With our first deal nearly closed, my partner and I are looking to our next deal. Since we shooting for short term flips(not fix and flips), hard money loans appear to be the best method to obtain financing.
Advantages:
-quicker processing allowing us to seize opportunities.
-easier to obtain
-less paperwork
-not restricted by institutional rules from financing any types of properties
-no prepayment penalties or restrictions
disadvantages:
-high interest rates
-finding lenders
-fee's can be anywhere from 1 to 10 points.
So the big question I have, what are some methods to locate hard money lenders?
Also, are banks opposed to 3rd party hard money financing if I go after a bank REO?
Advantages:
-quicker processing allowing us to seize opportunities.
-easier to obtain
-less paperwork
-not restricted by institutional rules from financing any types of properties
-no prepayment penalties or restrictions
disadvantages:
-high interest rates
-finding lenders
-fee's can be anywhere from 1 to 10 points.
So the big question I have, what are some methods to locate hard money lenders?
Also, are banks opposed to 3rd party hard money financing if I go after a bank REO?
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