You've got your eye on a property, and you’re ready to take action, but first you need to get your funding lined up. The bank isn't an option on this one and you don't want to lose the opportunity, so you are looking for a hard money lender to help you make this investment happen. If this sounds like you, then you need to know how to find the best hard money lenders.
Can They Fund You Quickly?
A good hard loan lender should be able to close the deal in 10 to 15 business days and sometimes even less than that. Anyone who takes longer without significant extenuating circumstances affecting the investment is just wasting your time. One of the major reasons investors like you choose hard money lenders is because they offer much better turnaround time than traditional lenders like banks.
Whenever possible, Avoid Prepayment Penalties
As an experienced real estate investor, you don't want to stay in debt any longer than you have to, but on the short term fix and flip loan, a pre-payment penalty may be impossible to avoid. Whenever possible, find a hard money lender who isn't going to penalize you for paying off your loan as soon as you can. For longer term loans, there is no reason that paying back your debt quickly should cost you more money.
Get the Best Terms
Due to the direct nature of funding in hard money loans, the terms can vary greatly from one funding source to the next. You wouldn't buy the first property you came across without comparing it against other options, so don't make that mistake with your hard money loan no matter how quickly you need the funding. The terms of your loan can have a large effect on how profitable your real estate investment ends up being, so it is worth your due diligence.
For more information on why a hard money loan is the best choice for your next real estate investment, contact us today