Mortgage brokers work with dozens of clients, helping them secure loans and find the right source of financing for their real estate ventures. However, many brokers tend to steer clear of hard money lenders without really evaluating the pros and cons of this partnership.
Truth be told, hard money lenders and mortgage brokers make for excellent partners, so long as you know how to play your cards right. The way you build a relationship with your clients, taking time to understand their requirements, and sharing your own expectations with them, is also how you should work with a lender.
Here are some insights on understanding more about hard money lenders and why you should consider working with them:
What are hard money loans?
Hard money loans are a type of collateral-based private loan that private lenders offer. The lenders can be private investors or firms, and their selling point is that these loans are generally approved fast and without additional mediators such as banks. These loans are backed on the investment opportunity instead of the borrower’s credit history and offer a ton of flexibility in the process.
Who can benefit from hard money loans?
There are several types of hard money loans that are suited to different borrowers. They don’t make sense for individual borrowers who need them for personal use but rather business owners or real estate developers who want to venture into new construction or need an additional mortgage. Since they are short-term and have higher stakes, they’re great for business opportunities such as commercial real estate.
What kinds of properties are right for these loans?
Hard money loans are used for houses that will be flipped and sold, residential rental properties such as apartments and townhouses, new construction sites and projects that borrowers want to develop from scratch, and other such investment opportunities. They can also be used for second, third, or fourth mortgages or homes with large equities.
What is your role in this transaction?
As a broker, you may be wondering what your role in all this is. The truth is, your role is to represent your client and their interests. You’ll be sharing their profile, their plans for the property, but also their exit plan, repayment timeline, and projections. What you get out of it is a solid commission and happy clients who are satisfied with the fast and smooth transaction and approval on their loan.
Private mortgage lenders and brokers can Get in touch with us to know more about our private money lending services in New York. Clients can apply for private mortgages and hard money loans for properties and real estate opportunities through our services. You can meet with our experts and schedule a consultation to help you work through applying for and acquiring a loan through us. Let’s make this happen!