Working with a Hard Money Lender: What to Do Before Going to Market

We’ve talked a lot about how to figure out how to find a hard money lender, how make an offer on a house and how to estimate the cost of repairs. But once all the work is done, how do you know you’re ready to put the house or commercial building on the market? There are several steps. First of all, go back to the list of work you and your contractor agreed to. You need to do your own walk-through to make sure everything has been finished as agreed. In any job that requires demolition, don’t be surprised if there are a few scratches or dents that get overlooked. Also make sure everything has been installed properly. Discuss any issues with your contractor so they can be fixed before you go to market.

Inspect the Building to Repay the Private Money Lender On Time

The other thing to check out during your inspection is all the safety issues an inspection would look for. For example, make sure the water heater is elevated appropriately. Make sure that the windows and doors have their weather stripping in place. Hand railings should be sturdy and in good shape. Outside, make sure walkways are free of debris. Also check that no trees are rubbing against the roof or walls of the building. Doing these inspections can really speed up the selling process and ensure you are able to pay back your private money lenders on time.

Finally, before listing, check out the comps in the area again. It’s amazing how fast prices in a market can change. Especially if the project took more time than you initially thought, you need to make sure you’re pricing the building appropriately. Both over- and underpricing can lead to delays in selling. One way to build up good rapport with your hard money lender is to get the building sold in a timely manner, so you don’t need to extend the length of your loan.

For all of your fix and flip plans, get in touch with LendingXpress. We’d be happy to work with you!