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How to Choose a Hard Money Lender

How to Choose a Hard Money Lender

Contrary to popular belief, choosing the right hard money lender comes down to more than just who offers the lowest points and interest rates. There are a variety of criteria that should be taken into account including location, property type, credibility and more. It is important to take all these factors into consideration to be able to make a sizable profit and avoid entanglements along the way.

In this day and age, we have a luxury of choices at our fingertips. Life is a buffet and we’re filling up our plates. In the lending world, there is also a wide variety of options available and it’s important to choose which hard money lender will work best for you. You wouldn’t load up your dish with steak if you’re a vegetarian. So, we’ve created a 7-step process to follow so you can ultimately make a better decision.

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1. Choosing the Right Type of Property

This is important because often lenders will only lend on a certain type of property. If you’re interested in rehabbing a house with a meth lab history, properties which are duplexes or 4-plexes, or high-end properties, it could prove challenging to find a lender, as many will not lend on those property criteria. Also, check to make sure the lenders can lend in the state in which your property resides. Some lenders lend in 40+ states, others lend in only 2 states. Below is the Do Hard Money property criteria:

  • We loan on unoccupied, single family homes.
  • We loan in 13 states: Georgia, Illinois, Indiana, Louisiana, Maryland, Michigan, New Jersey, North Carolina, Ohio, Texas, Virginia, Washington and
  • Wisconsin.
  • We loan on homes up to $250,000.
  • We loan on rehabs only. We do not provide funding for major structural additions/changes from the original blueprint of the house (such as adding walls or levels).
  • We do not loan on properties less than 900 sq. ft.
  • We do not loan on properties in rural areas.
  • We do not loan on manufactured, mobile or recreational properties.
  • We do not loan on properties with significant meth, mold or fire damage.
  • We do not loan on properties with significant foundation or truss problems.
  • We do not loan on properties which require more than $75,000 in repairs.

2. Choosing the Right Type of Property

This is important because often lenders will only lend on a certain type of property. If you’re interested in rehabbing a house with a meth lab history, properties which are duplexes or 4-plexes, or high-end properties, it could prove challenging to find a lender, as many will not lend on those property criteria. Also, check to make sure the lenders can lend in the state in which your property resides. Some lenders lend in 40+ states, others lend in only 2 states. Below is the Do Hard Money property criteria:

  • We loan on unoccupied, single family homes.
  • We loan in 13 states: Georgia, Illinois, Indiana, Louisiana, Maryland, Michigan, New Jersey, North Carolina, Ohio, Texas, Virginia, Washington and
  • Wisconsin.
  • We loan on homes up to $250,000.
  • We loan on rehabs only. We do not provide funding for major structural additions/changes from the original blueprint of the house (such as adding walls or levels).
  • We do not loan on properties less than 900 sq. ft.
  • We do not loan on properties in rural areas.
  • We do not loan on manufactured, mobile or recreational properties.
  • We do not loan on properties with significant meth, mold or fire damage.
  • We do not loan on properties with significant foundation or truss problems.
  • We do not loan on properties which require more than $75,000 in repairs.

3. Choosing the Right Type of Property

This is important because often lenders will only lend on a certain type of property. If you’re interested in rehabbing a house with a meth lab history, properties which are duplexes or 4-plexes, or high-end properties, it could prove challenging to find a lender, as many will not lend on those property criteria. Also, check to make sure the lenders can lend in the state in which your property resides. Some lenders lend in 40+ states, others lend in only 2 states. Below is the Do Hard Money property criteria:

  • We loan on unoccupied, single family homes.
  • We loan in 13 states: Georgia, Illinois, Indiana, Louisiana, Maryland, Michigan, New Jersey, North Carolina, Ohio, Texas, Virginia, Washington and
  • Wisconsin.
  • We loan on homes up to $250,000.
  • We loan on rehabs only. We do not provide funding for major structural additions/changes from the original blueprint of the house (such as adding walls or levels).
  • We do not loan on properties less than 900 sq. ft.
  • We do not loan on properties in rural areas.
  • We do not loan on manufactured, mobile or recreational properties.
  • We do not loan on properties with significant meth, mold or fire damage.
  • We do not loan on properties with significant foundation or truss problems.
  • We do not loan on properties which require more than $75,000 in repairs.

Step 1. Do your homework/background check on each lender.

Once you have your list of compatible lenders, make sure you do some detective work into their backgrounds. Check their qualifications and licensing (if applicable). Ask for references from the lenders’ clients/brokers and follow up with them. It’s also important to take a look at online reviews, testimonials and if a high number of complaints have been filed with the BBB. Check if any complaints are left unresolved. Here’s what folks have been saying about Do Hard Money:

Step 2. Do your homework/background check on each lender.

Once you have your list of compatible lenders, make sure you do some detective work into their backgrounds. Check their qualifications and licensing (if applicable). Ask for references from the lenders’ clients/brokers and follow up with them. It’s also important to take a look at online reviews, testimonials and if a high number of complaints have been filed with the BBB. Check if any complaints are left unresolved. Here’s what folks have been saying about Do Hard Money:

Step 3. Do your homework/background check on each lender.

Once you have your list of compatible lenders, make sure you do some detective work into their backgrounds. Check their qualifications and licensing (if applicable). Ask for references from the lenders’ clients/brokers and follow up with them. It’s also important to take a look at online reviews, testimonials and if a high number of complaints have been filed with the BBB. Check if any complaints are left unresolved. Here’s what folks have been saying about Do Hard Money:

Testimonials

DHM was a joy to work with. They were flexible, timely and they did what they promised they would do, even when our project ran longer than expected due to contractor issues. We would definitely recommend them to other investors looking to fund their rehab.”

Tony S

DHM was a joy to work with. They were flexible, timely and they did what they promised they would do, even when our project ran longer than expected due to contractor issues. We would definitely recommend them to other investors looking to fund their rehab.”

Tony S