You’ve found the flip of a lifetime, but you’re short on cash. Or maybe you’re looking for construction financing but you’ve been turned down by a bank because you don’t meet all the credit requirements.
Whatever the reason, there’s a potential solution: a hard money loan. But how do you find the best hard money lenders in your area?
Knowing who to trust can seem like a headache, but this guide will give you a great foundation for knowing exactly what you should look for to secure a reliable hard money lender today.
If you’re in need of short-term financing, read on.
Look for Credentials and Reasonable Terms
It’s paramount that you secure a hard money loan from a source you can trust. One of the ways you can ensure reliability from a lender is the credentials they hold.
Be aware of your state’s requirements for hard money lenders. They may require real estate broker or loan officer licensing, or none at all. A good practice is to check if any complaints have been filed against their licenses. Reputable lenders will cover all legal bases and even work with a lawyer to ensure both parties are protected in a potential loan deal.
Ask about interest rates, flexible financing terms, and any associated costs up front. Hard money lenders should have competitive rates. If any aspect of the deal isn’t transparent, seems out of the ordinary, or is much higher than the local industry average, compare quotes with another lender.
Always Check References and Get Recommendations
Check Google or Yelp, and the Better Business Bureau for reviews to get a handle on the best hard money lenders. If there are bad reviews or no reviews, don’t waste your time.
Do they have testimonials available on their website? Read those and follow up on them, when possible.
Another great way to source the best hard money lenders is to check out local real estate investor clubs. Investigate near you to see if there is a local club, and join their online forums or attend a local meeting.
These clubs often have lenders looking to make networking connections with potential borrowers. Not only that, but many seasoned club members probably have lenders they can recommend to you from personal experience. This is a great way to meet face-to-face with like-minded people and suss out the local lending situation.
Efficiency and Reliability
It is important to work with a reputable lender that specializes in hard money loans so they have the experience and knowledge to get you the best financing possible.
Make sure a potential lender is aware of any deadlines you have and is willing and able to work with them. A lender who has funds readily available ensures the money is distributed in a timely manner. One of the major benefits of hard money loans is getting money that you need much faster than a traditional bank loan, so make sure your potential lender is working within the time frame you need.
An initial response should take only a few days time. Ask the lender what time frame they typically fund a loan in. Hard money loans typically have far fewer requirements and qualifications than a traditional bank loan, so the turnaround time from your lender should reflect that.
Why We Rank as One of the Best Hard Money Lenders
Here at Realty Resources Corporation, we’ve been providing a variety of services such as hard money loans to Georgians since 1976. We have an experienced team of direct lenders and trusted brokers.
With thousands of successful loan deals under our belt, we’re prepared to work with you on any property type located in Georgia.
Get started today with a name you can trust. We can help you get the loan you need, today!