Finding Hard Money Lenders Made Easy

Hardmoney lenders do not use screaming neon lights or gianttarpaulin signs. You usually won’t find ads outside their “offices” that theyare lending money for real estateinvesting or other purposes. That is why some say they are hard to find.However, finding hard money lenders is difficult only if you don’t know whereto look. Here are some tips that can make your search a bit easier. 1. Talk to your neighbor. Literally, talkto your neighbor. You can never tell, maybe your neighbor is indeed a hardmoney lender . Sounds funny but this is a serious suggestion. These kinds oflenders usually work in the comforts of their home. They are basically peoplewith ready money and are willing to fund your flipping houses project. You couldn’tblame them if they are more discreet compared to traditional lenders like bankswhen promoting their services. 2. Call companies. You can also tryvisiting or calling mortgage and title companies orreal estate agencies. These firms usually have contacts in your area. They dealwith buyers and sellers so you might even find a hard money lender in such offices. 3. Read the paper. Some lenders advertisetheir businesses through classified ads. 4. Go wired. Perhaps the most convenientway of finding hard money lenders is going online. Some websites have adatabase of lenders nationwide. You can enter your location in these sites andthey will find the lender for you. In any case, you must always ensure thatyou know the terms and conditions that come with this kind of financing. Whileterms may differ, lenders usually grant up to 70% of the ARV, or after repairvalue, of a property. The ARV is the value of the property after it has beenrehabbed. For example, a fixer upper may be worth$45,000 upon purchase but might cost $100,000 after repairs are made. The$100,000 is the ARV. Getting around 70% of the ARV is usually enough topurchase the property you want to flip. It could even cover the repair costs.When that happens, you get to rehab a property without spending a single dollarfrom your pocket. That’s the beauty of hard money financing. It allows you to earn money without spendinga single dollar. You can also get cash even with a poor credit score as hardmoney lenders assess borrowers based on the deal they are presenting. If hardmoney lenders see that the property you are about to flip will yield positive results,they will not hesitate to fund your project. Visit REIwired.com to learn more about hard money financing and realestate investing.

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