Local Vs National Hard Money Lender?

4 Replies

Do you think it makes any difference using a local vs a national lender? If you are just investing in your home state I would think having a local lender would make more sense vs national. 

Would love your thoughts on this matter. 

@Ben C. I truly think it is a matter of personal preference. I feel that larger national firms can give you better service, surety of funds and a searchable reputation.

The local front; they may move quicker and get more aggressive on lending terms since they are usually only playing in their backyard but it is at a premium. On average the smaller players have a higher cost and may only have a limited pool of funds. So if they end up closing a handful of loans before yours, they may run out of funds until they start collecting payments/payoffs.

Last bit of advice I would give; if you don't have time, very unique deal or want to shop it around - use a broker. If you go that route, do yourself a favor and do not shop it around yourself. You are going to pay a broker fee for his/hers knowledge and network.   

@Ben C. sure, but there are usually some items that help. Feel free to PM me or answer on here

- Do you own the land already

- permitted

- Estimated land value

- scope of work 

- Location (city/state) 

- How much are you looking for? 

Those are usually good enough to get you talking to the right people.

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