Hard Money Lender
For the Best Chance at Success, Find a Hard Money Lender Who Understands the Investment
By Buyincomeproperty.com
Oct 26, 2005, 18:16

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.