Hard money lenders are preferred amongst many real estate investors for their rapid and reliable funding. However, not all hard money lenders are the same. With a multitude of factors at play, it can be challenging to decide which one is right for you. 

If you’re interested in working with a hard money lender but not sure what to look for, we have got your back. Our lending team here at Wilshire Quinn has assembled a list of what to look for and what to avoid when choosing a hard money lender: 

Look For a Firm Specializing in Hard Money

When choosing a hard money lender, you want to select a firm that has the necessary expertise. Merely working with a private investment lender is not going to provide you with the same knowledge base and resources as a hard money lender would. 

Here at Wilshire Quinn, we boast a successful track record that is linked to our ability to make immediate lending decisions based on our highly disciplined underwriting approach. When you work with us, you can trust that you will receive fast, reliable money and see consistent returns. 

Avoid Firms That Require Unreasonable Upfront Fees

While certain upfront fees are understandable, we recommend avoiding hard money lenders who require large sums of money upfront for “due diligence.” Oftentimes, these deals never close at all, and borrowers find themselves short thousands of dollars. 

To stay on the safe side, borrowers should be suspicious of any lender who asks for greater than 0.5 percent of the total loan in this way. Don’t be afraid to compare the upfront fees of a few different lenders before making a decision.

Look For Transparency

It is always a good idea to read every contract in full. We advise that you look for hard money lenders who operate in transparency and that you avoid blindly signing paperwork. Insisting on transparency ensures you won’t fall subject to a bad deal (usually promoted by teaser rates), and you should be wary of firms who cannot offer you such. 

Avoid Bait-and-Switch Deals

It is not in your best interest to work with lenders who avoid detailing certain aspects of the loan process. As a savvy real estate investor, you should be aware of the proper steps and time required to undergo each part of the loan process. Be skeptical of any terms, conditions, or timelines that seem inauthentic, and avoid working with firms that wave red flags. 

Best Hard Money Lenders in California

Are you a prospective or established real estate investor in California? If so, you’ve come to the right place. After going over what to look for and what to avoid when choosing a hard money lender, we can assure you that when you work with us, you’re in good hands. 

At Wilshire Quinn, we provide reliable funding for investors in commercial and residential real estate. As the premier hard money lender of Southern California, we are proud to boast a faster and more streamlined lending process than our competitors. 

Contact our team today to speak with an expert about hard money loans in California!