Advice for Hard Money Lenders

[Chandler C.]

Hi everyone! 

I'm just getting going on my real estate journey. I bought a buy and hold duplex in Saint Louis just last year, and it was a great learning experience. Now I'm looking to step it up and approach my next deal through the BRRRR method. I've complied a list of hard money lenders, through recommendations by fellow lenders, agents and BP forums. At this point, I'm ready to start contacting those hard money lenders to form connections and be prepared to make offers.

I am wondering what advice would be valuable to me when approaching hard money lenders? What to look for, what to avoid and typical terms/conditions I should be aware of? 

Thanks in advance! 

[Nate Bell]

@Chandler Cartolano

I’m finding HM terms in a particular region to be very similar. They seems to know their competition and just match it. However, one key differentiator that surfaces is the prepay penalty. If you need the money for a longer period, say 12 months, look out for a huge prepayment penalty.