Finding Hard Money

??? Please help. I am finding it difficult - no - impossible to find a hard money lender who cares only about the property. I can buy a property at 50% of its value but everyone I talk to who will do “hard money” loans wants to qualify me. I am unemployed and behind on rent. How do find someone who will loan to me based only on the value of the property I am eager to find that person.

I am in Ohio if that matters. The property is worth over $400,000 and I think I can buy it around $200,000. ::slight_smile:


The short answer is YES. There are some hard money lenders who will loan strictly on the value of the property. And as I’m sure you know, these loans are not cheap (compared to conventional loans) and are usually short term. But in the right situation, they can be an invaluable tool for an investor.

But if I may ask, what are your plans for the property? Do you plan to fix it and flip it? Keep it? Assign it? I ask because it can have an impact on how you structure your package going to a HML. It’s also a key factor as to how you will pay back the loan.

BTW – congratulations on finding, what sound like, a great deal!

It needs new carpet and paint and a few minor repairs. The size of the house is the bigest factor in repair costs. I will try to sell it ASAP after the repairs are done.

I would recommend trying to get the property under contract as soon as possible. Make sure you have some sort of an escape clause, such as: contingent on inspection by licensed property inspector, contingent on partner’s inspection, contingent on financing, or something that will give you an out.

Also, make sure you’re accurate with your comps on what the property is really worth - as that will be a big determining factor in what you could borrow. But don’t wait to find your financing. Worst case basis, you could always assign the contract to another investor, or find a buyer and do a double close.

I have the property under contract but I can not start the short sale process until I have proof of funding.