As a property investor, one of the most important factors will be finding the right lender for you. You want a lender you feel comfortable working with, you can trust and you can rely on to get you the funds when you need them to make the profit you want.
Find a lender who specializes in hard money lending, understands real estate investing and the opportunities that exist. Ask questions before you begin working with the lender. Know what red flags to watch for in a hard money lender.
What Triggers a Red Flag in a Hard Money Lender?
Not sharing all paperwork. There is no reason you shouldn’t be able to get copies of all documents, if you so choose. If you want to have an attorney review paperwork before you sign, your hard money lender should be willing to accommodate your request.
Not returning calls or requests for information ASAP. Property investments are timely. You need answers quick and you need funds when you are ready to move on a great investment opportunity. Find a hard money lender you can count on to be there when you need them.
Not offering assistance beyond the loan. A hard money lender should want to see you through the success of the entire project. Whether you have questions about the investment or a contractor, a hard money lender should be able to provide answers or direct you to those who can help.
Not disclosing all details of the loan. You should have access to all details of the loan — the terms, interest accrues, any fees, etc. A reputable lender will give you this information and ensure you understand the details before giving you the loan.
Not answering your questions. No two investment situations or loans are exactly alike. Therefore, it is not unusual that you will have questions on every investment and loan you take. You should feel comfortable asking your lender any question you have, and he or she should be more than willing to provide you an answer, and even offer guidance when needed.
Most importantly, if you feel the lender is putting pressure on you to act or sign a loan, this may not be the right partner for you. No matter how big or small the investment opportunity, your lender should be your partner in success. You should feel comfortable with the loan, the schedule and the person you are working with before you sign the deal.
Catalyst Funding is a hard money lender who wants to help you build your real estate investment opportunity. Because we are also investors, we have extensive experience on how to efficiently and effectively work with contractors. We strive to be more than a lender for you: we want to provide you with resources that will guide you through the entire process. For more information on a hard money lender that will work for you, send the Catalyst Funding team a message or call us at (832) 648-3626.