Hey guys I have been doing some research on some local hard money lenders and just wondering what suggestions you have and your experience with that lender. Looking to use hard money to BRRRR properties.
Hey @Brodrick Glessner Great question. I would look closely at the terms when working with private money lenders or hard money lenders. You want to look at things such as pre payment penalties. If you are doing fix and flip try to find a lender that does not have any pre payment penalities. This is great if you decide to flip it super quick for example. Also if you are deciding to BRRR these properties and do a cash out refi on say a fix and rent product, make sure you run the numbers and can still cash flow with the private money rate you will receive on your expected ARV. Oh and consider forming a business entity as some lenders will only lend to entities and not individuals.
Good Luck with your investing!
@Brodrick Glessner this is highly dependent on WHERE you need a hard money lender. if you know the product you need but just need it in a specific state try posting in that state forum. Bigger Pockets has some great state forums and usually there are good locals that monitor those. Also, try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. But post locally for this. That’s the best bet.