Most folks who are starting off in the real estate business would know that hard money lenders are often the best way by which one can obtain finance for a short term investment property. And if you are familiar with the terms ‘flip’ and ‘rehab’, you’d understand that capital that has to be raised quickly are only possible if one can find a hard money lender. So, the obvious question is: Where can I find hard money lenders?
Here are a couple of places and people that you can ask:
1. Settlement or Closing attorneys who normally prepare documents for hard money lenders. And in some cases, these attorneys are hard money lenders themselves.
2. Accountants are also a good option as most of their clients have money, and need their advice to know what to do with it.
3. Mortgage brokers can provide you with leads to find a hard money lender as they work with investors time and time again.
4. Make a list of homes that are undergoing renovation and then a little trip to courthouse will help you track the money lenders involved with these projects. At least one of them will be a private lender.
5. Agents who sell hazard insurance policies particularly with investment properties, and since they know who the ‘loss payee’ is (the lender), they should be able to give you a few tips as to the names of some of these private lenders.
6. And the easiest of the lot: look on the internet for your county’s and secretary of state’s records of houses that were sold by banks to private investors, not individuals but corporations or partnerships. You can easily take it from there.