Hard Money Lender
I am using a hard money lender for the first time. All I ever read is how this is the best way to purchase. However, I created a proposal, did cost estimates, submitted comps, really feel like I demonstrated I had done my homework before requesting funding.
Here is what I have just learned:
Because I have only been in the business 4 months, my cost estimates will not suffice--I must get a general contractor to create a report of the costs. No problem except I don't know of one who will do this workup for me less than $1,000.
How did you get started with your first hard money lender deal? Do they lend quicker after you prove yourself? Do you always need to have general contractor do your cost evaluation to qualify for hard money lender?
Any help will be appreciated.
Let your fingers do the walking in the yellow pages. As a general contractor for over 25 years I have yet to find a client who was willing to pay me to give them an estimate.
It must be true....everything IS bigger in TX.....
Hard money lenders still look at the experience of the borrower and the property in question. There has to be enough upside on the deal incase the borrower gets in over therir head or it the numbers simply do not work out in the end. The collateral must be there in case everything goes wrong. Once you get one deal under your belt with them, it will be alot easier for you to do deals with them. Generally, they do not qualify you anymore once you have a completed a with with them, they just qaulify the property and deal in question.
As stated above,
I had a general contracting company as well. I ws never paid for my estimates on small jobs. On large jobs I required a fee. These were jobs worth at least $250,000. I got paid my fee, generally $1,000.00 On small jobs, it is part of the business to give "free" estimates. Contact several contractors and ahve them itemize particular portions of the work that needs to be needed. If you have one firm do the whole thing, they may be more competitive in one area, but they will make it up somewhere else. [ Edited by Pherrejon on Date 10/30/2003 ]