Finding the Perfect Hard Money Lender
Imagine that you are looking to purchase a property or make updates to an existing investment. But you are out of time. You need the money quickly and just can’t wait for a traditional bank loan to process. You know that you need a Hard Money Lender. You found a list of great lenders in your area … but now what?
When you are looking for the right lender, there are multiple things to consider when making your choice. Instead of wasting your valuable time, be sure to think through each of the areas below.
Learn what locations each lender supports. Many lenders focus or specialize in a specific geographic location. When looking for an ideal lender, be sure to read their descriptions to be sure your intended property falls into their zone of expertise. Contact each lender of interest. You can learn so much from a lender’s website.
Ensure the lender is an expert in your property type. Whether you are looking to purchase a residential property, a commercial site or a multi-family unit your lender should have experience with that market. If you are unfamiliar with the terms – just ask! An ideal lender will have experience and success stories of clients similar to you who have made great returns on their investments.
Know your property. When you are looking to partner with a lender, be sure you know the details of the property you need funding for. A lender will want detailed information about the property location, your intended use of the property, a repayment plan and detailed expense reports for any renovations or alterations you plan. Pictures can go a long way in showing the potential of a property. Remember that a hard money lender is less interested in your credit score and more interested in what you will be able to do with a property that will increase its value – helping you to repay the loan quickly.
Craft your deal. When you are quick on time, don’t skimp on the details of your deal. A lender will be reviewing the property to see what it can be (rather than what it currently is) to determine if it is an investment they plan to pursue. They will be determining the value of the property and you want to make sure it shines. When crafting your deal, the number one piece of advice is: Be prepared. Know everything you can about your property. Have pictures. Write up a renovation plan. Tell the lender who you are and why they should invest with you. Remember that lenders are experienced professionals – and people who enjoy building relationships with others. Treat them with respect and professionalism. Present yourself as a professional with passion. Show the lender why you are a great fit for them.
Always start your search for a hard money lender based on the geographical region. Take the time to learn about each potential lender and craft a deal that will impress. Putting in the effort at the start will help ensure that you meet that ever-approaching deadline. Instead of waiting 30 days for an approval, a hard money lender often can secure funding for your property within days.
Treat all lenders with respect and professionalism while discussing your deal. These professionals will have amazing resources and tips that you can use whether this is your final deal or the first of many money-making investments.