How to find hard money lender

Question

I have found a property in the Birmingham area, but they only take cash or hard money. I don't know how to get hard money. What are the steps and is there anyone in Birmingham that can be recommended?

Nate Herndon · Answer

@Gregory Saysset - here's what you could expect working with a nationwide hard money lender. Below is what my clients in Birmingham are generally getting depending on credit/experience.

• 90-95% of purchase price funded

• 100% of rehab funded

• 9.00% - 11.49% interest rate (interest on drawn funds only)

• 12-month loan term, no minimum hold time

• Desktop analysis valuation / drive-by appraisal

Local hard money guys can often times beat that, but it's tough to establish those relationships quickly when a deal is right in front of you. Many investors walk through the entire BRRRR process with a single lending partner for both rehab funding and DSCR refinancing. Would be happy to connect and answer questions about how folks do that.

Stacy Raskin · Answer

There are hard money loan options with up to 90% of the purchase price and 100% of the rehab done on draws. There are lending options that lend in multiple states including Alabama. The actual specifics will depend on the property location and borrower profile. Happy to discuss further.

Mike Klarman · Answer

Before anyone starts dialing hard money lenders, they should take inventory of their borrower profile.  What's your credit, how much capital do you have, what experience do you have if any.  That's what lenders look at.  So if someone's profile is:

650 credit

15k in capital

0 experience

That's not a fundable profile.  If someone is bringing in a 0 for experience their profile should look like this:

720 credit75k in liquid cash

They are buying a 100k property that needs 70k in work.  They have about 45% of the whole project cost in reserves.

Write down on paper what a lender will see and you be the lender and ask yourself if you would lend money to your profile?

I say this because Hard Money is ironically easy to find.  It's not a question of if you can find it like it's a four leaf clover.  It's the three leaf clover kind that is frickin everywhere.  So don't panic about finding it, it's hard not to.

Question is, does your borrower's profile warrant a loan on the scenario you bring forward.  Are your numbers right on ARV, rehab?  You know how many projects wind up being 10% - 20% short on the rehab?  Lots.  You know how many times the real ARV is 10% - 20% less than expected?  Lots.

Lenders know this, they're not stupid.  So if you come forward with a so-so borrower profile, and a thin margin project, the answer will be no.

Vijay Friedman · Answer

@Gregory SayssetIf the seller is requiring cash or hard money, the first things I'd look at are the property's condition, purchase price, and your exit strategy. A lot of hard money lenders focus more on the deal itself than traditional income documentation. Is this a rental, flip, or BRRRR-type opportunity?

Sruly Goldschmied · Answer

Hi Gregory,

I'm a Hard money lender that can take a look at this we close on average 100 Million a year and like to make new connections with clients and brokers

you can view my what my company lends on over here https://hardmoney.gpscapllc.com/

Jake Yuskaitis · Answer

Plenty of companies that lend there. We can help. First time rehab loans I can get up to 85% LTV with 100% of the purchase and with experience it's possible to get 100% funding.

Mike Klarman · Answer

Hard Money is not hard to find.  It's like air.

The real question is, which hard money options are best for you.  If you are brand new, expect to pay more with a higher rate.  That's just how it goes.

Also, if you are new, how do you know the numbers work.Purchase PriceRehab Amount ARV

Purchase price and rehab added together shouldn't be more than 70% of ARV if you wanna make any real return.  How do you know your numbers are right?

Hard Money has ended 10x more REI journeys than it's started.

Andrew Lee · Answer

Hi Greg,

This should be an easy one to place with a hard money lender. Birmingham has roughly 200K residents and is a strong, established market for investment lending. You don’t need a local lender—just one that is licensed and able to lend in Alabama.

Caleb Brown · Answer

Referrals, local groups, FB groups are where I have had the best luck

Robert Homewood · Answer

Hey Gregory, great question — a lot of investors run into this the first time they find a “cash or hard money only” deal in a competitive market like Birmingham.

At a high level, a hard money loan is short‑term financing primarily based on the property and the deal (purchase price, rehab budget, and after‑repair value), rather than your income or W‑2s. Here’s how the process usually works for a flip or BRRRR‑style project:

• You get the property under contract (or very close) so you have real numbers to work with.
• You put together a basic deal package: purchase price, rehab scope and budget, estimated ARV, exit strategy (flip or refinance to rental), and your experience level.
• You submit that to a hard money lender; they’ll typically look at the ARV and fund a percentage of purchase plus some or all of the rehab, often up to a certain loan‑to‑value based on ARV.
• They’ll order an appraisal or valuation, review title, and make sure you have skin in the game (down payment and reserves), then move toward closing—usually much faster than a conventional lender.

Because these loans are more focused on the collateral, the trade‑off is higher rates and points, and shorter terms (often 6–12 months), so it’s important to have a clear plan to either sell or refinance when the project is complete.

For finding lenders in Birmingham specifically, you’ll want to:

• Use the BiggerPockets Lender Finder and search by Birmingham/Alabama to see investor‑focused lenders active in that area.
• Search the forums for “hard money lenders in Birmingham, AL” and read older threads where local investors share who they’ve used and what their experiences were.
• When you talk with any lender, ask about their max loan‑to‑ARV, required down payment, total costs (points, fees, interest), and how quickly they can close, so you can compare apples to apples.

I’m a mortgage broker who works with investors and private/hard money lenders, and I’m happy to help you think through how to structure the deal and what numbers you should be watching out for; feel free to DM me here on BiggerPockets if you’d like a second set of eyes on the scenario.

How to find hard money lender

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