How Do You Find A GOOD Hard Money Lender?
I have read many ads and spoken with lots of hard money lenders with an initial e-mail or other contact. But when I attempt to make further contact with more questions, they either take several days/phone calls/e-mails to respond or don't respond at all. I have encountered this with "regular" mortgage companies in the past. I treat them all the same...call someone else. I figure if they don't have the customer service skills now, they won't when I really need them to move quickly.
Any advice how I can find an effective hard-money lender? 
I recomend to everyone to find a local RE club and go to the meetings. And get to know people. That is the best way.
But not everyone has a club close by. It would take several hours for me to drive to the closet one.
So how does a person in my situation find a good one. That really is a good question.
I still recomend networking with like minded people. Look in the lenders section on this site. Look for the people offering HM loans look at the profile to find out if they are active on the site. If they are read the last few post that they have made. Are they your style?
When dealing with the national HML you will stand a better chance of geting the loan if you have a good broker submit your loan to the right HML. Presentation goes a long way and not every HML will want your type of project.
One thing I don't recommend is doing a HM Loan search on google. Reason being most of the one that will pop up are not going to be the best ones and you will still spend a lot of time sifting thru them to find the real thing.
If you have done that and not turned up what your looking for you can PM and I can give you some links.
What kind of investment s are we talking about? Maybe you shoud also add to your question how much practical experiance do you have in that particualr field and what kind of projects do you want to do?
As far as I know, if you are trying to do something in the RE aria in which you have no experiance at all, many lander would be cautious to extend you the line of credit or even simply finance your www.deals.To improve your position, you can write a cople of pages, simple bussines plan which would allow lander a chance to evaluat your porject more carefuly.
Where is Ripon, CA? "lacashman" is right, you have to make friend with people in the same bussines, which are located in your geographical aria. RE clubs are good place to start. if you do not have a RE club in your aria, maybe you can start making contacts with other clubs, asking them for the help in starting the first club in your aria. Do some marketing and you'll be in....
omega1
Thanks for the responses so far. We do have a pretty nice size LOC to access, but sometimes need a bit more or don't want to tie up the LOC at that time. These would be my reasons to use a HML. We have experience rehabbing and own several rental units. We have a business plan and any financial statements required (balance sheets, income statements, net worth statements, etc)
There are no local REI clubs...some are starting but very slowly. There is a sizeable REI club a couple of hours away that meets on a weeknight in not too good of an area, but I might check it out anyhow. I am enlarging my circle of networking on the Net and appreciate that suggestion as well.
The funds would be used to close deals on SFR or smaller multi-family properties (some 5 units or larger, perhaps). After rehabbing, depending on the best use of the property, we would either place permanent financing on it or resell the property. (I also am a licensed real-estate agent which greatly helps reduce the cost of reselling)
And to answer your question, Ripon is in central California between Modesto and Manteca (Modesto is where Laci Peterson lived and is the new home to thousand of satellite news trucks now!) about an hour or so south of Sacramento. The rapid influx of bay area relocaters is dramatically raising property values and rents (property values have risen in the double digits every year for the last six years and rents have risen between 7-14% every year for the last six years)
Hmm, Modesto is a beautiful town...!
From what you sad, it appears that you got your money situation close to under control. What I can always suggest is join and keep working on improvements of your RE club. Motivate others to do the same and that will make it better. Invite interesting speakers, etc. In the future, if you have a deal you want to discuss. post it here, someone is always willing to help.
Speaking of increased property values, here in LA, you can't touch a 2bdr, 1000sft "shoebox" house in "AS-IS" condition for $350.000+. And I am talking sub prime neighborhoods in which the houses were 150k one to two years ago plus the pace was a good pre foreclosure farmland too. Now days there is barely 2-3 REO a month out of that place. Finding the right deal is turning into inventing those deals and I have to really buy the land under the house to improve it again, to be able to make any profit. Stay where you are. Money is the list problem in today's RE climate
omega1
I've been a member of the board for a little while, but I have never replied to a message before.
First, I am a Loan Officer with a mortgage bank in Texas in fact the company I work for Texas Residential is the largest lender in Dallas Fort Worth.
Second, I understand your feelings when you say LOs do not call you back. In my business there is a lot of turn over, because we are 100% commission most can not lost long, so they spend most of their time marketing trying to make a buck and once they get a deal, they can't follow thru because the only thing on their minds are marketing. The good LOs know that repeat clints and referrals from their old clients are the best source of income. So, find a LO that does not think of you as a one file deals is the way to go, and find one that is not a broker, find one that works directly for a bank that can broker if they need.
Third, my sales pitch, if you want a loan let me prove myself to you. I can offer 100s of programs from my bank or from one of my more than 95 lending partners. I can get 100% Full Doc Investor, 95% State Investor, loans with credit scores as low as 490.
If you would like to talk please give me a call, my cell is 214-682-5403
Quote:
On 2003-12-22 13:44, sammymh wrote:
and find one that is not a broker, find one that works directly for a bank that can broker if they need.
sammymh
Don't come on here slamming on brokers when your a Netbranch.
I am going to ask for you to explain why this is better than going to a broker.
Netbrances operate as banks to work in several states and they don't have to disclose YSP but why is this better for the borrower?
Why is a netbranch better when a good broker can offer the same programs as a netbranch so what is the advantage to the borrower?
Understand that when I was in the business I worked for Netbranches so I know how they work. I never offered the inhouse products and I always disclosed YSP.
sammymh,
You do loans for people at the 490- level? WOW, I am impressed. Can you tell me more? I would love to use you! Let me know if you do loans in Illinois.
lacashman I did not intend to slam brokers my intension was to say most LO can’t do their jobs, broker or banker.
If the broker/banker you use has the programs you need and you are comfortable with them then by all means keep using them, develop a relationship with them.
I started out my post slaming most LOs, I see it all the time, the new LOs come in and they are so busy trying to get clients, that they can’t serve their clients needs when they get, example not returning calls, not getting prequals out in time, etc... etc... That was what I was trying to say, but then I got on my high horse, so if I said any thing to hurt anyone feelings, except for the LOs that can’t do their jobs, then I am very sorry and please forgive me.
To answer a couple of your questions, in my opinion being a banker has more advantage for the client for 3 reasons 1) I can offer more programs because I can act as a banker and a broker 2) Many times my fees are less because when I act as a broker and that lender treats me as a bank so in many cases I do not have to charge a broker fee to my clients 3) If I have a client and they need a certain program I can search out that program and when I find it, I just contact that lender, sign up with them, and get that program, that simple.
My bank is an "A" lender, and since most of my client are investors and/or people with poor credit, I do broker most of my deals to other lenders, but I act as a correspondent not a broker, so I get the wholesale rate as if I was working directly from them and I do not have to charge a Broker Fee. My YSP is always on the HUD, it may not be listed out as "My Income", but none the less it is there.
When an investor and I decide to team up, right off the bat I reduce all my fees because we have formed a partnership and just like any company I rather charge less and get more business from them and their referrals in the future. Your reputation is everything in this business.
pejames,
Yes I do loans in IL, if you would like to talk about some options plus email me.
First I will agree with you that most loan officers have no idea how to service anything outside of A paper. I have had some tell me that if it will not go thru atomatic underwriting they would not waste time on it.
And you did give the answer that I was looking for. It is true that working as a correspondent broker you can offer better rates. This can be a big advantage for the customer.
But you need to watch the post that end in things like "If you would like to talk please give me a call, my cell is" These can get you banned. Look in the lenders section at the top of the page. Joel has some very cost effective programs to advertise without getting banned. I advertised when I was in the business and it worked out very well for me.
One quick comment on the "Lenders" section on this site....non-response/poor response to the advertisers there is what prompted me to post this question here, but I have also read the rules and understand you could get banned for advertising. It would be much safer to say something like "see my profile for contact info" or even private message someone.
Have you tried the Lenders on this web site. I have not use them yet, but there is a couple of lenders who offer 100% financing for NOO (Non-Owner-Occupied) I thought some of the lenders on the list are Hary Money Lenders. You can also try your search engines. Type in Hard Money Lenders or Hard Money. Good Luck