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?
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.
We lend in the states we lend in, irrespective of where the investor borrowing from us lives. As far as lines of credit go, yes, we will have a line of credit product rolling out in the next 30-60 days for real estate investors.
I spoke with a BP guy out of Chicago (Aaron) who was talking about a hard money line of credit not tied to a property. Hopefully he'll read this and give you more info. I'd tag if I could remember his last name.
@Charlie Fitzgerald what do you use for collateral or qualification?
Nathan - I do. Where are you looking in Indiana? We mainly work in Chicago and northwest Indiana. I actually live in northwest Indiana.
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