Private or Hard Money Lender

[Latavia Banks]

I am work on a BRRR in Decatur, AL on a single family home. I have some money saved but would like to see about using a hard or private money lender to fund the deal. Any suggestions?

[Jeff Cichocki]

I can only speak for myself... But to me there are really 2 massively important things in a deal to look at.

1. Is it really a good deal? How did you get your numbers? How accurate are your estimates? Etc. if it's not a good deal, nothing else matters.

2. Are you capable of doing the deal? Do you have the skills and leadership required to run & manage the project to completion in a timely fashion. If you're not... Do you have a mentor/coach/partner (one that will be on sight with you - not some national guru who can't see what you see). Do they have the capability to get you through the project?

If the answer to either or both of the above questions is no, then nothing else matters. You can have a perfect credit score, gobs of cash in the bank, a great job, etc. None of it matters if it's not a good deal and you can't get it across the finish line. I know this is text, so please don't interpret this as harsh. It's not meant to be. It's just to point out what the most important aspect of the deal and you are. If you can solve those two things, the money is easy.

The reason that these two questions are the most important to me is that I've never had an investor (new or seasoned) think to themselves that they were going to lose money in the deal. Good lenders think about losing money. You have to relieve that concern. Show us how we'll be paid back if things go wrong.

There are lots of hard money & private lenders out there. Show them how and why this is a good deal, why they will make money with you and how you'll take care of them and it's not usually a problem. Not all lenders are the same. Some suck to work with. Others are good. There are good & bad stories about HML's and PL's. Make sure you check them out as much as they will check you out. I'm working with someone right now who is getting screwed over by a PL. Not usually the case, but My terms, rates and flexibility are better than the PL they are working with (I'm also an investor too so I get it from both sides).

I only lend in Wisconsin or I'd offer to help. But, I hope at least my insight helps you get what you need easier.