How to find hard money lenders
A hard money loan is a loan that is generally given out through private investors and companies. It is a loan that is given to a borrower that is going to be secured by a piece of real estate or another type of property. It is similar to a bridge loan in that it is a short term loan with a higher interest rate. A hard money loan can be anywhere from a few months to a few years. If you are looking for a hard money loan, then you will want to speak with a hard money lender. A hard money lender can help you with all of your loan needs and can also help you determine whether you need a hard money loan or a bridge loan.
If you are looking for a hard money lender, then you likely want to look online unless you have a reference from a friend or colleague who has worked with a hard money lender in the past. If you have a reference already, then you should start there. If not, then you should look online in order to find the best hard money lenders for your needs. Listed here are some criteria to look for when seeking out a hard money loan:
1. How long they have been funding loans. You will want to make sure that they have decades of experience under their belt when working with hard money loans as well as bridge loans. Anywhere over 40 years is advised! This proves that your lending company has a plethora of experience when dealing with loans and will assist you in a professional way that is full of integrity.
2. How much money has been funded. You can also look at their background to see how much money has been funded in the past. For example, funding of 250,000 and more shows that they have a lot of experience with funding hard money loans as well as bridge loans. This may not be something that is disclosed, but if the company has funded a lot, then they will likely state it on their website that you can read while doing your research.
3. That they are a direct money lender, not a loan broker. You will also want to ensure that the company that you use for your hard money loan is a direct money lender and not a loan broker. This will save you time, hassle, and money as you take out a hard money loan.
4. That they will help you find the right loan that works for you. You will also want to make sure that you are using a company with integrity that will help you find the right loan for your needs.
As you can see, finding hard money lenders is not that hard but you will want to ensure that your criteria is met for a hard money lender. If you want to work with the best in the Colorado loan business, then contact the trusted experts at www.montegra.com right away so that you can have all of your loan needs met with a professional and reasonable lending group.
So, you've been approved for a hard money loan: what now?
"Congratulations! You have been approved for a hard money loan!" This sentiment is very exciting, and points to the fulfillment of personal or professional goals in the near future. After all, if you are working in real estate you know that your ability to move on something quickly and efficiently is something that can have a huge impact on what you are about to do. In particular, moving quickly in Colorado when it comes to real estate can make a huge difference, and knowing that you are getting the very best possible loan for your needs makes all the difference. The team at Montegra Capital Resources is in a great position to make this a reality for you. They can help you get the kind of loan that you need to make your real estate dreams come true, and when you hear those magic words that you have been approved for a private money loan, you know that you are on your way to success!
But how exactly does the process work? Will you be able to move as quickly as you need to from that point on, or will there be hold ups? When you work with Montegra Capital Resources, they know that time is of the essence for you when you are in the real estate business. They understand that part of the appeal of private money lenders is the ability to move quickly in a way that you would otherwise be unable to do with a traditional loan. Knowing this, they make the process straightforward for you. Once you submit your application, you will know in twenty four hours whether you have been approved. The process can move that quickly!
Following that initial approval, the next steps involve getting a more detailed letter of commitment. This letter will arrive within two days, again moving quickly in order to ensure that you are getting your needs met and that the process is moving along in a way that allows you to achieve your goals. After the letter of commitment is received, the process of underwriting the loan can begin. This typically takes about two weeks to complete. After the loan documents are prepared (after the underwriting process has been finished) you can expect to see the loan close in one to two weeks following the underwriting. The entire process can be completed within four weeks. This changes the way that you can pursue opportunities and projects, making it easier than ever for you to achieve your goals!
Montegra also wants to make sure that you get all the benefits of working with a private money lender. They work to make other opportunities available to you by working with the Smart Buyer Loan Program, which gives you the chance to access more funds if need be. These are the kinds of opportunities and additional funding opportunities that you can access when you are working with a great team like the one at Montegra! Making sure that you are getting the best possible hard money loans with this great company.
What Does a Private Money Lender Want To Know From You?
Private Money Lenders are individuals or companies that lend money out for investing. They provide an alternate route to financing that avoids the red tape and the expense of using a bank. These loans are often done to flip houses for a profit or other real estate deals. When talking to a private money lender to gain financing for an investment, there are a certain things you should know.
- You should be able to tell your private money lender exactly how much a property is going to cost. A lender needs to know what kind of deal you are getting on the property. Because money lenders work with many people, they will know if your perspective property is a deal that can turn you a profit.
- You should also be able to explain all the repairs that are needed and all the renovations you want to do. This should be typed up for the lender to be able to see. It should list the expected cost for every supply and service needed. This will show the lender that you are prepared, know what you are doing, and know exactly how much money you really need to not only buy the property, but also do the repairs. This is important, because money lenders will often include the cost of repairs into the loan.
- It is also important to know the local market. The lender will want you to explain if there is a need for your property in that area, and how you know that you can turn a profit. Knowing the local market also means knowing what you should be able to make off the property in the end. Private lenders often base the amount they are willing to loan you off of the expected value of the property after the renovations, but they want to know the percentage the profit is to total cost. Lenders usually have rules on the percentage a profit has to be in order for them to want to invest.
- Another important thing to know is how long it will take to do the repairs. The length of time it takes to do repairs is important, because these are usually short term loans. The lender will also want to know how long you expect it will take to either sell the property or have it start turning a profit. Lenders feel more comfortable when they have a timeline illustrated of when they will be paid back.
- The lender will also want to get to know you a little. A private money lender has more flexibility than a bank when it comes to choosing who to invest in. Getting to know you can make or break a deal. Being confident as you present yourself is a good start. Explaining why you are passionate about the project is even better. Knowing that you are driven and motivated can make an impact and help you close the deal with the private money lender.
If you have a great deal, have a great plan, and are a motivated individual, you can be confident that a private money lenders will want to go into business with you.