Hard-Money Lenders

3 Replies

How can I tell if a hard-money lender is legitimate? 

And what should deal structure look like to know that I am not getting taken advantage of? 


Warmest Regards,

Matthew Fragassi

make sure they are a real business.. try to do business with a local lender who knows your market inside out... they will do a few things for you.

1. establish long term relationship HML from an owners side is about keeping great clients happy and repeat business.. so good borrower is just as important

2. they know the area as well if not better than you will.. they will help keep you out of trouble or help guide you to the better deals as you run them by them.

3. its always nice to walk in and talk with them in person... I am a big believer in belly to belly business.. Although with interenet and all a lot of this get impersonable.

4. Make sure they have been doing it for years and are properly licensed ( if needed in your state) like here in Oregon to HML you need to be a NMLS RMLO if you do 1 to 4 units regardless of the purpose of the loan.

@Matthew Fragassi , exactly what Jay Hinrichs said. Look for a lender who is looking to build a long-term business relationship, is state licensed, experienced, and I would say to even check BBB certification for an extra measure. 

Thanks everyone! 

I appreciate all of the information. 

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