Hard Money / Private Money

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When it comes to private/harf money lending, how do you know you have went with the right lender? What are some things you look for when you are interviewing a lender? Is the goal to keep the same lender after a successful deal or should you always look for a new lender for better rates? Thank you.

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Hi Tyler, I recommend after a successful deal with a lender, and If you had a great experience with that lender then I suggest you use them again; because once you build that relationship with a Hard Money Lender, that trust is established. The reason you want to build trust with a lender before you go to other lenders is because you want to know that when you get a deal under contract you can call them up and let them know you have a deal; and they will close faster, and give you better rates. They won't have to check your credit again,  ask for bank statements, or ask you to pay certain fees like you had to when you first did business with them. Once that trust is built, they become a great asset to your power team.

In addition to the statement made previously, when you use multiple lenders you have to keep trying to get used to how they do business. For example, down payment, inspection draws, closing costs, and etc. You want to really have that consistency, and stability with one lender so you can just operate quicker, and faster.

The questions you should always ask a lender is are they a direct lender,How fast can they close,  Do they lend based on the Asset or based on the borrowers financial history, minimum downpayment, minimum credit score, do they require experience, are there pre-payment penalties, and is there closing costs.

If you have any questions feel free to reach out to me, and please connect with me. Thanks!