​Money Popping up Everywhere

I sure do miss the good ole days when my lending company was one of just a few available. I am sure investors and wholesalers miss the days of their low hanging fruit as well. More competition does and should create more and better options for us. As a rehab or small, new construction borrower, you have many more options for financing out there and you should take full advantage of the fact that you can now choose the right financing option for your deal, your goals and your current situation. Hard money and private money options are abundant and you should be asking the questions that will help you find the right lender to fit your needs. All lenders are not alike and all loan types are not alike.

Think about your goal for the house. Is it going to sell quickly or is it one that will take a little longer to complete? Is it a cosmetic repair or are you buying an older home that could have more surprises than you might expect? Is it single family, multi-family, or commercially zoned? Are you really taking the highest and best use into account on the property? I recently learned from a mastermind colleague of mine that he now looks at the zoning on every property during the pre-due diligence stage so he can put the highest return on the lot. Sometimes that is adding multi-family units or town-homes, or senior living facilities. You must keep an open mind to fill your wallet.

Hard money and private money are great options for all of these opportunities but not all lenders will be comfortable making these types of loans. Be sure to ask questions about the types of loans they are willing to do, keep good notes and build a relationship with all the lenders that seem to fit your needs. Be sure to note the percentage of the purchase and percentage of rehab/construction they are willing to lend. If it is not 100% of that amount, then understand that you are expected to bring more than just closing costs to the table. Lenders do run out of money and they do pick deals they are comfortable with. They can also direct you to other lenders that can help you. Shop around but build long standing relationships. There is enough love to go around!