You’ve decided to get a non-traditional loan. A hard money loan seems to be your best option at this time. Here are a few ideas and questions to ask designed to help aid your search for a reputable hard money commercial lender, broker, or referring source:
State License: Make sure the hard money lender you choose has a state license. Even though they are not as closely regulated as banks, it can safeguard you from scams and unethical lending procedures. Ask if they have a state licenses. Every hard money lender must have one. Make sure they do.
Money Lender Experiences: Ask how long they’ve been in business. How many successful deals have they made? How long have they been in business? How many collective years of experience do all the people at the company have? Look for a hard money lender that has “direct hard loans lender” in their advertising. It’s a good sign.
Industry Connections: How many hard money lenders and investors does this company work with? Go with one who has several funding sources (Hedge funds, Mortgage pools, Private Equity Groups, etc.). The more connections they have to direct hard money lenders with ready cash, the faster – and better they’ll get the job done.
The Commercial Real Estate Market: How is the market in your area? The better the market’s doing, the lower your hard loan interest rates may be. Probably abound 20%. If the market is slow you may end up paying up to 29% in interest. Make sure you know the market in your area.
Brokers: The company or referring source that helps you with your search for your hard money loan will have a lot of influence. Make sure they are competent. How? Ask someone who has dealt with hard loans before. Ask your lawyer. Do as much research as you think you’ll need. Hard money brokers will help you shop many investors and lenders to find a loan that works for you.
Direct Money Lender: Some hard wholesalers or direct lenders can fund your loan directly. Direct money lenders are a more direct way to get your loan underwritten and eliminate the use of a broker or referring source but, may have to start the application process all over again if you started with a broker. Either way, make sure you are working with a reputable company who has a proven record of success with hard lending.
Prepayment Penalties – Ask if there is a prepayment penalty. These are fees you’ll have to incur if you if you pay more than the agreed on monthly installment. This usually happens when you can refinance or sell the property quicker than expected. Try to find a hard lender loan that does not charge these fees at all.
Are you looking for the best deals and rates on Money Lenders? Visit http://directmoneylenders.com/ today for more information!
Author: Scott Bowens
Article Source: EzineArticles.com
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