One of the fastest growing areas in real estate over the past decade is private financing. When the market collapsed many of the traditional lenders went out of business. This created a new market for financing and the demand for hard money financing exploded. What was once a niche sector of the market that catered only to unique situations has since turned mainstream. You can find a hard money lender in almost any market with just a few phone calls. These lenders have business cards, websites and market their services just like anyone else.
If you have any interest in quick flips and rehabs, access to hard money is a must. A traditional lender financed offer, even at a higher price, does not hold as much weight as one with a quick cash closing. Hard money lenders are a necessity, but you still want to make sure you are getting the best possible deal. Here are five important items to look for when working with a hard money lender.
Every investor should have access to a hard money lender whether you think you need them or not. Use your personal contacts to find at least three local lenders and go from there.