Hard money lenders are individuals or small groups of people who have personal money to lend and are willing to do so with much more flexible terms than conventional lenders. However, in exchange for their flexible terms, they typically charge significantly higher interest rates anywhere between 13 to 18%, and many require the borrower to pay loan origination or upfront points from three to 10 points. Credit scores are not as important to hard money lenders as is the value of the property.
Some good places to find them would be
• Online websites
• Newspapers or adds
• Referrals from other investors
• By networking at local real estate investment club meeting
• Blogs
Hard money lenders are individuals or small groups of people who have personal money to lend and are willing to do so with much more flexible terms than conventional lenders. However, in exchange for their flexible terms, they typically charge significantly higher interest rates anywhere between 13 to 18%, and many require the borrower to pay loan origination or upfront points from three to 10 points. Credit scores are not as important to hard money lenders as is the value of the property.
Some good places to find them would be
• Online websites
• Newspapers or adds
• Referrals from other investors
• By networking at local real estate investment club meeting
• Blogs