Requirements for hard money lenders? Fees to watch out for?

2 Replies

First, read this:

Every hard money lender is slightly different but they all generally work the same. I called about 8 different hm lenders before I found the right one for me. Start local, use the BP hard money lender search, but walk into the conversation with a basic level of understanding of how this approach works. Some won’t work newer investors, some will. Main questions you need to ask when interviewing them:

- how much of the asking price do they cover

- how much of the repair budget do they cover

- APR %

- interest only payments or balloon 

- points/fees charged

Ask the right questions and you shouldn’t have any surprises :)