Pages

Thursday, 11 July 2013

Non-public Hard Cash Lenders And Running With A Commercial Loan Agent

By Tim Kelly


Private hard money banks are in the business of providing loans and loan services to folks who need hard money loans (loans collateralized by property.) Private hard cash lenders could be direct hard money banks or brokers of hard money loans. Most personal hard money banks are, in reality, brokers. Some private hard cash banks are both brokers and direct banks. In cases like these, the personal hard money lender sometimes funds one or up to a few tiny loans every year and serves in the broker capacity to clients for the loans they help to originate.

Deciding as to whether to work with a hard money broker or a personal hard money lender is analogous to deciding on whether to buy real estate with the assistance of a broker/agent or whether to make an offer direct to the seller by yourself.

The advantages of working without delay with a true private hard bank are immediately evident: You may infrequently save cash by going direct. Brokers are paid for their services through a proportion of the points you pay on a hard money loan. Therefore , the more brokers concerned in a deal, the more you are likely to pay in both points and p.c. to accommodate that cost.

If you have selected a direct hard money lender who is a good match for your project, you'll be able to talk at once with the decision makers, avoiding the 'run around ' that so many hard money borrowers become a victim of. You are told that your loan is going through, only to hear the day after the bank has elected not to take on your hard money loan and now your loan is on another desk in yet another direct lender's office - or worse, on the desk of another broker who may know a broker who knows a bank who may need to fund your loan. Often, the choice of direct lender is based more about the commission the broker will get than on your own interests.

By working with a direct hard funds provider, you can avoid the 'run-around ' and might possibly be able to close more speedily. In fact , nobody knows your present position like you do, nobody can explain any mitigating circumstances better than you can, and nobody is as committed to your business and your hard money loan as you are.

The benefit of working with a commercial loan broker is also clear: a seasoned, well-informed, fair commercial mortgage broker will have the knowledge of and access to the direct license money lender s in Ontario, Canada, and the U. S.. A business loan broker will know where your loan has the best fit. A good commercial loan broker will help you 'package ' your loan to your greatest advantage, helping you work out how much to expect based on the equity in your property, type of property you are collateralizing, how soon you need to close the deal, and more.

A good commercial mortgage broker will be able to help you through the long application process and submit your loan application to the best direct banks for your situation. Very frequently, working with a commercial loan broker will save time. By representing you and presenting your loan request to the best direct banks, it often makes the exchange run smoother than if you were to take on this task yourself. This regularly saves you time and trouble over the long run and be definitely worth the cost of employing a mortgage broker.




About the Author:



No comments:

Post a Comment