How to Choose a Private Lender or Hard Money Loans in Boston
Boston is a very competitive market for private money. The high home values, limited land for new construction and strong economy make Boston an ideal location for Fix and Flip business and real estate investment in general. It seems like every day new entrants into the Boston hard money business come and go. So how do you, a real estate investor, find a Hard Money lender to not only solve your current lending challenges, but who also acts as a long term partner for your success?
In addition to the best financial terms, there are three main criteria you should be looking for when choosing hard money loans in Boston. Local expertise, experience/track record, and programs are the factors to consider to give you the best hard money experience for your bridge, fix and flip, or long-term loan Boston lending needs.
Boston Local Lenders
Some local Boston Hard Money lenders can be more expensive than some of the larger national Hard Money lenders who have greater leverage. Funding is often from private individuals and can be more expensive than some of the lenders with national programs. That said, some local lenders now partner with the national entities who can provide much better programs and rates for your projects. The local Boston Hard Money lender evaluates the project, works closely with the borrower, and asks as a local expert for a larger national lender, resulting in the best of both worlds for you as a borrower. Often local hard money lenders have very specific requirements for what they can or like to lend against. By working with someone who partners with others, the lender is better set up to find the local program that will work best with your unique situation and needs, experience, loan type, location, and timeline.
Boston Local private money lenders
This last group of lenders consists of smaller, private money lenders in the local market. It’s important to understand the difference between private and hard money lenders. Private money is exactly that – private individuals (or a group) – who will lend you money for your project, but this often isn’t their core business. Anyone can lend money, especially in MA where there are no licensing requirements. This means that they may not have the process in place to be able to be responsive and provide the best service, and sometimes make big promises but can’t deliver. Lenders offering hard money loans in Boston tend to be more “professional” and offer specific programs, rules, and criteria to both protect them and you as the borrower.
The other thing to consider is a lender’s stance on how they handle a loan and borrower when problems arise. It’s important to understand whether a lender has a reputation for foreclosing quickly or working out a solution to your challenges and helping you succeed. Most of the larger, reputable, national, regional and local Boston hard money lenders are much more interested in seeing you succeed rather than quickly foreclosing on your project and making money quickly by buying your project cheap.
In Summary, look for a hard Money lender who:
- understands the local Boston market
- has a track record of working with borrowers to drive success
- lends their own capital resulting in more flexibility to you
- has a variety of programs to meet your specific
Why Norfolk Capital for Hard Money in Boston
Make Norfolk Capital your first call when shopping for your hard money needs in the greater Boston area. While we lend throughout the country, Boston is our backyard, where we started lending in 2010. We’ve design our company to offer Hard Money Borrowers the best combination of the best programs, the most flexibility and the best service:
- We have a combined 50+ years of real estate and lending experience in the Boston area. This means we understand the market and can evaluate a loan quickly, as well as help you succeed through our network.
- We’ve done over $100M of deals in Boston, and have a reputation for helping our borrowers succeed. We’re more interested in your success and have mentored many first time borrowers to build a career investing in real estate. Your success is our success.
- We lend our own capital. While we have a variety of sources of capital and lend throughout the country, we only lend our own capital in the local Boston market. This means we’re able to be more flexible to meet your unique needs as well as move quickly because we know the market.
- Because of our track record and partnerships, Norfolk Capital in Boston has the ability to lend across most loan and asset types. We lend for fix-and flip, bridge loans, long term rental loans for commercial, residential, multi-family, mixed use, and new construction loans. See our programs page for more information.
- While we are in Boston, we lend throughout the Greater Boston area. From New Hampshire to Worcester down to Rhode Island, we’re the local market lender for you. We also lend nationwide for any lending needs you may have.