All Forum Posts by: Sean Molloy

 Rashad,

While a lender most likely will not require you to submit a full business plan, they will definitely want to know your exit strategy for paying them off when their potential loan matures. Since most hard money loans are short term and interest only, it is vital to have a sound plan for what you intend to due when the full loan balance comes due. A lender might take issue if your exit strategy is to refinance conventionally, as it may be hard to qualify for a conventional loan if you are not currently employed. However, if it is your plan is to buy, improve and sell the property a lender might not take issue with your employment status if the numbers are substantiated and make sense. I hope this helps!

Thanks,

Sean

@Ricardo Sandro -

You may hear the term 'strike zone' being used by some hard money lenders. A strike zone deal can most easily be defined as a deal in which the collateral type is that which the lender is most familiar and comfortable with. Lenders may not only have collateral types that they favor, but locations, loan amounts and specific borrower qualifiers that they prefer. Speaking as a hard money lender, I can tell you that the majority of deals that I see usually do no fit exactly into our "strike zone" box, but that is where the actual work for us comes in with a borrower. Work in close communication with your lender, providing the necessary information to them to show how your deal ultimately makes business sense for everyone involved. Ask whatever lender you are dealing with what their dream deal would look like, more than likely they tell you! Demonstrating and emphasizing the common sense nature of your loan goes a long way when lenders are analyzing a deal that may be slightly outside of their comfort zone.

Thanks,

Sean

Jesse,

After a refresher on a Bigger Pockets advertising policies, here is my updated response:

You should approach a hard money lender and ask that they qualify and approve you as a borrower first and then as your targeted properties become available, you should bring them to the lender to be subjected to their collateral underwriting and approval process. As far as your deal modeling, a lender should be able to provide you with general loan terms and rates based upon the nature of the project to use as placeholders until their final terms are offered.

I hope this helps!

Sean

Hello All, 

My name is Sean Molloy, I am a Production Manager for WDB Funding, a nationwide hard money lender. Ask me anything about hard money lending and I will do my best to answer! The purpose of this discussion will be to hold an open discourse about hard money, and provide the Bigger Pockets community an  inside look as to how a REAL hard money lender analyzes, underwrites and packages a loan file. So go ahead, ask me anything!!

Thanks,

Sean