Brokers have frequent interactions with a variety of lenders, and it is simple to develop a comfortable rapport with them once relationships have been established. Although it makes sense to work with a couple of conventional lenders in the majority of situations, it is important to remember that not every client has the same financial situation or the same requirements for borrowing money.
In addition, in order to get a loan from a bank, borrowers are often expected to fulfill a number of requirements, such as jumping through hoops or fitting into boxes. If you have a relationship with a hard money lender, you may still be able to provide alternatives to customers who are unable to meet the requirements for a conventional loan.
Four Secrets About Hard Cash that Banks Don’t Want You to Know
It should come as no surprise that conventional creditors would prefer that you were oblivious to the many benefits of hard money borrowing. However, once you find them, they broaden the range of credit possibilities available to your consumers.
1. A 5-day Turbo Close Gives a Competitive Edge
Closing a loan with a conventional bank takes, on average, 30 days, but may often take much longer. Investors in real estate who can close more quickly will have an advantage over those with traditional loans. Even when it is feasible for your customers to get a traditional loan, they may wish to pursue a faster-moving alternative if it would help them close the purchase. You may even be allowed to make a lowball offer if you can provide a 10-day closure.
2. The Offers are Adaptable to the Demands of Every Customer
In certain situations, bank lending conditions may be overly restrictive. When this occurs, get a quotation from a hard moneylender to see whether this is a viable option for your customer. Hard moneylenders may finance a variety of assets, including investment properties, distressed homes, residential rehabs, short-term rentals, cannabis enterprises, and gentlemen’s clubs, among others.
If a customer approaches you with a lucrative possibility that they cannot finance, it is time to use your contact with a hard moneylender.
3. Some Loans Let Consumers Submit Monetary Bids
When there is a lot of other competitors, your clients are going to desire a solution that will provide them an edge. There is really little difference between cash and a hard money loan. Because it makes the transaction easier, a seller would often give more weight to cash offers than those made in other forms. Your clients may be able to realize their real estate investment goals with the help of the combination of lightning-fast closing deadlines and the chance to make a cash bid on the property.
4. Increasing Loan Limits and Property Limitations Entice Investors
Hard money loans are dependent on the borrower’s equity, so if they have an established portfolio, they may be eligible for higher loans, in some circumstances up to $20 million. This might be beneficial for clients contemplating the purchase of the commercial property. A traditional lender may be unwilling to finance a vacant home due to the increased risk involved. A hard moneylender evaluates the whole situation before deciding whether or not to make a loan. If they deem the transaction to be profitable, they will provide a loan.
Additionally, conventional lenders have restrictions on the number of houses they would finance. These restrictions might make it difficult for real estate investors to achieve their objectives. As long as the borrower has sufficient equity, you have choices to provide them, as hard moneylenders are more flexible.
Establish a Partnership with Lendingbee
As a broker with a link with a hard moneylender, you may be the hero who assists your customers in securing financing for bank-rejected projects. A simple phone call might result in extra options for your brokerage firm.
If you’re a broker who wants to learn more about extending your offering outside traditional lenders choose Lendingbee company to guide you through it.