Strategies to get approved by a Hard money lender

[Sean Jany]

Hi BP world, I’m writing today because I wanted to see if you guys can give me tips on do’s and don’ts to get approval from a hard money lender. My track record for real estate is none but I have good credit and a decent paying job. Thanks for the feedback

[Jay Hinrichs]

Originally posted by @Mark Sewell:

You have to be able to correctly spell your hometown.  

Beyond that, I'd say you are qualified! : )

Seriously, just pick up the phone and ask for an application.  Fill it out and send it in.  They won't give you much in the way of indication that you are approved or not approved, because with HM is more about the deal and less about you, the borrower.

Jay is correct and incorrect -- they don't expect you to bring in a monster good deal at 50% of ARV. That's like finding a unicorn. Find something close to 70% ARV and you'll be fine, even without experience. Even can be higher, but you'll have to bring more money to closing. What is more important is having a good handle on the ARV and your cost estimates for the rehab.

Definately I would say try to find somebody local, and here is why -- those guys know your market better, and they will check your ARV and walk your property in person. And the feedback they give you is gold, it's almost like having a mentor on your team to get started. Of course, they build that into your fees, but it is still worth it if you got a good deal. And they can also steer you away from bad deals before you do them.

I guess I did not explain it correctly.. what I meant was limited experience can be mitigated by equity in the deal either finding the equity or bringing cash in.. Granted 50% ARV deals basically do not exist for most .. the only folks that pull that off are wholesalers who are not telling a seller what their property is truly worth.