Hard Money Lenders - by Becky Sanders

I certainly don't have all the answers for you regarding lenders, but let's try to post here all the different hard money lenders we've used and know for those who are looking for good resources.

What is hard money and where do you find it? Hard money is offered through mortgage brokers and the amount loaned is based upon the after repair value of the property. The mortgage broker serves as a middle man between private lenders and investors. The loans are usually short-term (6-13 months), 2-10 points (depending on the lender), 12% to 18% interest, and they are usually offered up to 65-70% of ARV. You can also expect them to be able to close in as little as 5 days, but I try to allow myself at least 15 days in case they can't get the appraisal and inspection done promptly.

They all require an application and many require a credit check. I suggest that you get preapproval before you need the money for a deal to expedite things and also so that you can obtain a preapproval letter for those properties that require proof of funds with your offers.

Most will finance your closing costs (if it doesn't exceed their maximum 65%-70% LTV, and they all will finance your repair costs up to that limit as well. Some will wrap your interest costs into the loan and others will require interest only payments during the term of the loan. So shop around.

Here are some hard money lenders that I have either used or have filed away for possible future use:

1. Statewide Capital Investments LLC, George Pugh, 1-800-460-1890, Webster, Texas, www.statewideLLC.com

2. Brookview Financial, Inc., Sharon Melillo, 1-203-230-8500, Hamden, CT

3. Rehab Funding, Bob Beckman, 1-610-667-9939, Merion Station, PA, www.rehabfunding.com

4. Ready Mortgage Corp., Sheryl, 1-972-889-7323, Richardson, TX, www.readymort.com

5. Hard Money Store, 1-713-780-2839. Houston, TX, www.thehardmoneystore.com

6. Lafayette Financial, 1-888-576-6534, (CA NV & AZ only) Alamo, CA, www.lafayettefinancial.com

7. Creative Financial Corp, George Brooks, 1-212-534-2795, NYC, NY, www.creativefinancialcorp.com

By the way, these lenders do business in multiple states, but not all states. So go to their Web sites and check them out. If you all know of or have used any other hard money lenders, please post them at the Hard Money Lenders Page on CameronDirect.com