How Are Hard Money Lenders Finding Investors These Days?

Question

I’ve been having a lot of conversations lately around investor outreach and thought this could be a helpful discussion for both lenders and investors in the space. For those of you actively flipping, BRRRRing, or working on small multifamily deals — how are you typically connecting with lenders you trust?

Do you reach out once a deal is under contract? Build relationships ahead of time? Go through brokers? Referrals?

And from the lending side — I’m curious what’s been working best lately for finding and connecting with serious investors. Are you doing direct outreach, social, local meetups, or relying on word-of-mouth? Personally, I support a lender that works nationwide and funds flips, rentals, new construction, and multifamily — and I’ve been exploring different ways to connect with the right operators who need capital and can actually close.

Would love to hear what’s working (or not working) for others — both lenders and investors.

Jeff S. · Answer

Same as Jay. We lend our hard-earned money only and do not accept investors or run a fund of any sort. We lend only to experienced house flippers locally, in the Los Angeles/North Orange County areas, and we don’t work with brokers either. Nothing anonymous. We find all our borrowers face-to-face at local real estate clubs.

After a short conversation, if it looks like a fit, we will go to lunch once or twice to discuss our process and learn our borrower’s background. We may also walk through a few of their deals, as available. We want to ensure you know we are real and make sure you are real as well.

Because lenders occasionally flake out at the last minute, we get the same “emergency” calls as Jay, though often on a Wednesday or Thursday for a Friday close (!!!). We can help if we’ve previously met and know you. We cannot help, however, without a previous relationship.

It’s easy to evaluate a deal. The relationship is everything.

Mike Grudzien · Answer

Attend meetups with Investor groups, pay your dues and do the legwork to build real, in-person relationships.

Jay Hinrichs · Answer

As a direct PML in the true sense. We dont do any deals with brokers or take any referrals from brokers I self generate all my clients.. However we have a very narrow niche that we work in and are only looking for those that can do some volume in the BRRR or fix flip space. We dont work with folks that are going to do one or two deals then be gone.

And like Don says above is so true most borrowers starting out go through the progression he states so by the time they realize either they dont have enough capital or experience or the deals are not in the main stream lender buy box, our typical scenario is we get a call on Monday in a panic I am going to lose this deal if I don't close by Friday :) And that is my specialty and more complicated scenarios like foreclosures and sub markets the big lenders wont work in. etc etc. But the majority of my clients come to me by referrals Title companies RE Brokers word of mouth type referrals not referrals we have to pay for or add to the deal to make the loan more costly for the borrower we garner those fee's:)

Garrick Allen · Answer

From the lending side - We work nationwide, so a good amount of our business does come from socials and platforms like this, but we also have a good amount of business from word-of-mouth and meet-ups at a variety of conferences. We are also a broker, so our approach is pretty involved! Hope that helps!

James McGovern · Answer

One hard money lender has taken out billboard ads throughout Connecticut. Others have made the effort to attend real estate neetups

Erik Estrada · Answer

And don't be greedy with the points/commission splits. A lot of brokers charge but don't provide any value. I like to deliver more value than what I charge.

Erik Estrada · Answer

A lot of online marketing for sure. But you have to be able to build your reputation first. In the beginning you might need to go skinny to compete and earn your client's trust. As soon as you build a huge pipeline you can easily start turning down deals or working with clients that will be repeat or referral partners.

I also work with other brokers. You just have to make the process easy for them. Build a good loan app intake process, have an organized way of submitting conditions, etc.. and you will do great.

Overall you just have to be good at what you do and be honest. As long as you focus on those two things, clients will come to you.

Don Konipol · Answer

I really like your niche.

How Are Hard Money Lenders Finding Investors These Days?

How Are Hard Money Lenders Finding Investors These Days?

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