Browsing: hard money lender


Is the hard money lender (HML) extinct? At the height of the boom they were everywhere and they couldn’t give away money fast enough. We know what happened to conventional lenders, they tightened their credit standards to the point that it can be almost impossible for even qualified borrowers to obtain financing. Wouldn’t this make HMLs even more valuable? Couldn’t they command even better terms for their loans?

Dodo Bird

They certainly are more valuable and could command better terms if they had money to lend. Just who are these HMLs and where are they hiding? The majority of these lenders are no longer in business. They had companies with fancy sounding names and nice websites, but many of them were no more sophisticated than the novice investors they were lending to.


There seems to be a lot of curiosity, myth, and maybe even ignorance when it comes to private lenders. So, hoping to shed some light on the subject, I had a candid conversation with a private lender with whom I’ve worked with, and respect. She did not want to have all of her information listed because she doesn’t want to get bombarded with phone calls. So, I will just refer to her as Patty. Patty does want to hear from good investors, however, and I’ll tell you how to get in touch with her later.

Patty has been lending for about 10 years. She is unique in the industry because she is a trained lawyer with extensive construction experience. The money she lends is mostly her own, but she does use some money from friends and family, on occasion. When you borrow money from her she drafts all of the loan documents and the deed of trust herself; there is no third party lawyer involved, except for the title company’s lawyer. She is literally a one stop shop for a private loan.