Getting a conventional mortgage can turn out to be a major pain if you’re a real estate investor. Generally, there is a lengthy application and underwriting process which is unpleasant when you’re trying to close rapidly on an opportunity. Asides from that, lenders will have to scrutinize your finances and your credit. And overall, you get stricter loan terms compared to a traditional home buyer.
This is why hard money loans are an investor’s cup of tea. They have a straightforward application, and the loan gets funded rapidly because there is less paper shuffling. With a hard money loan, the property serves as collateral and lenders do not have to take a deep probe into your FICO score. So where can you find the best Michigan hard money lenders?
How to Find Hard Money Lenders in Michigan
Leverage Your Existing Network
People you personally know are your best bet when seeking out a loan, especially if you’re new to real estate investing. They may be a parent, aunt, coworker, friend, etc. You have a higher chance of getting a “yes” because they know you and might want to partner with you.
Nevertheless, if the deal fails, the relationship may become sour. Hence, you want to clarify the risks involved beforehand and be able to spot good investments, because odds are they can’t. If you are someone who already has a slew of successful investments in your portfolio, it’s easy to convince people in your network. You can post about your investments on social media to build trust and credibility. You could also leverage your immediate real estate network, your title company, financial advisor, real estate agent, or closing attorney. Any of these people might be able to recommend reputable private mortgage lenders in Michigan.
Attend Local Investor Events and Meetups
Investor meetings like the National Real estate investors association or National REIA were founded to help new investors navigate the world of real estate investing. The National REIA is a nonprofit trade association with chapters and affiliates across the US. It has over 40,000 members. Different chapters charge different amounts for membership while some associations only charge for classes attended.
These meetings are usually attended by hard money lenders who might be looking for investors to partner with. But, when you are finding it difficult to locate a hard money lender, you can converse with expert investors who can give good recommendations on hard money lenders in Michigan to work with.
Search Public Records
Finding hard money lenders in Michigan is as easy as typing this string in Google search, (Michigan + “hard money lenders”) or [your area] + “hard money lenders”. This result will bring a number of private companies that offer hard money loans in Michigan. You can also check out your local county website. Every time a title transfer occurs, there are public records documenting who underwrote the mortgage on the property. If you can’t find this information online, a visit to the Michigan Clerk of Court’s office is your best bet.
Create a Professional Presentation
Even if your spouse is lending you a loan, the goal is to make a good profit. And profits have to be shared based on a predefined arrangement. So you’d probably have to involve an attorney; sign a deed of trust and a promissory note outlining terms and conditions. When you find a hard money lender in Michigan that you are interested in working with, ask them upfront what type of loans they are willing to offer. Furthermore, instead of just giving out a stolid pitch, arrange to have coffee with them a few times. Ignore the non-essentials when pitching. You want to catch their attention right off the bat. Your pitch to Michigan hard money lenders should outline:
- Project — What projects would they be taking on? What makes your business or approach different from the hundreds of thousands of other deals they could take? What is your strategy?
- Partners — Who is involved in this project? In the absence of a second partner, you should speak about your own experience. Other than that, you need to identify the key players, their track records, and the kind of information that will help build trust in them.
- Financing — If you’ve done something like this in the past? Highlight those numbers. Alternatively, make modest, realistic estimates based on good math. Talk about where all the money is coming from. Would you still need a bank loan? How are you allocating funds? What’s the total needed? What and when can they expect the returns?
Top Hard Money Lenders in Michigan
Dr. Daniel & Son Real Estate Investment Lending
Located at 43902 Woodward Ave, Suite 20 Bloomfield Hills, MA 48302, Dr. Daniel & Sons is a premier hard money lender in Michigan. They offer loans up to 500k and can close within 15 days. They originate, fund, and process loans for medium-term financing on non-owner-occupied residential and commercial properties. They lend on a wide variety of property types, such as apartments, office buildings, retail outlets, hotels, storage buildings, senior housing facilities, warehouses, commercial facilities, industrial facilities, and undeveloped land.
Lima One Capital
Lima One Capital specializes in providing customized real estate loans to investors. It’s headquartered in Greenville, South Carolina. Lima One funds fix and flip projects, new construction builds, rental properties, and multifamily investments. Among Lima One’s key loan products are Rental30, a 30-year, fixed-rate, fully amortizing loan, FixNFlip, a 13-month bridge loan for investors buying, renovating, and selling properties, and Multifamily Bridge for 5+ unit multifamily properties.
Academy Mortgage – Ann Arbor
Located at 2455 S Main St, Ann Arbor MI, 4810, Academy Mortgage is a national mortgage company headquartered in Draper, Utah. Academy Mortgage began as a family-owned company. Founded in 1988, it is one of the longest operating hard money lenders in the US. They offer residential mortgages and loans for real estate investors and developers including conventional loans, rehab loans, jumbo loans, FHA, VA, USDA loans, along with construction and bridge loans.
Treadstone is located at 214 Fulton St E, Grand Rapids, MI 49503. They are a local mortgage company renowned for fast closings. Aside from home buyer FHA, USDA, VA, 203k, and conventional loans, they also underwrite and process residential and commercial investment loans for non-owner occupied properties.
You have a lot of options to choose from when seeking hard money lenders in Michigan. Go with reputable lenders who work with a win-win mentality and you’ll be well-positioned for real estate investing success.
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