Lending on rural properties

6 Replies

I'm trying to find hard money lenders for rural properties, both residential and commercial. Why is this so difficult to find? Anyone know of any ways to help find these lenders or anything I can do to help my deals get funded.

I'm doing mostly BRRRs but have a couple Buy and Hold options too. Thanks!

I understand your troubles 

I have doublewides on 2 - 10 acres rural areas, both of which appraise between $180,000 and $240,000 free and clear    Can’t find a hard money lender either 

Originally posted by @Bob Reinhard :

@Aimee Haasteaby

Very generally, in areas such as these, there are 1. Few comps 2. Too long to get the loan proceeds back in the event of a default by the borrower because of ostensible lsck of demand.

Much success.


 In my case that is not the situation.  House directly across the street is a great comp and another less than 1/4 mile away 

Also both went under contract in less than 2 days 

Demand is there and comps available 

@Michael Plante

It might be a good idea to send the comps to the lenders you're speaking with, and try to speak with someone senior. Oftentimes, you'll be speaking to front-line guys, i.e. loan officers, who won't have discretion and will simply follow the underwriting guidelines.

A lot of underwriting guidelines for hard money lenders stipulate population minimums, and even if you have decent comps, those population minimums are going to be hard to get beyond unless you speak with someone senior who can offer some flexibility.