Hard money loans are short-term loans offered by private lenders for real estate investments.

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Hard Money Loans 2025 Guide for Real Estate Investors

What is Hard Money in real estate?

Learn how bad credit hard money lenders work for real estate funding. Quickly see property-based criteria, interest rates, and borrower scenarios.

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Bad Credit Hard Money Lenders: Real Estate Financing

Bad Credit Hard Money Lenders: How They Help Secure Real Estate Funding

## Vetting Private Lenders On Facebook

 

Contrary to many people's opinion, not all private lenders on Facebook are scammers. That said, there are a lot of bots and scammers on Facebook claiming to be private lenders. 

 

We market on Facebook and send DMs to people who have indicated transaction intent. It’s actually a great place for real lenders to qualify borrowers and cost effectively acquire clients. 

 

## The #1 Rule: No Upfront Fees

 

The only fee a borrower may justifiably pay prior to closing is appraisal (we require insurance premium to be paid in full prior to closing but that is charged by the insurance broker/carrier). 

 

## How To Research Private Lenders

 

Start with a Google search of the lender by name and company name. Read reviews, read their website, LinkedIn, Facebook page. Hard to find these resources? That might be a first sign they are either not legitimate or not experienced.

 

## Request A Quote From The Private Lender

 

If there are no glaring red flags, request a quote from the private lender. Remind yourself of the old adage: *if it's too good to be true, it probably is*...

 

If you are a new real estate investor and this is your first time vetting private lenders, here are some things to be aware of:

 

### Real private lenders rarely offer 100% financing

 

The most leverage a legitimate lender will offer is typically 90% of purchase price and 100% of rehab costs for experienced borrowers. Lenders want you to have skin in the game. If a person you met on Facebook it telling you they can offer 100% LTV, you should probably not proceed.

 

### Real private lenders do not charge up front fees

 

We are purposely mentioning this a second time because it is far and away the most common scam. You pay an upfront fee and then poof! They're gone.

 

## Private Lender Terms and Interest Rates

 

If the quote is reasonable -- see [Bridge Loan Index](https://www.offermarket.us/blog/bridge-loan-interest-rate-index) and [DSCR Rental Loan Index](https://www.offermarket.us/blog/dscr-loan-interest-rate-index) our publications of prevailing interest rates and origination fees from private lenders -- have a conversation with the lender to review terms and program(s) and how their loan processing works. 

 

If you have an uneasy feeling, ask for references and ask about their experience as a lender. How many deals have they funded this month, in your city, state, etc. 

 

Don’t force it, listen to your intuition. This is an important transaction and vetting process, it's good to be on-guard. If you feel uneasy, there are many other options which would serve as a good frame of reference to strengthen your BS detector. If you have colleagues who work with private lenders, ask for recommendations.

 

## Get A Quote From A Legit Private Lender

 

Competitive terms, total transparency, powered by better technology and service.

 

1. [Get a quote](https://www.offermarket.us/loans) (takes 1 minute)
 
2. Complete processing action items in your [My Loans portal](https://www.offermarket.us/my/loans)
 
✅ Credit & Background Check
✅ Personal Financial Statement
✅ Schedule Of Real Estate Owned (track record of experience)
📄 Download your pre-approval letter
📄 Download your loan terms
✅ Upload entity docs
✅ Authorize title order
✅ Authorize appraisal order
3. Schedule closing

Before doing business with a private lender, use this checklist to avoid bad experiences and outright scams.

How To Tell If A Private Lender Is Legit?

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How To Tell If A Private Lender Is Legit | OfferMarket Blog

How To Tell If A Private Lender Is Legit

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket provides DSCR rental loans, bridge loans, hard money, fix and flip, slow flip, and ground up construction loans.

* Takes 2 minutes, no credit pull

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DSCR Loan calculation

DSCR Loan Common Questions

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