Where to start with Hard Money?

[Kevin Wilson]

I’m brand new to Hard Money. I understand the concept and want to use it for my next deal to better learn the ins and outs. My first question is do I need to have a property under contract before applying? Or can I find a hard money lender to pre-qualify with in advance during my deal analysis phase?

[Jeff Copeland]

You need to have your financing lined up before you even make an offer. Savvy sellers will want to see proof of funds submitted along with your offer. 

Put yourself in the seller's shoes, and assume I made a cash offer on your property. Obviously, you're going to ask me to show proof that I have the cash available before you sign the offer. 

You: The offer looks great, but you forgot to attach your proof of funds.

Me: I don't have actual cash, I'll be using hard money. 

You: Okay no problem. Who is your hard money lender? What are their terms? How much of a down payment are they requiring from you? Can you give me their number so I can vet your financing?

Me: I don't know. I don't have one yet, but I'm going to work on that first thing in the morning!

You would mostly likely move on to the next offer in line, or tell me to come back when I'm actually ready to move forward.