Commercial hard money lenders provide a crucial service to borrowers who need capital. These types of lenders specialize in the loan of funds, which carry higher interest rates than bank loans. These typically short-term loans are made for a variety of purposes such as business start-ups, acquisitions, new construction projects and other types of real estate transactions. These lenders can be found across the country and tend to be located near banks or high concentrations of businesses that require short-term financing. In this article, we will discuss tips to find the best of these hard money lenders.
1. Ask Around
When you need capital for your business, there are several people you can turn to for advice. For example, if you have a friend who is in the business of lending money, he may be able to connect you with a good commercial hard money lender. Other people who may be able to refer you to lenders include bankers, accountants and lawyers. They tend to know of the best lenders and can recommend them. If you don’t know anyone who can recommend a good lender, ask your friends and colleagues if they know of any.
2. Check Online
There are numerous online resources that provide you with a list of lenders in your area. These online sources typically feature a comprehensive directory of hard money lenders. Each lender’s profile includes the company’s contact information as well as important information such as licensing and business hours. Some also include rates, types of loans and special deals offered by certain lenders. When there are no specific directories, you can use sites like Yelp, Zillow and Google Business Center to find a lender near you.
2. Ask The Experts
Business owners generally know what they need and can make their own choices of lenders. However, in some cases you may be uncertain about the best lender to go with. In this instance, you should turn to experts like accountants, real estate lawyers and bankers who are familiar with loans such as hard money loans. They can recommend the right lender for your needs and guide you on how to contact said lenders.
3. Check Licensing
A lender may be licensed to lend money. However, this license does not necessarily guarantee that the lender will always get you the best deal. If you don’t take to one kind of loan, there is no guarantee that a second type of loan will be better for your needs. Therefore it makes sense to check out the quality of the service a specific lender provides before applying for their services.
Commercial hard money lenders can be a great help to you. However, in order to find the best of these lenders, you need to know about their characteristics and what to look for in a lender. This can be done by asking around for recommendations or checking online. You should also check on their licensing status and make sure they are licensed before making an appointment with them. These tips will help you find a good commercial hard money lender near you.