5 Top Questions To Ask When Talking To Hard Money Lenders

No matter what type of lending you’re interested in (a mortgage, a business loan, a credit card or even a cash advance) you’ll need to ask yourself some questions and go with the most simple, honest, transparent, easy to understand answers.

Look for the first gap in your credit. How long does it take to get approved for the credit line? What happens when you put that credit to work? How long before you have to pay back your debt? Ask these questions, especially if you’re asking about minimum payments.

If you’re a debt consolidation borrower, don’t forget to ask about repayment and forbearance options. Are there any payments you can choose from to make sure you’re not living too close to your minimum payment? (In case you forget the questions, you can always do a little keyword searching on Google.)

What happens if you make too much effort to pay off your debt, such as when you must repay a credit card?

“What’s the hidden charge on the loan?”

This is probably the most common question loan officers have heard when explaining a hard money loan to clients. The answer varies greatly depending on your bank and the type of loan. Here are some examples:


Loan-to-value ratios (LTV)

Loan-to-income ratios (LTI)

Life of the loan

An audit or score by a professional who follows up regularly to make sure the loan is operating within its contractual guidelines

Common techniques of hiding the hidden charge on the loan.

“I just got a hard money loan. What are my options?”

Please don’t hesitate to post the following questions to your hard money lenders

But first, here are some suggestions for questions to ask your question to a hard money lender, from the hard money lending point of view.

“I have my wish, now what? How can I make this happen?”

“First, ask yourself, “What am I trying to accomplish with this money?” “This”, for us, means that you will be able to pay all the bills you have in store. Your goal should be to pay off all your debts. Once you have done that, you will have fully met your desire.

“Oh dear, your money might be gone, but you’re looking for ideas to get it back.”

First we’ll say that being a lender to people who are desperate, unfortunates, who are in foreclosure — getting them into hard money loans, lines of credit, you name it — is easy. All you have to do is worry a bit, run a credit check, make a phone call. You don’t have to take the responsibility of raising money for them, of doing the work, of making sure the kids have nice clothes, that they don’t lose their jobs, because you’re going to get them that first payday and they are going to be just fine, right?

It may be tempting to say that you’d get more if you paid it back later. But if you take your bills to a cashier to pay them, they are unlikely to be interested. Many small-time loan brokers and lenders will also decline the request or find that they don’t know how to help you. And these days, there are so many lenders with national reach and scads of potential customers, that finding one that’s a good fit for your situation will probably require more research for hard money lenders in St. Louis.

When you see that lenders accept payments in the form of credit card or check balances, the personal finance world moves from “you probably won’t get anything” to “you might get something.” 

Banks are required by law to check their license holders’ criminal backgrounds, and the Fed declined to comment on whether that would have disqualified either seller. The U.S. Senate has also asked the Fed to release documents about whether the $1.5 billion dollar loan was insured.


James Harrison: James, a supply chain expert, shares industry trends, logistics solutions, and best practices in his insightful blog.