Investor · Chesterton, IN · Member since 2016 · 28 posts · 2 votes
Hey everyone...I am looking for a hard money lender in the Northwest Indiana area. I wanted to know if anyone has any reccomendations for one and companies I should stay away from. Thanks for your help!!!
Some hard money lenders are predators, and will have to legally offer it as a F/C sale and buy it back in for their own cash flow.
It is hard for a hard $ lender to get hurt.
They have a 60% LTV win win for the HML
The borrower has high interest rate and must make payments or meet a balloon payment.
For the investor, nothing goes as fast or as well as expected, there are always a delay of some sort.; zoning, inspections, draws, permits, agents, buyers, weather, screw-ups by contractors and subs, unexpected construction issues.
Hard money, can get hard to pay back! Be careful when you start to think that HML may be your answer.
Try these alternatives:
100% seller financing
Delayed settlement with right of possession (prep for flip before legal, ownership) you don't need to own real estate to sell it, you need to CONTROL it!
Control and Roll, control the property with a skinny contract, flip before settlement
Hybrid purchase with seller (as a limited partner), seller to contribute renovation funds, offer property at public auction with a percentage back to seller on equity above offered price.
Control and offer property immediately by private treaty.
Put together a friendly or family joint venture (if you think the deal is great, convey your enthusiasm to your friends or family members, they put up the needed money, they get a percentage of the NET profits).
If the equity is too small or risky to buy, refer it to a competitor or an agent for an UP FRONT referral fee.
Find a partner with cash and skills, don't give too much of a percentage away, partners can be expensive.
Don't let one deal slow you down, keep using Power Prospecting techniques, making offers and moving forward.........multi-task all the time, just because you are working on one great deal, don't become overwhelmed, get help, but don't slow down.
Have fun in this business, don't get greedy, be kind and always think carefully before making hurtful comments, words are hard to take back.
Give back to the community when you are financially able to do so.