Trouble finding Hard Money Lenders in Rural Areas???

Question

Good Morning BP,

I'm curious if anyone else is having trouble finding Hard Money Lenders that will lend in smaller Rural towns? I Invest in rural SW Virginia in Clifton Forge, Covington, and Hot Springs Virginia and have had an awful hard time finding hard money guys that will lend in those areas. I am around 40 miles outside of Roanoke, VA.

I've done around 15 deals in this area over the last 1.5 year and the margins are great! But have had trouble scaling.

Curious if anyone else is having this issue?

Happy Holidays !

Cassidy Burns · Answer

Very good points @Patti Robertson ! You have motivated to call my bankers this morning!

Thank you.

Patti Robertson · Answer

@Cassidy Burns - As long as you are buying right, every time you add a rental it will add to your income and increase your net worth, making it easier to buy the next one. It is helpful to have enough short term money to buy them, fix them up, and get a tenant in them, but as long as you keep your credit up and maintain a strong income and equity position, you will not run out of bank money. It is more likly someone doing high volume would run out of HM than bank money, unless you are using one of the on-line lenders like LendingOne. I assume they are one of the lenders who turned down your geography already. Every high volume buyer I know uses a small amount of short term money and a large amount of bank money. Just don’t rule out the banks is all I am saying.

Cassidy Burns · Answer

Hey @Jason Grimm i'll reach out!

@Patti Robertson conventional financing is great , but in my opinion to be able to scale, having access to the "faster money" would be very beneficial to scale up the business IMO.

Eric Goldman · Answer

business line of credit from the bank should do the trick.

Archie Jefferson · Answer

Looking to purchase 10 lots in waggaman Louisiana about 15 outside of New orleans.

I have rural property valued at 125k that can be used as collateral

I want to use the funds to get the construction started

Patti Robertson · Answer

@Jordan Northrup - Private money, hard money, they are all the same thing. If you can go to a bank and borrow, the process us much easier, in my opinion.

Jordan Northrup · Answer

Hey guys, newbie here joining the conversation...instead of HML, what about finding investors with HELOCs who have money that needs to go to work? What kind of a deal structure would that look like? Would the private lender charge points upfront and a higher interest rate?

Patti Robertson · Answer

@Cassidy Burns - With the track record you described, you probably don’t need a HML. Just go to a commercial lender at a local or regional bank or credit union. They are pretty much all lending for real estate right now.

Jason Grimm · Answer

@Cassidy Burns, I am having the same issue. Also in Southwest Virginia. I've checked with a couple HMLs that were mentioned on BP, but so far it's been a lot of hoops to jump through. I have a family member who is interested in helping me invest, but it's still been a tough go so far. Would love to pick your brain if you have some advice to share.
Thanks for reaching out. :)
- Jason

Cassidy Burns · Answer

Thanks for the feedback @Stephanie Potter

Trouble finding Hard Money Lenders in Rural Areas???

Trouble finding Hard Money Lenders in Rural Areas???

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