Hard money lenders

[Carlos Velasquez]

Hi, I am fairly new investing in real estate. I have been able to save some money ($30K) and would like to know how to approach hard money lenders in order to start flipping homes. I already have a mortgage and my credit is not the greatest and that is why I think that a hard money lender could help me start my project. I am looking to borrow an additional 50K can any one provide me with information on hard money lenders willing to do business with me? Thank you in advance for sharing any information.

[Ann Bellamy]

Carlos, your best bet is to find a lender who not only lends in your state, that's easy, a million of them will jump into this conversation.  The best option is to find one who is actually local to your area.  I don't lend in CT, so I can't help you, so none of this is soliciting your business.  

First, call them, and ask their criteria and their geography, and the type of projects they like best and what they don't like.  The way you find them is:

• The hard money lending directory here on BP
• Go to CTREIA and ask around for hard money lenders, there are probably some that are vendors.  Be sure you ask people if they have had good or bad experiences.
• PM me offline for a couple
• Some other online directories such as reiclub.com, creonline.com, privatemoneylendingguide.com, moohlahlist.com, lvhardmoney.com
• But your best bet is a recommendation from another investor who has used a local CT lender

Each lender will have different criteria, terms and preferences.  Be sure to ask if they fund rehab money in arrears.  Ask about what you need to pay upfront, such as points at close, and any fees such as "underwriting" or "application" or whatever junk fees they have.  Don't forget to ask the minimum loan size right off the bat.  Good luck.