There are times when every real estate investor needs a little more money to complete a deal. If you’re looking for money, this post will guide you through 4 tips to find hard money lenders in NE…
Hard money lenders work with investors to provide a secured line or loan against a real estate asset. If you need additional capital to acquire a deal or finish an existing deal, a hard money lender is an important option to consider.
Hard money lenders are similar to private money lenders and commercial bank lenders in many ways, but there are key differences for real estate lending. Especially if you are looking for short term credit. You may pay higher fees and interest, but you will likely have a much easier loan process.
1) Understand Your Need
Before you start reaching out to lenders, know what you are looking for and why. have a clear project plan that includes sources of funds already received and how they are or will be used. Include a short description of who you are and what your deal is like. This will help them quickly evaluate the deal and you. While their focus will be on the deal, you can expect a little scrutiny on yourself. Prepare ready answers to describe your experience in real estate and with this type of project.
2) Research Lenders In The Area
Everyone starts every research project with an online search, like “hard money lenders in NE”. This will bring up a starting list to help you understand some of the players in the local market. Many lenders focus on specific types of property, so you’ll need to understand their parameters and if they are a fit for your need.
Keep in mind that there are many different kinds of hard money lenders – some who only work in certain states, some only lend on a certain range of project sizes, some who only lend to certain types of deals, etc. So the very first tip to know how to find hard money lenders in NE is to figure out why you need the money. Defining your deal and experience in step 1 will help you know if they’re the kind of lender you need. If you’re not sure, send them your description and ask if you fit their lending parameters.
3) Attend Meetups, REIA, and Clubs
There are probably several real-estate investing clubs or associations wherever you live. We have some excellent groups in Omaha. Hard money lenders often attend these meetings to meet investors looking for loans. Check out the meetings in your area and introduce yourself liberally to everyone there. Be prepared with a 30-second elevator pitch: what do you do, what do you buy, what are you looking for. You may need to join the club to attend more than once. And remember that the lenders you seek may not be attending the night you show up. Join the clubs that offer the best networking opportunities and get to know everyone you can.
4) Meet People Everywhere
If you want to succeed in real estate, you will need a network. You will probably need a very large network that includes every profession related to real estate. Simply put, you need to know a lot of people. You may already know some real estate investors that can provide references to hard money lenders they trust. Ask everyone you meet who else you should know. Your network will grow quickly. Of course, you also need to maintain it and provide value to the people you meet. Keep meeting more investors and ask every one of them for a hard money lender introduction. In time you’ll meet great hard money lenders through a trusted source.
