Choosing the right private money lender for your house flipping loans is about more than just the numbers. Of course, the numbers are important, and the terms of your loan should be a top consideration. But don’t make the mistake of simply comparing loan top-sheets. Two rates might look the same, but actually be quite different.
Priority One: The Loan Itself
You’re likely to go with the private money loans that offer the best terms. That makes a lot of sense, just as long as you are thorough in your analysis of those terms.
Is the private money lender underwriting the loan, or are they a broker? If they’re a broker, they’re taking a cut that wouldn’t be part of the deal if you worked directly with the people who control the money.
Beyond the rate, what kinds of points and fees are tied to your loan? An extra loan point could cost you thousands of dollars down the line.
Will you be penalized if you repay the loan early? Will you be able to use any of the funds for rehab costs? These are the sorts of nuances that you need to be keenly aware of when comparing private money lenders.
Priority Two: The Relationship
If you’re looking for a lender to hand over the cash and get out of your way, that’s fine. But you may prefer a lender who’s in your corner, able to provide insider house flipping tips and share the personal experiences of other similar clients.
Maybe you want a lender who is more of a partner, even willing to go in on joint ventures with you, if that’s what you’re interested in.
Perhaps most importantly, you probably want a lender who can be flexible with your loan terms as you become more experienced. The more loans you complete with them, the better rates they’ll offer.
Priority Three: Professionalism
You need to be able to rely upon the reputation of your lender. You need to know that when they say you’ll have your funds in two weeks, they actually mean two weeks. You also need to be able to get in touch with your lender easily, be treated with respect and courtesy when you call, and know that your business means something to them.
At ZINC Financial, we underwrite all of our own loans and fund house flipping loans in seven to ten business days. We strive to make our application process as pain free and quick as possible, with most applications answered in 24 hours. We value our clients as partners, and we look for new ways to serve their needs day by day, flip by flip.
To learn more about our current loan programs, give our office a call at (559) 326-2509.