When I first started my real estate investing business in Eugene, my biggest mistake was trying to grow it by using as little credit as possible. By minimizing the amount I borrowed, I thought that I’d keep my financing fees low, and I assumed the savings would pay off with more cash in hand for larger deals. But now I know I was missing out on good opportunities for the first couple of years—and I still shake my head at the thought of it.
As it turns out, using leverage in a timely fashion is absolutely critical to taking your house flipping business from point A to point B, and you’ll need to team up with the right lender to make it happen. But while many serve the area, there aren’t too many hard money lenders in Eugene OR specifically, which can complicate the process of finding the right one to work with.
There’s no need to fret, though, as I’ll be walking you through the basics of hard money lending in Eugene so that you’ll know who to talk to, how to engage with them, and why doing both is absolutely worth your time. By the time you’re done reading, you’ll have a few leads for lenders to work with, the knowledge to avoid common pitfalls, and useful tricks that might come in handy. Let’s dive in.
Why You Need The Best Hard Money Lending Partners
Your business needs funding to support your deal flow. The most reliable way to get that funding is with a hard money loan.
Hard money loans grant you the money up-front to purchase, fix, and sell a property. But your share of the home’s equity is held as collateral by the lender. If you miss an interest payment, the lender gets to seize your equity. So, the terms of lending are especially important as you risk having all your hard work on a fix-and-flip go down the drain just as you’re approaching the finish line.
Alternatively, if you’re trying to move quickly on a deal, it’s possible that a slow lender will take so long to assent to your loan request that the window of opportunity will have closed by the time you have the money. In other words, it’s not enough to find a lender with good financing terms—they need to move at a pace that matches with your deal flow.
Unlike with mortgages and other financing options, the hard money lenders Eugene OR has (and everywhere else) are rarely traditional financial institutions. That means you’ll need to protect your business from predatory lenders and those who are charging higher-than-average rates. And when it comes to hard money loans, paying a high interest rate and being expected to pay the loan back within two years’ time are the norm.
Top 3 Hard Money Lenders Eugene OR Has To Offer
Now that you understand why you need an effective hard money lender in Eugene OR, let’s take a look at three of the top hard money lenders in the area so that you’ll get an idea of which one would be ideal for your business needs.
LendingOne is a nationwide hard money lending operation which has a deep presence in the Oregon market.
Though it isn’t the largest or fastest lender, it does have a few special hard money loans targeted at house flippers to make their lives easier, including a couple more exotic loan types that enable investors to utilize money gained from refinancing and other processes. While you probably won’t need to use these more complicated lending products most of the time, they might come in handy as you become a more sophisticated investor.
The main downside of borrowing from LendingOne is that their turnaround time for new loan requests can be a bit slow, especially during busy seasons. Furthermore, it can be somewhat annoying to read through their exhaustive eligibility requirements to find out if you, the property you’re considering, and your business are up to their standards. Finally, if you need to take on a larger-sized deal in excess of $1 million, you might have a hard time with LendingOne.
- Strong knowledge of the Oregon real estate market
- Offers several types of lending for residential real estate investing
- No prepayment penalties
- Loan terms of up to 36 months
- Can take as long as a week to process loan applications
- Many different property-based restrictions attached to loan eligibility terms
Global Capital Partners Lending Fund
Global Capital Partners Lending Fund is catered towards a very specific type of real estate investor who predominantly handles deals that are worth more than $1 million. That criteria alone puts them among the most capitalized hard money lenders Eugene OR has to offer.
This lender is a partner to players in the big leagues, and that means they’re extremely experienced, responsive, and knowledgeable. But it also means they aren’t really interested in working with anyone else.
If you find yourself in their target market, you’ll gain access to a massive amount of leverage for your business, much of which is capable of being quite specialized. For example, you could strike a joint venture financing agreement with them to receive an equity investment in your business at the same time as a cash infusion (with the attendant debt in tow).
Of course, that would be overkill for a lower-value house flip, but it could be a perfect solution for a larger project like the rehab and sale of a high-rise apartment building.
- Home to dozens of highly experienced real estate investors and underwriters
- Great for deals up to tens of millions of dollars
- Offers structured joint venture financing and other mixed equity/debt financing
- Few property-based restrictions on loan eligibility
- Relatively fast loan approval turnaround time for larger deals
- Not intended for any type of deal valuing below $1 million
- Not intended for new real estate investors
- Primary focus is on commercial properties rather than residential properties
Capital Funding Corporation
Capital Funding Corporation sits in the deal size space between the two lenders I’ve discussed so far, offering a smattering of different hard money financing options that are targeted largely at smaller and newer real estate investors.
With Capital Funding Corporation, you’ll be able to get funding for merely making repairs almost as easily as you can receive funding for an entire fix-and-flip deal. Plus, there’s practically no limit on the number of niche hard money financial products they offer, including a few that feature equity investments in businesses.
The catch is that you’ll need to have some hustle to pay off the loans, as their repayment periods tend to run around six months shorter than with comparable lenders. And their interest rates can be as much as a full percentage point above the rates requested by others.
- Great for new investors thanks to minimal borrower requirements
- Lends between $50,000 and $5 million
- Possible to borrow up to 90% of the property’s value in many cases
- Tailored to serving house flippers and all of their niche financing needs
- Quick turnaround times for loan requests
- Interest rates can run higher than average
- Repayment periods can run shorter than average
Streamline Your Borrowing Process
If you’re still not sure which hard money lender in Eugene OR is the right choice to grow your business, don’t worry. As effective as these companies may be, there’s an even better path that’s available to you right now.
Specifically, becoming an independently owned and operated HomeVestors® franchise will grant you access to a hard money lending financing portal where you can work with some of the country’s best pre-vetted lenders. As a result, you’ll spend less on securing your financing and you’ll be protected from dealing with unsavory financiers.
HomeVestors® franchise owners also receive initial week-long training, 1-on-1 mentorship, access to proprietary real estate software, and membership to a powerful nationwide investor network. When it comes to helping my business, franchising with HomeVestors® is one of the best decisions I’ve ever made.
If you’re looking for reliable access to the top hard money lenders Eugene OR has to offer, or if you want to learn more about investing in Oregon real estate, request information about becoming a HomeVestors® franchise owner today.
Each franchise office is independently owned and operated.