How do you know you have a good hard money loan lender?

[Anthony Carrasquillo]

I have a pre approval for a conventional loan at the moment but I would like to know what things do you look for when seeking out a hard money loan? Why are some better than others? And how does hard money over conventional help you on deals?

[Jason Hirko]

@Anthony Carrasquillo Hard money lenders, like any other industry have the goods and the bads. However, they've earned themselves a bad reputation (and a lot of it is deserved). Rates and fees usually get the most attention, but service is key. Are they trustworthy and do what they say they are going to do when they say they're going to do it? If not, saving a few basis points here or there is not going to help you grow your investment business. And that is the biggest difference between a good HML and a bank. Can you imagine texting a picture of a purchase contract to a bank and expecting them to close on it a week later? That's the level of service that an HML should give to their repeat clients. I think that is the number one thing you should ask HMLs - even before what are your rates or LTVs or fees or whatever, "Can you tell me what percentage of your business is repeat and referral?"