If your a Hard Money Lender, what do you look for in a deal ?

Financing, Hard Money Lenders, Private Money
1

If your a Hard Money Lender, what do you look for in a deal ?

2

Hard money is usually asset based so the biggest focus is on the collateral.

Different lenders have different criteria, but you’ll find LTVs ranging from anywhere between 50% to 65%.

3

And if 50-60% isnt enough you’ll find 70% easily obtainable too.

75-85% depending on the location of the property and some other criteria.

These %s given were based upon the after repaired value so funds for fixing up the property can be included with the loan.

4

Hi,

Thanks for the replys. I appreciate it but how does all of this hard money fiancing business work ? If I were to get a loan from a hard money lender or loan to someone, how would I go about it ? Also, as a hard money lender if the person can’t pay you, you have the right to sell the property ? and make a profit ?

Thanks

5

Awesome. Do you lend to LLC’s.

6

as a hard money lender i look for:

LTV
Uses of proceeds
why do they need hard money
Type of property and location
when it was purchased
what it’s purchase prices was
is there an existing mortgage
if so, are they current with the existing mortgage
Whether the property is currently occupied
if so, what is the occupancy rate
are there leases
what is the NOI
can the property service its debt
how many sq feet/ acres

just to name a few.

Jeff Seidler

7

I currently have 3 residential properties, one primary and two investment. Is it possible to use one of these properties as collateral to get a hml to use as a down payment on a new property?

8

The easiest way to structure this loan, would be to refi and cash out one of the investment properties, and use that money toward the down payment on the new property.