Hard Money Bankers is one of the best hard money lenders around. They’re trusted in the real estate industry and have a resounding reputation.
I wanted to get some tips for hard money loans, specifically for the D.C. area since I’ve had a few requests asking to talk about the best hard money lender In Washington D.C. I do not have the expertise to answer this myself, so I asked Hard Money Bankers for some tips. They agreed, and now I have the pleasure of sharing those tips with you!
Choose a Hard Money Firm
You don’t want to get your loan from a private money lender in D.C., you want to get your money from a hard money lender In Washington D.C. Many people do not realize that there’s actually a huge difference between the two.
Hard money loans seem simple on the surface, but Hard Money Bankers assured me that they are rather complex, and a lot of thought and effort goes into their creation. So it’s best to go with a company that specializes in hard money loans so that everything goes smoothly.
Local is much easier
Hard Money Bankers also recommends finding a hard money lender In Washington D.C. that is local to D.C. Not someone from out of town that happens to operate in D.C. If the lender is D.C. specific, they have knowledge of building codes and regulations, which means when they inspect your property (which they will), the process will be much more streamlined because they will not have to do as much research.
Watch out for Deals that are Too Good To Be True
Every industry has bad actors and people that want to take advantage of others. This is even more true in industries that pertain to loaning money.
If a lender is not being completely transparent or being very pushy, alarm bells should ring in your head. Read the contract carefully if a deal is too good to be true.
Have a lawyer read over the contract. Keep your eyes peeled for red flags, and be careful. This advice is not just D.C.-specific, nor is it hard money specific. Transparency is key to any financial deal.
Be Prepared for the Interview
Hard Money Bankers say that the process of getting a good hard money loan will be much easier if you know exactly what you’re going to do with the said loan. Don’t go to a lender saying you want to buy a property, but you’re not sure if you want to renovate it and flip it or whether you want to fix it up and rent it out. Know what you’re going to do.
Know exactly what you’re going to do, and do research beforehand to gauge your market and profit margins. This will go miles with a lender and will most likely get you a much better rate.
Know your Timeline
Knowing your timeline will help you make your choice. Most D.C. hard money lenders will process your loan in 1 – 2 weeks. However, there are options that can do it in about five days. It would be best if you had your timeline in line when you’re making your decision.
It’s always better to get the loan sooner rather than later since that will give you many more lender options.