Hard Money 101:

If you have established a relationship with a hard money lender, you can make a referral that saves the day. When it comes to investment properties, it can be challenging for clients to secure financing with conventional lenders.

Banks have strict requirements, and just one small blemish could result in a loan being declined. In those situations, a private lender can swoop in quickly to help save the transaction and get you paid.

Hard money lenders are used to acting fast, so you can expect quick responses and same-day pricing—often within an hour or two.

You can also expect to get discounts for multiple transactions, which is a compelling incentive for providing multiple referrals. Private lenders also want to maintain strong relationships with brokers and real estate agents who provide referrals, so broker fees are included in the loan offer to protect the referral source and ensure they are paid.

Ultimately, what really matters is helping your clients close deals. With hard money, they can close a transaction that otherwise might not have closed.

Hard money lenders require at least a single bank statement, entity documents, and escrow documents. Other documents may be required depending on the borrower or the transaction. Private lenders are flexible with items and can often fund scenarios with just the bare minimum escrow requirements.

The process varies depending on the lender and their licensing. Talk to your lender to see if you can broker a scenario or refer a scenario. When you refer your client to a private lender, you can be selective with how hands-on you want to be with the scenario. In cases where a transaction needs to close quickly, a loan offer can be delivered within an hour.