4 Top Tips to Help You Build Trust with Hard Money Lenders

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According to a 2018 planning and progress study conducted by Northwestern Mutual, the average American has debts that amount to about $38,000 without counting mortgage. This figure is $1,000 higher than the previous year.

Most people earn just enough to pay off their mortgage and cater to the bills. To afford other things, one must find a way to supplement their income. One of the best ways to do this is through house flipping.

Though this industry is capital-intensive, if you have a keen eye to spot good deals, you can use fix and flip loans from hard money lenders in Georgia to finance your venture. These are short term loans that are secured by real estate.

The good thing about hard money lenders is that they are less stringent than other financial institutions. Even if you have a poor credit score, you can access a loan provided you have a viable opportunity.

A hard money lender not only offers financial support but also industry expertise. As such, it is essential that you make a good impression from the word “go.” Demonstrate professionalism and commitment when you step through the door. Read on to find out how you can win the trust of Atlanta hard money lenders and create a rapport that your business will benefit from for years to come.

Understand the Industry

House flipping is more than just buying cheap houses, renovating them, and selling them for a profit. There are a lot of factors that come into play for you to be successful. Once you decide that flipping house is a worthwhile undertaking, invest your time and resources into understanding the industry.

The best way to do this is by doing online research on the trends that are specific to your market. Check out blogs and listen to podcasts about house flipping. At this stage, you want as much information as you can get. This will help you identify a suitable niche that you can focus your attention on.

Be Prepared When You Visit the Hard Money Lender

When a hard money lender issue loans, they not only invest in the opportunity but more so the person. Therefore, the perception you create is crucial in their decision to fund your venture or not.

The first thing you should do to show that you are worth investing in is going to the meeting prepared. This is not just about understanding the market but having all the necessary documents to back it up. Among them should be a business plan. This is a document that outlines the goals of your fix and flips business and the steps you will take to achieve them.

In it, you must outline the following:

  • The methods you will use to find opportunities
  • The type and cost of properties you are targeting
  • Projected timeframe for buying, fixing, and selling properties
  • The exit strategy

A pitch accompanied by the right documents demonstrates your seriousness and increases the chances of the hard money lender to want to work with you.

View the Relationship as a Partnership

Although the private lender is technically your lender, they are, to an equal extent, your partner. To begin with, you should be prepared to put up a down payment. Your willingness to share the risk demonstrates your commitment.

Once your loan is approved, keep in touch with your lender to capitalize on their experience and connections. As your lender, they want your venture to succeed so that you can repay the loan. Therefore, they will be willing to share with you their insight.

Deliver and Come Back

The key to scaling your house flipping business is developing a great relationship with your hard money lender. As you continue to identify excellent properties to investing in and repaying your loans on time, the lender’s willingness to take bigger risks with you will increase. Soon, they will be advancing you fix and flip loans for multiple properties at the same time. When you’re ready to invest in house flipping, contact the hard money lender you can trust: Hard Money Georgia.