Do Hard Money Lenders Work with others

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When it comes to hard money lenders do they ever work with other investors, for example if a hard money lender is going to lend 80% of purchase price and 100% of rehab and then you find someone who is going to invest the remaining 20% of the purchase price will they allow that or will they only work with you specifically.

I am thinking what you are saying is will they work with a bridge loan and that answer is yes.  If it is not a bridge loan you are referring to I am not sure they will do that.  If you have a equity partner before you get the loan then you all deal together for the loan but bringing in an equity after you already have a term sheet might not work.  You need to be upfront with your hard money lender  if that is what you are trying to do. 

Let me know if you have any other questions by tagging me here with the questions.

@Anita Muhammad generally they want you to have "Skin in the game". In other words they want you to have some of your money at risk so you have a strong incentive to make the deal work. Now if your second lender is a partner or there is no second mortgage then the HML may allow it.

Do you have money for reserves? Do you have money for the first construction draw? If you are trying to do this with no money at all of your own you are asking for trouble.

@Anita Muhammad Keep in mind hard money lenders will usually need to be the 1st lien holders on the property. If you find another one willing to be 2nd lien holder then that could work but in my experience I don't think a hard money lender would be willing to take 2nd, too much risk. Hope that helps! 

I would say call them, I think that they will need to know that prior to the close.  I don't think it would fly. you should have told them upfront that you were getting a partner of some sort. or a second lender right away.  Does the second lender know they are the mortgage second?