At first glance a partnership between real estate agents and a hard money loan lender might seem like an unlikely pairing. But they could find that working with a trusted financing partner could make a world of difference when closing the sale.
Besides having financial resources, hard money lenders can provide value in other ways to real estate agents. They can introduce agents to third party appraisers who can perform a more accurate valuation because they're unbiased. The lenders might also have access to other lines of financing that could be used for other purposes.
Your company needs financing, but research and due diligence puts your personal information at risk. The more options you consider, the more vulnerable you become. All lenders want to run your credit and access your personal information. Do not let them. Let Original Funding find you the best rate available, safely and quickly without putting you and your company at risk.
Here are some very good reasons why this partnership could be mutually beneficial:
Having reliable information is vital in the hard money loan world. Of course, getting a reliable source is not easy. Often times, the lack of information can be a major hindrance to borrowers and lenders alike.
New rules established by the Consumer Financial Protection Bureau (CFPB) could have a major impact on hard money lending. Hard money lenders may be subject to the Truth In Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA), sometimes referred to as TRID. This disclosure rule, which some experts have dubbed the “Know Before You Owe,” requires lenders to provide two new documents to consumers when they apply for a loan: a Loan Estimate form and a Closing Disclosure form. By partnering with a real estate agent, a hard money loan lender can disclose the required terms and conditions more effectively.
As rates of commercial financing fraud continue to rise, real estate agents need a reliable and credible source of commercial financing. More importantly, these sources of financing must be more flexible and quicker than traditional financing options. That's when a hard money lender has the advantage.
...it could mean the difference between the client purchasing the property and the deal being scuttled.
Hard money loans can be used for many purposes. They can be underwritten, approved and funded within a short time. For a real estate agent trying to close a deal quickly, it could mean the difference between the client purchasing the property and the deal being scuttled.
In the commercial lending world, a reliable partnership can make all the difference. For us at Original Funding, this relationship matters most. It lets real estate agents and hard money lenders gain access to the resources they both need to flourish.