Hard money lenders are becoming more popular with the changes in lending policies of traditional lenders and the long waiting periods they require when processing a loan. For many investors the difference between thirty days and fourteen days makes the difference in whether they can close a deal or pass it by. On the other hand hard money lenders in Pennsylvania are interested in helping those borrowers who are in need of their services and either don’t qualify for traditional loans or don’t have the time to wait for the funding.
Seeking the Right Hard Money Lender
One of the most important steps you must follow when trying to find a hard money lender is making sure to seek the right one. Just like traditional lenders, hard money lenders are not all alike and may indeed have different specialties in which they engage. By choosing the right hard money lender you will reduce the amount of time it takes to close your loan thus allowing you to more quickly enjoy the fruits of your labor whether it is upgrading a current property or purchasing and renovating a depressed property.
How to Choose a Hard Money Lender
In order to choose the best hard money lender for your project, it’s important to know the kind of information you should seek.
Reputation of the lender
Location of lender (important because hard money lenders tend to prefer lending money on property that is close to where they conduct business)
Experience of the hard money lender that is specific to your needs
Is the lender able to provide funds for the long-term (i.e. if you need funding for a future project rather than a one off project)
Does the lender have resources he can recommend if he is unable to meet your needs for a specific project?
Private Investor(s) or Company Based Hard Money Lender
Hard money lenders in Pennsylvania consist of both private investors and companies that are in the business of loaning hard money for various purposes. Each serves its purpose under specific circumstances and may vary from time to time. While it is a good idea to build a relationship with a hard money lender, it may not always be possible. If you are dealing with an individual private investor, the funds may not always be available at the time you need them or the lender may set a limit on the amount of funds he will loan on an individual project. On the other hand a company that provides hard money loans may not provide the personalized service you would like. It’s important to allow yourself to explore all the options before making a final decision.
The key to a successful project is choosing a Pennsylvania hard money lender that can work with you from commencement to completion. In the event you need additional funds, it’s good to know your hard money lender will be able to help you even if it means using other properties you own as collateral for the loan.