Hard money Lenders - Posted by ATLINV

Posted by Rodrigo Rodrigues on November 30, 2001 at 14:40:33:

it was just an example…

Hard money Lenders - Posted by ATLINV

Posted by ATLINV on November 29, 2001 at 19:18:32:


I was wondering the best way to approach hard money lenders for the first time.

I’ve compiled a list of about 20 HML from ads and ‘we buy houses’ signs on the street.

What are the most important things to ask them when I call? And from the HML on here, what are the most important points YOU look for when talking to a scout/dealer for the first time?

I have no problem calling them, I just want to make sure I ask the right questions, and to make sure I’m prepared to answer their questions.

Take care, and you guys are SIMPLY DYNAMITE with helping people!

Try this post… - Posted by IB (NJ)

Posted by IB (NJ) on November 29, 2001 at 21:41:02:


Re: Hard money Lenders - Posted by Rodrigo Rodrigues

Posted by Rodrigo Rodrigues on November 29, 2001 at 21:26:45:

well, what i do, i make them think, that they need me more, than i need them, in another words tell them always, that you right now, is analyzing several offers from other lenders even if you dont have anything on hands ,you know sometimes this is a GAME for them , they want to take advantager of your DESPERATION , so every time you talk to a lender just tell that you arte in negotation with 25 different lenders like those that offer better terms and interest rate, they dont want to help you, it;s all about MONEY,like you go to them because you want ADVANTAGES, so make sure they play your GAME , another thing wathever they say on the phone is good as a 3 dollar bill, so get everything in writing, tell them to email you everything they told you over the phone,let’s say they on of the lenders offer you 7% tell them how about 6.875? they ask why you tell them well you a big companyu aren;t you? why the company abc is oferring me a lower rate than yours, after a while you get used to negotiate is just like exercise by doing every day you become more flexible and strong…

Re: Hard money Lenders - Posted by Tim Fierro (WA)

Posted by Tim Fierro (WA) on November 29, 2001 at 20:49:43:

  1. What are your lending requirements?

  2. If I bring you a deal that meets your lending requirements, how many days does it take to get the funds?

  3. Are those business days or calendar days?

  4. What are your rates?

Some might suggest asking what the rates are up front, so take your pick. Sometimes knowing how fast a lender is, will help you during your selection process on who to use for funds on each deal; as well as the rates.

Re: Hard money Lenders - Posted by SCook85

Posted by SCook85 on December 01, 2001 at 10:13:26:

No offense Rodrigo (and I must give credit to Jim for his subtle approach to this), but I don’t believe for one minute that you have ever done this, and you state in your post “what I do”. I believe you have read books on negotiating skills, your methods are not real world methods.

When dealing with hard money lenders the advice you give is not sound, and as far as I’m concerned if their is someone hungry enough to stay on the phone with you to listen to what “what you do” then they aren’t producing and they are DESPARATE.

If you called my hard money lenders and told them that you were dealing with 25 other lenders and shopping for rates, if they are nice enough to just not hang up they will just say “good luck” and then hang up. That will probably have been your last opportunity to speak to them. I have learned, especially for beginners that we play the lenders game, and more and more even though I’m getting more experienced, you still play the lenders game.

It is true that many lenders have more money then they can lend out, but it is also true that there are plenty of borrowers willing to play their game and they don’t need to play yours.


Re: Hard money Lenders - Realistic Rates. - Posted by Jim Kennedy - Houston, TX

Posted by Jim Kennedy - Houston, TX on November 30, 2001 at 06:56:36:


While I recognize that in your post you’re merely using a hypothetical example to illustrate the concept of negotiating a lower interest rate, nevertheless, I’d give your post greater credibility if the rates you used in your example were somewhat more realistic in relation to current hard money lending practices. Double digit interest rates would be significantly more appropriate when discussing hard money loans.

Best of Success!!

Jim Kennedy,
Houston, TX