Hard Money Lender Success Tips

[Ashlee Cantu]

Hey there! 

Here are some details to have available when making a request with a HML.

Must Haves

1. Property Type
2. Purchase Price
3. ARV
4. Cost of Repairs
5. How much cash you have on hand to use in the deal
6. Your credit score
7. How many flips you have done within the last year
8. City and State of property
9. Do you have a contract? If not, give details on why you expect to get the contract

Should Haves

1. Did you physically see the property
2. Do you have partners
3. How was the ARV determined
4. Do you have an appraisal or BPO
5. If it's a rental unit, does it have renters, how close do you live, will you be managing it
6. What is your exit strategy?
7. How were the costs of the repairs determined
8. Do you have the funds to start the project and make it to through the first draw (if the loan is setup that way)

Things that make the lender feel better

1. What is your net worth
2. Will you be the general contractor or will you hire one
3. If your credit score is low, do you have bankruptcies
4. What is the expected time frame to finish the renovations

Remember in hard money lending we feel that each deal should be a win-win-win, so we want to do the deal to help you get started on your project and help our lenders make money. We want to offer our lenders deals that show that risk is mitigated as much as possible.

Be sure that you know what fees you are haggling over. If you are going back and forth about high points between two lenders and miss the extra "fees" that might be charged by one, you are missing the point. For example we don't have any "application fees", etc. Know exactly how much you need to close and how much you will spend for the money by the time you expect to exit.