In part one of this two-part blog series, we went over some of the important connections between hard money lenders and mortgage brokers. There are several reasons why it pays for a quality mortgage broker to have a reliable partnership with a hard money lender in their area, especially for buyers who require non-traditional loan types.

At RushFire Private Lending, we’re happy to assist with a variety of hard money loans to numerous investor types, from real estate investors and house flippers to business owners and even construction companies. We often assist business entities with real estate transactions, including partnerships with brokerages to help bring brokers the full range of loan options for their clients. Here are some of the specific benefits to brokers of carrying a hard money lender partnership.

Fast Turnaround

Hard money lenders often a quick turnaround for their loans, which is ideal when a client needs to make a quick decision on the spot. They have less bureaucracy and more streamlined processes than conventional lenders, which allow them to accommodate buyers who don’t want to wait weeks on end for approvals.

Flexibility

Hard money lenders recognize that every deal is different, and may require extra steps or an unconventional loan package. While some lenders may balk at non-conformity, hard money lenders tend to welcome it, recognizing that they can still make the loan profitable. This offers a lot of potential for creative financing options and flexible structuring on a case-by-case basis.

Limited Documentation Needed

Hard money loans also typically require less documentation than traditional loan types, saving time and allowing for more efficiency. Brokers who specialize in non-conventional loans may save their clients a lot of time simply by having a hard money lender to bend over backwards for them, instead of getting stuck with extensive paperwork that won’t get approved.

Hard Money Lenders May Offer Options That Aren’t Available Elsewhere

Since hard money lenders are often creative themselves, they’re usually up on the latest business trends and popular financing methods. They can offer advice to their broker partners about how to get a better deal from conventional lenders, or make innovative suggestions of their own about alternative options that might not be available through other channels.

Simplicity and Clear Expectations

Finally, working with a hard money lender is simple and straightforward. Brokers know that they can count on a hard money lender to make their deals happen, and the broker doesn’t have to worry about being backed into a corner or having to push back against unreasonable demands from their own lenders. Obviously, this makes for much better brokerage-lender relationships in general.

For more on the common relationship between hard money lenders and mortgage brokers, or to learn about any of our hard money lending, commercial real estate loans or similar services, speak to the staff at RushFire Private Lending today.