Hard Money Lender Question

6 Replies

Do you provide your tax returns to your hard money lender?

Do they require an appraisal and/or inspection?

Thank you. 

most HML that are bigger players will vette you just like a bank.. if not tax returns HUDS showing your last 20 to 30 deals..

nope  ... but if they don't .. just call them and ask for what they want.. make sure your dealing with a reputable lender though don't want to get sucked into the " send me a deposit before I fund routine" 99% of those are frauds and will steal you money..

too good to be true these days in private/hml is dominated by these frauds..

@Jay Hinrichs appreciate the help will do. Was wondering if you could answer the following...

How can a hard money lender commit to a rehab amount they will fund prior to closing? Architectural drawings aren't done until after you close property (and only then can you have exact #s from contractor). A scope of work provided with an application is clearly an estimate as you can't see behind the walls/ know to the dollar what things will cost etc.

2) Do HML's require appraisal/ inspection? If so I assume you would need to keep these contingencies in place (along with financing)? In that case can't imagine I will win many properties when competing against cash.

@Ben C.   Many Hard Money Lenders use the Tax Return as a way to make sure you are filing taxes and not the numbers involved in the taxes.  We send an appraiser out once we have the Scope of work to make sure that the project makes sense.