Communicating With Private Hard Money Lenders Programs

By MyVine | June 24, 2011

Are you talking to the right private hard money lenders ? Even more crucial, are you speaking their language? The most successful real estate investors invest their time sagely.  They also make certain that they are talking with the right lenders for the right deals.

If you bring the right deal to the correct private hard money lender, chances are that you can get your rehab hard money deal funded quickly and easily, usually in 24 to 72 hours. But what happens when you bring your deal to the wrong lender?  Or perhaps you just don’t seem to understand your own property deal very well.

You will probably not get a deal funded with the ledner doing it that way . You wind up wasting your time and the lender’s time.  So, how do you avoid the defeat and get your deals done fast? First, know your lenders.  Learn the lender programs and what type of properties they are presently financing.Know your deal and prepare your loan package correctly. If you want to invest in a specific  geographical area, know all the private
hard money lenders who do business there.  
Some lenders only work with a few lenders but you should really know who all of the private hard money lenders who loan money in that specific geographical area.  It’s a combination of know who and know how. Why is that so important?  Because when you know your lenders, you know their lending conditions, which helps you get more deals funded, more consistently.

A private hard money lender’s program is the most important aspect.   If you have a single family residential investment property, ostensibly you don’t bring that deal to a commercial private hard money lender.  And the same thing goes for residential private hard money lenders, they are not interested in funding the types of properties that are not in their portfolios.

Real estate investing teams utilize lenders who want those types of deals now, not later. If you know 10 dissimilar private hard money lenders who loan in that area, you can compare the terms of all of them and you’ll be in a much better perspective to get your funding.  Can you submit your deal to more than one lender at a time? Absolutely, it’s your business.  And it’s probably not a good idea to tell a private hard money lender that you’re shopping your deal to 5 other lenders.  Always keep your options open so you will always have funding alternatives to get your deals done timely.  

It is important to be considerate of the lenders you are working with. Thank them for their time, and the opportunity and ask if they would like to see some of your future deals.  Buiild relationships and you’ll soon see your business and profits growing.  Whatever you do, don’t burn your bridges. Never argue with a lender or tell them they don’t know a good deal when they see one.  These lenders have substantial experience and know what types of deals are better than others . If the deal isn’t a match for both of you, the deal is not a match, simple as that.  But that doesn’t mean your next deal won’t be a match.  Maybe it’s just short of a bedroom to qualify or its in the wrong area  

Each deal is different. And the importance of how successful you will be is, if you speak their language.  If your loan package looks “amateurish” or “sloppy”, or is incomplete, you’re lender will treat you like an amateur.   You don’t want lenders avoiding you by not returning a telephone contact.   Or they may not send a reply to your e-mail.  Why, because they have too many good deals to look at and they don’t have time to waste.  Nothing personal, it’s just business.  You don’t have to put yourself in that position. Make sure you are proud of each and every loan package you assemble.  That loan package is your bread and butter.  Lenders want to fund solid deals that will be profitable for both you and the lender.

Private hard money lenders don’t want to spend their time tracking down documents.  They want to get the deal done. Make sure your Lloan package is complete the very first time it is submitted. If your deal is the greatest there is but you are difficult to work with, you’ll in all probability not get far. 

What are some other advantages How many advantages are there of knowing your lender?  Points and fees can vary widely among different lenders.  So, once again, knowing your options can make your deals much more profitable.  And suppose you have a property that needs a rehab? Again, know who are the rehab lenders in that geographical area and don’t waste a scrap of your breath trying to convince a private hard money lender to become a rehab lender if they don’t do rehab loans .  

As soon as you understand the lender’s conditions, you are in the sweet spot.  You now know exactly what types of property to look or that have the greatest likelihood of getting funded. If you’re doing it the other way, it’s like climbing up a mountain or swimming against the stream.  It’s alwasy better to know the lender programs and first find the money.  Then finding property that can be funded can be easilyaccomplished.  The Private Money Lenders Source was developed by studying the lending programs of 300 of the top private hard money lenders for virtually any type of lending program.

Topics: Buying Tips, Foreclosures, General, Investing, Selling Tips | Comments Off

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