What criteria do Hard Money Lenders look at?

[Hoa Nguyen]

Just wanted to get a grasp of what criteria Hard Money Lenders look at when qualifying someone for a loan. I know experience is a big factor, but what about DTI? Credit? and any other needs I need to prep for when going this route.

[Matthew Crivelli]

Quote from @Hoa Nguyen:

Just wanted to get a grasp of what criteria Hard Money Lenders look at when qualifying someone for a loan. I know experience is a big factor, but what about DTI? Credit? and any other needs I need to prep for when going this route.

Hard money lenders will look at your personal credit, prior experience, and the subject property. The most important factor is if you can turn a profit. Typically the total loan will be capped at 65%-70% of the after repair value. Also, comparable sales need to be present within 3 miles of your subject property. This is important, if there are no comps your loan will be denied in most cases.