When I joined Rock East Funding about five years ago and started meeting investors, I got one of two reactions when I met investors. The first reaction was “Oh great, you’re a lender. Tell me about your terms.” The other reaction was the opposite – “ohhh….you’re a hard money lender.” That reaction was from people who felt it’s a “shady” business where investors get “ripped off.”

Like any industry, unfortunately, there certainly are unscrupulous players in the Hard Money industry. However, if you are working with a reputable lender, Hard Money can be key to fueling your growth and success.

So, let’s dispel some of the Hard Money Myths.

When lenders are deciding whether to make a loan to real estate investors, they really only want to know one thing – am I putting my money in a project that is likely to succeed?  Everything a lender asks you is designed to answer that question.

As one of the most experienced Hard Money lenders in the industry, we know what questions to ask to determine if a deal is likely to be successful. In fact, we know the questions most other lenders will ask as well.

Below are the five questions we always ask about the investor and their deal. By knowing these questions ahead of time, you can be prepared before you reach out to a lender. And when you do talk to a lender, you’ll demonstrate that you are prepared for the investment and increase your chances of getting the funding you need!