The perfect private money lender

[India Brown]

What are some of things we should look out for when looking for a private money or hard money lender? I am currently looking for one to use in the future . Also, has anyone had experience with a gap funder?

[Dave DeMarinis]

#1 - Lending Area - many Private/Hard/Gap/Bridge lenders operate in specific or limited areas that might not make sense on the surface. As an example, I lend in Alabama, Ohio, South Carolina and Virginia.

#2 - Expertise/Experience/Business Model - I prefer a lender to bring more to the relationship than just money. It is helpful to know what level of extra rigor will their underwriting provide, how well do they personally understand what you are trying to accomplish and if there are big challenges, how well will the understand those, possibly prepare you for them and/or be able to offer mitigation advice.

#3 - Decision making and control - Are they a direct lender and make all funding decisions or do they have to go to a committee, sell your loan to an investor, etc.

#4 - Integrity - personally and funds - what is there reputation, do they say what they do and do what they say? Do they always deliver the funding.

#5 - Rate, terms, etc. - Understand all of their fees, how and why they price things the way they do