Finding a private lender is more difficult than you would think. Though you may have to work a little bit to find that perfect lender to build a fruitful relationship with, allow us to be a resource that will guide you along the way. You’ll be glad you did!
Private lenders are generally comprised of experienced individuals, or groups of individuals willing to make private mortgages for higher interest rates.
Finding the right private lender is like looking for a needle in a haystack. The reason you have to dig is because they often serve very specific niches such as non-owner occupied rehab loans, multi-family lending, or commercial lending. These lenders also tend to be smaller companies and work mainly on referral and word of mouth.
The main reason PrivateMoneyLendingGuide.com was created was to help you find a lender as well as educate you about the hard money lending industry as a whole.
Here are five steps to help you best locate a private or hard money lender that will serve your needs:
Step 1: BROWSE THE PRIVATE MONEY LENDING GUIDE SITE
Just do it! There’s a lot of information on our site and it’s all for you. We suggest reading a few articles before contacting private lending companies in order to bring yourself up to speed with what you should expect and the due diligence you need to perform the deal you wish to present.
Step 2: SEARCH THE PRIVATE LENDER DIRECTORY
After you’ve read a few articles, search the private lender directory to find a specific lender that you feel will be a good match to fund your private mortgage.
Step 3: CONTACTING A PRIVATE LENDER
An easy way to introduce yourself is: “Hi, my name is Sally Smith and I found your information on the Private Money Lending Guide directory. I have a project that I’m working on that I would like to discuss with you. Do you have a few minutes?”
More often than not, you will be speaking with the principal owner or manager of the firm who will be very knowledgeable and helpful about is possible regarding your loan. Remember to discuss all aspects of your scenario and find out exactly what the hard money lender’s loan requirements are.
Step 4: SELECT A PRIVATE LENDING COMPANY
Once you have interview a few private lenders and found someone with whom you feel comfortable, make sure to discuss the next steps with the lender, including a visit to the property and completing a loan application to determine if they can fund your loan.
Step 5: CONTACT YOUR FRIENDLY PMLG TEAM
Our team is here to help you navigate the waters. If you have any questions about putting a package together or positioning a deal, feel free to email us at firstname.lastname@example.org and one of our experts will be happy to discuss your loan scenario with you!