How does the world of hard money lenders differ from traditional bank lending? To be frank with you, it is not too different. With us you will discover exactly what a hard money lender is, does, and asks for on each deal. Most importantly, you will be able to find a hard money loan that is tailored to your needs and connect with lenders interested in your deal.
Here are a few basic tips to get started to find a hard money lender that matches what you need:
Tip #1: Browse the Private Money Lending Guide
Although finding hard money lenders can be a difficult task, this site was created to help you find specific lenders for your investment needs. We highly encourage you to browse through the various articles on this site to really get a thorough understanding of what some lenders require prior to submitting a deal. After browsing this site, you will be in a better position to find hard money lenders to suit your needs. Also, if you need help scrubbing your deal and presenting it to a lender, feel free to contact us and let us know.
Just a quick note: you will notice that the terms private money and hard money are used interchangeably throughout the site. This is not to confuse you. Originally, private money was used for lenders that loaned their personal funds for investors to use. Nowadays, any lending outside of a traditional bank can be referred to private money, regardless of their terms.
Tip #2: Read Articles in Detail
When reading through the private money lending guide site, keep an eye out for side articles and tips. These, too, will contain important information which may benefit you in negotiating the best terms and selecting the best hard money scenario.
Tip #3: Etiquette with Hard Money Lenders
Make sure you have completed all of the due diligence on your deal before you speak with a lender. This includes, but not limited to:
- Executed contract with the seller of the property
- Budget and preferably a bid for the repairs needed
- Comparables showing the After Repair Value (ARV) of the property
- Survey (land only)
When you do make first contact, be mindful that you will often be speaking with the principal owner or manager of the firm. They are very knowledgeable and helpful about what is and is not possible regarding your project. It is strongly recommended to develop a long-term relationship with them. Even if you are seeking capital for a quick rehab!
Tip #4: Find a Hard Money Lender for your Area
After you have browsed the site, search for private and hard money lenders in your area. You can search by state, loan amount or property type.
Tip #5: Choosing a Hard Money Lenders
Interview one or more lenders and find someone with whom you feel comfortable. The lender you choose must be comfortable with your specific requests. They may want to meet with you and come to your property location. Often times, they will have you complete a loan application to see if they can assist you. Rehab lenders will want to value the property as is, in addition to the ARV. So be ready with this information!
Remember, if you need help with presenting or positioning a deal with hard money lenders, contact us any time! We are here to help.