Updated about 11 years ago on . Most recent reply
Always Keep an Open Door Policy With Your Hard Money Lender
If you use a hard money lender on a real estate rehab deal, keep an open door policy, especially when times get tough. Here’s a good story about why this is a good policy. We made a hard money loan on a rehab project that went “south,” as they say. The borrower’s partner ran away with the funds to renovate the property and, rather than let us know there was a problem, the borrower tried to hide it from us. After several late payments on the loan, we contacted the borrower and he finally told us his tale of woe. We were able to help the borrower by using our contacts. One of our contacts in the real estate investor community decided to partner with the troubled borrower on the deal and ended up saving it. The property was completed in less than 3 weeks and on the market, and we didn’t even have to lend the borrower more funds to complete it!
If you encounter major problems in a real estate deal, don’t clam up! If you have a hard money lender that you know and trust, use their resources when times get tough.
Posted by Corey Curwick Dutton