The best hard money mortgage lender for a person is going to be something that each individual will need to determine for themselves. Hard money loans are usually collateralized with property, most often real estate, and the lenders usually want to inspect the property so they tend to be localized. There are some nationwide hard money mortgage lenders, but most serve one or two states with some being somewhat regional. The best hard money mortgage lenders for a person to select from is going to depend on their location.
How should you find the best hard money lenders in your area:
Networking events, like real estate investing seminars. Locate some of these events in your area and attend, if you’re lucky there may even be a session on hard money lenders ad the conference. Even if there isn’t, network and talk to other people there, presenters and attendees, learn from their experiences. Most people are willing to help and explain something, the occasional one wont, but don’t let that bother you, just move on.
Bank Loan Agent referral, build a relationship with one or several bank loan officers in your area. If the agents want to get your more traditional loans to service they may be willing to work with you on locating a hard money mortgage lender. The hard money lender often fills the gap until more traditional mortgage options are available, so when possible the investor will typically want to convert hard money into a traditional loan.
Friends and Family, Just start asking about the best hard money mortgage lenders in your area, maybe your friends or family already know some one or knows some one that knows some one. If you can get a hard money lender recommendation from someone you trust it can be a much easier start.
Local papers or Internet searches, check the local papers for someone offering to loan money, or search the Internet for hard money lenders in your area. When locating a hard money lender this way it would be prudent to do due diligence on the lender to determine if it will be good a relationship.
The best hard money mortgage lenders for you to work with are going to be ones that you feel comfortable with. The hard money lendor is usually more willing to work with the borrower as an individual and not try to shove the borrower into a typical pigeon hole like the traditional lender. Remember the hard money lender is in the busisness of making money as such they will have some guidelines they put on the hard money loans. The loan to value (LTV) on the hard money loan will be lower than a traditional loan and the interest will be higher.