Four Important Traits of a Good Hard Money Lender
Hard money loans are great for real estate investors but how do you find a good hard money lender? The hard money loan definition is a short-term loan for individuals investing in real estate. These individuals generally flip the properties in order to make a profit. Because the hard money loan process is significantly shorter than that of a traditional loan, investors use hard money to acquire investment properties quickly. But how do you know if you are working with a good hard money lender? Here are a few traits to look for when deciding on a hard money lender:
Unlike traditional lenders, hard money lenders can offer real estate investors two-way communication. Traditional lenders may have strict regulations for potential borrowers but hard money lenders work with the borrower to find a loan that works for them. Because hard money lenders can negotiate the terms of the loan with the borrower, communication is an important aspect of the process. Ask yourself these questions: Is the hard money lender presenting information clearly? Are they responding to my questions quickly? If the answer to these questions are “yes” then that is a good sign.
You want a hard money lender who knows what they’re doing and a good way of knowing if a hard money lender has experience is looking at their website. If their website has little information about their services and investment opportunities, that’s a good sign that they don’t have the experience you’re looking for.
Good hard money lenders should be able to respond to questions and comments quickly and they should always be able to meet deadlines. Attention to detail is very important when it comes to the underwriting process so if the hard money lender does not seem professional, it is best to take a different route.
Hard money lenders are not like traditional lenders. They don’t just finance the loan and then you never hear from them again. Hard money lenders are on your side and you should be able to work as a team. Without respect, that relationship falls apart. You can find out if the hard money lender values respect by checking online for testimonials from past borrowers.