You just decided to dive into a fix and flip, and you need some startup capital. You go online to research hard money loans, but you are met with an endless variety of lenders. Instantly you feel defeated, as this is going to be a timely process. There must be a better method! Finding the perfect lender is no easy process, but these tips can help to ease the stress of finding the most reputable lender.
How to find a reputable fix and flip lender
Know Your Deal
Before you begin to engage with potential private lenders, you must be prepared to answer any question they throw at you. You must know the ins and outs of your deal before speaking with a lender. Many of the reputable lenders you encounter will be experienced in the real estate field. Be prepared for private lenders to ask questions like, “When will I see a return?” or “What are the risks in this investment?”. A reputable fix and flip lender will be asking questions regarding the timeline and safety of their investment.
Build Your Network
To find a reputable hard money lender, you must expand your search and build your network. Everyone you engage with is a potential lender or can connect you with a lender. Consider staying within the real estate industry to build connections with real estate agents, contractors, and other investors. Many of these professionals will have connections within the industry and can provide you with referrals. The further you expand your network, the more likely you are to find a reputable hard money lender.
Join an Online Real Estate Group
Joining an online real estate group will create more exposure for yourself to other potential hard money lenders. Many social media sites have groups where professionals gather to discuss real estate. Joining an online real estate group is an easy way to get information on the industry daily. Connect with other agents or investors to discuss current projects and ask about their fix and flip lending strategies.
Do Your Homework
Before jumping into a deal, do your homework about the lender you want to work with. Consider researching past projects of the lender to get insight about their reputation. Don’t be afraid to ask questions to your lender about their past experience working in the real estate industry. A reputable lender will be able to provide information regarding the timeline and costs of previous projects. Look online for reviews about the hard money lender you want to work with. Ask yourself questions like, “Is this company committed to doing the necessary research that goes into this project?”. A quality hard money lender will have a good reputation online and be committed to researching projects before agreeing to a loan.
Attend Local Real Estate Meetings
Attending local real estate meetings is one of the best ways to find a reputable hard money lender. Do not take for granted the opportunity to meet hard money lenders in person. Engage with the real estate professionals in your local community to find a reputable investor for your project. Prepare your pitch beforehand and any potential questions you will have. Attending local real estate meetings gets your foot in the door with hard money lenders faster than sending an email and allows you to build a better relationship with them than talking over the phone. Google “local real estate meetings” to find some in your area.
How do I make my final decision between hard money lenders?
When you have narrowed your search down to a few lenders who might best help you to meet your specific business goals, a lender that prioritizes customer service and focuses on your business success is your best choice.
RCN Capital | Connecticut Hard Money Lenders
RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing as well as long-term rental financing for real estate investors. RCN Capital also has flexible and competitive loan options available. Connect with us today to discuss your next fix & flip investment.