Updated over 9 years ago on . Most recent reply
- Real Estate Broker
- Cody, WY
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Private lender Line of Credit?
I actually have two questions:
1. Do private lenders provide lines of credit? Or do they only lend on deals as they come up?
2. Do hard money lenders only lend to people within the states the lender covers? In other words, if a lender says they are lending for Colorado, Arizona, and New Mexico, does that mean the borrower must reside in those states or does it mean the borrower has to spend in those states? I ask because there aren't any listed for Wyoming but I am actually interested in other markets. So if I find a lender for Indiana, can I living in Wyoming but borrow funds to spend in Indiana?
- Nathan Gesner
Most Popular Reply
hard money lenders are typically deal specific, meaning the subject property is the collateral. I have never seen a true line of credit from a HML.
Every lender is different with residency requirements. Some want the borrower to be in the market they are doing deals in, others don't care as long as the borrower and deal make sense.