Have a few questions on hard money lenders:

1.) Where is the best place to find "reasonable" hard money lenders?

2.) Are they restricted on the number of loans they can make per year or the terms/rates on a deal?

3.) How does a hard money lender compensate someone for bringing them a deal ......... and how do they find their deals?

Thanks

Short answer to some fairly involved questions. Best place to find hard money lenders is through mortgage brokers. All types of lenders market their services through brokers as they are a primary conduit for finding borrowers.

Your request of a "reasonable" hard money lender is very vague. In general, hard money means loans based on the strength of the collateral rather than the strength of the borrower. As such, those seeking hard money are borrowers with very high risk factors that traditional, institutional lenders won't touch. In dealing with borrowers that no one else wants these lenders put their money at considerable risk so they expect a sizable reward.

Again, hard money is typically lent by private individuals or investment groups so there are very few hard fast rules.

I think the best way to find a hard money lender is through a local investor group or a local mortgage broker. National hard monel lenders face higher risks because they don't know the area real well and they tend to be ultra concervative.

We have a quasi hard money/conventional lender that will do 80% of the after repair value on a rehab. They cahge 2 points )plus $970 in misc fees) They have a 1 year prepayment penalty (1%) Rate is the T-bill plus 5 points.

If my hard money buyers don't fit here I refer them to their local real estate investor group.

Danny

Drop me an email: jminvestmentpartnersllc@charter.net

I believe I can help you.



Mark

PM Me i have a couple of hard money lender in mine.

I am a licensed mortgage loan originator and work with a broker. i work with all of the hard money lenders out there and help you place pretty much any deal in Flordia, PA or Maryland. would love to work out some deals if we can.

thanks