Hard Money Lending - Your Lender Is Your Friend
Over the last 7 years, the real estate market has been an absolute bull. This is good as it has made a lot of people quite wealthy. On the other hand, it has also masked mistakes that people make. When a person is flipping a property and they purchased on a tight margin they usually don't have an aggressively appreciating market environment in place to sell at a higher number than expected in order to make profit. A bull market allows people to sometimes luck into making a shaky deal appear to be very strong. If you have a good relationship with your local hard money lender, they should be aware of this concept and when you send them a project to review, you should take their analysis as them protecting their money and your money. If your lender believes you have a good deal then he is also casting a vote of faith in your project. If he does not want to lend on your deal, it is worth looking at the numbers again to see if there is a reason they are not comfortable with your project. Your hard money lender should feel more like a partner than a bank.
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