All Forum Posts by: Shirin Namavar

@Shirin Namavar reach out to other investors in your area and get recommendations for the lenders they use. Ask the lender what experience lending to real estate investors, and what type of asset classes. Finding a lender that is also an investor is a plus as they understand more of what your doing. 

@Shirin Nam great question. 

First thing you should do is make sure that lender is actually a lender, ask them to see HUD's from recent closings (yes some lenders will send them but with the borrowers name crossed out and the prop address crossed out) but you should be able to see the date, amount funded and youll know they are actively funding loans.

Next, ask for referrals, we get that request all the time and I have no issue giving out names/numbers of borrowers that I close loans for as that is my best form of advertising, a satisfied borrower. 

Red flags to watch out for 

 1. asking for money upfront! The only thing you should be paying for upfront is an appraisal and to the appraisal company directly. If you get asked for a "deposit" paid to the "lender" directly, run

2. Being asked to sign a "fee agreement" - lenders don't use fee agreements, brokers do

3. Not being able to get you loan terms on your 1st call! This is a big one, this is how you can figure out who is a lender and who isn't. 

Hope this helps, reach out if you want to discuss further

@Shirin Namavar you should consider working with a financing brokerage.  These firms have access to and experience with lots of lenders of a variety of types.  Hard Money or private lenders may not be your best option.  There are multiple levels of financing options ranging from local banks, credit unions, 2nd tier commercial lenders, private investor and hard money lenders.  Additionally, you may want to consider friends and family as alternate sources.  The best thing to do is study all of your options and don't allow any single lender to rush you into a solution that might not be right.