Marketing is a great tool. If used properly, hard money lenders can package the SAME loan amount and market that loan amount to you, the investor, in different ways. What it comes down to is understanding the different loan structures that are being put in front of you. Are you getting offered an ARV loan? Is the lender offering a Percentage of the Purchase and Percentage of the Rehab? In our experience, most lenders will end up around the same Loan to Value or same ARV percentages, resulting in a whole lot of confusion on how the deal is presented across competing lenders. The better you understand what hard money lenders are offering, the better chance you have at making a sound decision. That's where we come in. We encourage our clients to speak with as many lenders as possible. Let us help you digest the information and, if our loan structure isn't the best one for that specific project, from a numbers standpoint, we'll advise you to take the other option. The key is asking the right questions and truly feeling comfortable with who you're working with. Each deal is unique and you'll want multiple lenders to call on so you can make the right choice for each project you analyze. Lastly, don't fall for a bait and switch. If it sounds too good to be true, it probably is. If a lender gets you in the door by offering a loan structure that will rarely (if ever) be the loan structure you get funded from them, they're baiting you into calling them so they can switch the structure thereafter. That's a classic bait and switch mentality that we frankly hate.
S&L Capital Group,Corey Siegel,Hard Money Lending,No Bait and Switch,
Marketing is a great tool. If used properly, hard money lenders can package the SAME loan amount and market that loan amount to you, the investor, in different ways. What it comes down to is understanding the different loan structures that are being put in front of you. Are you getting offered an ARV loan? Is the lender offering a Percentage of the Purchase and Percentage of the Rehab? In our experience, most lenders will end up around the same Loan to Value or same ARV percentages, resulting in a whole lot of confusion on how the deal is presented across competing lenders. The better you understand what hard money lenders are offering, the better chance you have at making a sound decision. That's where we come in. We encourage our clients to speak with as many lenders as possible. Let us help you digest the information and, if our loan structure isn't the best one for that specific project, from a numbers standpoint, we'll advise you to take the other option. The key is asking the right questions and truly feeling comfortable with who you're working with. Each deal is unique and you'll want multiple lenders to call on so you can make the right choice for each project you analyze. Lastly, don't fall for a bait and switch. If it sounds too good to be true, it probably is. If a lender gets you in the door by offering a loan structure that will rarely (if ever) be the loan structure you get funded from them, they're baiting you into calling them so they can switch the structure thereafter. That's a classic bait and switch mentality that we frankly hate.
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