Hard Money Lender in Your State

Hard money loans… You’ve probably heard the term—but what are they, exactly? What are they used for and how do you go about finding a hard money lender in your state? 

The following demystifies the enigma, discusses how they work, and how to find a great provider.

Everything You Need to Know about Hard Money Lenders

• What and why? The two most common questions about hard money lenders
• How to find a hard money lender near me… Another popular question

What and Why? The two most common questions about hard money lenders

What is a hard money lender and why would you use them? These are two of the most common online questions surrounding the subject. So, let’s look at them in turn.

• What is a hard money lender/hard money loan? Quite simply, it’s a way of borrowing that doesn’t rely on your net worth, credit rating, employment status, or tax records. Instead, the loan is secured against real estate—most usually, the real estate that you’re purchasing with the loan. Another important detail is that the money is generally lent via a private company or individual, as opposed to a bank.
• Why would I want to use a hard money lender/get a hard money loan? There are many reasons. One of the most popular is for real estate investment. Perhaps you want to buy a fixer-upper to sell (known as a fix & flip). Maybe you want to buy a dilapidated property, rehab it, and then rent it out (known as buy, rehab, refinance, rent, repeat, or a BRRRR for short) You might need the money short-term. For instance, if you’ve found your dream house but not yet sold your current one—this is known as a bridging loan. You might even need the money to stave off a foreclosure.

Whatever the reason for seeking a hard money lender in your state, you should be aware of the following:

The money is (most usually) secured on property, not your net worth.

Your credit rating won’t generally impact your chances of getting a hard money loan.

The approval process is far faster than a regular mortgage—sometimes as quick as 10-14 days.

Repayment schedules can be more flexible than regular bank-financed loans.

That all sounds great, yes? However, there is also a downside to all this. Namely:

• The loan represents a bigger risk to the lender than a regular mortgage. Because of this, the interest rates will be significantly higher.
• You can only borrow up to 75% (perhaps a little more if you have a pre-existing relationship with the lender or are prepared to settle for higher interest rates).

For most property investors, this isn’t an issue. The aim is to either flip the real estate or refinance at a lower rate before renting it out. In other words, the loan is only ever intended to be short-term.

How to find a hard money lender near me… Another popular question

Let’s look at how you go about deciding which hard money lender to borrow from. Any online search will bring up multiple results, each of them clamoring to lend you money. But this is definitely a case of borrower beware—because hard money lenders certainly aren’t all made equal.

Rather than searching for a local provider, the key should be to seek out the lender with the best interest rates, the best customer service, the fastest closing rate, and longevity in the business. Let’s face it… Funds today are transferred instantly at the touch of a button. Therefore, it doesn’t matter if your lender is in the same town, region, or state. Distance is no issue whatsoever. 

When seeking the best provider, due diligence is your primary weapon. Take your time, ask around, read reviews… And if a provider seems a bit iffy, then trust your intuition—because they probably are…

Want a “Hard Money Lender Near Me?” Contact Countrywide Provider, BRRRR Loans, Today

When it comes to the best hard money lenders, it’s not the case of where they’re based—it’s more about the reputation and what deal they can give you. BRRRR Loans specializes in lending for property purchases outside of the normal mortgage needs. Whether you’re financing a fix & flip, need a bridging loan, DSCR, commercial, or anything in between, we’ve become the go-to hard money lender for those in the know.

Find out why at https://www.brrrr.com and get in touch today for a confidential discussion.