Real Estate Professional · San Francisco, CA · Member since 2016 · 22 posts · 8 votes
Hey BiggerPockets! Just wanted to feel the room a little bit. What hard money lenders do you enjoy working with and why? I am in the HML space and want to know what borrowers value most when it comes to lenders. All responses appreciated!
Developer · Hobart, IN · Member since 2014 · 773 posts · 225 votes
9y
Honesty and communication. Look everyone knows the rates for hard money are higher than others that's because it's short term lending and there is a reason why they are looking for hard money. Just be honest and up front about costs, fees if you can or cant fund a deal.
A lot of frustration comes from a hard money lender overselling and under delivering.
Developer · Hobart, IN · Member since 2014 · 773 posts · 225 votes
9y
Honesty and communication. Look everyone knows the rates for hard money are higher than others that's because it's short term lending and there is a reason why they are looking for hard money. Just be honest and up front about costs, fees if you can or cant fund a deal.
A lot of frustration comes from a hard money lender overselling and under delivering.
Real Estate Professional · San Francisco, CA · Member since 2016 · 22 posts · 8 votes
9y
@John Mathewson Thanks for the quick reply! I've definitely noticed that trend. When I talk with borrowers, a lot of the times they are apprehensive or defensive. I think people have just been a bit soured by HML's because of failed expectations and blatant dishonesty.
One thing I will say. HML's DO want the loan to close as badly as the borrowers. If the loan isn't established:
A) It is a horrible customer experience and causes the borrower to scramble for funding, completely eliminating the prospect of repeat business.
B) If the loan doesn't close nothing is made from it. (Interest and Origination)
Vancouver, WA · Member since 2016 · 25 posts · 19 votes
9y
We mostly use Iron bridge lending in my area and we love to work with them because the process is fairly easy. If we need a deal closed in 3 days we can make a call and they will make it happen. Fast response time, quick closing, low down payment and rehab funds holdback is key for us with them.
Real Estate Investor · Los Angeles, CA · Member since 2013 · 2k+ posts · 694 votes
9y
@Zach Hubert-Allen I won't comment on who, but it basically comes down to trust. That's achieved with transparency, communication, referrals, ...and deals that close.
Real Estate Professional · San Francisco, CA · Member since 2016 · 22 posts · 8 votes
9y
@Michael Batista Thanks for the reply! To be completely up front, my company doesn't do anything in the commercial space. We offer residential acquisition + rehab funds, refinances(seasoned/unseasoned), and have just started doing consumer mortgage (30 Year Fixed) in 2017 which we are obviously really excited for!
@Kuba F. Couldn't agree more. Trust and reputation are quite literally everything in this business. I think a lot of that has to do with setting the right expectations and following through on them. Thanks for sharing! If you are ever in SF I'd love to grab a drink and talk REI.