Hard Money Bankers - Price Shopping Lenders
When searching for short term money, the price of the money is not actually as important as people think. Usually the money runs between 1-1.5% per month depending on the company. This is usually the difference of a few hundred dollars depending on where you go. What is more important is making sure your lender can you your construction money quickly. If you submit for a draw and the lender is very difficult to work with, they might end up holding your money for an entire extra month. If this happens, you literally end up paying that entire 1% you were probably trying to save by going with the cost cutting lender. The ease of the relationship and flow of money matter a whole lot more with your hard money lender than the cost of the money.
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