Hard Money Lenders

[Juan Ayala]

I’m looking for advice on using a Hard Money lender. I understand the underwriting process is a bit different from bank financing where they prefer you have a property under-contract to move forward with qualifying. 

My question is would I use the hard money lender as a source of financing at an auction? My gut says it’s a bad idea because I need the secure the source of funding prior to bidding. 

Any advice is welcomed! Thanks!

[Robin Simon]

Quote from @Juan Ayala:

I’m looking for advice on using a Hard Money lender. I understand the underwriting process is a bit different from bank financing where they prefer you have a property under-contract to move forward with qualifying. 

My question is would I use the hard money lender as a source of financing at an auction? My gut says it’s a bad idea because I need the secure the source of funding prior to bidding. 

Any advice is welcomed! Thanks!

 Yes - hard money can be utilized here - one thing to look for is if your hard money lender is going to require an appraisal before funding vs. ones that don't (rely on internal valuation and expertise).  Often can be the difference in speed to close and whether you can compete with all-cash buyers