Best Practices in Hard Money Lending
FasterFunds Lending, a hard money lending who focuses on the Saint Louis Market has a unique take on hard money lending that I would think should be more popular.
1. No appraisal fees. They get in their cars and go see the projects for themselves
2. Funding. Will fund deals up to 100% purchase and 100% of rehab costs
3. Private Money: They encourage deals to use private money for rehab
4. Deals: All fees are transparent and declared upfront
5. Take Back: The number of houses taken back is very low. Some lenders take back more than what is reasonable
6. No hidden fees: No challenges where you learn about costs via HUD-1 forms such as the lender requesting more insurance liability directly with an insurance agent that was not declared upfront.