A large number of Americans each year take out hard money loans. In case you aren’t familiar with what hard money lending is, it’s a form of lending whereby a private company or firm gives loans to borrowers contingent on them paying that loan back with interest. Hard money loans are generally taken out by borrowers who can’t get a loan from a bank for what they need. Thus, hard money loans tend to come with a little bit higher interest rate than traditional loans, and they also tend to be on a shorter timeline. Put another way, they cost more and they have to be paid back more quickly. The vast majority of hard money loans taken out in the United States are taken by borrowers working in the real estate industry. They take out hard money loans to buy houses or property, and then when they sell that property for a profit they pay back their hard money loan quickly. This allows them to get their hands on capital when they need it, and it allows the lenders to make a decent profit in a short amount of time.
If you work in the real estate industry or in another industry in which you believe that a hard money loan might be right for you, the first thing you need to do is find a great hard money lending firm. Although there are plenty of them out there, locating one is a bit more difficult than you might imagine. Of course, it’s important to first understand what a great hard money lending firm looks like. Ultimately, you just want to find a lender that’s going to be open, transparent, and honest with you about your loan. They should clearly lay out to you how much they’re going to lend you, what your interest rate is going to be, and how quickly you’re going to have to pay it back. Put simply, the terms of your hard money loan agreement should be clear to you. In essence, you just want to find a hard money lending firm that you can trust and that’s going to be as invested in your success as you are. Montegra Capital Resources is a great example of what such a lending firm looks like.
How do you find such a firm? It’s never a bad idea to begin your search by looking through various financial magazines and websites to see if they have any recommendations for great hard money lenders in your city. If you’re able to find a few suggestions, your next step should be researching those specific companies. Visit their website and read about them, and look for any reviews there might be out there in regards to them and their practices. It also never hurts to schedule an appointment and sit down with them. You’d be surprised how much you can learn about specific lenders just by having a 30-minute conversation with them. The bottom line is that if you’re able to do your homework and look into each company you’re considering, you’re going to end up with a hard money lender that you’ll enjoy doing business with.