- Pick the Right Lender: they’re not all equal! You need somebody who’s creative enough to see your vision and also stable enough to have the money available when you need it. Its surprising how often we get new clients because their lender is out of money when they need it most.
- Choose the Right Property. It’s important to have a good deal. That’s what makes it appealing to the lender. It makes us happy, knowing you’ll make a good profit and thus repay your loan.
- Have Your Documentation Ready. We’ll need to see you own the property and have the ability to encumber it. We will need to see what your purchase price will be or what you paid for it and we may even want an appraisal if your seeking a higher leverage amount
- Contribute Equity. The classic “skin in the game”… as long as we know you have something to lose in the deal, we’ll be more comfortable lending. HCG is unique in that we don’t require it, but that’s reserved for home run deals. As a general rule of thumb plan on having 20% cash down to put into the deal yourself.
- Be Realistic on Time Frames. We know you’re excited! However keep in mind we’re managing lots of capital and it’s a constant balancing act of having funds ready when you need them but not too much sitting idle when you don’t. For bonus points, give us as much notice as you can on when you plan to payoff. This will insure we always give the highest level of attention on your next deal.
Following these 5 tips can not only help to ensure you have a successful hard money lending experience, it will turn your hard money lender into the best partner you could have.
Check out our blog for more helpful tips and information.
ALREADY HAVE A SPECIFIC PROPERTY IN MIND AND READY TO GET STARTED? CHECK OUT OUR LOAN APPLICATION FOR A FAST DETAILED RESPONSE UNDER OUR BORROWER TAB BY CLICKING HERE.