Real estate investors often prefer to use private capital or hard money loans when looking to fund new properties because of their quick processing time. However, not all lenders are created equal. In fact, partnering with the wrong lender can turn a good deal bad very quickly. To avoid this, check out these tips for what makes a strong lending partner.
Transparency – As with most things in life, great communication is the key to success. Finding a lender that not only openly and actively communicates with you, but acts as a true champion for your business is incredibly important. Do they help guide you through the process? Answer your questions promptly? Know what’s happening with your loan at each stage? Do they see the deal from not only the lenders’ perspective but also the investors’ perspective? The peace of mind you receive when working with the right lender is just as valuable ━ maybe more valuable ━ as the money itself.
Competitive Interest Rates – Even the smallest percentage can make a huge difference when it comes to interest rates. Many hard money lenders will offer rates starting at 10% and up, which takes away a large chunk from your end returns. With all the hard work you’re putting into your property, you deserve to get the highest returns possible, which is why at Backflip, our interest rates start at 7.75%. We believe in enabling investors to continue doing what they do best: reinvigorating their neighborhood and communities.
Expertise – Lenders who have industry experience and a deep understanding of the real estate market make great partners for investors. Someone who knows a good deal from a bad one, and who can structure your funding with the best possible financing terms will ultimately ensure the best outcome for your business. You also want to know that whoever you’re working with, knows the market and can recognize how to help you handle financing your portfolio for the long term.
Our team at Backflip always aims to act as a trusted capital partner for our members. Working closely with our members, we offer fast financing options that are tailored to your specific investment strategy. When you partner with us, you can rest easy knowing that you’re getting the best risk-adjusted return on your project.
Download the Backflip app to get pre-approved for financing on your next deal.