Finding hard money lenders

As Michael would tell you, transactional funding is for A to B To C closings, which is good for 24 hrs to 48 hours and I have seen some go to 30 days. The rate can be from 2-4 points on amount borrowed. Michael would be able to explain it better.
As for Hard Money, there are a million of them out there but probably only a small percent are direct to lenders. Going rate on hard money is anywhere from 10% to 16%, with at least 4-5 points. Most HML's won't run your credit, they are only concerned with the deal making money for them. Google hard money in your CL area. Warning...Drink a ton of coffee, because you will be looking on line for quite some time, No Lie....Jan

I will google and see what I find. So the transactional funding works more for like assignments and such, while the hard money is more for like doing flips, right? Tammy

What I like to do is use the recorder's office. Find a property that has recently been bought and rehabbed. You can get these off of craig's list, driving around, or your realtor can help you. Do a search on the rehabber and see who funds his deals. Then do a search on his lenders and see who else they have funded. Search the other rehabbers he has funded and see if they had any other lenders. This will lead you to serious rehabbers/buyers as well as maybe some private money sources. You can also get a picture of who the players are in your area. No ghost ad bs, legitimate investors and lenders. When you contact them, they tend to take you more seriously if you can demonstrate you know your way around the public records at the recorders office, rather than not having a property available you posted an hour ago.

Yes and Yes

You don't need any funding when you do a contract assignment. This is a no Money out of pocket strategy.

The transactional funders supply money for a double close on a REO or short sale. Deals that can't be assigned. They fund the a to b. They will not supply any funds unless your buyers money is in escrow for the b to c closing. So you have to have a real buyer with his money in escrow before transactional funding can be used. This can be a no money out of pocket strategy

Hard Money or Private Money is what I use when I am actually buying the property, rehabbing and then selling it at retail. This usually IS NOT a no money out of pocket strategy unless you have a partner paying the interest payments on the loan or you are doing an equity split with your private money guy.

Go to your local REI club meeting. There will be info there on Hard Money lenders that the club recommends. Real people active where you are!! Chose a local HML when possible. Most people will not give up any information on REAL private money lenders. Hard money is easy to find. The terms are expensive but not to hard to find. True private money is harder to come by.

Tammy, have you found a property you need financing on? If not, well you know where I am going, never mind!

Michael Mangham
Mentoring/ Team Building Nationwide
MD Home Acquisitions LLC

"Most people will not give up any information on REAL private money lenders"

That's the beauty of the recorder's office. I have found doctor's and small company pension plans loaning money

I know you can use transactional funding for Hud homes, but can you use the "out" strategy of "contingent on funding" for them as well? This has been a lot of my fear I think. I'm afraid I can't get out of a deal money-free if I don't have a buyer; and most of what I'm looking at are Hud homes or Fannie Mae. Those are the same, right?
shirley

Believe it or not you most likely drive pass hard money lenders right in your own town. "Check Cashing Stores" The owner's of check cashing stores 9 out of 10 do hard money. The hard part is getting to talk to them that's were you have to get creative.I hope this helps you.
I am just about to open up my blog that has about 7500 visors and counting a month to anyone on DG that wants to list their deals that they want to assign or sell.If you get a hard money loan you are going to need a end buyer but you do not if you do a assignment of contract .
Best of luck
Tom
RealEstateTips

I am having trouble to find hard money lenders that's why I lost 2 deals because I could not find hard money lenders in my area, one I found one he charge %12-%18 interest and lend you money soon but charge you interest and want you to pay immediately to interest if you borrow $100000 you should come at least $1000 a month for the interest and it is impossible for me to pay that every month is anybody have any info to share and help me

Those are average rates for Hard Money.

Michael especially thank you for such good advice and yes, you were going down the right path. I am still looking for that first deal. Tammy

I have not done this yet but it seems to me you can just roll the interest into the loan. You should be able to negotiate that. You will need whatever points your lender charges, usually up front. Then if you have to extend the loan for some reason you will have to pay more points and renegotiate the contract.

I am sure this is a very simplistic view on my part. Please everyone seeing this make a comment on how this works. I think most of us could use the advice.

Can anyone tell me the search criteria for public records that will help me find private money lenders in my area? I have seen comments about this in the past but can't seem to find them any more.