How to find hard money lender

Question

I have found a property in the Birmingham area, but they only take cash or hard money. I don't know how to get hard money. What are the steps and is there anyone in Birmingham that can be recommended?

Nate Herndon · Answer

@Gregory Saysset - here's what you could expect working with a nationwide hard money lender. Below is what my clients in Birmingham are generally getting depending on credit/experience.

• 90-95% of purchase price funded

• 100% of rehab funded

• 9.00% - 11.49% interest rate (interest on drawn funds only)

• 12-month loan term, no minimum hold time

• Desktop analysis valuation / drive-by appraisal

Local hard money guys can often times beat that, but it's tough to establish those relationships quickly when a deal is right in front of you. Many investors walk through the entire BRRRR process with a single lending partner for both rehab funding and DSCR refinancing. Would be happy to connect and answer questions about how folks do that.

Stacy Raskin · Answer

There are hard money loan options with up to 90% of the purchase price and 100% of the rehab done on draws. There are lending options that lend in multiple states including Alabama. The actual specifics will depend on the property location and borrower profile. Happy to discuss further.

Jake Yuskaitis · Answer

Plenty of companies that lend there. We can help. First time rehab loans I can get up to 85% LTV with 100% of the purchase and with experience it's possible to get 100% funding.

Mike Klarman · Answer

Hard Money is not hard to find.  It's like air.

The real question is, which hard money options are best for you.  If you are brand new, expect to pay more with a higher rate.  That's just how it goes.

Also, if you are new, how do you know the numbers work.Purchase PriceRehab Amount ARV

Purchase price and rehab added together shouldn't be more than 70% of ARV if you wanna make any real return.  How do you know your numbers are right?

Hard Money has ended 10x more REI journeys than it's started.

Andrew Lee · Answer

Hi Greg,

This should be an easy one to place with a hard money lender. Birmingham has roughly 200K residents and is a strong, established market for investment lending. You don’t need a local lender—just one that is licensed and able to lend in Alabama.

Caleb Brown · Answer

Referrals, local groups, FB groups are where I have had the best luck

Robert Homewood · Answer

Hey Gregory, great question — a lot of investors run into this the first time they find a “cash or hard money only” deal in a competitive market like Birmingham.

At a high level, a hard money loan is short‑term financing primarily based on the property and the deal (purchase price, rehab budget, and after‑repair value), rather than your income or W‑2s. Here’s how the process usually works for a flip or BRRRR‑style project:

• You get the property under contract (or very close) so you have real numbers to work with.
• You put together a basic deal package: purchase price, rehab scope and budget, estimated ARV, exit strategy (flip or refinance to rental), and your experience level.
• You submit that to a hard money lender; they’ll typically look at the ARV and fund a percentage of purchase plus some or all of the rehab, often up to a certain loan‑to‑value based on ARV.
• They’ll order an appraisal or valuation, review title, and make sure you have skin in the game (down payment and reserves), then move toward closing—usually much faster than a conventional lender.

Because these loans are more focused on the collateral, the trade‑off is higher rates and points, and shorter terms (often 6–12 months), so it’s important to have a clear plan to either sell or refinance when the project is complete.

For finding lenders in Birmingham specifically, you’ll want to:

• Use the BiggerPockets Lender Finder and search by Birmingham/Alabama to see investor‑focused lenders active in that area.
• Search the forums for “hard money lenders in Birmingham, AL” and read older threads where local investors share who they’ve used and what their experiences were.
• When you talk with any lender, ask about their max loan‑to‑ARV, required down payment, total costs (points, fees, interest), and how quickly they can close, so you can compare apples to apples.

I’m a mortgage broker who works with investors and private/hard money lenders, and I’m happy to help you think through how to structure the deal and what numbers you should be watching out for; feel free to DM me here on BiggerPockets if you’d like a second set of eyes on the scenario.

Mohammed Rahman · Answer

Hey Gregory,

The simplest way to go about that is to search for hard money lenders in your area (you can do a Google search or check local REI groups), reach out to them, provide as much details as you can about your goal, strategy, and property. Once they understand your plan, they can guide you through the next steps.

You should also have (available to you) BiggerPocket's "Find a lender" feature. Give it a try.

Jonathan Chan · Answer

Hi Gregory, I can be a second set of eyes for you and help you with deal structure.

Matthew Bernal · Answer

You can find many in BP. Lots of hard money options are available here. Would be happy to connect and answer.

How to find hard money lender

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