I've never used a hard money lender before, but with my first long-distance investment, I thought I'd give it a test drive. A little background: I am a developer, spec home builder, and occasional rehabber. Through a friend I ran across what appears to be a couple of promising investment opportunities in central Louisiana (CENLA), about three hours from my home. My friend is a contractor and would manage the jobs. My primary lender is a community bank with no interest in lending outside of their market area.

The two investments are SFHs next door to one another in a good part of town. They were purchased by a flipper, who decided to get out of the business in the beginning of the rehabs. One house is around 1,300 sf, which I can purchase for $30-35k, with estimated rehab costs of $30k. The other is roughly 2,000 sf, which will run $40-45k, with an estimated rehab cost of $40k. The comps in the area are roughly $100/sf, so it looks like I may be able to make some profit flipping them.

The lending terms I am hoping for would be:

• 70%ARV
• 80-90% purchase funding
• 100% rehab funding
• Draw schedule of 3-4 draws funded when the work is completed for each draw
• 12 month term, interest only payable monthly
• Interest rate 10-12% accruing only on the balance outstanding

Using BP's Network search I found a list of national HMLs who participate in Louisiana. I know, everyone recommends exploring local HMLs first. Thing is, in most Louisiana cities, local hard money lenders are few and far between. Additionally, I am exploring opportunities in other Gulf South states, so I would like to establish an ongoing relationship with a solid national lender with a presence in those states.

I've begun parsing the list I gleaned from BP by applying objective and subjective criteria. In fact, one of the most effective tools I am using is the BP forums. They provide a wealth of information from actual HML customers. With that said, here is my parsed list and some comments, in no particular order:

• Angel Oak: They look solid and reasonable. They are located in Atlanta, which is not too far from my home. Main critique I read was that they can be slow moving.
• RCD Capital: The have good reviews and participate actively in the Forums.
• Patch of Land: Lots of conversation in the Forums, looks like borrows are pleased with their performance. They have an office in Dallas, which is fairly close to the projects.
• Revolver Finance: Their terms appear reasonable, seem to be straight shooters (sorry), and based in Dallas, and a very cool name.
• Temple View Capital: Good terms, responsive, well-liked in the Forums, active in the Forums, which I like.

Ultimately, my question is, in which direction would the experienced borrowers on the Forums steer? Should I apply to each of them. If I do will I kill my FICO ( not great but 680) from all of the inquiries? Should I open a dialog with the reps from each firm, then apply to the ones I feel most comfortable with? Do any of them rise above the others for some quality I may have missed?

Thank you for any assistance you may provide, and for bearing with me throughout this rather long post.

Rogers Smith