When it comes to anything finance-related, you want to be careful who you work with, particularly true of money lending. Whether it’s avoiding unfavorable contracts, hidden fees, or even just bad service, it’s really important to know that you can trust the people you’re working with to value your interests alongside their own.
With that in mind, we’ve put together this handy series of steps you can go through when looking for a Hard Money lender to make sure you get the best deal possible.
What Hard Money Fees are There?
One of the potential pitfalls of Hard Money loans can be the hidden costs or fees that you might not be aware of until it’s too late.
Common sense dictates that the first thing you want to check in any financial interaction is how much it will cost. Still, when it comes to loans, some unscrupulous companies out there will go to a lot of effort to obscure certain costs to make their deal seem more appealing.
That’s not to say that all fees are unreasonable or that you shouldn’t expect to have to spend money to make money. Appraisal fees, inspection fees, and the like are all relatively standard, but you should make sure that you’re fully aware of all the company’s fees before you make a deal.
If the company is hiding some fees or trying to downplay its costs, then this alone should set off red flags.
How Good is the Service?
It might sound inconsequential, but a company’s customer service can tell you a lot about how that company approaches its business. If a company bothers to invest in making themselves easy to communicate with, that signals that the company values the customers’ experience.
Furthermore, fast and efficient customer service could save you real money in the event of any problems.
The more willing a company is to work with you, the more likely they are to have an open and honest approach to how they do business.
What Are the Customers Saying?
In the internet age, customer reviews are easier than ever to find. The downside is that not all customer reviews are completely transparent and honest.
Many companies find ways of artificially inflating their good reviews while downplaying their bad ones. There are a couple of things you can do to avoid being taken in by these kinds of tactics.
The first is to only work with known, reputable companies. In practical terms, this means asking other people you know who they work with or checking the scale of the company’s online presence if that’s not an option.
See if you can find the company mentioned on other sites, check for YouTube videos of people talking about their experiences, and always read the bad reviews and the good ones.
That’s not to say you should believe the bad reviews, but they will point you in the direction of the kinds of problems you’ll need to look out for.
Can You Trust Them?
A good lender will always be looking to make a profitable deal on both ends.
The best way to check for companies that treat their customers well is to find companies with good reputations.
On the other hand, you should always look for shady business practices. Any company worth working with should be looking for repeat custom with you, and a good Hard Money lender will do the work to earn it.