How to pick a lender?

[Donald Walker]

I’m currently trying to set up my first flip. Before I get started I want to make sure I have everything in order. I’m currently interested in finding a hard money loan but don’t know where to start looking! How do you find a trustworthy lender and what should I look for? I’ve seen plenty of sites offering loans, but I don’t know what to look for.

[Amanda G.]

Hi Donald, I would start by finding your local investment club/group. I'm sure some of the internet options are good, but it is much harder (at least for me) to do due diligence with a virtual company. There is probable at least one person at the meeting who does hard money lending, and they will have local references you can talk to about the experience. If you get a good one they will charge you a pretty penny for your first deals, but also expect that they may need to coach you a bit through the process before you find your legs. Find one who likes speed of money more than deals that drag on, even if they get more interest/fees that way. Good luck!