Give us a call at (816) 293-2999

A lot of time, sweat, and tears will likely go into your fix&flip or rehab property project, and the last thing you want is to add the stress of an insufficient hard money lender. If you have your sights set on the perfect property to invest in, you should partner with a hard money lender who understands the vision and is there to help it become a reality. So, before you go head first into choosing a lender, evaluate these five things first. 

1. Dig Into the Hard Money Lender’s Reviews and Community Standing 

Reviews can help us narrow down our list of options. When it is time to find a lender, take to the internet and your local community for help. This step allows you to hear from other real estate investors who have used those lenders and gain a better perspective on whether the lenders match your needs going forward. Reviews also offer a blunt and honest x-ray look into lending companies and can show you whether or not you should run for the hills. If you can find a hard money lender referred to you by fellow investors and has a strong community standing, you will have a much better chance of connecting with a business that will be there for you. 

2. Find a Hard Money Lender That Specializes in What You Need 

If you are looking for a specific loan, such as a 100-Bridge Loan, Nationwide Bridge/Rehab Program, Nationwide 30-Year Rental Program, or Nationwide Multi-Family Bridge/Rehab Program, you want to find a lender that specializes in those loans and can provide them. It might take some emailing or calling to see what each hard money lender has to offer, but you should take the time to figure out if they specialize in the real estate investment area you are interested in. Additionally, finding a hard money lender in your area could be wise. When lenders are within the area you hope to invest in, they will have a better understanding of the local market and how to format the deal to match the future expectations of the location.

3. Compare Their Speed of Approval and Funding 

Hard money lenders are already much faster options regarding loans than conventional banks. However, some lenders are faster at approving and funding than others. If you are in a tight spot and need the loan immediately, it is essential to research different lenders and how fast their processes take on average. This can ensure you are not losing out on your dream investment property. 

4. Check Out Their Approval Requirements and See if You Fit 

One of the benefits of choosing a hard money lender is their flexibility toward approval requirements. However, some lenders will differ from others regarding credit score and income conditions. Before choosing a lender, you want to have this information readily available and look for a lender who fits into your circumstances. For example, at KC Investor Funding, our approval requirements ask for no less than a 620 credit score and no derogatory marks on your credit for the last two years. If you match that criteria, you can come to us for your loan needs. 

5. Compare Their Loans to Competitors 

The biggest step you can take to check if a hard money lender is right for you is to see what their loans offer compared to their competitors. This is your chance to check interest rates and values. For example, at KC Investor Funding, many of our loans have an 11-15% interest rate and 100% of Purchase + 100% of Rehab Cost availability. Like most hard money lenders, we focus on the value of the property and the future of its worth when we write up a loan, but it is up to you to see if that matches what you are looking for from your loan. 

These are only five of the many ways to check if a hard money lender is right for you. When you put in the research, connect with your community, and prioritize your investment goals, you will find a lender who can be your ideal partner. If you have further questions or want to learn more about our loans, contact the team at KC Investor Funding