Hard Money Requirements (?)

At first I heard hard money lenders only looked at 60% Value of the home as it stood, unimproved, and would lend that with Repair money on a draw basis.

Then I read that HM-lenders want to see at least two years of CPA books before they’ll lend. Then I read that with a credit score of 650 I’d have to put down a deposit of my own to secure the loan.

Any info here to clear this up? I’m looking to do just a hard money loan for the purchase and finance the repairs with a private investor. I’ve only had my LLC for about a month. I’ve got a business account for the LLC as well.

How do I find a good Hard Money Lender I could work with being as I’m just getting started on my first project (rehab)… any suggestions??

Bottom line, there are no standard rules for a Hard Money lender/loan.

You are usually dealing with individuals that are lending their own money (or their investors funds) and they are doing so in a manor that is not regulated by the
government (Housing and Urban Development).

So, what they require, is what they (individually have deemed satisfactory evidence that they will get paid back their loan…

I would call adds in the classified section of the local newspapers. Look under headings of Money to Loan, Real Estate Loans, etc. Yes, they all vary in what they like and what they require. But ask a bunch of questions and get several to work with as your deals develope, let them bid for your business. I would suggest just being honest and finding someone willing to work with you. Also finding someone who has their own money to invest, not just a broker who who needs to add his fees onto what the actual investor expects as his return. Experience and their willingness and ability to work with you are also key.