Posted about 5 years ago

How To Find Reliable Hard Money Lenders For Your Borrowing Needs

Trust Deed Investing Information | News and Information

With fewer restrictions and guidelines governing , it is important to be sure that you are selecting the best lender to meet your needs. These tips can help you make a wise choice.

Unlike banks and mortgage companies, are not federally regulated, nor do they have as many rules and regulations that they must follow. Each state has its own system to regulate , and most are governed by the Bureau of Real Estate. That means that borrowers have a lot more research to do when working in hard money because there is more to making a good selection than just finding an honest lender.

In most cases, each private lender focuses on a specific type of lending. This could be large commercial rehabs or fast residential fix and flips. But you want to be sure to select a lender who is familiar with the type of project that you are doing. This will help to get the relationship off on the right foot as you both have a realistic expectation for the project and the loan. And if you are new to borrowing hard money, your lender can be a great resource for you during the process.

To learn more about each lender that you are considering, it can be helpful to have a list of questions prepared. The answers will allow you to make a comparison based on the answers from all of the potential lenders. Some key questions include:

• Are you a lender or a broker for another lender?

• Do you check my credit, and do you have a minimum credit score that you will fund?

• What documentation do you require with the application?

• How many loans do you process per month or year?

• How long will it take to get a response to my application?

• How long will it take to fund an approved application?

• Will you provide a written quote showing all fees and the total cost of the loan?

• Do you charge an early repayment penalty?

• Have you ever foreclosed on a loan?

• Will you provide a list of references?

How You Should Use This Information

Obviously, the total cost of each loan is a major point to consider. But you also want to consider the specialty of each lender and how willing he or she appeared to be when you asked for special terms or clauses in the loan agreement. Timing can also be important if you are trying to secure a very affordable property that has a lot of competing offers. Some borrowers assign a point scale to each question while others just go off of a total feeling after learning about each lender.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg

Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
[email protected]
Dennis Dahlberg Broker/RI/CEO

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.