Finding the right hard money lender can make or break your real estate investment. Whether you’re flipping a house, funding a new commercial real estate purchase project, or need a short-term bridge loan, working with a reputable hard money lender can help protect your investment and ensure a smooth transaction.

When Should You Look For A Hard Money Lender?

You might use a hard money lender when you need fast, flexible financing that traditional banks can’t provide, especially for time-sensitive real estate deals or projects that do not meet the criteria for traditional loans. Unlike conventional loans, which often require strong credit scores and lengthy approval processes, hard money loans are asset-based and secured by the property itself, making them ideal for investors purchasing fix-and-flip houses, buying distressed properties, or navigating short-term financing gaps.

You should start looking for a hard money lender early in the real estate investment process, ideally as soon as you’ve identified your investment strategy and are actively searching for an investment property. Having a lender lined up ahead of time gives you a competitive edge, especially in hot markets where speed matters. It allows you to move quickly on deals, make stronger offers with proof of funds, and avoid delays once you’ve found a property to purchase.

How to Find a Hard Money Lender

So you need a hard money loan—where do you turn? If you think hard money is hard to find, here are four easy ways to find a trusted private lender:

1. Online. Hard money lending is a business just like any other, and most lenders have websites with information on the types of loans they make and the terms they typically offer.
2. Mortgage brokers. Some mortgage brokers work with hard money lenders, or know of ones who operate in your area. Talk to your mortgage broker to see if they can line up a hard money loan for you (usually for a fee) or simply recommend some private money lenders for you to check out.
3. Real estate agents or lawyers. Your real estate agent or attorney may be able to recommend local hard money lenders that they’ve worked with on other deals.
4. Other real estate investors and house flippers. Hard money lenders rely heavily on referrals and word-of-mouth recommendations. Talk to other private investors in your area to find out which direct lenders they have dealt with and which ones they recommend.

The main trick to finding a good hard money lender is to ask around and talk to others in the industry to gather referrals and recommendations. And always remember that hard money lenders are looking for borrowers like you just as much as you’re looking for them!

How To Evaluate A Hard Money Lender

After you find a hard money lender, it’s important to make sure that they are the right lender for your needs.

Look for Local Lenders

Although there are national hard money lenders, it is often better to work with a local lender who is familiar with your geographic area and local real estate trends. It’s also important that you choose the right lender for your project, one that is not so large that you become nothing more than a number, but not so small that they can’t easily finance your project.

Do Your Due Diligence

Once you’ve found a lender, you can ask them for references from previous borrowers; a reputable lender will be happy to provide this information. If a lender doesn’t want to provide this information, it should be an instant red flag to you as a borrower that they may not be a legit hard money lender.

Additionally, a reputable hard money lender should be transparent about their loan types, loan terms, interest rates, and available loan amounts, either through clear communication during consultations or directly on their website or other materials. Investors need to evaluate whether the lender’s offerings align with their project goals and financial strategy. Upfront details on factors like loan-to-value (LTV) ratios, repayment terms, and fees allow borrowers to compare options and avoid hidden surprises later in the process. Another question for the lender is, how long have they been in business? A company that has been around for a long time may be a better bet than one that just opened a few months ago.

Looking For a Colorado Hard Money Lender?

When it comes to securing fast and flexible financing for your Colorado real estate investments, Montegra Capital Resources stands out as a trusted partner. With a track record of over 54 years and more than $750 million in loans funded, Montegra offers immediate decisions and rapid closings, often in as little as 7 days, giving you the competitive edge you need in today’s competitive market.

As a direct lender, Montegra maintains full control over underwriting and funding decisions, allowing for customized loan terms tailored to your unique needs. Whether you’re investing in land, multifamily units, commercial properties, or investment-purpose residential properties, Montegra’s commitment to speed, flexibility, fair pricing, minimal red tape, and no surprises ensures a seamless lending experience. Don’t let financing delays hinder your investment opportunities. Contact Montegra today to discuss your lending needs and experience the difference of working with one of Colorado’s premier hard money lenders.