Hard Money Lenders Today!
What does a hard money lender mean to you?
To me it's an individual or company that lends for a certain amount of 'points' and a MUCH higher interest rate than YOUR LOCAL bank.
Recently we were forced to look for a new funding source since our hard money lender got hurt over Thanksgiving. 5/6 companies that hit me up after I filled out a form on Connected Investors via Auction Flipping web site are LARGE public and private companies. They want to know EVERYTHING about you...once you get their pre-approval letter. They have THEIR lending fees ($500-1000) then want a to see a large amount of cash; additional cash to back up the renovations; past flips; two years of tax returns; incorporation docs; a high credit score and an appraisal from a licensed appraiser with any renovation drawings.
Our original lender offered us a loan at 10% down, 10% per annum interest and 3 points. And only dependent on looking at the property. NOTHING more!
So when you think it's going to be EASY...think again!!!
If you have good credit and some $, then You can do better at a bank!
They'll ask for the same crap and you'll get much better deal.
Or ask at your local salvage center or REIA meeting for a lender who is botlocal and fair.