For those who have never applied for a hard money loan before, it can seem difficult to know where to look. Many borrowers are thinking about time and want to get a loan as soon as possible to complete their project and get a return on their investment. However, it is important to find a reputable hard money lender and not just jump in with any lender. Borrowers need to take into consideration that hard money lending is a niche industry that works with borrowers in the real estate industry, as well as property owners, who need this type of financing.
In California, borrowers are in luck, as there are many hard money lenders available in this state. Also, there are a few ways to find the best and most reputable hard money lenders in the state of California. Read on to learn about the best ways to find a hard money lender near you and secure the funds needed for your property or other real estate investment.
Lists and Directories
One place to look for hard money lenders is through a directory or list. This can be done online. The lists are available for lenders to browse and many are organized by state and/or region for added convenience. Many of these lists are free for the hard money lenders while others charge a fee for the lender to add their name. What’s important to note, however, is that the lists and directories do not take into account a lender’s track record or experience. This is something the borrower must investigate themselves. When it comes to the state of California, these lists can be quite extensive. For this reason, it is best to narrow down the list by searching for hard money lenders closest to the borrower’s location. From here, the borrower can do research on the lending company’s overall experience and customer satisfaction. Trust is an important element when choosing a hard money lender, so be sure that previous customers have had a good experience with a lender before reaching out to them for a hard money loan.
Lists and Directories Should be Free
A borrower should never have to pay for a list of private hard money lenders. When someone is trying to sell a list of lenders, this is a red flag. Sometimes, the borrower may fall for a sales pitch that emphasizes that it is far too difficult for a new borrower to find a hard money lender, but this is not true. Another red flag is a sales pitch that says the borrower must buy the list before being able to speak to one of these lenders. This is also false. Hard money lenders are looking for business and are more than happy to speak with potential customers. In most cases, when the borrower has a loan scenario that seems promising, the lender will do what they can to work out a deal. If they can’t, they will try to direct the borrower to a lender than can. One place borrowers will find lists for sale is on eBay. The price ranges from ten to one hundred fifty dollars, but there is no guarantee if these lists are reputable or updated. In the end, it is better to work from free lists and directories to find the most trustworthy hard money lenders for a real estate project.
Local Real Estate Investor Meetings
Another way to find potential hard money lenders is to attend a local real estate investor meeting. This is the perfect place to put on your networking hat and find the right lender for your needs. Many hard lenders attend these meetings, meaning a borrower can meet one or more hard money lenders face-to-face and get all their questions answered. If there are no hard money lenders present at the meeting, simply ask the real estate agents for referrals. They will oftentimes be more than happy to assist in the search.
Google Search
A simple Internet search on Google for hard money lenders should turn up a free list or directory of hard money lenders that a borrower can contact. Simply type in “hard money lenders in California”, “hard money lenders near me”, or “hard money lenders in (city)”. Google will give results of the most active hard money lenders available who can be contacted.
Call a Real Estate Professional
Many real estate professionals have worked with hard money lenders in the past or present. Call a few local real estate agents and create a list by asking for the most highly reputable lenders with experience who can be contacted. Besides real estate agents, a borrower can also contact escrow officers, traditional mortgage brokers, and title company representatives to compile a thorough list of hard money lenders to contact.