Hard Money Lenders

1 Reply

Do HML fund across all 50 states? From the HML directory, I see a list specific to each state; does this mean they will only fund projects in their respective states?

Hi @Account Closed  ,

Yes. Technically HML can operate in all 50 states if they can qualify in each state. But why would you really want to pick a hard money lender just for that reason?

I work with a hard money lender that funds nationally.  There are pros and cons to that.  Local guys often require less information, credentials and are cheaper.  National guys allow you to build a relationship that can help you grow between many states.  That said, many local guys will give you the same benefit once you have a little reputational capital.  Just anticipate more costs because the risks are higher.  The national guys also charge more because the "risk" is higher, but they have to try to be competitive.  

To fund in all 50 states, you have to be a large company, many states require a brick and mortar building, lots of licensing and sometimes SEC issues apply to these guys.   That's why it's often easier and cheaper to go with a local guy.  

The risk of going with a local guy is that you don't know if they will put out at the last minute causing you loss of funds, opportunity and reputation.  If you go with a local guy, try to close early so that you have time.


PS: Closing early may or may not be a good idea.  There are often times when you want to extend out a closing because its' a bad time to purchase and extension costs are less than holding costs.  

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