NEW YORK, Nov. 4, 2013 /PRNewswire/ -- Right now most banks are keeping their purse strings closed, so for most property investors hard money lenders are enjoying a financial boom all of their own. A hard money lender is basically a private source of money, either an individual or a small company, whom are willing to loan you money at high interest rates, and over a short term, allowing you to acquire the property you're interested in. Hard money lenders tend to be most popular and useful when it comes to investing in distressed properties which require quite a bit of renovation - most other financial institutions will avoid these properties like the plague.
What most property speculators don't realize is that hard money lenders are just as eager to find great property deals as you are to find the hard money lenders and present them with the property you have in mind. The biggest problem most people have in relation to dealing with a hard money lender is actually finding one in the first place, so we're going to give you some options to follow up on here. However, you can avoid all of the extra steps below by visiting our website and working directly with our professionals.
1. Loan Brokers
These can often help you connect with a hard money lender they're aware of or have done business with before, plus you're also getting the "trust" factor built into this connection because you already know one of the parties involved. Please make sure you vet the loan broker to make sure they are an expert in this field. A Google Search and references will help you.
Talk to other real estate investors in your area, and if there's a real estate investor group in your area then make sure you join it! There are literally millions of distressed properties on the market right now, so you're not the only property investor who's looking to tap into this additional source of investment cash.
It might sound like stating the obvious but simply doing a Google search for terms like "hard money lender NJ", or "hard money lender NY" can return exactly the types of companies and individuals you've been searching so hard for to find. Never overlook the most obvious way of doing things!
4. Online Directories
As part of your Google search you'll probably find several hard money lender directories online, each of which allowing you to search for them by state, or even ZIP code in some cases. Some of these directories are free, but you can expect to pay a small fee for the very best of them.
Actually finding the hard money lender is just the start of the process though, because you'll then need to convince them to loan you the money, even though most lenders will probably going to charge you anywhere from 15% to 20% interest on the loan, Financial Funding LLC will charge you anywhere from 7% to 12%.
Some tips for you for when you're meeting the lender for the first time - be organized and present yourself in a professional manner, including having proper documentation, images and not just a bundle of wrinkled printouts, covered in coffee stains.
It's also a good idea to run some figures, get your financials together, create a spreadsheet and then print out the results. Now you can have all those documents bound and ready to present to the lender. Oh and make sure to dress the part too - turning up looking like you slept in a dumpster won't do you any favors!
Remember you'll need to demonstrate a vested interested here too - if the lender is the only person taking a risk then they probably won't want to lend you the money.
For more information on Hard Money Loans or Financial Funding LLC, check out the website at www.financialfundingllc.com or call either Todd Tretsky or Richard Tretsky at 1-800-743-8895.
SOURCE Financial Funding LLC