My great-grandparents shouldered a heap of trouble getting to Oregon. Mud, bugs, rain, snow, heat, the great prairie, the Rocky mountains, broken lands and bogs and bears. Why’d they do it? They wanted land. That’s the part you probably read in school.
But what they don’t teach you is that arriving in Oregon wasn’t the end of the trail—it was the beginning. Pioneer farming was not easy. What was easy was losing your farm to the bank. You had to take debt for seed, and that debt would grow faster than your field would. My grandparents figured this out by watching their parents and neighbors struggle. They realized that if they bought property before the bank foreclosed on it instead, they would be able to sell it for a profit to the next new arrival. It turned out that buying and selling real estate was better business than farming, and that’s the business I’m still in today.
That doesn’t mean there’s no debt involved—my grandparents were friends of the bank, and I frequently rely on hard money lenders to work a deal. It’s similar to seed debt, in a way; you take out a loan based on the value of your assets. In farming, that’s your crop—in real estate, for me, the single-family home.
In fact, without connections to the hard money lenders in Oregon, I think my job would be significantly harder. Finding the right financing for your real estate investing project is about as important as finding a project in the first place. Fortunately, these lenders are ready and willing to work with you—so long as you know what you’re doing and have a good pitch.
Top Hard Money Lenders in Oregon
Hard money lenders make short-term real estate investing possible by providing you with liquidity to buy distressed houses to rehab and sell. Additionally, while a minimum credit score is often required, these lenders place more weight on the value of the property when deciding to give you money. So, long as you’ve got the resources and experience to take on a project, you can usually get funded.
Choosing the best hard money lender comes down to comparing the terms they’ll offer on their loans, then deciding which is best for your project. Some offer shorter repayment terms, some accept higher loan-to-return ratios, and each differs in their interest rates and fees. Read closely, and do the math. Here are a few of the best Oregon hard money lenders to get you started:
Finance of America
Finance of America is ideal for newer investors. It accepts investors with a little less experience than most others, requiring only a single deal. Interest rates for a hard money loan can be as low as 6.99% over a 12-month loan term, and with minimum loans as small as $50,000. However, the minimum acceptable credit score is 620, higher than others, and they require a $50,000 cash reserve.
Residential Capital has an even lower barrier to entry for newer investors—it’ll take a credit score of 600 and $15,000 in cash reserves. Perhaps most interesting to many—it’ll accept investors who don’t have a single deal under their belt. This can give first-timers the chance to get their foot in the door, building experience for future deals. The shorter loan terms play into this as well—first-time investors can start with a simple project, that requires little renovation and sells quickly.
Lending Home requires experience but the bar is not too high to count you out—4 deals in the last two years. Its advantage is in accepting credit scores of 550 with $15,000 cash reserves. So, even if your credit has taken some hits over the years, you can still get a solid loan from Lending Home. That’s why I consider them a working professional’s lender. If they know you’re making deals work, they’ll give you what you need.
Any of these hard money lenders can serve your needs, and each is the best fit for a different investor. As your career progresses, you’ll develop relationships with several. But, Oregon hard money lenders won’t work with just anyone. Before you approach a lender, you’ll need a distressed property and a plan.
An Easy ‘In’ With Oregon Hard Money Lenders
My great-grandparents didn’t do it all on their own when they crossed the country on their way to Oregon—they were part of a team, a group of families all working together. It’s tempting to think of real estate investing as a solo operation, but like my great-grandparents, I think pulling my weight as part of a great team is what’s truly led me to build my business here.
Before I became an independently owned and operated HomeVestors® franchisee, I had trouble convincing lenders to work with me. I was young then, and even though I grew up around the business, I didn’t have much practical experience of my own. I still had to prove myself.
What I learned is that Oregon hard money lenders want to work with investors they can rely on to successfully flip properties. Once you demonstrate you can, they’ll be more open to financing your projects. Lenders appreciate return business. But, unless you’ve had recent or recurring success investing in the area, you’ll be under serious scrutiny.
While hard money lenders didn’t have a record of working with me, they did have connections to HomeVestors® franchisees. They knew about the quality, comprehensive training franchisees receive, and the one-on-one mentorship each franchisee gets from an experienced investor, Development Agent. They knew HomeVestors® marketing generates steady, qualified leads, from their nationally known and trusted “We Buy Ugly Houses®” marketing. So once they knew I was an Oregon-based HomeVestors® franchisee, they knew I was a good investment.
Want to get qualified leads, training, and serious consideration from a network of hard money lenders across Oregon? Contact us to learn more today!
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