When you search the internet, you?ll find a lot of resources about private hard money lenders. You may need to click dozens of links in order to answer the questions in your head. This article will provide a capsulized information that can help you deal with private hard money lenders.
Usually, private lenders need the following lending criteria:
a. An estimated 65% to 75% of the property?s value
b. No income or credit checks
c. Money is released immediately
d. Higher interest rates
1. Call the private lenders to borrow more money if you already exceeded the 75% value of your property.
2. Pay upfront fees because fees are normally paid at closing.
3. Relay false statements about your current situation because they are just observing your credibility.
1. Look around for the most honest lender with lowest fee.
2. Request for the fee breakdown. The typical fees include: loan origination fee, notary fee, and evaluation fee.
3. Inquire about the lending terms and conditions.
4. Check the lender?s prepayment penalties.