Getting a Hard Money or Private Lender

4 Replies

I've been looking for a hard money lender or a private money lender, and I will be contacting some of the places that look promising to work with. Before I do that, I had a couple things I was not sure about.

When working with a hard money lender, the typical advertisements that I have seen indicate that they will determine whether to do a deal or not based on the property, meaning, I have to find the property first, then they will determine if they fund it. That leads me to believe that I should start working with an agent and start actively searching for a good deal. My only concern (having only bought a house on a conventional loan) is that sellers and agents will be hesitant to work with me without being pre-approved in some way. Do hard money lenders typically work by offering to do a loan on a specific deal? Is there anything I will need to do since I will not know whether or not I will receive funding until the deal is presented?

Being that I'm a beginner, I was curious what everyone else's experiences were like working with a hard money lender or a private lender, and what that process is like.

I just realized, I also forgot to ask one more question. Do hard money lenders or private lenders ever finance the entire deal, or do they require a down payment?

Some HMLs will finance 100% but your rates and fees will be considerably higher.

You don’t need a Deal to be qualified. They look at your credit score, recent bank statements and background to see if you’re lendable. Yes, property has a lot to do with it but you can be pre-qualified.

That said, HML can agree to lend to you but also reject a property if they don’t like the area. Maybe crime ridden, too many days on market, or other factors.

There are some national lenders who will lend on almost anything which isn’t necessarily a great thing. They have a volume game.

If a HML rejects you at listen take heed as to why they did so before seeking new partner(s).

Most Hard money lenders can pre approve you based on your financials and credit report and once approved you can always circle back for a proof of funds for any deal that fits within your parameters. Feel free to contact me directly

@David Weintraub and @Tarik Turner thank you both for the feedback. This helps get me started in looking for deals that I can present to HML's. I'm just starting out, but I'm hoping to find my first deal within the next couple of months. Thanks again.

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