Hard money loans are popular among real estate investors due to the quick turnaround they offer. However, not all hard money lenders in New York are the same. Many deceptive lenders rob people of their money by involving them in fraudulent schemes. This is why you shouldn’t rush into doing business with the first lender who promises the lowest rates.
Finding the right lender is a crucial part of your success as an investor. Here are some tips to help you choose the right lender and avoid being talked into a bad deal.
1.Learn About The Industry
The first step on the quest for a reliable hard money lender is educating yourself about the industry. Provided that this is the first time you’ll be working with a private lender, it’s always a good idea to understand the terms and conditions before signing a contract. Although the underwriting criteria can vary from lender to lender, the core principles are essentially the same.
Once you’re well versed in the details, finding a lender that suits your needs will be so much easier.
2.Look For Reviews and Referrals
It’s a given that the lender should have a spotless reputation and track record. Sometimes, companies will make promises to get you on board and then change your loan terms before the closing. The best way to ensure that you choose the right lender is to ask for referrals or look for reviews. No matter how persuasive their salesperson is, getting opinions from their past clients will help you understand what to expect from the company.
3.Find Out About The Processing Time
When choosing a lender, determining how fast you need funding can help you narrow down your options. Although hard money lenders usually offer quick application processing, they may work within different timeframes. Most of them process loans within 7–14 business days, but some may take longer.
Contact a list of potential lenders and ask them about their processing times. Choose one that gets the job done quickly if you don’t want to miss out on good investment opportunities.
Looking For a Hard Money Lender in New York?
Global Capital Partners Fund is a reliable and reputable commercial financing company in NYC. They assist businesses in financing all phases of real estate development. Whether it’s asset-based loans, construction loans, bridge financing, mezzanine financing,—they have it all covered.
For all your commercial real estate funding needs, speak to their expert consultants and get a quick quote now.