Choosing a hard money lender

If you’re looking for some cash to navigate some financial hardships or fund your project, then taking a loan could be the only option you have. However, with so many lenders in the market today, you may find it hard to get the right one. Traditional lenders have set the bar so high so it becomes hard for you to get a loan with a bad credit score or some questionable borrowing history. 

But the good news is that if you require funds quickly or don’t qualify for institutional loans, hard money loans will come in handy. 

Following are some things you check out for in hard money loan lenders

Go Local

It’s easier to know the quality of the hard loan lender if they are local. You can easily predict their underwriting principles and customer service. It’s easy for them to underwrite your asset with the market activity in mind. They also have experience in providing loans in your locality, and therefore their requirements are cognizant of the prevailing conditions in your locality. 

A distant, hard loan lender may not understand some dynamics in your market, and therefore you may end up with unnecessary back and forths. 

The Loan Type and Default Rates

Hard money loans are not funded by banks but private lenders. Thus there isn’t much red tape involved in the funding amounts and applications. Upon approval of your loan, you can get the cash in less than 48hours. That means you can get money to fund quick deals and get your money back. But you should be wary of other lenders who, due to less oversight, will take advantage of uninformed borrowers. Therefore, it’s essential you know how many loans a hard money lender has funded, and their default charges before you commit yourself. A high default rate could mean that their underwriting principles are predatory or just bad. 


Finance is a broad term that means many things. When it comes to lending, there are different approaches, and different lenders have various loan facilities. It’s good you know that you’re dealing with a knowledgeable lender. You need someone who is experienced in funding a narrow range of loan facilities. A good hard money lender will not be focused on other financial avenues like traditional banking. Their job should be to provide short-term loans-period. 

Dealing with a lender specializing in hard money loans alone allows you to work with an experienced financier who will guide you through and even give you tips on how to repay without penalties. If you’re looking for some cash to navigate some financial hardships or fund your project, then taking a capital loan could be the only option you have

A Dependable Partner

The main reason why you’re going for hard money is because of the time it takes to have the money. With today’s market, you could easily miss out on a lucrative deal if the financing delays. Therefore, the person you look for should be dependable. The lender should not have issues with responding to your emails, calls, and answering questions. They should be able to adhere to strict Turn Around time (TAT).

When choosing private Tampa/St. Pete, fl money loans agencies, you have to get one with the best terms and whose interest is affordable. If the lender’s records show a high default rate, it could mean their rates are punitive; thus, you need to keep off.

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