Hard Money: Finding the best terms

[Aimee Tarte]

Hi everyone!

I currently own two rental properties, and a business that has an SBA loan that put liens on both of those properties. I am thinking of getting a hard money loan in order to pay off the SBA Business Loan in order to release the liens on both of my rental properties that have equity with them.

That would allow me to use that equity to purchase even more rental properties. My safety net is I have more than enough equity to pay off the hard money loan, so I know I would be able to repay.

I found a lender that will do 8.99% with three points but requires them to run my credit, do an appraisal, and is through a broker. I read on the BiggerPockets forum that if you go through a broker the fees will go up. I have a couple of questions and hopefully you all can help me. Thank you in advance for your time and advice.

1. I know that BiggerPockets has a list of Hard money lenders, but are there any in particular that you have worked with and or reputable?

2. Is it normal for a hard money lender to run a hard credit check?

3. Since they run the credit check, will a hard money loan affect debt to income ratio?

4. Is there a way to go directly to Hard money lenders and not use the broker in order to avoid additional fees?

5. Is it normal for a hard money lender to do a walk-through of the property and charge for that?

If you have any other tips or advice on how to find a qualified Hardmoney lender without the middleman but the lowest fees please let me know. Thank you again.

[Aimee Tarte]

@Tom S. Thanks, I may just wait then like you suggested. I want to make moves and purchase more properties, but not at the cost of thousands of dollars in fees. Thank you again!