Initial Information on a Hard Money Property Loan

Hard money lenders are private lenders offering a form of alternative financing when banks just won’t do. Here at Actium Partners, we are capable of funding a variety of needs. We specialize in real estate transactions among investors, real estate developers, and the like. Whenever we entertain a new project, there is some initial information we like to have.

This initial information gives us a good idea of whether we should pursue the project further or direct the borrower elsewhere. To that end, providing us the right kind of information will go a long way toward helping you reach your financing needs.

By the way, the things we need to know during the initial stages are not unique to us or to the Salt Lake City market. Hard money lenders across the country look at the same basic information before proceeding with a new client. Below are some examples of that information. As you read, remember we are dealing with real estate transactions.

Property Specifics

Investors and real estate developers put their money in all sorts of projects. That’s fine. To lenders, specifics are important. We want to know things like building size and type. Is a client looking to purchase a 300,000-square-foot warehouse or an 8-unit apartment building? Along with property specifics, photographs can be helpful.

There are some types of investments we do not get involved in. So if you were to send a request for funding of a fix-and-flip real estate deal, we would direct you elsewhere. You may be a real estate investor, but we don’t do fix and flip deals.

Property Location

Believe it or not, the location of the property in question does matter quite a bit. Why? Because location is extremely important in the real estate game. Identical buildings in different sections of town can have drastically different prices. Identical buildings in different portions of Utah can be priced differently, as well. Location means a lot. We like to know location up front.

Deal Value

Next, we really like to know the value of the deal up front. How much are you looking to spend? How much money are you going to put into it yourself? If there are any other expenses you are trying to finance above and beyond the purchase price, we like to know about those things too. We want to understand the total financial commitment we will be asked to put up so we can compare it against property specifics and location.

Reason and Exit Plan

Hard money lenders come to us for a variety of reasons. We appreciate knowing why they are looking at hard money. We also like to know what they are going to do with the money and how they plan to eventually exit the loan. More often than not, a borrower’s exit plan is intertwined with their reason for borrowing.

For example, maybe you want to invest in an office building but, in order to secure the deal, you have to close as soon as possible. You don’t have time to go to a bank, so you come to us because we can fund the project more quickly. You still plan on going to the bank afterwards. Standard bank financing is your exit plan; not having to wait on the bank initially is the reason for coming to us.

The more information clients can provide at initial inquiry, the easier it is for us to determine whether to proceed with a request. Keep that in mind should you plan on contacting Actium Partners for a hard money loan.