Trying to figure out if going the old-school route with a local hard money lender is better than using one of these newer online fix and flip loan platforms (like LendingHome or Kiavi). Hard money lenders seem more flexible, but honestly, sometimes they’re kinda slow and want a ton of paperwork. The online ones are quick, but the fees and rates confuse me. Anyone have experience with both? Which did you like more, and why?
Hard money lenders definitely feel like they drag their feet, but at least you can talk to a real person and sometimes negotiate stuff. The online platforms are fast, but man, the fees are all over the place and it’s tough to figure out what you’re actually paying. I tried getting pre-approved with Kiavi and got stuck in this weird loop of automated emails. Anyone else find the online guys a bit impersonal? I get why people like the speed, but sometimes I just want to know who’s actually handling my loan...
Honestly, I hear you on the impersonal vibe with the online lenders. The speed is great, but when you hit a snag, it’s like yelling into the void. I’ve seen folks get tripped up by hidden fees or last-minute changes, too. With hard money, yeah, it can be slow, but at least you know who to call if something goes sideways. Sometimes that human touch is worth a little extra hassle, especially if you’re juggling multiple deals or need flexibility. Just my two cents—fast isn’t always better if you’re left guessing.
Hard money lenders have definitely bailed me out when things got weird mid-project. I remember one deal where the appraisal came in low and my lender actually worked with me to find a solution—don’t see that with the big online guys. That said, paperwork can be a pain, and sometimes their rates make me wince. But at least you know who’s on the other end of the phone, which counts for a lot when you’re knee-deep in reno chaos.
Not gonna lie, the “who’s on the other end of the phone” point is huge. Last online platform I tried, customer service felt like talking to a chatbot—super frustrating when you need answers fast. But yeah, hard money lenders are paperwork-heavy and not always crystal clear about fees either.
Here’s what I keep running into:
- Hard money: more hoops, but real people, sometimes flexibility.
- Online: speedier, but impersonal and their fine print is a maze.
Neither is perfect, honestly. Just comes down to what headache you’re willing to deal with.