Finding private money lenders in California is not as hard as it may seem. Given the number of borrowers looking for money and the continuing reluctance of traditional lenders to enter the market, the private lending market has expanded to fill the need. Here are five ways that you can find a source of hard money loans to help your clients close deals:
- Talk to your clients. Odds are that your most active clients have existing relationships with hard money lenders. They may be willing to connect you with their lending sources. At the same time, some of them might even be involved in private lending themselves.
- Contact the American Association of Private Lenders (AAPL). To find the best and most active private money lenders in California and elsewhere, get in touch with the AAPL. The AAPL is the industry’s trade association and maintains a directory of their member organizations.
- Network with escrow companies. Escrow companies know where the money for the deals that they close comes from, even if the actual lender information does not get recorded as a part of the deed. If you can build relationships with a few good, and active closers, you can usually get them to tell you which lenders they see regularly, even if they cannot disclose which lender closed on which deal.
- Research closed deals. You can also do the leg work yourself by researching closed deals. Private money lenders in California that take security interests in the properties will have their information included in the recorded trust deed. Alternately, you can also call the buyer and ask them who they used as a lender.
- Talk to real estate attorneys. While real estate attorneys are less important in California than in other states, those that specialize in working residential investment transactions should also have a sense of active lenders in the market and can help you find good lenders, especially if they know that you will return the favor by steering the business for the closing back their way.
Finding private money lenders in California is not a simple process. However, by using a combination of research, your connections and the assistance of the American Association of Private Lenders (AAPL), you can build a book of high quality lenders that can help you close deals for your clients