hard money lending

[Olivia Story]

I'm new to investing and hopping to start my first purchase this summer. My question has to do with hard money lenders. My initial thought is this would be a great option for me. However I'm not sure where to find a good lender. So far I have come across websites that look almost too good to be true, offering 100% loans. Can someone please tell me if these are legit?

[Brad Starling]

I'm new also, but my short answer is yes, these can be legit. However, like everything else in life, you have to do your due diligence. I've found that there is nothing better than finding what you need via reference. Hopefully someone on here knows a hard money lender local to you, so you can get going with a reputable source. But the loans can be 100% (purchase price and repair costs), as they loan based on the value of the deal, not necessarily the borrowers credit worthiness or skin in the game. That way, if the loan fails, they still have a great deal! Keep in mind that the value of the deal is going to mean that you're getting a property at a steep discount, with the loan amount being AT LEAST NO MORE THAN 70% of the after repair value. That way, even if you default, they've got a property that they can unload quickly for at least a little profit. At least, this is my experience (albeit small). Happy hunting!