8 Questions You MUST Ask Your Hard Money Lender Before You Get A Loan (in 2021)
Summary
AI-generatedLearn the essential questions to ask hard money lenders to compare loan products and ensure you get the best terms for your fix-and-flip projects. This guide covers loan terms, lending areas, credit requirements, prepayment penalties, funding processes, costs, and closing speed.
Key insights
Prepayment penalties can range from zero to half the loan duration, especially for longer-term loans (24-60 months), impacting the cost if a property is sold or refinanced early.
Mistakes to avoid
Not clarifying the construction draw process can lead to cash flow problems during rehab, as you might not receive funds as needed if the lender's disbursement schedule is not well understood.
Tools & resources
CV Lendingservice
CV Lending offers hard money loans and provides a discount of $500 off processing fees when mentioning Sean's channel.
Frequently Asked Questions
Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial