Hard Money Lenders - Favorite Way to Find Them

Hard Money Lenders - Favorite Way to Find Them

One of my most common questions is "How do I work with hard money lenders?" or "How do I find good hard money lenders"?


This post gives great information about hard money lenders and I want to note my favorite way of finding them here.

Foreclosure auctions are my favorite way to find hard money lenders.

Let me explain. When most states hold a foreclosure auction they require those that are going to bid to pay cash, large or small amounts, at the auction and pay the rest in a few days. In may state I am required to pay the purchase within 24 hours.

24 hours is too short for any mortgage company. This means that I need to have cash to go to a foreclosure auction. If I am required to have cash so are the other people at the auction.

I want to know if the people at the auction will 1) be hard money lenders or 2) who they use to finance their real estate.

Here is how I do it:

I will walk up to a participant at the auction and introduce myself. I will then ask them if they would be willing to be a hard money lender to me. If they say yes – Great I found a hard money lender. If they say no I reply with this: "Well, sometimes I come across properties I cannot purchase and look to assign those properties. Do you purchase from assignments?" If they say yes I will ask for a business card.

I want the business card so I can go to the courthouse (county clerks, county recorders office) and look up the individuals name and business name to see who is lending them money. I will then contact their lender.

Keep in mind most people who act as hard money lenders want to lend money. They will probably love a call from you and now you have a good hard money lender and someone that will lend at an auction.


If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125

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