Renovating property for sale can be a great way to make money quickly, but there are many moving parts to consider. For example, to secure the cash you need for purchasing, you’ll need hard money loans for real estate investors.
This type of financing is much faster and more flexible than a traditional mortgage, making it perfect for snatching up property. However, it’s not typically offered by your usual bank or credit union — instead, you’ll have to go through a private lender. How can you find a private lender quickly? Fortunately, you have several options.
Reach Out to Your Network
If you’re already in contact with real estate professionals, you can ask around for financing recommendations. Your property investment colleagues may have a financier they prefer.
Word-of-mouth recommendations are one of the best ways to find a private lender because your peers have already tested the process. You’ll know what to expect during the application and be able to trust the lender because your associates had positive experiences.
Use the Internet
It’s remarkably easy to find hard money loans online. If you type “find hard money loans” into a search engine, you’ll get hundreds of results. The one downside is that you have to narrow down the search on your own.
One way to narrow your options is to include a geolocation phrase in your query. For example, you can type “find hard money loans near me” or include your city and state. This strategy should yield lenders that are knowledgeable about the local real estate market.
Join Real Estate Investor Clubs
If you’re brand new to property investment and don’t have a professional network, you can kill two birds with one stone by joining real estate investor clubs. These forums provide access to many different industry professionals:
- Property investors
- Real estate agents
- Private lenders
Everyone there is trying to make connections, so it’s the perfect opportunity to introduce yourself. You can ask other property investors about their financiers and even speak directly to hard money lenders trying to find clients.
Google isn’t just good for finding private lenders — it can also help you rate them. Local searches often give you access to invaluable reviews. Once you find a lender you’re interested in, look up reviews to see what past clients have to say.
Peruse Social Media
If you use the internet to find a private lender, you’re sure to come across companies’ social media profiles. These can be a wealth of information, as it shows you how the lender interacts with clients.
Check With Your State’s Department of Real Estate
States issue licenses through their Department of Real Estate, all of which are accessible by the public. Private lenders who deal in investment loans should be licensed, so make sure you search for the company in your state’s database. You can also search for compliance orders.
The best thing about working with private money lenders is speedy funding. Hard money lenders know their clients make deals quickly, so they’re dedicated to providing cash in a matter of days — in some instances, you can even get paid in 24 hours. With the right enterprise, you can be on your way to earning a profit in as little as a week.