Hard Money Lending for First Time Investors
Hi Everyone,
I've been following BP now for the past six months or so but this is my first post to the forums!
I think I've found my first deal that I'm ready to put a cash offer in, my question is in regards to hard money lenders:
Do hard money lenders typically charge higher rates and more points to first time investors? If so, what is the best option to secure a reasonable deal with a hard money lender?
Any and all advice is much appreciated. Thanks in advance!
Most Popular Reply
@Michael High Experience will typically be a factor when lenders look at your loan. In addition to higher rates, lenders might lower the LTV and LTC on the loan. To better position yourself, I would agree with previous posters that you should put more cash into the deal if possible. Additionally, I would make sure you find a very experienced and credible contractor to do the work. The execution risk of the deal is something that lenders look at and why experience matters - having experience shows that you are capable of managing/executing a deal.