De-Bunking Hard Money Lender Myths!
Creative Financing has always been one of our most popular topics in Lady Landlords. And I get it. Each one of us is unique. We all started out with our own set of conditions and as we grow our portfolios, there are many routes that we can take. Understanding and keeping as many "tools" in our toolkit to be able to grow is vital to our success as Real Estate Investors!
Hard Money Lenders are a vital tool for us to understand. What's great is that we don't have to use all the tools, but we do need to be sure we are using the right one!
🌟Are they a scam? How do I find a reputable one?
🌟Can I use a HML if my credit is bad?
🌟Do they only lend to LLCs?
🌟Will they fund my purchase 100%
🌟Are they only for Flips? or Rentals too?
Contact Michael to ask your own questions on Our Vetted Partners Page!
And if you missed our recent workshop on HML and 13 other Creative Financing Strategies, Get the Recording here!
I was soo confused when I first met a HML. I was like, how rich is this person?! Where did they get all this money from?! And how do I get some? I really didn't understand how this worked at all!
And learning something new can be SO Scary!
Now, I'm a fairly smart, functional adult, but I was afraid to even ask my questions. I didn't want people to think I was dumb for not understanding something. I was afraid that's what they would think that if I asked ALL the questions I had floating around my head.
Yet, this was holding back what I really wanted!
I NEEDED to ask my questions in order to figure out my best next move! Without knowing your options, how can you pick the right path? So, I bit the bullet, and called up Michael, my local HML. I was able to ask all my questions in a non-judgmental way! I got the answers I needed and was able to make my next move confidently!
Nothing feels better than CONFIDENCE!
Here are just a few highlights of what you need to know about Hard Money Lenders:
1. Relationships are EVERYTHING!
Just as with any other member of your Real Estate Investing team, you need to find someone that you can trust and plan to work with for the long haul. You need your go to person! Make a list of questions to ask that you need help with (Aren't sure what to ask? Our Beginner's Course Here walks you through the right questions to ask when building your team!) and set up a time to talk! Ask the questions you have and stay in touch. Listen to your gut if you like someone or if they aren't a good fit for you. If they are, be sure to follow-up and give them your business! You can also network with Hard Money Lenders at our Monthly Virtual Networking Event! Click here for more info on our next event!
2. The right one can follow you anywhere!
Afraid to build a relationship with a Hard Money Lender since you aren't sure where you want to invest? Good news! HML's usually cover most states! You can find the right lender for you wherever you are and take that relationship with you as you grow your business! Remember that HML's are businesses, not banks, so they are not tied to the same regulations making them much easier for them to cross state lines.
3. Know your numbers!
With EVERY deal, knowing how to analyze a deal and making sure the numbers work for what you want and need is usually the most important part of the equation! With Hard Money Lenders, they can work something out with you, but the numbers can be different from one investor to the next! Why you ask? As Michael explains in this week's podcast, there are many factors that they consider for each investor. For example, investors that they have relationships with or have done business with before get more favorable terms! Those that are putting their own money into the deal get more favorable terms! Those with better credit...you guessed it, get more favorable terms! Listen to the terms that you are offered and see if they fit your deal! Need help analyzing a deal properly? Book time with me to review what you are working on here!
Regardless of your Real Estate goals, know that there is a path to get there! And I'm always here to listen and happy to point you in the right direction so never hesitate to hit that reply button and let me know what is going on!
Happy House Hunting!