Hard money lenders review

[Mary Jay]

Hey guys, could you please help out and tell me what hard money lenders you used and who you liked/or did not like?

For instance, here are few that Ive been recommended. But before I use them I would like to see if somebody used them and can share their opinion...

1) Renovo

2) Lima

3) Do hard money

4) HML

5) Joint Venture Capital (JVC) found it on Bigger Pockets so probably somebody used them...

6) Whoever else you used that is not listed here, can you please share?

Please help!

[Nghi Le]

I've used 20+ HMLs and talked to 100+ of them over the past 3 years.  I'm very familiar with most of the ones mentioned in this thread.  If you're trying to find the perfect lender, they don't exist.  It depends on what you're looking for, whether it's lower rates, longer length of the loan, lower down payment, faster closing, ease of transaction, flexibility of the lender with wholesale fees and junior lienholders (if you're funding with private money), etc.

Keep in mind that lenders also change over time, just like contractors.  So if someone tells you what their experience with a lender has been, ask how recent that experience was.  LendingHome has gone through some reorgs, Lima One bought out RealtyShares' single family flip business, Groundfloor changed some of their capital financing structure a couple of years ago, etc.  And generally, their terms change at least once a year.

Feel free to read the BP blog I wrote about comparing HMLs, but I think you first need to assess your own situation and rank what's most important for you in a lender.

@Mary Jay

You mentioned looking for lower interest and lower down payment.  Typically, that's an inverse relationship.  If you don't have much experience in your belt, you also don't have much negotiating power and usually pay higher rates.  For newer investors, I've found Lima One to be the best bang for the buck among the national lenders.  Just be mindful that although they advertise 10% down, they also require some additional capital in reserves, so you need to show around 20% to qualify.  Also check the regional lenders, as they may have a product that isn't tiered on experience (which is what most national lenders base their pricing on) and could be better.