If you’re a real estate investor who needs a hard money loan for your deal, then you might be wondering which hard money lender to work with, how to find them, and what to look for in hard money lenders in Illinois. In this blog post, we’ll give you 4 of the top qualities to look for in a hard money lender in your state.
#1. Look For Experience
You want a hard money lender who is experienced and who can help you. Their experience will be an invaluable guide to you as you borrow the money, pay it back, and borrow again in the future. An experienced hard money lender will be able to look at your deal and help you understand it. Even if they choose not to fund your deal, their knowledge will be extremely valuable to you.
(Of course all hard money lenders had to start somewhere so that’s not to say that you should avoid a lender with no experience but if all else is equal, you’ll probably want to work someone with experience). One way to measure their experience is to find out how much money they’ve loaned or have available to lend.
#2. Look For Testimonials
While testimonials won’t be the only factor in your decision, they should help you figure out who is a good match. What do those other testimonials say about the hard money lender? Were they easy to work with? Was the loan funded quickly? Did the borrower go on to successfully complete their deal?
#3. Look For A Transparent Process
One of the most important things to learn when you’re figuring out what to look for in hard money lenders in Illinois is a transparent process – a clear and straightforward step-by-step method that the lender has laid out for you.
A transparent process tells you that the lender has experience, they’ve perfected their system, they have an emphasis on efficiency, and they’re interested in helping you. A clear and detailed process will help you know exactly what information is needed and when so you can work together with them to get your deals funded.
#4. Look For Alignment
The most important thing to look for when figuring out what to look for in hard money lenders in Illinois is alignment. Different hard money lenders are motivated and guided by different things: some might want a highly profitable loan; others might want to help a certain demographic of investor; others might prefer to lend only to certain kinds of deals.
It’s all good – but you just need to find a hard money lender who is aligned with your goals and your deals. When you find that lender, you’ll discover that it’s so much easier to work with them (than with someone who is not aligned with your goals and deal).