How to choose a hard money lender in San Diego, CA?

Question

I'm currently looking into a partnership with another investor who is interested in flipping homes with me.  I'm VERY new to this whole idea of hard money lending, and was wondering how to go about choosing one?  Is it strictly based on rate and terms, or are some more reliable than others?  Can anyone recommend a good lender in San Diego, or nearby?

Bruce May · Answer

Joe, there are several great hard money lenders from which to choose; mine included. Rate and terms are important, but you should also consider the junk fees that come with each lender, how quickly they can respond and process your loan, do they do their own inspections for draws and are there fees associated with those draws; is there a personal guarantee for the loan and is there a prepayment penalty or minimum finance charge. I'm proud to say we don't do any of those things. I'll send you a PM and give you my contact info and you can call me if you'd like to discuss this further.

Jo-Ann Lapin · Answer

Hi joe happy to speak with and see if we can assist

Account Closed · Answer

the Norris group has been around a long time and very trustworthy

http://www.thenorrisgroup.com/hard_money_loans/

lending home is national and trustworthy

https://www.lendinghome.com/

don't always go by rate never send upfront money know who you are dealing with state and federal  license is key

Sean Richway · Answer

@Joe LaGreca  This is a very tricky question as there are many factors that go into picking a HML.  You need to make sure you understand all the terms, fees, draw cost, draw process ect. that go into these loans.  As a HML myself, the biggest factor we focus on is accuracy of terms presented.  What I mean there is what we quote you initially and what we close you at.  You need to understand how the underwriting process will affect your terms for the good or bad.  The bait and switch phrase is the biggest problem in the private financing world and too investors bite without doing their DD first.  Take your time to understand the entire process the lender is going to take you through and how their underwrite affects your loan terms.  This will eliminate a lot of headaches for you at the closing table when these issues will come up.  Don't always focus on the rate of the quote as the saying goes, " Cheapest isn't always the best".  You will pay for the money as there is a large risk involved and that is the nature of these loans.  Just make sure to understand the underwriting process and requirements as well as to do your own DD.  These transactions move very quickly and can become very emotionally draining if not prepared properly.  Communicate frequently and ask questions.

Brian Murkland · Answer

Hi @Joe LaGreca and @Christina M Viola great to hear that you are looking to invest in the San Diego market! I think you've gotten some solid advice from the community so far. I work with a private money lender based out of San Diego who has been working in creative financing and lending for many years; bridge loans, construction loans, etc. Please message me if you would like to talk more. I can also work with you on marketing your flip properties when you are ready to sell.

Good luck!

How to choose a hard money lender in San Diego, CA?

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