How do I go about trying to Get my first hard money lender

Question

As a new investor I’m trying to learn what I need to bring to a hard money lender to finance my deal that I can get started?

Shawn Dennard · Answer

Contact multiple lenders to find a good fit as their requirements,  rates, fees will vary a lot. If one don't like your situation or deal don't assume others will say no as there are thousands of lenders out there.  On your first deal you won't get the best terms but you have to start somewhere and build a good track record and relationships.  Beware of "lenders" asking for application fees up front as most of those are not legit.

Odie Ayaga · Answer

You also want to be realistic about how much you'll need to bring to the table on a down payment+closing costs. Many new investors are caught off guard when they can not only find a lender who's going to give them 100% financing, no points, no closing costs, but how much all of that ends up costing.

Shera Gregory · Answer

The list from @Derek Dombeck is very good. Since you are a newer investor I would also include a list of everyone who will be on your "team"... you will need to line up these folks at some point so working on that sooner rather than later is a good idea. For example, attorney or title company, realtor who is running comps and (if a flip) listing the finished product, general contractor or project manager (especially if you are working full time), accountant, cleaning company, property management company (if you plan to use one for a rental), etc, etc. You are borrowing their credibility to an extent. Be sure these are folks you are really working with, have had some discussion with, etc and not just a list of names to fill in the blanks.

Michelle Fabro · Answer

@Guifre Mora I have the same question has the OP. For me it would be a purchase + rehab cost.

Roman Adam robinson · Answer

Thank you everyone for all your help and information

Guifre Mora · Answer

@Michelle Fabro your welcome

Michelle Fabro · Answer

@Guifre Mora This is helpful. Thank you!

Guifre Mora · Answer

@Michelle Fabro

Property details:

Cost of purchase

As is value

Appraisal if any

After repair value

Comparison of Market rents

Scope and budget of rehab work

Purchase agreement

Escrow instructions if any

Your personal info

Schedule of RE owned

Proof of funds (downpayment, closing costs & holding costs)

Real estate resume

Your FICO scores (some ask some don’t)

Statement on Exit strategy

How much are they lending you on the purchase 80/75/70%... (rehab funds usually will be covered 100%)

Guifre Mora · Answer

@Roman Adam Robison same ratios and qualifications as a SFR. But with some specific items for Multifamily that new to be reviewed.

How do I go about trying to Get my first hard money lender

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