Experience with lenders??

Question

Does anyone have experience with hard money lenders in the N.C. area. I am starting out and am hesitant on using them

Tyler Corns · Answer

@Adrian Smude and @Jerry Padilla, thank you for responding to my post! We are primarily looking to do fix and flips as we have a ton of experience in the real estate and construction world, however we are just trying to find the best possible ways to find funding as we start out with out much capital to leverage.

Adrian Smude · Answer

@Tyler Corns I agree with @Jerry Padilla that hard money lenders would be my last choice. First what type of investing are you looking to do?  If it’s rentals you won’t be able to make money using hard money. Private money is much better. This is usually someone you know with an SDIRA. They get a good return & you get a good return. Typically no points and can close fast. We use private money for some of our properties & lend our IRA out in the same manor.

Better than private money is owner financing!  If it’s for a rental you can typically get a lower interest rate. If it’s for a fix & flip you can work with the seller to not get paid until you do. You’ll give them a higher price but you save money on not having to pay for money & don’t have to do an extra closing.

Best of luck!

Jerry Padilla · Answer

@Tyler Corns

How come hard money lenders?

There are many options out there that I would personally look into first, before going straight to a hard money lender.

If you aren’t able to go conventional, there may be portfolio or commercial lenders that will have better rates than hard money.

Jerry Padilla · Answer

@Tyler Corns

Well fix and flip to sell is a different story...... I know of a commercial lender that allows this type of financing, but as you know most lenders won’t touch this type of very short term financing.

Commercial rates for this type of financing I am guessing may be lower than hard money, so it is worth it to look around and see if this option would work out before trying hard money.

Experience with lenders??

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