Finding Legit Hard Money Lenders

15 Replies

My husband and I are trying to finance our first rental property.  Is there a website that you use to check out hard money lenders to avoid scams?

Originally posted by @Kay Harts :

My husband and I are trying to finance our first rental property.  Is there a website that you use to check out hard money lenders to avoid scams?

That is one of the hardest parts about real estate investing. The best source is always self funding, family and friends. Familly and friends can use their SDIRA, 401k or pension and make good returns while they are funding your projects. When using hard money lenders you have a lot of variables; are they legit, if they are legit how many "points" do they charge, what interest rate, for what term, what are their "junk fees", do they actually fund, what is their policy if you can't pay off the loan at the specified date and so on. Will they give you a fair ARV? What LTV will they lend at? How long from filling out the application to funding? Some will do certain states but not all states. Some will do certain types of properties but not other types. If you give them you SSN and other personal info is the info "safe". How easily can they be hacked even if they are "safe". Always ask for two or three people they have funded and actually call the references and see if the HML did what they said they were going to do. Or, simply team up up with someone in a Joint Venture until you are able to self fund.

@Kay Harts Lima one capital, patch of land, fund that flip, and finance of america commercial, are all legit lenders.

Hi Kay welcome to bigger pockets! I don't know if there is a specific database but there are plenty of hard money lenders on bigger pockets. I'm tagging @Nghi Le Who is a lender I have worked with in the past. He is very responsive is up front about all fees and costs involved with your loan. Hopefully this helps!

Stay as local as you can.

Search BP Database for lenders in your area, or who have done loans in the area you’re looking.

Thank you.  That’s good to know.

We can definitely try that.  There is a monthly’s meet up in NW IN.  Thank you for sharing.

Thank you to everyone who responded.  We appreciate the time you took out to share your knowledge and expertise.  We're taking heed to the advice and will look into all of the leads.  We will return to share our results.

Originally posted by @Cosmo Iannopollo :

@Grant Rothenburger Have you worked with Lima One? What was your experience with them?

 I have not.

HML traditionaly are for short term lending situations NOT buying rentals.. some have morphed into a rental product.

a few others to consider.

Visio

Lendinghome

Lendingone

these are legit..

who is not legit is usually one off people that advertise on facebook..

and other places.. offer rates that are under industry averages.. then hook you for a small application fee that turns into scam money and you never hear from them again.

unfortunately real estate is prime ground now for Nigerian prince scam type things.

Couple reasons .. the Internet  the huge demand by those that have never bought real estate or a rental entering the market and have no real experience to understand the industry or what is real and not real.

Thank you for taking the time to post.   This information is very helpful and we’ll put it to good use.

You'll probably get messaged by a bunch of HM companies just by making this post ;)

Yes, and unfortunately when we research for reviews for the companies they’re not positive.

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