Any tips on locating hard money??
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As Ken said, it's not hard to find them, try Google!
Thing is, you need to vet them!
Here's some tips..... don't take the attitude of begging for money, they are not your buddy nor doing you any big favors, that's any lender. It's business, so be business like. Ask questions and expect straight answers.
Learn what they want, the LTV, your down payment, your experience, costs of rehab, etc. Compare the programs you find, it may not be all about the interest rate. Be very careful with joint venture lenders!!!!!
Don't assume you can't go to a bank, go and at least find out what they offer. Check out mortgage brokers too.
You also need to know basic RE finance, eventually your deal will have to fall under those guidelines if you plan to sell. What is your exit strategy with a HML, they are short term lenders?
Good luck :)
Hard money lenders are a dime a dozen.. usually they'll go up to 80% LTV.
Our company does 100% financing of purchase and rehab... unless the borrower has no experience. All deals are negotiable.
I am a hard money lender. I require NO FINANCIALS and I except all credit history. Why there maybe a lot of so called "hard money" lenders out there, many differences lie between them. Most of the true hard money lenders will issues LOI's (which is a document that states if the starts align they will do your loan). I will issue an approval that will tell you exactly what is needed to get your loan funded. As long as the value comes in we will be closing that loan. Another difference between my program and other hard money lenders is the way I fund. A lot of the lenders are working with hedge funds or similar funds to fund the deals. Some may even approve a deal and sale it to an investor to come up with the funds. The issue you run into is the hedge funds often require more underwriting than a conventional bank! The guys that sale your deal may get to closing and have that investor pull out of the deal. Where does that leave you? You could lose the deal or worse the property if you are facing foreclosure. I raise my own funds and set the funds aside for each and every deal I fund. This insures that the funds will be at closing!
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