Hard Money Loan for Beginners

[Rasheed Chambers]

I have a few questions about hard money loans such as:

How does one approach a hard money lender? 

What kind of preparation is needed before reaching out to a hard money lender

Are hard money lenders worried about credit scores and if so what is the average score needed to qualify for a hard money loan.

What is the average interest rate you can expect when working with a hard money lender.

And lastly where could you search to find out more information about working with hard money lenders.

[Darrell Shepherd]

There aren't any hard and fast rules for what you asked, different lenders will vary greatly.

My best lender is the best I've seen out there. They won't pull credit if you borrow in an LLC. 12% or so on rate with a 2.5% origination at a 70% LTV for a first timer. I'm at 8% and 2% on that same loan because I've done 100+ rehabs and their risk is less.

Loaning 90% of purchase, 100% of rehab is the pitch, but you'll need more money than that to do the deal start to finish since it funds net of the origination and how they do the draws. If you want to walk through a deal give me a call, I'll let you know what the competition is doing too.