Hard Money Lending for beginners

9 Replies

Has anyone had experience with hard money lending?  

I have a 2 family unit that I pretty much own out right.  It needs about $25K in repairs to make the property presentable/livable. I've tried the traditional loan, but my credit is not what it needs to be.  

I'm currently working on my credit situation but did not want to pass on this opportunity.  I have 2 renters willing to write "Promise to Lease" letters for both units.  

Any insights or advice on the subject?  

Thanks,

Regi J

Personally - I dislike and haven't used hard money. 

Have you spoken to any credit unions in your neighborhood? 

Sometimes these credit unions are willing to give $ to investors like you who are going to renovate properties in their city. Typically they are going to give you construction loans at a much lower rate than hard money will.

Originally posted by @Antoine Martel :

Personally - I dislike and haven't used hard money. 

Have you spoken to any credit unions in your neighborhood? 

Sometimes these credit unions are willing to give $ to investors like you who are going to renovate properties in their city. Typically they are going to give you construction loans at a much lower rate than hard money will.

 Bad credit precludes lenders that you suggest.. 

Originally posted by @Jay Hinrichs :
Originally posted by @Antoine Martel:

Personally - I dislike and haven't used hard money. 

Have you spoken to any credit unions in your neighborhood? 

Sometimes these credit unions are willing to give $ to investors like you who are going to renovate properties in their city. Typically they are going to give you construction loans at a much lower rate than hard money will.

 Bad credit precludes lenders that you suggest.. 

 Thank you.

Originally posted by @Antoine Martel :
Originally posted by @Jay Hinrichs:
Originally posted by @Antoine Martel:

Personally - I dislike and haven't used hard money. 

Have you spoken to any credit unions in your neighborhood? 

Sometimes these credit unions are willing to give $ to investors like you who are going to renovate properties in their city. Typically they are going to give you construction loans at a much lower rate than hard money will.

 Bad credit precludes lenders that you suggest.. 

 Thank you.

your most welcome of course... when someone post their credit is not what is should be that's code for bad credit.. bad credit does not borrow from institutions.. you should know that . 

Originally posted by @Jay Hinrichs :
Originally posted by @Antoine Martel:
Originally posted by @Jay Hinrichs:
Originally posted by @Antoine Martel:

Personally - I dislike and haven't used hard money. 

Have you spoken to any credit unions in your neighborhood? 

Sometimes these credit unions are willing to give $ to investors like you who are going to renovate properties in their city. Typically they are going to give you construction loans at a much lower rate than hard money will.

 Bad credit precludes lenders that you suggest.. 

 Thank you.

your most welcome of course... when someone post their credit is not what is should be that's code for bad credit.. bad credit does not borrow from institutions.. you should know that . 

 Many credit unions lend funds to people with bad credit.

Originally posted by @Antoine Martel :
Originally posted by @Jay Hinrichs:
Originally posted by @Antoine Martel:
Originally posted by @Jay Hinrichs:
Originally posted by @Antoine Martel:

Personally - I dislike and haven't used hard money. 

Have you spoken to any credit unions in your neighborhood? 

Sometimes these credit unions are willing to give $ to investors like you who are going to renovate properties in their city. Typically they are going to give you construction loans at a much lower rate than hard money will.

 Bad credit precludes lenders that you suggest.. 

 Thank you.

your most welcome of course... when someone post their credit is not what is should be that's code for bad credit.. bad credit does not borrow from institutions.. you should know that . 

 Many credit unions lend funds to people with bad credit.

OK if you say so.. thrifts do but its the same rate or higher than HML ers. I have bought many a defaulted note from thrifts over the years..

Most Hard Money Lenders have a minimum of $50k.

Here are two good resources to find lenders:

https://www.scotsmanguide.com/Residential/LenderSe...

https://privatelenderlink.com/

You can bring in a private money lender to provide the $25k secured by 1st Trust Deed.

Where is the property located ?

What is estimated current value ?

Do you have construction budget for the $25k rehab ?

Current Gross Income

Current Expenses, with Taxes and Insurance

How long are the tenants' leases for ?

Do you already have an take-out lender ?

What is your current credit score ?

What is the estimated time-frame to get it to 700+ ?

How many other properties do you hold ?

How many properties have you held in the past ?

What is your current Income, Assets, Liability, Amount Capital Reserves ?

... Those are some questions that a lender might want to ask

This post has been removed.

Thanks for the input everybody.

I did try credit unions and because they denied the loan officer had suggested HML. I've been doing some research but wanted a little more insight on them.

I think I'm going to do a little more exploring of that options.  

Thanks Again. :)

Regi J 

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here