Re: WHAT IS HARD MONEY, AND WHERE DO YOU GET IT? - Posted by Russ Sims
Posted by Russ Sims on December 03, 2000 at 18:26:18:
Finding a good hard money source can be a bit tricky…we are just putting our first hard money deal together, and it’s a real learning experience. To find HM lenders look in the ‘money to loan’ or ‘real estate loans’ section in the newspaper…a
typical HM ad might look like ‘private lender will loan on any real estate equity…fast closing’. You can also call mortgage brokers as they often deal with private lenders. Ask your title company who the good HM lenders are in the area…you can bet they work with a bunch of them, and they can tell you which ones can close on time.
We started our ordeal by working with my mortgage broker…his HM guy only offered to loan 55% of after repaired value. Then we went with a guy who advertises in the paper…he sounded great but never came through for us (I think he ran out of money). We were getting frusterated as our closing date was upon us, and we still had no money source. By complete accident we bumped into the owner of an office building as we were trying to find an appraiser: turns out the guy is a HM lender and his office is 1/2 block from my home office! He’s funding the deal and we’ll close next week…two weeks late but thank God the seller is flexible.