The Hard Lesson We Learned About Hard Money Lender

[Jeremy Beland]

Back in 2019, we faced a challenging situation that fundamentally changed the way we handle our real estate transactions. It was a hard lesson that nearly cost us a $25,000 deal, countless hours of effort, and more sleepless nights than I’d care to admit.

We had a prime deal lined up, with a buyer who was eager to move forward. But there was a catch—they insisted on using a hard money lender. While we knew that all hard money lenders are not created equal, and some could be good….we knew from our own experience that using hard money could cause a deal to fall apart by making the process less seamless than we needed it to be.

What ensued was a month-long nightmare that tested our patience and threatened to derail everything we had worked for.

The lender moved at a snail’s pace, bogging us down with endless requests for additional walkthroughs, appraisals, and paperwork. As the closing date approached, the seller’s frustration grew, and so did our anxiety. The lack of clear communication from the lender left us in the dark, wondering if this deal would ever see the light of day.

The night before closing, we were still in limbo, with no confirmation that the deal would go through. I was overwhelmed—stressed, frustrated, and feeling utterly powerless. Every call I made to the lender seemed to escalate the tension. At one point, I was even accused of being unprofessional simply for demanding answers. But how could I not be on edge when the entire deal, and our reputation, was hanging by a thread?

In the end, we managed to close the deal, but just barely. The relief of getting it done was overshadowed by the chaos and near disaster that came with it. That experience was a wake-up call.

From that day forward, we made a vow: no more hard money lenders. We’d rather accept a lower offer from a true cash buyer who can close smoothly and on time, using our trusted title company. The peace of mind and seamless transactions are far more valuable than squeezing out a few extra dollars from a deal that could fall apart at any moment.

Real estate isn’t just about the highest bid; it’s about the relationships and reliability that ensure deals are closed efficiently and without unnecessary stress. We’ve learned the hard way that sometimes, the best choice isn’t the one with the highest price tag. For us, peace of mind always comes before profits. 

#RealEstateLessons #CashIsKing #HardMoneyLender #RealEstateInvesting #TrustYourGut

[David Ramirez]

Agree! 

Usually, our cash buyers pay more either way since they do not have to pay lender fees.