Which is better to use or is there a difference between HML or Investors? CAn someone help me out. I’m looking to use one or the other. Is there things I should know or look out for when dealing with them?
Investor usually means private individuals who are willing to loan their own funds. They probably wouldnt lable themselves as a hard money lender either. These investors can be hard to locate as they dont normally advertise their services. You’ll deal directly with the person making you the laon. Credit shouldnt be a factor and they’ll stick to their own markets. The ones in St. Louis only loan on the as-is value and will not include the rehab funds. Terms would be better than hard money.
More times than not, hard money lenders will be set up as an institution. Most will advertise their services as hard money. Loans can be based off the after repaired value and rehab work included in the loan. The majority will have credit score minimums and only lend in specific states. However, there are some that loan nationwide and have no score requirement.
Make sure the person you are working with is looking out for your best interest too. Some lenders are in the business of making deals on anything. Whether they feel the project is viable or not doesnt matter. Setting up a client for failure means that they’ll get the property back themselves.