Seeking Guidance on Exploring the Hard Money Broker Niche

Fort Lauderdale, Florida
Mortgage Brokers & Lenders
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Seeking Guidance on Exploring the Hard Money Broker Niche

Carmen Falcone
Boca Raton, FL · Member since 2016 · 12 posts · 2 votes

Greetings everyone,

I've recently been presented with a job opportunity as a Mortgage Loan Originator, but as I delved into the industry, I stumbled upon a rather unconventional niche: becoming a Hard Money Broker.

I've been making efforts to gather information about this path, but my searches mostly lead me to courses for sale or results about hard money loans, which are undoubtedly useful but not exactly what I'm looking for.

Would anyone happen to possess knowledge about becoming a hard money broker, or perhaps you could point me in the direction of a valuable resource to expand my understanding of this unique opportunity? Your insights would be greatly appreciated.

Thank you! 

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  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    2y

    @Carmen Falcone

    Its basically the same thing in my view....  You are still doing a sales job.  You just are selling different loan instruments to potentially different clients.

    You might also differentiate between being a true broker and a "loan officer" for lack of better term.  As a broker, you really are just a middleman between your client and a lender that you found that will originate a loan with the best terms for your client.  A loan officer will originate the loan...

    I hope this tidbit helps.  Good luck.

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y

    Hey Carmen, 

    A Hard Money Broker is not just a middle man. A lot of people assume most brokers stick a deal to a lender and collect a referral fee. 

    To be a solid hard money broker, you are basically presenting a clean file to the lender. Especially for those tricky situations. There are plenty of hard money lenders that actually prefer to work only with brokers and have set up wholesale channels for them. 

    Each hard money lender has different risk tolerances, rates, and fees. It's very important to build strong hard money lender relationships so you can get files closed very fast and make your clients happy.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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  • Ryan Davies
    Investor · Salt Lake City, UT · Member since 2019 · 339 posts · 126 votes
    2y

    I do it personally. It can be a very good way to get into the business. We decided to do brokering vs loaning our own money due to the risk. If you are experienced with residential mortgages you will like it a lot. Conversations are completely different. We have considered starting a team as well.

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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    2y
    Quote from @Carmen Falcone:

    Greetings everyone,

    I've recently been presented with a job opportunity as a Mortgage Loan Originator, but as I delved into the industry, I stumbled upon a rather unconventional niche: becoming a Hard Money Broker.

    I've been making efforts to gather information about this path, but my searches mostly lead me to courses for sale or results about hard money loans, which are undoubtedly useful but not exactly what I'm looking for.

    Would anyone happen to possess knowledge about becoming a hard money broker, or perhaps you could point me in the direction of a valuable resource to expand my understanding of this unique opportunity? Your insights would be greatly appreciated.

    Thank you! 

    Some good answers have been provided on this thread
    We are a direct hard money private lender.  We run a $40 million private mortgage fund.  Specialize in commercial properties.  And 90% of our loans come to us through mortgage brokers/ intermediaries. 

    The brokers that bring us the most lendable deals are those that broker/originate all kinds of commercial loans.  The reason is that almost no one wakes up one morning and says to themselves I want a commercial loan and I want to pay 13% interest and 5 points, and want the loan to mature in 12 months.  They all think they’re going to get a 6% loan with 1 point and 20 year term.  It’s only when they’ve been rejected numerous times that the reality sinks in.  The broker who offers all types of commercial mortgage loans is in a position to offer hard money financing if his sources of less expensive money have turned the borrower down.  

    We do get some loans through “hard money only” brokers.  Usually, they have obtained their borrower contact through other commercial brokers who have not been able to place the loan, and they share the broker fee.  
    Private Mortgage Financing Partners, LLC
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