All Forum Posts by: Corey Dutton

They are claiming such a small piece of the pie at this point that I haven't paid much attention yet. Thanks for asking.

John T., clearly confirmed here something I pointed out in No. 3, which is that every lender has different documentation requirements. Some hard money lenders want the sun and the moon, while others like John T. don't gather a lot in the way of documentation. Every hard money lender is so different. Thanks John T.

What are you getting for the $500 upfront? (e.g. Appraisal, inspection, legal documents for closing, etc.). Has this lender given you formal terms in writing yet? Have you verified what deals they've closed in the immediate area? They should not be afraid to share deals they've closed, if they are offended by that, then this is a red flag. I'm proud to share the recent deals I've closed and would never be offended by that question. 

Does this lender's terms seem too good to be true? What are the actual terms they are offering? 

You have to bring in the points at closing with most hard money lenders on a purchase loan. Not sure what your question is though...

Thanks Darren. I think these 3 things are the most common misconceptions/assumptions people have/make about hard money. Especially the last one!!!!! Thanks again!

Real estate investors have long used hard money lenders to finance their real estate investments for reasons of speed and flexibility. But for those who have never taken out a non-bank loan before, there are certain things every real estate investor should know about hard money lenders. Here are just 3 things every real estate investor should know:

1. Not Every One of Them Is Legit: There are a lot of loan scams in the hard money space so be wary of fake lenders who don’t have the ability to do a deal. Most of them are just collecting upfront fees from borrowers!

2. Don’t Assume a Hard Money Loan is Like a Bank Loan: The process of obtaining a hard money loan is completely different from the home mortgage loan process that is typical at your bank or credit union. For example: documentation requirements, valuation determination, speed of funding. These are just three examples of how the process differs greatly between the two types of lenders.

3. Never Expect No Documentation Just Because it’s a Hard Money Loan: So many people assume that just because it’s a hard money loan that there are absolutely no documents required, e.g. loan application, credit report. Although the documentation requirements of a hard money lender may be LESS than a bank lender for a loan approval, it does not mean they are non existent. Each lender has its own list of documentation requirements, so ask and don’t expect or assume that there’s no documentation required.

These are just 3 important things that every real estate investor should know about hard money lenders. Are you a hard money lender yourself, or are you a borrower who is seeking private money financing? What else would you add to this list?

(Article Source: http://privatemoneyutah.com/3-things-to-know-about-hard-money-lenders/ )

Posted by Corey Curwick Dutton, Hard Money Lender

Great discussion here! Wow didn't know my post would get so much interaction, thanks for commenting. I know it's been on my radar so glad to see it's on others radars as well...

Banks in Greece have been closed since June 29th, an obvious sign that the Country is in complete and utter turmoil. Greece received the honor of being the first major country to default on an IMF loan. With its massive and unsustainable public debt, Greece’s banks have been closed since June 29th and aren’t expected to open again until a deal is reached with the EU and IMF.

The IMF is upset about the bailout deal offered to Greece by the EU and is demanding that it be accompanied by measures for the Country to restructure its debt. In response, the EU proposed a $12 MM bridge loan as part of the bailout to help Greece pay interest on the debt and use some of the funds to repay the IMF. The entitlement culture in Greece is being challenged by the EU and the IMF with threats to toss Greece out of the EU altogether. An entitlement mindset is a tough one to break and the Greek people are digging their heels in against change. Will Greece be able to get their public debt crisis under control or face complete ruin?

Don’t feel bad if you’ve struck out on your search to find hard money lenders. Sometimes even seasoned real estate professionals, mortgage brokers, or bankers, may not know one hard money lender. Here’s a very short list of places to find hard money lenders:

1. Do an Internet Search: Do an extensive Internet search for hard money lenders or private lending companies in your local area that lend on real estate.

2. Search on Social Networking Sites: There are a ton of social sites where you can find hard money lenders online. But use caution here. See my recent discussion/post, ‘How to Spot Loan Scams on Social Networking Sites.’

3. Consider Paid Sites: This is any paid site where a hard money lender can pay to be added to a list. The person who is searching for lenders may have to pay, or the information may be free, and in this case it’s the lender that pays to be listed. Proceed with caution here also. There are also bogus lenders hanging out on those sites too who will steal your upfront money, and maybe your personal identifying information, and then never give you a loan.

4. Word of Mouth: Talk to other real estate investors who have used hard money lenders to fund their deals and see what hard money lenders they are using.

Posted by Corey Curwick Dutton, Private Money Lender

Good point on possible SEC reqs with lending OPM req. There's a new REG A+ that has some good benefits for lenders who are raising funds.

The playing field is not level in private money lending like it is in real estate. I was told I had to be licensed, but there are so many lenders in Utah that argue this point and keep doing it without a license. I've erred on the side of caution and opted to be licensed to protect my money sources until it becomes more clear. I'd rather be licensed rather than put other people's money at risk.