Hard Money Lenders criteria for first flip?
We are about to go into our first flip, (once we have found the right home, searching for one now in central FL). What should we be looking for in a Hard Money Lender?
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On one level that is a question only you can answer.
Be sure to figure out what experience requirements they need and the amount they will fund based on that.
You want one who can close quickly.
You want a lender that communicates and keeps in touch.
If you plan to do more flips consider a lender who may offer loyalty programs or more options to repeat customers.
Make sure you understand the draw and rehab process for the lender you use. Will they let you change rehab plans? How do they disburse funds?
Do you want to have a lender that does a 3rd party appraisal or in house appraisal? 3rd party appraisal can mean the deal gets ruined with low appraisal, in house could be potential a conflict of interest on lenders part.
Be sure you are comfortable and aware of any nonrefundable fees should you start going through on a deal and processing the loan but you fail to close for one reason or another.