how to become a hard money lender broker
Member since 2025 · 12 posts · 7 votes
how to become a hard money lender broker
14 Replies
- Member since 2025 · 12 posts · 7 votes1yDo you need license like you need to become a conventional loan broker aka originator (I happen to be one, licensed in NY and NJ). I want to get into this space and don't know how you become a broker for hard money lending.
Quote from @Rachel Weiss:
Hi, I'm wondering if anyone here knows. How do you become a broker for hard money lending?
- 1yScott WolfPro MemberLender · Boca Raton, FL · Member since 2014 · 1k+ posts · 957 votes
Quote from @Rachel Weiss:
Do you need license like you need to become a conventional loan broker aka originator (I happen to be one, licensed in NY and NJ). I want to get into this space and don't know how you become a broker for hard money lending.Quote from @Rachel Weiss:
Hi, I'm wondering if anyone here knows. How do you become a broker for hard money lending?
Some states require a license, some don't. Some wholesale companies require licenses even when states don't. Find some firms that do both and you'll learn the ropes.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes1y
Quote from @Rachel Weiss:
Hi, I'm wondering if anyone here knows. How do you become a broker for hard money lending?
Get a list of fix and flippers and start dialing. Ask them if they have any projects they are seeking hard money on. Then connect with some hard money lenders (you can find some here on BP as well as some who are typing this right now) and connect with them to understand their product type, what they like to lend on and requirements.
Hard money broker is all numbers game of making relationships and helping those that are looking for financing, it starts out slow but if you get with a few good borrowers and lenders it can be pretty decent money to be made.
As an example we paid six figures last year to HM brokers.
7e investments53 Reviews - Member since 2025 · 12 posts · 7 votes1yThanks a lot. That's exactly why I want to get into it. I have a few good friends that would use me if I can service their HM needs. So is it a matter or reaching out to lenders saying I'm willing and able to act as a broker and ask for their terms/rules? Or does one need a special license / need to open a company?
Quote from @Chris Seveney:
Quote from @Rachel Weiss:
Hi, I'm wondering if anyone here knows. How do you become a broker for hard money lending?
Get a list of fix and flippers and start dialing. Ask them if they have any projects they are seeking hard money on. Then connect with some hard money lenders (you can find some here on BP as well as some who are typing this right now) and connect with them to understand their product type, what they like to lend on and requirements.
Hard money broker is all numbers game of making relationships and helping those that are looking for financing, it starts out slow but if you get with a few good borrowers and lenders it can be pretty decent money to be made.
As an example we paid six figures last year to HM brokers.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes1y
Quote from @Rachel Weiss:
Thanks a lot. That's exactly why I want to get into it. I have a few good friends that would use me if I can service their HM needs. So is it a matter or reaching out to lenders saying I'm willing and able to act as a broker and ask for their terms/rules? Or does one need a special license / need to open a company?Quote from @Chris Seveney:
Quote from @Rachel Weiss:
Hi, I'm wondering if anyone here knows. How do you become a broker for hard money lending?
Get a list of fix and flippers and start dialing. Ask them if they have any projects they are seeking hard money on. Then connect with some hard money lenders (you can find some here on BP as well as some who are typing this right now) and connect with them to understand their product type, what they like to lend on and requirements.
Hard money broker is all numbers game of making relationships and helping those that are looking for financing, it starts out slow but if you get with a few good borrowers and lenders it can be pretty decent money to be made.
As an example we paid six figures last year to HM brokers.
typically no special license is needed when doing it for hard money loans that I am aware of. there may be states like california and nevada that are tricky where lenders need a license of some sort but for most part brokers i have seen are not licensed.
7e investments53 Reviews - Member since 2025 · 12 posts · 7 votes1y
Appreciate all of the responses. Can anyone point me to reputable lenders to start with? I don't want to mess up with my first clients....
- 1yAryia BalaBusiness MemberLender · 26 Harbor Park Dr Port Washington, NY 11050 · Member since 2023 · 49 posts · 9 votes
Quote from @Rachel Weiss:
Appreciate all of the responses. Can anyone point me to reputable lenders to start with? I don't want to mess up with my first clients....
Hey @Rachel Weiss - Not sure where you are located in NY but would be happy to help and give you some background - PM me. We started Malve a few years back and had similar questions. The short answer is, as of today, no licenses to broker private money for business purpose real estate is required by NY or NJ. If you want to dig into it and get technical we can recommend a law firm in the space
Malve Capital LLC4.761 Reviews
- Member since 2025 · 12 posts · 7 votes1y
And I'm assuming the comp is typically 1 point, i.e. 1% of the loan amount?
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Chris Seveney:
Quote from @Rachel Weiss:
Thanks a lot. That's exactly why I want to get into it. I have a few good friends that would use me if I can service their HM needs. So is it a matter or reaching out to lenders saying I'm willing and able to act as a broker and ask for their terms/rules? Or does one need a special license / need to open a company?Quote from @Chris Seveney:
Quote from @Rachel Weiss:
Hi, I'm wondering if anyone here knows. How do you become a broker for hard money lending?
Get a list of fix and flippers and start dialing. Ask them if they have any projects they are seeking hard money on. Then connect with some hard money lenders (you can find some here on BP as well as some who are typing this right now) and connect with them to understand their product type, what they like to lend on and requirements.
Hard money broker is all numbers game of making relationships and helping those that are looking for financing, it starts out slow but if you get with a few good borrowers and lenders it can be pretty decent money to be made.
As an example we paid six figures last year to HM brokers.
typically no special license is needed when doing it for hard money loans that I am aware of. there may be states like california and nevada that are tricky where lenders need a license of some sort but for most part brokers i have seen are not licensed.
14 or 15 states require state license and NMLS registration. NV like Chris mentions even require brick and mortar.. Its funny how many fake lenders use a NV address as well. - Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes1y
To become a hard money lending broker, you usually need to get licensed depending on your state—either a real estate or mortgage broker license. Once you're set up, you start building relationships with hard money lenders who are open to working with brokers. They’ll pay you a fee or points when you bring them deals.
You need to know how to evaluate real estate deals too—things like loan-to-value, after-repair value, and how risky the borrower is. Then it’s all about finding investors who need funding and connecting them with the right lender.
If you want help getting in touch with lenders or figuring out how to package your first few deals, I can help with that too.
- Specialist · NJ · Member since 2022 · 1k+ posts · 650 votes1y
So, most states do not require a license for HML, it is still a good to have next to your name and then you can also do conventional as well, but for HML you do not have to have an NMLS number.
How do you do it? Well, the actual logistics is to research who the national, big box lenders are. Call them and tell them you are a broker and want to sign up with them. You'll have to lie a little and say you have some volume but are looking for a new out. They'll want all your LLC info for your brokerage and all the info on you and you'll fill out a w9 form and then they will create a user/pass for their portal for your company and now you'll need to learn this portal. It will allow you to price deals, analyze deals, upload deals, get UW feedback on deals, provide conditions lists, etc.
Now, you need to learn the products of this industry and know them better than the investors cause they can't be answering your questions, you need to be answering theres. I'm lucky, I started at a lender as a cold caller, and then graduated to processor, and then was promoted to loan officer and by the time I got to that position I knew the loan products very well and I also knew how to sell them and who to sell to. Lots of trial and error and also stealing what has worked for others.
Building up an active client roster is the hardest part. Everyone dreams of having that pipeline that always has 10 loans in it throughout the year but You need 100+ active clients for that. Most are a one a done for the year or maybe two, some try to get two done in a year, your 3+ per year guys are your stars, and if you have a 5+ guy you become his best friend and never let him go, and if you should come across the unicorn 10+ per year guy. You just make sure you pick up his ever call, answer all his emails, there are no business hours for him. He can call you Sunday 7am and you better answer, cause someone else will.
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Mike Klarman:
So, most states do not require a license for HML, it is still a good to have next to your name and then you can also do conventional as well, but for HML you do not have to have an NMLS number.
How do you do it? Well, the actual logistics is to research who the national, big box lenders are. Call them and tell them you are a broker and want to sign up with them. You'll have to lie a little and say you have some volume but are looking for a new out. They'll want all your LLC info for your brokerage and all the info on you and you'll fill out a w9 form and then they will create a user/pass for their portal for your company and now you'll need to learn this portal. It will allow you to price deals, analyze deals, upload deals, get UW feedback on deals, provide conditions lists, etc.
Now, you need to learn the products of this industry and know them better than the investors cause they can't be answering your questions, you need to be answering theres. I'm lucky, I started at a lender as a cold caller, and then graduated to processor, and then was promoted to loan officer and by the time I got to that position I knew the loan products very well and I also knew how to sell them and who to sell to. Lots of trial and error and also stealing what has worked for others.
Building up an active client roster is the hardest part. Everyone dreams of having that pipeline that always has 10 loans in it throughout the year but You need 100+ active clients for that. Most are a one a done for the year or maybe two, some try to get two done in a year, your 3+ per year guys are your stars, and if you have a 5+ guy you become his best friend and never let him go, and if you should come across the unicorn 10+ per year guy. You just make sure you pick up his ever call, answer all his emails, there are no business hours for him. He can call you Sunday 7am and you better answer, cause someone else will.
good post on how to service higher volume flippers.. its how I stay in business we answer within hours or less of any e mail from our clients.. they want to know what they owe we get them a payoff most of the time within 30 minutes to 60 minutes.. draws are on time EVERYTIME and the big one If I say ( and I am the one who says what we do) If myself or my staff says we will fund on X day we ALWAYS make that happen period.. Only way we would not is if there is a weather issues or something.. This is what high frequency borrowers want and expect instant approvals and follow through and they will pay a premium for this service. Companies that take 10 days to under write or you have to give them a ton of info.. Or your draw process is not relaible they may hang in for a while or for cheaper money.. But this bizz is about deal flow bottom line. NOT one and done.
- Specialist · NJ · Member since 2022 · 1k+ posts · 650 votes1y
I agree jay. I always get back to people and in a timely manner and that's just for random calls, for clients I always answer/text/email within minutes of their contact.
Something that has also increased by volume is to help bridge the gap between good deal and investor. Most investors need some getting in front of a good deal. Need help choosing a market and setting up a network.
Most think that this can be done through mass marketing, cold calling, and then sitting back and waiting. It's a much tougher grind than that.
You're looking for your 5+/10+ per year guys but they are few and far between and most times you need to steal them from their current money source by doing something outside the box, lowering your price, or coming to the rescue with emergency financing.
As a broker, you make 1% let's say. So if a loan is 250k then that's 2500, you need like 4 of those every month at all times all year long. There's always a min/max to the monthly as a broker. My worst month last year was about 6k, my best was 27k. It usually hit at around 12k - 15k. And to do that, which is not volume by any means to the top brokers of this industry, but to have my brokerage do that volume and I am a one man show, I work 7 days per week and am in a constant A...B...C if anyone knows Glengarry Glennross.
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Mike Klarman:
I agree jay. I always get back to people and in a timely manner and that's just for random calls, for clients I always answer/text/email within minutes of their contact.
Something that has also increased by volume is to help bridge the gap between good deal and investor. Most investors need some getting in front of a good deal. Need help choosing a market and setting up a network.
Most think that this can be done through mass marketing, cold calling, and then sitting back and waiting. It's a much tougher grind than that.
You're looking for your 5+/10+ per year guys but they are few and far between and most times you need to steal them from their current money source by doing something outside the box, lowering your price, or coming to the rescue with emergency financing.
As a broker, you make 1% let's say. So if a loan is 250k then that's 2500, you need like 4 of those every month at all times all year long. There's always a min/max to the monthly as a broker. My worst month last year was about 6k, my best was 27k. It usually hit at around 12k - 15k. And to do that, which is not volume by any means to the top brokers of this industry, but to have my brokerage do that volume and I am a one man show, I work 7 days per week and am in a constant A...B...C if anyone knows Glengarry Glennross.
I grew up in Glengarry Glenross.. My dad was a land man in the 60s and would drag me to the meetings. And I would go to the in home presentations with him.. And I started my RE career doing the exact same thing In home presentations and selling land on the weekends.. taught you to be a one time closer.. NO ONE was ever coming back.. If you could not close them first time you did not eat.. Just like a great car salesmen there is a certain technique in this business .. those that are personality dud's have a tough time.. they can be smart educated etc. but if they have no inter personal sales skills they wont do that well.. having owned 3 brokerages over the years and more than 200 agents working for me.. U see that play out in real time.. Now commerical RE is different.. But for resi etc.. the ability to close a deal is were its at.. U know Coffee is for closers.
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