Hard Money Lenders (Or Private Lenders) Who Are Easy To Work With

12 Replies

Greetings all,

So I'm here in Atlanta Georgia working with a bunch of investors trying to satisfy their Real Estate needs as well as mines.  I come across a bunch of deals where the investor cannot find funding, but the numbers are very strong.  

How do we find Hard Money Lenders or Private Lenders that will loan more so based on the good numbers of the DEAL rather than the buyer's Credit?

Most Hard Money Lenders look at the deal first, borrowers available cash second, and credit third. 

If you have the first two covered, credit has very little impact.

If you're flat broke, and your credit sucks, you'll have a really hard time getting any hard money loan, or pay outrageous amounts in fees and interest.

@Darrin Carey

Hey Darrin.  Thanks.  Yes that's what I assumed.  I've ran into allot of lenders who would not budge on the credit even with the capital and good deal in place.  And the ones that do charge high rates.  I guess you have to have it all together to get what you want ultimately

@Rashad S. Sometimes you have to wait before doing the flip. I just met with one of my local borrowers this morning. I told him to focus on wholesaling a couple properties before taking on another rehab. He needs to increase his cash position.

I just funded 100% of his deal today, but I won't do another one like that for him until this one is sold. In this case, the deal is local, and I know the borrower personally. I also know the buyer who wants to buy it in 30 days, so the deal makes sense for me as a lender.

Originally posted by @Rashad S. :

Hey Darrin.  Thanks.  Yes that's what I assumed.  I've ran into allot of lenders who would not budge on the credit even with the capital and good deal in place.  And the ones that do charge high rates.  I guess you have to have it all together to get what you want ultimately

 You're right, most lenders have different terms according to the deal and the borrower's credit, liquidity, net worth, and experience.  Everything's a give and take with lenders.  Your rates depend on how risky the lender perceives the entire package to be.

Interesting perspective all around. In my experience Hard Money Lenders are mainly focused on Asset Based lending and the amount of financial risk they have in the deal. I would imagine if a buyer was bringing a larger down payment credit would not matter because there is a higher margin of financial safety for the hard money lender.

@Jim Murray   the issue comes with what the borrower or the public deems to be a good down payment and what reality is.

in a foreclosure situation depending on the state.. many times you will need at least 35 to 50% equity to not take a loss.

making loans with 20% down in a foreclosure scenario can all but assure the lender of a loss..

@Jay Hinrichs Absolutely! Great point. When I hear hard money I just assume 30% down minimum but it sounds like this scenario may have been less.

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I'm also looking to hear more on this subject, as it's been a "sore-spot" for me, as of late.  

Find a lender that has lighter restrictions on who your personal guarantor needs to be. For example, if you have the property, assets, and experience to make the deal happen but not the credit, find someone who has the credit and see what is required from the lender to use that person's credit... and your everything else.

Completely possible.

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