Hard Money Lenders

When working with hard money leanders, what are the important questions an investor should ask before getting a loan from them.

you should ask about rates, fees, terms of loan, prepayment penalty, types of properties they lend on, length of loan, extension fees…some HML’s will be more flexible than others and it will also differ on what kind of property you are looking to finance and what the exit strategy is…you should actually have an exit strategy before you go to a hard money lender…knowing what your worst case scenario is before you go looking for hard money is a good strategy to have…


Also be sure that your HML is a “direct” HML. This means he underwrites his own loans and does not need to “shop the loan” to one of his investors. If you are not dealing with a direct HML then you risk being surprised at closing when your lender can’t find someone to make the loan. We work with "broker’s all of the time and give them a referral fee, for life, for sending a client our way. We do this so that we can work directly with the borrower to ensure a fast/smooth closing and that the broker gets to continue to earn referral fees from that borrower.