Question for Hard money lenders and Loan Brokers/Officers

Financing, Hard Money Lenders, Private Money
1

Hello, my inquiry is in regards to hard money lenders and loan brokers/offcers. My concern about this subject has been raised due to

  1. A post recently placed on this site
  2. I am dealing with a loan broker currently that has told me she requires a fee upfront for the following services:
    a) reference to the hard money lender
    b) prior to the Hard money loan being completed or issued by the hard money lender.

For the Hard money lenders/loan brokers in this forum, is it prudent to:

c) pay the fee an individual/loan broker may charge for reference to a hard money lender prior to the loan being complete, or after I am approved for a loan?
d) Should I continue my interaction with this loan officer?

Any feedback from seasoned investors/HML’s will be highly appreciate thank you.

2

We’ve corresponded several times about your goals. You’re more then welcomed to give me call to discuss some of the concerns you have.

3

Thanks alot Investment Loans. I will contact you further if I have any more questions.

4

Hard Money Lenders may require a retaining fee much like that of what an attorney may charge you upon initial review. Call it what you want, this fee should be reasonable.

However, paying someone a fee to refer you to a Hard Money Lender is nonsense. I wouldn’t pay that person a dime. There are plenty of Hard Money Lenders listed here in this forum for you to scroll through.

Be advised. Hard Money should be your last resort.

5

Thanks for the advice Lendinghand. I will take your advice into consideration if I encounter such individuals demanding such a fee for “referral services” in the future.Thanks again. Continued success in your investment endeavors

6

I agree with Jason. You should never have to pay a fee to find a HML. There is a list on this site. Just make sure that you check them out first before jumping in.

http://www.reiclub.com/hard-money-lenders.php

Good LUCK! 8)

7

Thanks for the information mdhass. I will defintely investigate the link that you inserted in your last post. Thanks again

8

Hello, again. Lendinghand you brielfy mentioned that HML’s may require a “retaining fee much like that of what an attorney may charge you upon initial review.” Would this retaining fee be paid or included in the loan origination/points charged on the loan?

9

most times that fee is payable in advance.

10

I understand that this “retainer fee” for the HML is paid in advanced and is not included in the loan origination/point fees. Thanks again Hammertime for the advice. Have a good day.

11

I’m a private hard money investor and I do not recommend anyone paying any fees up front other than possibly an inspection fee or an appraisal fee. All other fees should be paid through escrow with no exceptions. There are many hard money investors that ask for upfront fees however there are equally as many that do not charge up front fees. Do your home word and look around before paying anything upfront. It is a lot easier to say no than it is to loose your money from unscrupulous brokers and lenders.

12

Thanks for the information Warrenwest. My next investment endeavor requires utilizing hard money and I desire for the process not to be successful and efficiemt . I will decide or opt to select Hard money lenders that do not impose “upfront fees” except if the fees are dedicated to an inspection or appraisal. In addition, all other fees should be paid through the establishment of an escrow account by the hard money lender with no exceptions. Thanks again.