Being able to establish lending relationships is one of the most important parts of being able to succeed as a commercial and residential property investor. There is a lot of potential for real estate investors in major metropolitan areas. You can choose from hotels to multifamily units, but timing is the most important factor when it comes to succeeding in the ultra-competitive real estate marketplace.

One of the most popular alternatives to traditional loans is hard money lending. You can usually get a loan approved rather quickly if you need it sooner rather than later. In this, we will be going over tips to get the kind of success you are looking for when financing with hard money.

1. Find A Direct Lender

A lot of times you will find brokers claiming to be hard money lenders. However, they fail to mention they are brokering the deal to a third-party. Instead, you want to be certain you are dealing directly with those who are decision-makers. Because of this, you should be verifying that the firm you are dealing with is the direct lender who will be funding the loan. For hard money lenders in Houston look no further.

2. Disclose Any and All Information That Can Directly Impact The Transaction

There are all kinds of problems that can directly impact a transaction ranging from title problems to tax liens. Therefore, you want to prove complete disclosure beforehand. This can help all of the involved parties address the various issues.

A lot of the times you will find lenders requiring a deposit to be made in order to cover everything from the inspection fee to the application fee and more. You want to fully understand all of the upfront fees, how they are going to be applied, and whether or not they can be refunded for whatever reason.

3. Proceed With Caution

Not all hard money lenders are going to be fully transparent. Because of this, you might find some attempting bait-and-switch methods when it comes to their fees and rates for lending. As a borrower, this can be very risky. As a result, you want to proceed with caution and get everything involving the terms of the loan in writing.

4. Choose A Lender With An Outstanding Reputation

Always do your due diligence and check references and reputation of lenders prior to choosing them. You want to compare different lenders and see their past history in order to find a good one.

5. Look For Optimal Communication

Having transparent and fully open communication between the lender and the borrower is going to be crucial to ensuring your loan remains on track. You want to communicate early and often with your lender to keep things going smoothly.