All About Residential Hard Money Lenders

If you are a real estate investor, then you will know which deal is owner-occupied. Basically, it is a property, which had been occupied by some person. Hard money lenders prefer to stay away from this kind of deal.

The basic reason behind this is that there are different rules and regulations for the property that is owner-occupied as compared to the property that is empty. Therefore, residential hard money lenders are not willing to fund such an agreement because there will be a lot of paperwork involved in it. You can also find more about hard money lenders through

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So, if you are planning a renovation of the owner-occupied property, then it is better to weigh the pros and cons again because you will find it very difficult to get funding for this kind of deal.

The reason behind avoiding this is that most hard money lenders are not so great. They do not have the financial support and they have to do everything by themselves. So, they prefer short-term loans, which they can close within six months, without a lot of hassle.

Meanwhile, the owner-occupied properties take more time on paperwork as well as renovation. Moreover, they are not very profitable as well. Sometimes, the renovation of these properties gets so much delayed that they eventually went into foreclosure, which is like nothing.

Residential hard money lenders are more interested in single-family homes because they are quick to remodel and have very high-profit margins. 

Where to Locate Private Money Lenders?

Private money lenders are generally private individuals, hedge funds, institutional investors, portfolio lenders, real estate brokers, agents REO (bank-owned properties) or even a family member or a friend who might know you personally. Private money investors will lend you their private funds in a short period of time with higher interest rates and some of the upfront costs. Points can range from 4 points to as many as 10 points. 

Private investors are more concerned with equity in the property of your credit. If you own a property that you can show to them as your own equity and share the strategies to pay their money back, then you will not face any problem in finding the best private money lender for you.

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Private money loans are a great investment tool for anyone who wants to invest in real estate. But finding a conventional money lender is not an easy task. Here are some suggestions on where to find the right private money lender:

– Mortgage Consultant

– investment club

– Real Estate Seminar

– other investors

– Internet

– Realtor

– Family members

– lawyer

– financial advisors, CPAs, and accountants

Each money lender may have different policies that they follow such as a credit check or verify your work. However, most private lenders are concerned about how quickly you can repay them and whether the property has equity.