There are so many real estate investors that are running hypothetical situations with their real estate investments.  The fact of the matter is that imaginary situations are never going to get you real money with a hard money lender.  You might have a great plan for investment properties in a certain county, neighborhood, or street, but no one is going to be interested in committing funding until you can plug a real property into the scheme and propose a real concrete deal.

If you provide a hard money lender with hypothetical analysis, the best he can give you is some talk about hypothetical money.  If you really want to make money as a real estate investor, then go find properties, go find good deals, and put good deals under contract.  Once you find good deals, finding the money is the simple part.  We have seen brilliant investors who suffer from “analysis paralysis,” working up complex spreadsheets before they would make an offer or even look at a property.  Bring your ideas into the real world if you want to see real money.

I know it is frustrating when a lot of hard money lenders out there will not make any commitment whatsoever.  They won’t even let you know what counties they will lend in, what states, or what prices.  They won’t be forthcoming with any information at all.  All they will tell you is,”Hey, bring us the deal, and we will see.”

A hard money lender should tell you what they are going to charge, what areas they are willing to service, and other parameters.  Do you know what type of properties they will finance?  Will they do commercial loans?  Will they do multi-unit properties, or will they only do single family dwellings?  What price range can a property fall into, and what charges do they add on?   I think that is critically important information for you to know.

If you are working with a good hard money lender, you can get that information easily and make sure you are within their general guidelines. Good hard money lenders will post this right on their website for the world to see. This will make it unnecessary for you to waste time making phone calls and “interviewing lenders.” You can get it all by the click of a mouse.

Again, we are not talking about analysis paralysis.  We are talking about general, overall guidelines of what to look for.  I can tell you from my own, personal, experience, I believe that you should be looking for single-family homes in major metropolitan areas under $250K. That’s my belief, because I am convinced that when you find homes that meet those guidelines, you will be able to get funding on them very easily—as long as you purchase the property for the right price. So when it comes down to it, just find the deal and you will find the right hard money loan.