Hard money/Private lenders

[Brandeis Brockman]

Hi,

I am looking at a property to flip. Looking for alternative financing other than a conventional loan.  I was told by a successful investor that if a private or hard money lender requires you to put money down that they are not a good lender. I have heard conflicting information in regards to this. Not sure if this is area specific or what. Any clarification would be great!

[Jahnae Allen]

Most Hard money lenders will ask for 10%-25% down but they will loan you the remaining percentage. Other than that, a genuine lender should never ask for upfront fees. If the fee is for an appraisal, that's another matter but if the fee is for them, I'd proceed with caution.