Where to find your hard money lender

Question

When looking for a hard money lender is it common to use someone out of state or is it better to work with someone that is close to you. Does it matter the location of the lender is my question I suppose?

Odie Ayaga · Answer

It depends on the lender and the investor. To me it doesn't really matter if the lender knows your market unless you need them to vet a deal and tell you it's a bad deal. If you're experienced enough to tell a deal is a deal why care if your lender knows your market so long as they give you the loan? I'm more interested in the terms, process, ability to close, etc for the lender.

Jay Hinrichs · Answer

everything being equal you want a lender that really knows your market..

Justus Schaefer · Answer

@Odie Ayaga Great thanks for the input!

Justus Schaefer · Answer

Awesome information thank you I will start looking into that!

Brian Geiger · Answer

@Justus Schaefer

Jay Hinrichs is right. You want a lender that knows your market. It can be either national or local. In addition, there are HMLs who lend based on the asset and there are some that will take your credit into consideration.

Either way you will need reserves and big downpayment (depending on experience) and closing cost to be able to close.

You should speak with a mortgage broker or call up some hard money lenders to see what they offer. Bigger Pockets have a list of hard money lenders.

Justus Schaefer · Answer

@Jay Hinrichs Ok thank you!

Justus Schaefer · Answer

@Brian Geiger Ok great. So do most HML not care about the property just the term?

Brian Geiger · Answer

To me:

Location doesn't matter as much as terms. I've seen the best terms from out of state lenders as well as in state lenders. It mostly depends on the lender

Where to find your hard money lender

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