Im live in Las Vegas and in the process of looking for private money lenders. Would contacting brokers be the best bet for finding these private money lenders? Thanks for your help!
No. Brokers might link you up with hard money lenders. They might even say they're private lenders and they may well be individuals. But they are going to be charging hard money rates.
But true private lenders are people you personally know who are willing to lend you money. You meet them by talking to everyone you know and everyone you meet about what you're doing. A few will be interested. A few of those will have money. A few of those will be willing to lend it to you.
Jon, you are so right...! The Hard Money lenders should have to ware a sign around their necks saying "I Am A Hard Money Lender". It would save us all a lot of wasted time. I have tons of hard money lenders that want to do business with us. But very few real Private Money Lenders. And there is so much money out there to be made. But I guess if it was easy, everyone would be doing it.
Such is life.
Have a good one.
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How many stories have I heard about deals lost at the last minute because a "private lender" could not provide the financing that he/she promised?
You might be saving a few dollars, but run the risk of losing thousands by avoiding a true professional hard money lender.
Watch the short video that I made about the advantages of using a licensed hard money lender..... might save someone a world of hurt.
Look on: www.HardMoneyDoctor.com
I agree that HML, for the most part, have outrageous costs associated with their loans.
I have never taken one and don't know of anyone that has, except for a post I just read minutes before reading this one. It cost him $12K in loan costs, but he made $5K. So, in his case, no matter the %, he still made out with $5K.
If you know your costs upfront (points, % rate, terms, etc - and you should know what these mean before you sign on the dotted line) and work that into your calculations, you will KNOW how much profit you should be getting when it's said and done.
Not every HML will just hand you money if you have no skin in the game. I heard some will roll all upfront costs into the loan. Some won't. So, it's best by having a few thousand dollars on hand, for example a SFH under $150K, might be needed to get that HML. Know what they cover and what that will cost you, if different terms than the original loan.
So, if you have a great deal, it might be the way to go for some folks who have little or no money, no private lenders, and no conventional means.
With private lenders, I would assume getting an account open with the amount you are requesting, setup with you and them on the account, might give you a leg-up in satisfying payment when needed. I'm sure trust is established, but even then, PL might require more controls. Inform them whenever anything changes (got a house I want to deal with, got a signed contract for PP, got contractors to help fix roof, etc). Communication and documentation goes a long way in trust. If you are transparent and project yourself as trustworthy, you will be It's all about perceptions. And that is how so many scammers get away with the stuff they do. They know how to schmooze to get at your treasure.
At least for the first deal, it might make sense. By the second deal, you might have enough attraction to get a real lender to help you with a lower cost loan.
Good evening, my firm raises capital in the form of private equity for large residential condo real estate projects.
If this is the product you are trying to raise hard money for, please send me a message and we can discuss.
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