Best Source For Hard Money - Posted by James

Posted by Ed Garcia on April 06, 2006 at 11:06:59:


Hard Money comes from the private sector but there are lenders out there who proclaim that they do Hard Money institutionally and nationally. Of course I know of some Hard Money Lenders in California but they vary from State to State.

Here is a site that will give you such lenders

After viewing this site, I am familiar with many of these lenders and don?t consider them Hard Money Lenders. I consider them Sub-prime Lenders.

You might want to check them out. Some of them you can go to direct, others you may have to go through a broker.



Here is an article that was written a year ago by one of our older more experienced investors. When he addresses step 2, the lenders he mentions on this website are not considered by me to be Hard Money Lenders. He considered them ?quasi? hard money lenders and I consider them to be None conforming lenders. The difference is that credit is part of their lending criteria. With a Hard Money Lender it?s not.

But at least this should give you some food for thought.

Posted by Jim Kennedy - Houston, TX on September 04, 2002 at 14:25:04:

In Reply to: Re: posted by Laura Brewer on September 03, 2002 at 19:45:11:


Perry is exactly right when he says you have to “dig around for them”. He’s also right about the distinction between a “true” hard money
lender and what I call (for want of a better term) a “quasi” hard money lender.

Here is a repost of a list I put together on steps to take in order to “dig around” for hard money lenders.

Seven Steps to Find Hard Money Lenders

Step 1. Since most hard money lenders tend to be either local or regional in scope, on this news group, post what city and state you are in and
perhaps someone from that area can refer you to a hard money lender.

Step 2. Two hard money lenders (or more what I call “quasi” hard money lenders), advertise on this web site. Look for their banner ads at the
top of this page. If at first you don’t see them, simply click on your web browser’s reload or refresh button until the banner ad says “Hard
Money Loans” or “Rehab Funding” or “Brookview Financial, Inc”. Or go directly to their web sites at for Bob
Beckman of Rehab Funding, or at for A.J. at Brookview.

Step 3. Many hard money lenders have web sites that explain what they have to offer, including their rates, terms and conditions. Therefore,
do a search of the Internet for hard money lender web sites.

Step 4. Find several local rehabbers by calling their “I Buy Houses” ads in your local daily newspaper as well as the local Pennysaver, Thrifty
Nickel, Greensheet, etc. In my area, several rehabbers run ads in the yellow pages. Ask the rehabber if they can refer you to a hard money
lender who makes equity based loans in your area.

Step 5. Attend the next meeting of your local real estate investment club. Ask some of the experienced investors for a referral to a hard
money lender. If the club has a membership roster (as mine does), start at the top of the list and contact each member and ask who they use
for hard money loans.

Step 6. Open the yellow pages to “Real Estate Loans” or “Real Estate Mortgages” and start at the top of the list. Call each lender and ask if
they make hard money loans. If they don’t, ask if they can refer you to someone who does. Be careful with this last one. Many mortgage
brokers only deal in “traditional” types of loans and will look at you with a puzzled look, if you ask about “hard money”. ?Hard money lenders?
are also referred to as ?equity based lenders? or “asset based lenders”. Just make sure that the person you’re asking understands that you’re
looking for a lender who looks primarily to the asset and isn’t very concerned with your credit when deciding whether or not to make the loan.

Step 7. Contact your title company and ask if they know anyone who makes equity based loans. If they don’t, open the yellow pages to “Title
Companies” and start at the top of the list. Call each title company and ask if they know of any hard money lenders in your area. If real estate
settlement closings are not handled by title companies in your area, contact whoever does closings (typically attorneys) and ask for referrals
to hard money lenders.

If you do steps 1 through 7 above, I’m confident you will find a hard money lender. However, if you don’t find a hard money lender after
completing steps 1 through 7, contact me by e-mail at and I’ll point you to a couple of web based lists of hard money
lenders. Look for a lender on the lists who makes loans in your area. There are several that are listed as making loans nationwide.

Also, if you haven’t already done so, go to the ‘how to’ section of this web site and read Ed Wachsman’s explanation of hard money in his
article entitled “A Glossary Of Common Terms Used In Loans And Lending”. You can find it at

Best of Success!!

Jim Kennedy,
Houston, TX


Jim missed one so here is step 8.

Step 8; advertise for a Hard Money Lender yourself. Don?t state it the way that I just did, but write an ad saying Looking for Investors to make a 13% return on their investment. All investments are secured by real estate at 65% of market value.

Ed Garcia

Best Source For Hard Money - Posted by James

Posted by James on April 05, 2006 at 22:36:51:

Ed, which is the best source for hard money, do you get better terms directly from private investors that lend hard money that you locate yourself such as individuals, or is it better to deal with brokers that lend hard money, or institutional lenders that lend hard money, or does it make a difference?

Re: Best Source For Hard Money - Posted by Ben Carmona

Posted by Ben Carmona on April 06, 2006 at 19:14:40:

Finding private individuals appears to always be the easiest and cheapest. For examle, one of my clients in NV has someone that can give her funds at 15% with no points. He’s local and doesn’t verify any information.

For the most part the deal revolves around the property.

Ben Carmona

Brokers are a good source to find hard money as well. Some of them will even have nationwide hard money lenders that you can use. (not those in Scotsman). These lenders will have some type of guidelines that need to be followed. For example, some pull credit and dont care about scores, just no federal tax liens. While some will do scores in the low 500s if the deal makes sense. Income and assets are not verified but an application is taken so they can get an idea of who they are working with.

Re: Ed, What Is The Best Source For Hard Money - Posted by James

Posted by James on April 05, 2006 at 23:19:14:

Ed, who gives the best hard money terms, private individuals, brokers, or institutional lenders, is there any difference?