Hard Money Investors

[William Matthew Cowgill]

I’m trying to find a hard money investor, I’m found a couple properties that I would like to buy and maybe a small apartment complex. What are some thing I should watch out for in hard money lender and what are some pros I should look out for? Thank your for the advise!!!!!

[Kristen L Garner]

Red Flags:

• No online presence: If you can’t Google them and find a website, reviews, or even a LinkedIn page, be cautious. Reputable lenders should be easy to verify.

• Vague loan terms: Make sure the interest rate, fees, points, and loan duration are clearly outlined up front. I've had borrowers miss payments and ruin their credit simply because they weren't clear on the terms of their HML.

• No clear payoff process: Ask how you’ll obtain a payoff demand when you’re ready to exit the loan. I’ve seen borrowers get stuck or delayed in the refi stage when this isn’t clear from the start.

Green Flags:

• Transparency: The best lenders are upfront about costs, timelines, and risks.

• Flexibility: Some lenders will work with unique property types or creative deal structures, especially helpful if you’re eyeing an apartment complex.

• Experience: Look for lenders who have worked with investors in your market and property type. You can even ask for examples.

• Speed and reliability: One of the main benefits of hard money is speed. Make sure they can actually close fast and deliver what they promise.

Best of luck!