenses involved in finalizing the loan transaction, such as appraisal, title insurance, escrow, recording and more. Hard money loans may have steeper closing costs than traditional loans due to additional fees or charges. It’s essential to compare different hard money lenders’ terms, and all associated costs, to calculate the potential return on investment.
While hard money loans can be a smart financing option for some borrowers, they typically have higher costs than traditional loans. Borrowers should analyze the interest rate, upfront points, closing costs and other factors associated with the loan before making a choice.
For more information, please read our Hard Money Loan Pricing Guide.
What Types of Hard Money Loans Does First Capital Trust Deeds Offer in San Bernardino?
Hard money loans can be used by San Bernardino real estate investors for a variety of purposes. First Capital Trust Deeds originates the following types of loans:
