How to look and Find a Hard Money Lender (Part1)

It all starts with a decision to get a hard money loan. Once you decided to get a loan there are 10 steps you need to take before the loan escrow is started. Some of the steps are very short and will take only minutes, some will take days or even weeks based on the size and nature of the loan.
1. Prepare a short executive summary of your hard money loan request.
There are hundreds of different types of commercial properties e.g. apartment building, hospital, gas station etc. There are different sizes of loan and different conditions. All in all there are unlimited possible loan scenarios. Each scenario may require slightly different approach and documentation; fortunately you need not worry about it. As you continue through the 10 steps, described here, your particular loan scenario will be unfolded and only the information demanded by the lender will have to be supplied. The first step is a short executive summary that covers 5 essential elements which are commonly needed by any lender.
A. Brief information about the property
Address: (at least City and state if you like to keep confidential at that stage)
Type of property: Gas station, mall, hotel what ever
Estimated value: if you have specific information like appraisal done recently you can mention it. (Note: if you already have a website with information and pictures about your property you can include a link to it but do not try to create it. It is not essential to the loan). This entire step (step #1) should take you 3-10 minutes. Enter what you know.
B. General information about your financial condition
Your credit: good? Bad? Etc. How much is your net worth and what is your gross/net yearly income. What is the existing financing on the property? What is the current rate? When the loan is due?
C. What kind of loan do you wish to get?
Loan amount you need and any special condition if any that must be met (e.g. No prepayment penalty after 2 years etc., but do not request any specific rate or terms you will get these from the lenders at later steps.
D. Short description of your request
The entire purpose of step #1 is to have lenders contacting you. Step #1 is kind of executive summary (or “loan résumé”). Make sure to include some compelling information about your property and or yourself to entice the reader (lender) to contact you. Keep it short, yet inviting enough and clear enough. The executive summary should be written in such a way that it will grab the lender attention when he glance at it and prompt him to contact you it immediately.
E. Information on how the lender can reach you. In step 2 you will find and distribute the executive summary to potential lenders so make sure to include your return email and optionally phone number. (If you prefer not to give out your regular email get a separate email address at newmail@yahoo.com or newmail@gmail.com exclusively for the purpose of the loan.)
Keep the executive summary brief. The lenders need to be able to look at it and contact you without spending too much time reading through it. Additional information will be certainly required at step 5 but for now, what you have entered is the best way to start. If you need help writing up your executive summary or help in monitoring and doing all the steps 1-10 correctly and quickly you can use the Free software, loan control center at www.lendinguniverse.com website. It is 100% FREE and all your data is protected.


2. Search for commercial lenders
After preparing the short executive summary of your hard money loan in step #1 you are ready to look for lenders. The rule is to try and get as many qualified lenders as you can possibly handle (without losing your mind). Do not be satisfied with a single lender’s quote. It might be that the first offer is the best one but you won’t know it until you speak with few lenders.
Here are the most promising lenders sources:
A. Your existing lender- For sure e contacts your existing lender and tell him about your intention to obtain a new loan. Email him your executive summary. If your lender still lending he will jump on the opportunity and will give you an offer.
B. Old lenders and brokers you know from the past- Contact old brokers and lenders email them your request. (The lenders can also receive your communication and provide quotes via loan control center they may be already members or can easily ad freely become members.)
C. Family and friends and business associates’ referrals- ask around especially people who own similar properties. They will be happy to give you some referrals if they had good experience with lenders. When you get lenders name call the person and either email or fax your request to him.
D. Internet search- That will net you many new lenders. You can check the main banks websites like bankofamerica.com, wellsfargo.com and the main lenders in your town. Also google "commercial lenders in My City Name ", "Hard money loans My City Name " and " My City Name Commercial lenders" . You should also search with the specific of your type of property e.g. if your property is gas station search “gas station lenders My City/State Name” and “gas station loans name of your city/state”. When you find a suitable lender go to it website find it email address and email your loan request. It can be a waste of time filling out lenders forms, it can take you days. Instead look for the main email address and email your request to the company. Step #1 covers all the important data any lender needs and good lenders will respond to it quickly.