How to Talk to Hard Money Lenders – Interview with Houston Investor

In this interview, Kristen gives investors some tips regarding how to talk to hard money lenders. What do you need to know about your property? What questions do you need ask ask? Watch now to find out!

Brian:         Hi. I’m Brian Spitz, president of Big State Home Buyers, Houston’s top firm to go to if you need to sell your house fast, or the best place to go if you want to buy investment property.

Today, we’re visiting with Kristin Gerst, with Bay Mountain Capital. And she’s here visiting us from Dallas, actually. Bay Mountain Capital is a hard money …

Kristin:       Hard money lender. Private money, as well. And we are state-wide. We are in Dallas-Ft. Worth, Houston, San Antonio, Austin and Corpus Christi.

Brian:         Awesome. And what’s your website, just so.

Kristin:       Our website is

What Does a Hard Money Lender Look for From an Investor? (0:01:11.3)

Brian:         Excellent. So today we want to talk a little bit about how to talk to a hard money lender. So if I’m an investor and I want to approach a hard money lender, what do I need? What are you guys looking for? And kind of tell us a little bit about what you guys do that may be different from others.

Kristin:       Well, at Bay Mountain Capital, we are a little different than the other hard money lenders out there. We’re closer to a private lender.

Our fees, our interest rates will be comparable to others. We only charge a point on the front, which is much lower than most of the other guys out there.

Brian:         Right.

Kristin:       We also do a lot of creative financing. So we will look at commercial, industrial. We will look at multi-family. So if anybody has a distressed multi-family building that they come across, we will lend hard money on that.

Brian:         Excellent.

Kristin:       People, all of our investors are always asking, well, does it matter if it’s only 60% occupied or if it needs a ton of repairs. No. It doesn’t. That’s what we’re here for.

We also close extremely fast. And 48 hours is the norm that we can do it in. The fastest we’ve closed is 18 hours.

So we are also a savior at the title company.

Brian:         Oh, yeah. That’s a savior for a lot of people because a lot of hard money lenders, the quickest are usually 3 to 5 days.

Kristin:       Three to five days. But if we are told today and we’ve got a phone call and this needs to get done, we will make it happen.

What Do Hard Money Lenders Require? (0:02:46.7)

Brian:         And so do you guys require an appraisal and do you guys walk the property or send somebody to inspect it?

Kristin:       We do walk the property and look at it just to make sure that the rehab budget is in line with what we’re being told needs to be done.

Brian:         Of course.

Kristin:       We do need an accurate rehab budget because we are, in essence, joining a partnership with the investors to do these properties. And so if they come and say, oh, we’re going to put $30,000 into it and it’s more like $60,000 or $70,000, they may not finish this project. We might get it back. And we still have to put $70,000 into it to get it done.

Brian:         Right.

Kristin:       So we make sure that those rehab estimates are correct.

What is the Maximum Loan-to-Value?  (0:03:28.4)

Brian:         What’s your maximum loan-to-value?

Kristin:       Maximum loan-to-value is 75%.

Brian:         All right. That’s competitive.

Kristin:       It’s very competitive. So we will do that, as well as 13% with three points.

Brian:         Okay.

Kristin:       Only one point on the front end, so you don’t have to come to closing with as much cash.

Brian:         Right. That’s really helpful.

Kristin:       Yeah.

Brian:         Because when you’re rehabbing a house, you need as much of your cash as possible.

Kristin:       Correct.

How Do You Talk to a Hard Money Lender? (0:03:52.0)

Brian:         Tell us how somebody, an investor, should talk to a hard money lender. That was something that you wanted to discuss. Tell me what you mean by that.

Kristin:       Well, you know, people are always nervous about going in and borrowing money. We are looking less at the borrower and more at the asset.

Brian:         Uh-hmm.

Kristin:       What we want to know is, somebody who has experience, who has done this before, great. Tell us about that. What’s your experience?

Somebody who might not have great credit or tons of money in the bank, but we will still lend to you if the asset numbers work out correctly. We want to know that we’re going to get our money back fast.

So do we need to hear, oh, you’re going to get it back in two weeks or thirty days? No. We want something realistic. But somebody who’s going to be flipping a house and taking their time, six months on the renovation that should have been thirty days, you know, a history like that is not something that we’ll be excited about lending on in the future.

Brian:         Well, you can always help somebody, push them along and tell them what to do to better their process.

Kristin:       Absolutely. And we do provide that. Everybody at Bay Mountain Capital, we are all active real estate investors. I’ve done four rehabs since Christmas. And we’re always looking at properties, investing in properties.

I do a ton of owner-financing and notes.

Brian:         So you’re real savvy in all the different financing options.

Kristin:       Right. Absolutely.

Brian:         Okay. Good.

Kristin:       But as far as talking to them, we don’t need to hear a bunch of sunshine. We just need to see an asset and good numbers and know that you have a solid plan and a rehab estimate. And if we can see decent numbers, yeah, we’ll do the loan.

Brian:         You’ll do the loan. One point on the front end.

Kristin:       One point on the front end. Two on the back.

Brian:         That’s real good. So tell us again how we can reach you?

Kristin:       We are at All spelled out.

Brian:         Okay. And we are available at And you can also visit us at, to see some of our investment properties available for sale.

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