Finding a hard money lender that is willing to say no to a loan is a good thing. There are too many lenders, even here in Kansas City, that will say yes to almost any loan request just to make the fees. This can be very harmful to your financial health and can bring an abrupt end to your fledgling investment business.
Utilizing a hard money lender for investment lending can be very beneficial:
- willingness to lend on a property that no other source will touch,
- ability to move quickly,
- no need for perfect credit
Hard money lenders also provide borrowers with another set of eyes on their project and bring an experienced, objective viewpoint. In the past week I have turned down three loan requests after walking the borrower through an analysis that accounted for all of the costs. All three borrowers were initially disappointed at being turned down for financing but once they realized that they would have been doing this project for practice instead of a profit, they appreciated the assistance.
As a borrower you should expect that level of involvement from your hard money source. Personally, I want to help all of my clients be super successful because when they are they will keep coming back to me and it makes me an easy referral.
Do you disagree or have other comments? Please let me know. Your constructive comments are always welcome.
I am here to help you. Let me know how I may be of service.