Advice Needed: Transitioning Away from a Hard Money Broker

[James Jackson]

Hey BP Community,

I’m in a situation with my hard money lender that I’d love some advice on.

Currently, I’ve been working through a hard money broker to secure funding for my deals. However, I’d like to work directly with the lender moving forward to streamline communication and save on broker fees.

There’s no legal agreement binding me to the broker. However, the lender is hesitant to work directly with me because they’re worried about damaging their relationship with the broker, who could potentially take business elsewhere.

Has anyone dealt with this type of situation?

• How did you approach the lender to convince them to work directly with you?

• Any tips for maintaining good relationships while making this transition?

• Am I missing any ethical or reputational concerns I should be aware of?

I appreciate any thoughts or experiences you all can share.

Thanks in advance!

[Jacob Haddan]

As a mortgage broker I bring private lenders to my clients. They will never go around me as it's an unwritten rule of doing business not to go direct once the broker brought the borrower. Think of it as your mortgage broker is your private money admin. But if your using the same money source every time you can shop around for a broker that would only charge 50 bps or less or call and research hard money lenders on your own. But you then experience the pain of what we experience as mortgage brokers in correct me and kissing a lot of frogs to find lender's that are actually worth a damn actually fund the deals on time.