Hard money lenders are one of the most common sources of funding for investors, but not all lenders are created equal. With many in the business, there’s no personal relationship and investors are nothing more than a number and a piece of paper. The impersonal nature of such a relationship can be a huge disadvantage.
But there are hard money lenders who are doing things differently. They have found the perfect middle ground between the big money of institutional lenders and the personal touch of a private lender or community bank.
This offers a lot of advantages investors wouldn’t get in any other lender relationship.
How do we structure deals that will win the favor of lenders? What are the disadvantages of working with big institutional hard money lenders? What makes an impact on whether or not hard lenders decide to fund our deals? How can we influence a quick decision in our favor?
In this episode, hard money lender and Hard Money Bankers partner, Ryan Walsh shares how to increase our chances of getting hard money loans and how covid has changed lending.
Watch the Full Episode:
Three Things You’ll Learn In This Episode
Why we can’t trust the promise of low rates from institutional lenders
Big hard money lenders promise us a lower rate at the beginning. However, by the time we get to the closing table, the lender often switches things up and we get stuck with a higher rate. Unfortunately, when we are so far into the process it’s hard to say no and we get stuck with unfavorable terms.
Why it’s dangerous for new investors to go the auction route
It’s not recommended for inexperienced lenders to get deals through auctions. Even if we win the property and manage to get it funded, it might take months for us to get access to it or start working on it. The last thing we want in that case is to have a hard money loan that’s racking up interest without usable property.
How covid has impacted lender decision making
Banks have significantly cut back on 100% loans because they worry that an investor with no skin in the game won’t honor the loan. Having your own money in the deal puts the lender at ease because they feel the borrower is more obligated not to jump ship
Guest Bio-
Ryan Walsh is a private/hard money lender and Real Estate investor in the New Jersey, Pennsylvania, Delaware, Maryland, Washington DC and NVA Market. Coming from a business development background, starting multiple businesses, and working with companies such as NBC on multimillion dollar projects, Ryan is now Vice President of Hard Money Bankers NJ/DE.
Ryan is on a mission to prove that Hard Money Lending isn’t as hard as many think! He is a direct lender with the inside scoop on what lenders are looking for in potential customers and what tips to keep in mind even if you are new to the real estate investment world!
A conversation with Ryan is an opportunity to learn the best ways to get started or grow a business using other people’s money. He walks you through how to be a successful marketer in today’s world.
For more information visit https://hardmoneybankers.com email ryan@hardmoneybankers.com or call (201) 345-1036.
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