Hard Money Lenders should be one of your LAST resources. Raw, umimporved and/or unapproved land is one of the most time-consiming, most costly, speculative ventures a person or group may experience.
Most likely, Hard Money Lenders are THE MOST demanding of lenders. Why? Even when you have a corporation or other legally established business entity, they usually want "personal guarantees" - each officer in the corporation puts up or "pledges" his/her/their home[s], other assets titled in his/her/their name, and/or spouse's name, etc.
As far as just putting up that piece of land, so "it stands alone, by itself", is concerned -- you can just about throw that idea out the window. When you sign, that piece of land becomes PART of the deal - along with everything else - everyone's personal assets.
Typically Hard Money Lenders charge high interest rates and "points". For Example: You apply for a $500K loan AND you get approved. BUT, you only get $450K of the actual loan amount to work with.
Why? Because of the points (and sometimes other cost/loan related fees). One point equals 1% of the total amount borrowed. IF you are charged 10 points, each point of that loan equals $5K. Total: $50K. Yet, you are STILL responsible for the payments on that $500K total loan.
Mr./Ms. Hard Money Lender wants and ALWAYS gets that payment -- on-time - every time. OR the folks "who signed on the dotted line", soon discover many very unpleasant things begin happening - many times without warning: foreclosure starts, motor vehicles get taken, etc.
I hope this gave you a very, very rough - yet true,
eye-opening - to the world of Hard-Money Lending. What I wrote about here, hardly begins scratching the surface.
Where do you find Hard Money Lenders?
A) Look in your local telephone book.
B) In your local daily newspaper. In Saturday's and/or Sunday's editions, you may be able to see their ads in the classifieds.
C) If there is a weekly paper in your area, you may see their ads in it.
D) Try going online.
E) If there is a local investment group in your area, join it and participate in its activities.
F) AND/OR ask around.
G) Friends, family, other investors and/or builders/developers may be better sources.
"Every Good Wish to You & Yours!" This is our family's slogan. I wish you, your family and friends nothing but the very best.
Very Truly Yours,
I was in the land development end of the real estate business in PA. I heard about it. I never had it happen to me, but very close folks to me ALMOST lost everything - on a raw land deal.