Tag Archive for: hard money loans california

A Proof Of Funds Letter In Hard Money Lending

A proof of funds letter is a document showing a potential buyer that a real estate investor has the funds that they need to close the sale. This letter often contains information from the buyer’s loan provider as well as information about their company.

These letters are standard practice for real estate investment purchases. Real estate investors should know the process of handling the proof of funds letter inside now.

This is what real estate investors should know about a proof of funds letter.

Why A Funds Proof Letter Is Important

The current housing market is going through some major changes. Even the White House has stepped in to address some of the issues impacting the housing market. With such a competitive market, sellers have started to require proof of funds letters to ensure sails will go by smoothly.

When Should I Get A Proof Of Funds Letter?

Real estate investors typically obtain their proof of funds letter before submitting an offer for a property. This allows your hard money lender to underwrite the loan as well as ensure that funds are available for the purchase. This also shows the seller that you have all of your financial ducks in a row and you’re ready to close out the purchase.

How Do I Get a Funds Proof Letter?

The process for obtaining a proof of funds letter is very straightforward.

Your first step is to reach out to your hard money lender of choice. You should find a hard money lender that has experience working with real estate investors, favorable rates, and the professionalism that you can rely on. You will then have to submit an application which may or may not include a credit check.

Your hard money lender will then be able to issue you a proof of funds letter so that you can proceed with your real estate purchase.

Property Specific Funds Proof Letters

A property specific proof of funds letter is targeted for a specific piece of real estate. This allows the seller to have more confidence and your ability to close out the purchase and gives you financial clarity for the terms and conditions of your funding.

Get The Financial Services You Need Today

You need a financial services provider with experience working with real estate investors. IMCMoney has been working with real estate investors for years and their experienced financial team can work with you to handle everything from obtaining a proof of funds letter to a hard money loan.

Reach out to IMCMoney today to learn more!

Closing Costs With A Hard Money Loan

When closing on a property or refinancing a mortgage, a lot of effort and time is required from both the lender and the borrower. During these efforts, the lender will take care of all closing costs while compensating the lending company for its time and efforts. Hard money lenders, like IMC Money, will spend hours throughout the week coordinating appraisals, certifying documents, and working with underwriters to finalize mortgage approval.

As a result of the arduous process, there are quite a few different closing costs that are associated with hard money loans. Before signing up for a hard money loan, let’s take a look at some of the most common closing costs and fees that clients must handle when closing on a deal.

True Closing Costs of Hard Money Loans

Hard money lenders like IMC Money have to adhere to a different set of standards than institutional lenders. Institutional lenders must adhere to fierce and strict criteria while working with boatloads of money. Hard money lenders operate more as brokers, arranging each transaction as if it were a unique loan. Hard money lenders, as a result, have closing costs more similar to the traditional real estate brokerage experience.

Closing costs should account for between 2% and 5% of the loan’s total amount and this sum is taken care of at the closing of the loan’s transaction.

Let’s underline the most common fees that come during the hard money lending process.

Origination Fee

This fee is earned by the lending company for their work arranging, applying, and underwriting the loan and its transaction. Originator fees are often referred to among industry insiders as ‘points’ and hard money loans tend to offer more points than conventional loans. The reasoning? Hard money lenders like IMC Money are undertaking more risk than their conventional lending counterparts.

Processing Fee

Common amongst lenders, processing fees are for the handling and delivery of all items to title companies, property record loan transactions, or escrows. Processors ensure that all paperwork has been completed as necessary.

Underwriting Fee

Hard money loans are secured by actual property as a source of collateral. To secure a collateral property for a real estate transaction, an underwriter must detail a binding legal agreement. These fees are often built into the originating fee.

Legal Fees

More complicated transactions may require lawyers to ensure the document is valid, compliant, and legal.

Tackle Hard Money Loans with IMC Money

IMC Money operates as a full-service real estate lending company for the acquisition and development of financing and hard money lending for residential and commercial developments. Originally founded in 1993, IMC Money has developed into one of the most prominent hard money lenders in the region.

Apply for a loan today with IMC Money to unlock the investment of your dreams!

What’s The 2022 Real Estate Forecast?

Have you been wondering what the future of real estate looks like for 2022?

Everyone from people looking for house flipping loans to the homebuilding industry have been trying to figure out what this year is going to look like. These predictions are based on the latest information as well as the trends that have been established for the last few years.

Here’s what real estate is going to look like in 2022.

What Happened in 2021?

2021 saw historic increase in prices. The average home price went up 20% in 2021 which is a historically unprecedented gain. Home buying was also much more active in this year with more homes being purchased than in the previous years.

This created a lot of uncertainty in the market because some investors weren’t certain that these trends could hold on.

The 2022 Real Estate Predictions

Here are some of the most important real estate predictions for 2020 coming straight from industry experts.

Higher Mortgages

We can expect that mortgage rates are going to go up.

Mortgage rates took a huge dive at the start of the pandemic, but in 2021 mortgage rates increased. We’re going to see mortgage rates increase again to be even higher than they were in 2021.

It’s worth keeping in mind that most experts agree that mortgage rates still won’t hit their pre-pandemic highs.

More Sellers, More Buyers

2021 saw some of the highest volume for sales. There were more homes on the market and more buyers for those homes than ever before. It looks like 2022 is going to continue this trend with an increasingly active market.

This could make home buying opportunities type. With more buyers on the market, there is going to be more competition for homes and a tougher buying market.

Supply Chain Worries

The global supply chain crisis is still ongoing. However, it’s not certain how this is going to impact the real estate industry. Home building industry leaders are still confident that they’re going to be able to get the materials and supplies they need to build new homes, flip existing homes, and repair old ones.

Rising Prices Continues

The price of real estate is still going up. Most experts agree that the cost of real estate is only going to go up further in 2022.

Will 2022 Be as Wild of a Ride as 2021?

It’s hard to say with any certainty this really in 2022 if it’s going to be as wild of a ride as 2021. Some real estate experts suggest that these trends are going to continue in 2022 is going to be even wilder than 2021. However, it looks like we’re just going to have to wait a little bit and find out for ourselves.

2021 Holiday Season & The Real Estate Market

The 2021 holiday season is upon us and one of the biggest impacts is going to have is in the real estate market. Most people don’t consider real estate when they think about holiday shopping trends, but it’s actually one of the most heavily impacted markets. Real estate finance leaders at IMC Money know the importance of staying on top of seasonal real estate trends.

Let’s take a look at a few of the major trends we’re going to see in this year’s holiday real estate business.

Holiday Market Trends

Here’s the general wisdom you need to know when it comes to the real estate market during the holidays. The real estate market starts to drop off around Thanksgiving as people focus on seeing their family, traveling, and getting ready for the holidays.

However, things start to pick up around December 24th. Potential homebuyers are off for the holidays and they’re using some of that free time to browse their local real estate markets looking for their dream home. You can take advantage of this sudden uptick in real estate interest by making sure your listings align with this new influx and potential buyers.

Serious Buyers Start Shopping During the Holidays

You’re also more likely to find serious buyers during this time of year.

This is a combination of harsh winter weather as well as how people spend their precious holiday vacation time. People who are out looking for houses and other real estate opportunities during the holiday season are going to be more serious about potential purchases than they would be during other times of the year.

Taking Advantage of Low Holiday Interest Rates

The market for real estate loans has its own fluctuations that don’t necessarily obey seasonal changes. However, one of the interesting trends that’s held true for the past few years is that interest rates tend to dip around the holidays.

This is another reason why potential buyers start flocking to homes this time of year.

Consider Your Timing

One thing that’s true no matter what sales industry or and is that buyers tend to prefer recently listed items rather than things that have been around for a long time. You can improve your timing by updating or listing properties at midnight on the 23rd or early morning on the 24th.

One Easy Tip For Holiday Real Estate Sales

Old real estate wisdom says that you should unlist your properties during the holidays, but this just isn’t true anymore. The holidays are a prime time to update and relist real estate listings.

Need more tips and tricks for real estate sales this holiday season? Property and finance experts at IMC Money can help you get your real estate moving!


Your Guide To Hard Money Construction Loans

Hard money construction loans are one of the many types of people consider when they’re doing home renovations. However, there are some important considerations to make about this specific type of loan.

Let’s take a closer look at private loans for home construction projects.

What Are Private Construction Loans?

Private construction loans and hard money construction loans refer to the same type of loan. This is a type of cash loan that uses real-world assets to back up the loan. In the case of private construction projects, part of the property is often used as the collateral for the loan.

Who Can Get a Hard Money Construction Loan?

Hard money construction loans are designed to assist people who are building and designing a second home. These are not the ideal type of loan for a homeowner who is renovating the property that they currently live in. There are other types of loans that can assist individuals who are currently working on a building that they also occupy.

This means that hard money construction loans are more for people who are doing renovation projects, flipping houses, or doing construction.

Are Their Benefits to a Hard Money Loan?

There can be a few advantages to choosing a hard money loan for your project.

The first is that hard money loans are much faster to close. Traditional loans can take up to five months to close while hard money loans can take only a few weeks. These are also asset-based loans so they can be a good option for individuals who have assets they can put up for collateral.

How are Funds Paid Out?

During the underwriting process, the lender and the loan company will arrange the draw schedule for the payout of finances. This is the schedule that determines when and under what conditions the loan can be dispersed.

Here’s how it typically works.

Once a phase of the project is complete, the lender will send a third party to inspect the building. If they agree that that phase of the project has been completed according to the draw schedule, they will then order at the next round of funds to be dispersed. This process typically takes three to five days.

How Does Repayment Work?

The repayment for hard money loans is a little different than what you might expect. If you are used to typical loans, like a home mortgage, then things are going to be different this time around. Hard money loans have different payment schedules and plans that you can work out with the lender.

How to Find the Right Lender

You should look for a reputable company that has experience dealing with hard money loans. They should be able to walk you through the process and answer any questions you might have about this particular type of loan.


Looking to Increase ROI? Consider These Renovations

If you’re doing a fix-and-flip, you probably want to choose a house that doesn’t need a lot of work. But you have to complete the right renovations to add value to the property — so it’s worth your time.

Here’s a complete list of the renovations that are usually most worthwhile in terms of increasing your asking price.

Repaint as Much as Possible

Paint is fast and cheap. Consider:

  • Painting your front door rather than replacing it.
  • Painting the interior of your house, including accent walls, to change the look and feel of each room.
  • Painting the exterior of your house to improve your curb appeal.

All of this will make a property look newer.

Replace Small Fixtures

Small fixtures often cost just a few dollars and give a property a more “unified” and conformed appearance. Consider:

  • Replacing the fixtures in your kitchen to update and modernize them.
  • Installing new doorknobs for some additional flair.
  • Installing new lamps or new ceiling fans.
  • Replacing the fixtures in your bathroom, especially if they are older.

Keep in mind trends change. Yesterday it may have been brushed copper, today it may be steel.

Renovate the Bathroom

A lot of people look at the kitchens and bathrooms first. For the bathroom, focus on luxury, utility, and comfort. Consider:

  • Installing a brand new tub, with new features such as whirlpool jets.
  • Replacing the sink with something more modern and updated.
  • Re-tiling the bathroom to make it look fresher and newer.

If you’re investing money anywhere, it should be the kitchens and bathrooms first.

Update the Kitchen

A kitchen renovation doesn’t have to be that expensive. There are changes you can make that will be affordable:

  • Consider changing your cabinet doors if you don’t want to entirely replace the cabinets.
  • Refinish or paint existing cabinet doors if you don’t want to replace them.
  • Change up fixtures, including changing up the sink fixtures to more “upgraded” fixtures.
  • Consider investing in new appliances; people love new appliances.

Spend your money in the kitchen first; it’s the room people spend the most time in.

Redo the Floors

The floors of a property can have a significant impact, as it’s one of the major things you look at when a home is empty.

  • Refinishing wood floors, if they can be refinished, and staining or painting them to make them look more modern.
  • Putting affordable new flooring in, such as linoleum, carpeting, or vinyl.
  • Alternatively, adding a stipend in the final contract for new flooring of the new owner’s choice.

It’s usually not worth it to put in expensive floors unless it’s a luxury property.

Improve Your Curbside Appeal

Of course, the first thing people see is the outside of the property. Consider:

  • Invest in new landscaping and new turf.
  • Consider painting your house exterior or installing siding.
  • Replace your old garage door or your entryway door.
  • Get new windows that are energy-efficient and attractive.

The above investments are all low-cost investments that can improve ROI. But they still cost money. If you need to know more, contact IMC Money.

Documents Required to Qualify for a Hard Money Loan

You’re trying to invest in a new real estate project and you want a hard money loan. There’s good news and bad news. The good news? It’s usually easier to qualify for a hard money loan than a traditional mortgage. The bad news? “Easy” is relative. You need to meet fewer strict requirements, but you are going to have to put together quite a few documents.

Here’s what you need to get started.

Capital: What Are You Using for Your Down Payment?

Thoroughly document your capital. Unlike a traditional mortgage, they usually don’t care how you got your capital. But you should be able to show that you have the down payment liquid already. You can show this through your most recent bank statements.

Cash Flow: What Are Your Personal Income/Expense Statements Like?

In addition to your down payment, they also want to see your monthly cash flow. This usually comes in the form of bank statements. They should be able to see that you can easily pay for the loan payment, even if the project goes long. This is due diligence for your sake and for theirs.

Experience: What is Your Portfolio?

You’re basically starting a small, temporary business. So what have you done in the past that’s similar? You should show your portfolio of projects, as relates to home renovations, tenancy, property investments, and so forth. At minimum, you or your business partners should be well-versed in investing in real estate. Otherwise, how can they know that you’ll be able to pull off the project?

Housing Documents: What Are Your Projections for the Project?

This is probably the most extensive area, yet it’s the area that will most often differ. Different hard money lenders will have different requirements. In general, they will want to know:

  • How much the property is appraised for.
  • How much you intend to put into the property.
  • How much contractors have bid for the related jobs.
  • How much you stand to gain from the investment.

Some companies will want to see the basics; an appraisal and an inspection report, just like a mortgage company. But other companies will want a full business plan. Sometimes, it’ll depend on the amount of money they’re investing. And some lenders are just more conservative than others.

That’s a lot. But it’s less than it seems. Realistically, if you’re qualifying for a hard money loan, you need to get these documents in order anyway — these documents would be the foundation of your business plan.

Any questions? Reach out to IMCMoney today!

The Top 5 Fix & Flip Cities in California

California is an attractive location because of its beaches, economic opportunities, and sunny weather, along with the diverse cultures and food options, natural landscapes, and tech and entertainment industry opportunities. However, it’s also an expensive place to live. The good news is, the expense hasn’t made the state any less attractive to real estate investors. In fact, the fix and flip market is incredibly active in California. Before you get started on this type of real estate investing, it’s essential to learn about the five top cities to consider when shopping for a fix and flip investment in California.


If you’re looking for a smaller city with plenty of farmland and nature around, Modesto is the ideal location in Central California. The median home value in this city is just over $260,000, which is a nearly five percent increase over the last year. Many flippers love this area because the overall cost of buying a home is lower than many other areas of California, making it an ideal location to invest in a fix and flip project.

Rancho Cucamonga

Rancho Cucamonga is a more prominent city located in Southern California, surrounded by breathtaking mountain views. Although the area tends to be expensive with a median home value of nearly $470,000, the city offers a small-town, quiet feel, particularly when compared to the larger cities like Los Angeles. Home values are expected to continue to rise about 4.5 percent each year.


Sacramento is the state capital and is located in Northern California. It’s an excellent place to engage in fix and flip projects with an excellent return on your investment.The city offers a median home value of around $300,000 with many fix and flip investors generating an average profit of $90,000 for each home they buy and renovate. You won’t find a more affordable place to invest in real estate in the state without spending more money.


Ontario isn’t just a city in Canada. It’s also the name of a city close to Los Angeles and San Bernardino. It’s the next door neighbor to Rancho Cucamonga with home values around $387,000. However, the rate of appreciation is higher in this city at 5.2 percent, making it an excellent alternative to more expensive areas of the state.


Orange County in California is the central location for technology and education with higher incomes and a strong economy. If you have more money to invest in real estate, Irvine is the ideal location. The city boasts median home values of over $790,000, making it a much more expensive location than the other cities on our list. Fortunately, the profit potential is high because the area attracts a wealthy crowd.

Home Inspections: Tips and Common Findings

In 2020 alone, more than 6.5 million homes were sold across the United States of America. Before every single one of these properties was sold, both buyer and seller were likely to undergo a home inspection. Home inspections are pivotal to the real estate market because they ensure both parties are protected from potential issues that may manifest following a sale.

Let’s take a closer look at home inspections, what to expect, and why they are so important.

What To Expect From a Home Inspection

Home inspections are thorough assessments of a property’s overall physical condition. Inspections are performed by licensed professionals who have been trained to visually assess and identify issues. Inspectors will traverse every inch of a property, from foundation to attic, to find issues that may manifest into costly or dangerous scenarios.

Common Findings During a Home Inspection

Home inspections are vital to the real estate industry as they give both parties a chance to assess issues before going through with a deal. For a buyer, this means potentially saving themselves from buying a property with hidden damage. For the seller, home inspections provide the opportunity to upgrade and maximize the value of a home.

The most common results of a home inspection will yield the following information.

  1. Roofing Damage – Nearly 20% of home inspections will yield at least one issue with the roof of a property. Roofing issues can vary in terms of how problematic they are. Leaks, material degradation, and ventilation issues are the most common inspector-detected roofing problems.
  2. Electrical Wiring – Nearly 52,000 electrical fires are started every single year within residential buildings due to improper wiring practices. Make sure that your property is up to code before buying or selling it. Frayed insulation, mismatched wiring, and rodent-related damage can all be identified during an inspection.
  3. Plumbing Issues – Plumbing issues may range from severe to barely noticeable. A leaky faucet won’t cause an inspection to fail, but outdated pipes and mismatched DIY solutions can cause serious headaches.
  4. Termite/Pest Damage – Don’t buy a home with a shaky foundation and don’t purchase a home that is infested with termites, two concepts every property owner should live by. Termite damage can cause structural issues that go unnoticed for years, often long after there is any time to prevent the issue. A skilled inspector can suss out any potential infestation during an inspection.

IMC Money was founded in 1993 to provide the best services and lowest possible rates in the lending industry. Experts in financing for individuals angling to flip property, contact IMC Money for more information.

How to Flip Your Fix-and-Flip

Eager to take on your first fix-and-flip investment property? Before you dive in, there are some important tips to keep in mind that can help you make the most of your investment while appealing to the greatest range of potential buyers.

Start With Comps

Always take some time to get to know the neighborhood before you invest in a fix-and-flip property. In general, you’ll want to focus on improvements that will be most appealing to local buyers—and you can learn a lot about what local buyers want by looking at nearby homes. This research can help you get a better idea of where you should spend your money to see the biggest returns.

Don’t Overlook Curb Appeal

No matter where you’re looking to sell a fix-and-flip property, curb appeal will be vital. Many of today’s buyers won’t even set foot inside a home if it doesn’t look inviting and charming from the outside. This means you’ll want to prioritize projects that will enhance curb appeal, such as repainting exterior siding, installing new landscaping, and possibly even replacing an old mailbox. These small improvements can make a big difference in getting potential buyers in the door.

Focus on Staging

While it will cost some money up-front to have the home professionally staged, any experienced fix-and-flip investor will tell you that this is a service worth paying for. Having a home staged is a great way to help potential buyers envision themselves living in the home. Specifically, the right staging can highlight the home’s strengths while also defining living spaces that may otherwise be overlooked.

Create a Beautiful Listing

The majority of today’s buyers are finding properties online, so it’s more important than ever that your listing stands out from the rest. This means that you need to have plenty of high-quality photos of the home inside and out. It may even be worth it to hire a real estate photographer and/or videographer to make sure that the home is captured in the best light possible. You might even consider offering a video walk-through or virtual showings of your property.

From there, crafting a compelling listing that highlights all the upgrades and amenities that the home has to offer is a must. If you’re not experienced in writing your own real estate listings, this is where it may be worth hiring a professional to handle this for you.

The Bottom Line on Fix-and-Flips

Flipping a house requires a lot of hard work and patience—but when you follow these tips, you can make the most off your investment. At the same time, you’ll be providing somebody with the house of their dreams. Looking for help financing your fix-and-flip project? IMC Money has you covered. Contact us today to apply!