Finding hard money before the wholesaling deal

4 Replies


My name is Israel and I was wanted to get some clarification about applying for hard money lending. My question is if I all other exit strategies fail and I have to go to a hml, would I have to give them some type of packet with the comps and potential profits of the deal? Also to my understanding from what I've been told if you fail to repay them then they keep the property, is that correct?

Thanks in advance for advice


Good afternoon Israel!

I wanted to get back to you as soon as I received your message. I am new to Texas and the wholesaling business here and would defer your question to another person with more direct experience. I will share with you a lender that I came across the other day that seemed very legitimate and had a great website.. I believe it was Sherman Bridge. They have a very quick on line system for prequalifying investors. I would go take a look at that an then contact them directly. The rates and the LTV's seemed very fair. Good Luck! IF you do move forward with them please let me know how your experience went.


Jacklyn R Cheatham


The qualification among hard money lenders can vary significantly. Some will look into your credit and have minimum FICO and/or cash reserves while others won't. Some will also require an appraisal and some will value the property themselves. I would suggest looking into a hard money lender and finding out these questions before you get a loan from them.

Also, make sure to look into and explicitly ask about ALL of the fees. Some lenders will advertise a low rate and points but make up for it in "junk fees" (ie: underwriting, appraisal, administration, servicing, etc...). Let me know if you want to talk about anything related to HML and I'd be happy to help.

@Israel Saldana HML is just like any other loan.. .you don't pay lender forecloses.

having been a HML since the mid 80's I am kind of old school.. I would not use a lender you could not go in and sit down in front of and talk with.. @Zack Lofton gave you solid advice.. If I was in his area and seeking a HML I would want to make an appointment with him and eyeball him.. Most HML are smaller shops that are owner operator .. the owner operator will be very very versed at the market and will actually guide you so you don't make a bone head purchase  IE they won't lend on it because its not a good deal..

Most website on line lenders will frustrate you @Jacklyn Cheatham I would not take this person advice... 2 posts and only recommends one lender who she is probably affiliated with... careful on BP about lender scams.

Also based on your questions you need to really hit the books and understand a little more about what your wanting to do.. your the borrower the HML is the lender its not complicated but there are guidelines you want to follow.. A great local HML will make you a lot of money over time. I know I did for many of my clients.

And do not fall for the scams that require you to pay a fee up front but your all of a sudden pre approved.. especially things you find on line or on Craigslist those are usually scammers that are just trying to get small dollars out of you... you will know when you ask them for a loan and all of a sudden your approved for some large amount even though they barely did any due diligence on you.. then they want you to buy some phony baloney bond etc etc.. If Zack is offering and if you live close make an appointment and go sit with him in 30 to 45 mintues you will understand all their is to understand about HML I suspect.

I'm wanting to get into wholesaling is there Hml for 24hrs so i can purchase the home and flip to a 


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