Top Best Hard Money Lenders

Five Things to Ask The Top Hard Money Lenders

 

If you’re looking to make an investment and need the backing of a hard money lender to secure the deal, choosing the right lender is crucial. Partnering with a hard money lender who has your best interests at heart and will be able to work with you long-term on many projects to come can ensure the greatest rates of success.

Firstly, what is a rehab fix and flip hard money lender?

Essentially, a hard money lender is an entity that can lend money to an individual or business but is not a bank or a credit union. Real estate investors frequently use hard money lenders, particularly fix and flip investors, developers and people looking to build up a rental portfolio.

Does the best Lenders offer Direct Private Lender Financing?

Unlike banks and other traditional financial institutions, hard money lenders don’t have strict requirements for lending, which means their services are more accessible and can be secured more easily. Instead of assessing a long list of documentation such as credit history and employment history, a hard money lender will be more interested in the deal you are looking to invest in as well as your plans for the project and your exit strategy. Accordingly, hard money lenders can provide the funds you need quickly – sometimes in as little as a few days, as opposed to the months it can take banks to issue approval. If you need finance quickly, a hard money lender is therefore an enticing option.

How to choose the best hard money lender

Of course, when it comes to making a decision about a lender, it’s important to consider the rates, terms and conditions on offer. However, there are other things to consider that can have a significant impact on the outcome of your investment.

Here are five critical things to ask when choosing a hard money lender.

  1. Where is the hard money lender located and how well do they know the local market? Choosing a lender that knows the local market inside out can be crucial to your success. A lender with in-depth knowledge of a local real estate market will be able to give you invaluable insists and advice relevant to your project, allowing you to make the most informed decisions. Further, if you intend to expand into other markets, it can be greatly beneficial to partner with a lender who works in multiple markets across the country.

  1. Does the hard money lender offer a range of products? Whilst you may be focused on one thing now, you may want to expand your portfolio in the future. For instance, whilst the current investment you’re pursuing at the moment may be a fix and flip project, you may be interested in investing in rental properties down the line, or looking to employ the BRRRR method. Accordingly, it is wise to choose a private money lender who offers a range of services that will meet your present and future needs.

  1. Is the hard money lender licensed? This may seem like an obvious one, but it is often forgotten. Be sure to check that the hard money lender is licensed and registered before locking in any loans. Once you have proof of licensing, check if there have been any complaints made against their license. If a lender refuses to provide proof of licensing, consider that a red flag.

  1. How long do loans take to approve? If you are looking for a hard money lender, chances are you need funding fast. Ask the hard money lender what their usual timeframes are like and make sure those timeframes are going to suit your schedule.

  1. What are other people saying about the hard money lender? Check online reviews, read testimonials, check social media pages, ask around and even get in touch with past or existing clients to check that the lender has a good reputation. While great rates are important, it can be even more valuable to choose a lender who delivers transparency, professionalism and premium quality service.

Ultimately, a hard money lender will become a part of your real estate investment team. Accordingly, you want to choose someone who is interested in developing a long-term relationship with you and is genuinely invested in your success. Before partnering with a lender, be clear about your goals in both the short and long-term and decide whether or not your goals and visions align.

If you’re ready to talk to a lender with the right experience, knowledge, passion and skills to help you succeed, get in touch with Rehab Lend today.

 

 

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