Hard Money lending advice

[Virginia Damato]

Good morning BP

I have bought properties either using personal or private funds.

In the current climate I want to keep more cash on hand.

So now I'm entering the Hard Money arena.

Can I have some advice on what to look out for, how to prepare.

[Haven M.]

The biggest red flag is if they start asking for payments on the front end of the deal. Like an upfront origination fee before they even know anything about the deal and whether it will get funded.

Points and fees will be different from deal to deal because it's the risk profile of the deal that determines the cost. 

Do you have something under contract that you're looking to fund? If a lender says "I can get you $xxx,xxxx, with x points at x% interest" without having looked at the actual deal you're working on, they're probably just blowing smoke.