How to pick a hard money lender?

[Jo Kinal]

If I want to purchase a property in MS to flip but I live in CA, does it matter where the harder money lender is? Do they need to be in MS or CA?

[Odie Ayaga]

@Jeremy Smith and @Jo Kinal yes there are red flags, but it's not comprehensive. Start by Googling them and seeing if they've got a location, legit website etc. Large application fees are a red flag, but in and of themselves may not mean it's not a reputable lender. 

Outside of that it's more whether or not the lender fits you. Prepayment penalties aren't a dirty trick, but they may secure you a lower rate. IF, however, the lender doesn't disclose some things up front I'd be wary of them. The best thing you can do is understand the various options that exist to the best of your ability so you can be educated enough to ask them where they stand and what's available.