Are you in the market for a hard money loan? If so, do you know where to find hard money lenders? This is a question that more than a few readers have commented about when they are posting notes to this site.
So much of this site has been dedicated to tribal loans but the fact is they simply are not the right type of loan for everyone. Some borrowers have a better credit score that will entitle them to bigger loans and to better loans. And there are other borrowers who are in the market for a loan that is much higher than any tribal lender is willing to provide, including those who have an asset that is going to be sold or is going to be used to collateralize a loan.
When borrowers are trying to bridge a loan between an asset sale, or use an asset as a posted piece of collateral to back up a loan, then that qualifies as a bridge loan. Another term that is used for bridge loans is the hard money loan.
Finding hard money lenders is not a simple process as most of them are not advertising nearly as strongly or consistently as the short-term unsecured lenders, who tend to blitz radio and internet ads at the general public in a 24/7 stream of noise.
No matter what part of the country you live in there are at least three very solid hard money lenders that will loan in your state, and yes that includes states like Kansas, Wyoming, and Idaho, states which most hard money lenders would never even consider.
The first company is called Pinnacle Hard Money, which is a nationwide lender. They will loan for all types of asset loans, but they focus on those who specialize in fixing up and flipping, along with private money refinancing and outright purchase. As long as the collateralized property is meets their standards then the dollars will be made available. Companies like Pinnacle are great because they offer the ability to escape the massive amount of red tape that now involves any traditional bank loan.
The second national hard money lender is Quality Consolidated Services, which is based out of New York. Unlike nearly all companies of the modern era, Quality Consolidated Services is still conducting their business as everyone did in the 1990's which means everything will be done over the phone, or agreed to in person. But despite their old time ways of doing business they are in business and will work with any property owner who has the right situation and the right property.
The third hard money shop that many borrowers turn to is NLDS. This company is especially good for landlords and those property owners who have a number of parcels that need to be financed. This is often where banks will get nervous and once they get beyond the third or fourth property they will no longer work with an individual investor or even a single LLC. The thinking is there will be too much liability for the bank to handle, so they limit their customers. NLDS doesn't share this lack of confidence as they are willing to reach into the seven digits to loan to well collateralized borrowers.
NLDS is one of the more active hard money lenders, and they are the most inventive of them as well. NLDS has a new soft money program, which is a version of a hard loan that is designed for properties that have already been reconditioned and fully rehabbed. This soft money loan is great for properties that need financing that have multiple rental units. NLDS is very active and they also offer cash out loans, commercial lending, and long term private money.
If you are sick of waiting on banks to approve you or if you've been turned down outright, then it's time to look into alternative forms of financing like hard money lenders. Just because you were turned down for a traditional bank loan, or were limited to a small dollar amount by that bank, it does not mean you can't qualify for a hard money loan.
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