Dos and Don'ts of Hard Money Lending.
This list is designed to help borrowers with some commonly asked questions. This list is not praise for myself or a condemnation of any other lender or broker every deal is different and every lender is different. I will add to and rearrange this list often so check back a lot.
The first one is usually the most difficult, don't expect to hit a homerun your first time (although it has happened) the first deal is designed to give you experience, strengthen your resume and thicken your wallet. NOT TO RETIRE.
Don't call me and tell me you need the loan done today. or tomorrow, it customarily takes me 48-72 hours to get you firm commitment to fund your deal there is due diligence and research that I have to do and that takes time .
Once I'm able to give you a firm commitment in writing it will take me 10 days to 2 weeks to get you to a closing, I can eliminate most of the red tape that a bank will have to cut through but I can't cut through it all
I cant give you definite commitments until you supply me with a signed sales contract
Never sign a contract that requires you to put down a non refundable deposit with your seller, we still need a minimum 48 finance contingency.
Never pay a lender an upfront fee I get paid when you close if I can't get you closed I work for free . In some cases outside expenses need to be paid upfront such as appraisers and there is noting that can be done but a blanket up front fee for "processing" (nothing) is not ok.
Start with what you can handle to keep your risk minimal.
There are plenty of deals out there its better to pass on a good deal then to jump at a bad one.