Hard money lenders are sometimes the best source of funding, especially when
only cash will do. Flipping, fixer uppers and other short-term investments often
require a cash investment that can be more quickly and easily provided by hard
money lenders than from any other source.
But to make the most of a hard money lender, you need to find those who are
most familiar with your particular situation. For example, A hard money lender
in Las Vegas is going to be more in tune with the real estate trends in Nevada
than a hard money lender in Pittsburgh.
Does that mean that a hard money lender in NC has any less real estate savvy
than the hard money lender in California? Of course not. It only means that
finding the hard money lender who is most familiar with particular areas or
types of real estate investments will be more likely to net you a profitable
loan application.
The reason geography is important has a lot to do with the Internet. Today,
most people are so accustomed to the fact that there are few neighborhood
boundaries when it comes to doing business, and that lenders, insurance and
other services are provided by companies from across the country. It’s certainly
acceptable to search for the services of a hard money lender in California even
if you live in Pennsylvania and the real estate investment in question is in
Arkansas. But the California investor may have no idea of real estate trends and
values in Arkansas, and may be more reluctant to offer up a loan.
And there’s more to consider here than just geographic location. Finding a
hard money lender who is familiar with particular kinds of real estate and real
estate investments is also important.
A commercial hard money lender would be much more likely to understand the
need for commercial evaluations as part of an investment as a hard money lender
who only deals with residential real estate or personal loans. While you as the
borrower may be able to explain the need, the hard money lender will be
displaying a lot of trust to simply take your word for what is best. Only time
will gain that kind of trust.
A hard money lender can very well be the answer to your investment needs,
especially if cash is the only thing that’s going to make a potential profit
from a real estate investment into a quick reality. Finding a hard money lender
who understands the kind of real estate investment and is familiar with the
region is probably going to make it much easier to sell him on the idea of the
investment.
